Revenue and earnings fall
Diamond Offshore Drilling’s (DO) revenue fell 8% in 3Q17 to $366 million, compared to $399 million in the previous quarter. Its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) fell quarter-over-quarter. In 3Q17, its recorded EBITDA was $141 million, compared to $178 million in the previous quarter.
Actual versus estimates
In 3Q17, Diamond Offshore’s revenue exceeded the estimate by Reuters of $363 million by 0.8%, with revenue of $366 million. Its EBITDA was near the Reuters estimate of $142 million, coming in at $143 million.
Diamond Offshore stock on the day of its earnings rose 9%. The company secured a few new contracts with day rates well above the cash break-even. It secured additional terms for two rigs in Australia and the North Sea. It also secured a new contract with Shell (RDS.A) for its rig Ocean Patriot.
In this series, we’ll look at Diamond Offshore Drilling’s 3Q17 results and conference call highlights. We’ll analyze how the company performed in the quarter and take a look at its costs and capital expenditure guidance for the fourth quarter. Finally, we’ll see which Wall Street analysts changed their recommendations and target prices after DO’s 3Q17 earnings announcement.