Diamond Offshore Revenue Beats Estimates
(File photo: Diamond Offshore)
Diamond Offshore Drilling Inc's fourth-quarter revenue beat analysts' estimates on Monday, helped by higher demand for its ultra-deepwater rigs.
The company's revenue from its ultra-deepwater rigs rose more than 24 percent to $288.28 million in the fourth quarter.
Total revenue fell nearly 12 percent to $346.21 million, but beat analysts' estimate of $331.91 million, according to Thomson Reuters I/B/E/S.
"Although market conditions continue to be challenging, we were able to secure additional work for the Ocean Valor and Ocean Valiant, extending both of the rigs' current contracts through 2020," Chief Executive Marc Edwards said in a statement.
The rig contractor's results come weeks after the Donald Trump administration drew up a proposal to open up almost all of U.S. offshore waters to oil and gas drilling, a move expected to help the struggling industry stage a comeback.
The company reported a net loss of $32 million, or 23 cents per share, for the quarter, compared with a profit of $116.1 million, or 85 cents per share, a year earlier.
Diamond Offshore took an impairment charge of $28 million related to its rigs.
Excluding one-time items, the company posted a loss of 5 cents per share, smaller than analysts' average estimate of a 6 cent loss.
(Reporting by John Benny in Bengaluru; Editing by Maju Samuel)