For the quarter ending in September, Diamond offshore reported a better-than-expected operating income of $58.581 million, a 181% increase from the previous quarter. Total revenues of $366 million decreased 8%. The adjusted net income ($33 million) decreased 46%.
“Despite the continued weakness in the offshore drilling market, we achieved favorable third quarter results,” said Marc Edwards, President and Chief Executive Officer. “During the quarter we were able to secure additional work for our proficient moored fleet, with new wins for the Ocean Apex and Ocean Patriot, at rates well above cash flow breakeven. In addition, we took proactive measures during the quarter to further enhance our liquidity runway and better position Diamond for the eventual recovery.” As of September 30, 2017, the Company’s total contracted backlog was $2.6 billion, which represents 20 rig years of work.
Contracts for the Ocean Apex and Ocean Patriot are short contracts (2 and 3 months).
Diamond revenue is driven by the long term contracts of four UDW drillships working for Anadarko and Hess in the Gulf of Mexico at dayrates from $400,000 to $495,000. Diamond’s fleet status shows that 6 aging semi-submersibles are cold stacked and 5 held for sale. (Source: Diamond Offshore)