Diamond Offshore’s Backlog and Contracts


Feb. 23 2018, Updated 10:45 a.m. ET

Company backlog

As of January 1, 2018, Diamond Offshore Drilling (DO) had a backlog of $2.4 billion—compared to $3.5 billion on January 1, 2017, and $2.6 billion on October 1, 2017. A company’s backlog helps us gauge where its future revenue could stand.

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Backlog for 2018–2019

The following breakdown shows Diamond Offshore’s revenue backlog for 2018–2019.

  • The backlog for 2018 stands at $1.14 billion, which is 22% lower than the revenue in 2017.
  • The backlog for 2019 stands at $1.02 billion. If Diamond Offshore isn’t able to secure new contracts, its revenue for 2018 could be almost 31% lower than its 2017 revenue.

Backlog breakdown

Of the total $2.4 billion in the backlog, $2.2 billion (or 92%) comes from ultra-deepwater floaters. The deepwater floater backlog is $90 million, while the remaining $105 million comes from other rigs.

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  • Diamond Offshore was awarded a new contract with Chevron (CVX) for the semi-submersible Ocean Guardian in the United Kingdom. The rig is contracted for two wells. The work will commence in late May 2018 to late September 2018.
  • Ocean Valiant secured a contract extension from Maersk. The rig will continue to work until mid-December 2018.

Other developments

  • Diamond Offshore’s semisubmersible Ocean Apex will continue to work until early March 2018 compared to early April 2018.
  • Ocean Onyx is now stacked in Malaysia.


Other offshore drillers haven’t released their fourth quarter results. Diamond Offshore’s 3Q17 backlog-to-trailing 12-month revenue ratio was 159%. Transocean’s (RIG) 3Q17 backlog-to-trailing 12-month revenue ratio was 299%, while Noble’s (NE) ratio was 242%. Diamond Offshore’s ratio was better than Rowan Companies’ (RDC) and Seadrill Partners’ (SDLP) ratios of 55% and 146%, respectively. To learn more about these companies’ backlogs, read Which Offshore Driller Has the Highest Backlog among its Peers.


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