Ocean Rig’s third quarter results
Ocean Rig (ORIG) released its 3Q16 results on December 14 after the market closed. It was followed by a conference call the next day.
Ocean Rig’s revenue and EBITDA
Ocean Rig’s revenue fell to $335 million in 3Q16 from $452 million in the previous quarter and $437 million in 3Q15. Its EBITDA (earnings before interest, tax, depreciation, and amortization) fell to $219 million from $325 million in the previous quarter. It was also lower than EBITDA of $278 million in 3Q15.
Investors seem disappointed with Ocean Rig’s results and conference call. Its price fell 32% on the day of the conference call.
On December 15, other offshore drillers’ (OIH) stock performances were as follows:
Earnings compared to estimates
In 3Q16, Ocean Rig’s EBITDA was 4% lower than Wall Street analysts’ estimate of $228 million. Its revenue was also 7% lower than the estimate of $360 million.
What’s in this series?
In this series, we’ll look at Ocean Rig’s 3Q16 results and conference call highlights. We’ll also analyze the company’s current position, management’s plans for the future, and discussions between management and analysts.