Revenue and EBITDA
Ocean Rig’s (ORIG) revenue rose marginally by 1% to $437 million in the third quarter in comparison to $433 million last quarter. Even after just a 1% revenue increase due to the company’s cost-saving initiatives, the company’s EBITDA (earnings before interest, tax, depreciation, and amortization) rose by 5% to $278 million from $265 million in the second quarter.
Actual revenue versus estimates
In 3Q15, Ocean Rig’s revenue was in line with Wall Street analysts’ estimates. On the other hand, like many other offshore drillers, Ocean Rig also beat analysts’ EBITDA estimates. The company’s EBITDA was 15% higher than estimates of $242 million.
Ocean Rig’s results were announced on December 7 after the market close. The next day, the stock rallied up to $1.7 from its previous day close of $1.5. But these positive sentiments didn’t last long. The company’s conference call did not provide much insight into the company’s future strategy and the stock price tumbled back to close at $1.5, which was a 0% return from the previous close. On the same day, other offshore drillers’ (IYE) stock prices returns were as follows:
What you’ll find in this series
In this series, we’ll look at Ocean Rig’s fiscal 3Q15 results and conference call highlights. We’ll also analyze the company’s current position, management’s plans for the future, and discussions between the company’s management and analysts. We’ll also look at the management’s views on the outlook for the offshore drilling industry.