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Key Highlights of Diamond Offshore’s 3Q16 Results

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Revenue and EBITDA fell

Diamond Offshore Drilling’s (DO) revenue fell 10% in 3Q16 to $349 million, compared to $388 million in the previous quarter. Its comparative EBITDA (earnings before interest, tax, depreciation, and amortization) also fell quarter-over-quarter. 

In 3Q16, Diamond Offshore recorded EBITDA of $140 million—down from the $156 million it recorded in the previous quarter.

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Actual versus estimates

In 3Q16, Diamond Offshore’s revenue exceeded analysts’ expectations of $128 million by 9.5%. The company’s revenue was $140 million. On the other hand, the company missed Wall Street analysts’ consensus EBITDA estimate of $361 million by 3.3%. Its EBITDA for 3Q16 stood at $349 million.

Stock performance

Diamond Offshore released its 3Q16 results on October 31, 2016. On the day, Diamond’s share price fell 4%. On the same day, the share prices of Ensco (ESV), Seadrill (SDRL), Seadrill Partners (SDLP), and Pacific Drilling (PACD) also fell 4% each.

What you’ll find in this series

In this series, we’ll look at Diamond Offshore’s 3Q16 results and conference call highlights. We’ll also analyze how the company performed in the quarter. We’ll take a look at its costs and capital expenditure guidance for the coming quarter.

Diamond Offshore had some good and some bad news with respect to its contracts, which we’ll take a look at as well. The company has one of the oldest fleets among its peers, and we’ll also discuss how the company plans to deal with this. 

Last but not the least, we’ll see which Wall Street analysts changed their recommendations for Diamond Offshore after its 3Q16 results.

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