Diamond Offshore Drilling (DO) earns revenue by operating floating rigs as well as jack-up rigs. Its total 3Q17 revenue was $366 million, a fall of almost 8.2% from $399 million in 2Q17 and a 4.8% rise year-over-year. The quarterly fall in revenue was mainly driven by two rigs—Ocean Victory, and Ocean Courage.
The Ocean Victory completed its contract in the second quarter. That fueled the majority of revenue decline in the third quarter. Ocean Courage was out of service for more than half of the third quarter for planned BOP (blowout preventer) upgrades. The fall in revenue for these two rigs was partially offset by a full quarter of operations for the Ocean Monarch and operational efficiency metrics.
In 3Q17, 77% of Diamond Offshore’s drilling revenue came from the ultra-deepwater segment. The segment’s revenue fell to $275 million in 3Q17 from $282 million in the previous quarter. Its 3Q17 deepwater segment revenue was $35 million, a 47% fall from $66 million in 2Q17.
Along with Diamond Offshore Drilling, Ensco has released its earnings for the quarter ended September 30, 2017. It recorded revenues of $460 million, a 0.6% rise from the previous quarter.
The other offshore drilling (XLE) companies haven’t released their 3Q17 results yet. Wall Street analyst expectations are as follows:
- Seadrill’s (SDRL) revenue is expected to fall 15% to $490 million in 3Q17, compared to $577 million in the previous quarter.
- Rowan Companies’ (RDC) revenue is expected to fall 12% quarter-over-quarter.
- Noble Corporation’s (NE) 3Q17 estimated revenue is $268 million, a 3.5% fall from $278 million in 2Q17.
Diamond Offshore could be anticipating another sequential fall in revenue for 4Q17. Ocean Patriot’s contract ended in October 2017, and Ocean Sceptor’s contract is expected to end in November 2017. That could reduce its revenues in 4Q17. None of the new contracts are expected to begin.