Diamond Offshore 1Q Profit Falls 26% On Lower Revenue, Higher Costs

Date : 04/19/2012 @ 6:51AM
Source : Dow Jones News
Stock : Diamond Offshore Drilling, Inc. (DO)
Quote : 14.75  -0.09 (-0.61%) @ 2:48PM

Diamond Offshore 1Q Profit Falls 26% On Lower Revenue, Higher Costs

Diamond Offshore Drilling (NYSE:DO)
Historical Stock Chart

5 Years : From Apr 2012 to Apr 2017

Click Here for more Diamond Offshore Drilling Charts.

Diamond Offshore Drilling Inc.'s (DO) first-quarter earnings slid 26% as the contract driller was hit with higher costs.

The company declared a special quarterly dividend of 75 cents a share, in addition to its regular dividend of 12.5 cents a share.

The offshore drilling sector has had a challenging time since 2010's Deepwater Horizon disaster in the Gulf of Mexico, when a rig explosion killed 11 men and triggered a massive oil spill. U.S. authorities began approving deep-water drilling projects in February of last year, though the government's official moratorium was previously lifted.

Diamond Offshore, which is majority owned by Loews Corp. (L), reported a profit of $185.2 million, or 1.33 a share, down from $250.6 million, or $1.80 a share, a year earlier.

The latest period included an after-tax gain of 12 cents a share from the sale of jack-up rig Ocean Columbia.

Revenue decreased 4.7% to $768.6 million. Analysts polled by Thomson Reuters most recently projected earnings of 99 cents on revenue of $757 million.

Operating margins fell to 34.5% from 39.6%. Contract drilling expenses rose 9.6%.

Day rates and utilization declined for the company's mid-water floaters. Rates were off 3.3% and utilization declined to 65% from 81%.

For ultra-deepwater floaters, day rates were up 6.1% and utilization improved to 85% from 77% a year earlier. For deepwater floaters, day rates were up 4.7% and utilization grew to 88% from 83%. Both types of vessels typically operate in deeper water than conventional drilling platforms.

Loews Corp. is set to report its first-quarter results April 30.

Shares of Diamond Offshore closed Wednesday at $66.15 and were inactive premarket.

-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com




Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.


NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.