Diamond Offshore Drilling Inc. (NYSE:DO) incurred second-quarter 2019 adjusted loss of 99 cents per share, wider than the Zacks Consensus Estimate of a loss of 89 cents and the year-ago loss of 33 cents as well.
Moreover, total revenues amounted to $217 million, down from $269 million in the year-ago quarter. The figure also missed the Zacks Consensus Estimate of $227 million.
These weaker results were primarily caused by reduced average day-rates and lower rig utilization.
Operational Performance
Rigs recorded an average day-rate of $273,000, lower than $317,000 in the prior year. Moreover, rig utilization slipped to 51% from 53% a year earlier.
In the second quarter, revenues in the Contract Drilling segment dropped 21.8% year over year to approximately $207.3 million.
Diamond Offshore Drilling, Inc. Price, Consensus and EPS Surprise
Diamond Offshore Drilling, Inc. price-consensus-eps-surprise-chart | Diamond Offshore Drilling, Inc. Quote
Financials
As of Jun 30, 2019, Diamond Offshore had approximately $147.5 million in cash and cash equivalents while long-term debt totaled almost $2 billion. The debt-to-capitalization ratio was 24.8%.
Guidance
For the third quarter, the firm anticipates its contract drilling expenses between $205 million and $215 million.
Moreover, the capital budget guidance for the full year is raised $20 million and estimated to be in the range of $360-$380 million.
Zacks Rank & Key Picks
Diamond Offshore Drilling carries a Zacks Rank #3 (Hold). Better-ranked players in the energy space include Transportadora De Gas Sa Ord B (NYSE:TGS) , Halcon Resources Corporation HKRSQ and World Fuel Services Corporation (NYSE:INT) . While Transportadora and Halcon Resources sport a Zacks Rank #1 (Strong Buy), World Fuel Services holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Transportadora earnings beat the Zacks Consensus Estimate in the last four quarters.
Halcon Resources earnings beat the Zacks Consensus Estimate in three of the previous four quarters.
World Fuel Services earnings beat the Zacks Consensus Estimate in the trailing four quarters.
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World Fuel Services Corporation (INT): Free Stock Analysis Report
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Transportadora De Gas Sa Ord B (TGS): Free Stock Analysis Report
Halcon Resources Corporation (HKRSQ): Free Stock Analysis Report
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