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DO NYSE· Diamond Offshore Drilling Inc.
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DO NYSE· Diamond Offshore Drilling Inc.
Earnings report Q4 2023

Diamond Offshore Drilling Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

In the latest quarter, Diamond Offshore Drilling reported total revenues of $1.06 billion. The majority of the revenue, $983.98 million, was generated from contract drilling services. Additionally, the company earned $72.20 million in revenues related to reimbursable expenses.

Strengths

Diamond Offshore Drilling experienced a significant increase in contract drilling revenue compared to the previous year. The increase can be attributed to higher average daily revenue earned, which amounted to $211.2 million. Furthermore, the company saw a 204-day increase in revenue-earning days, contributing an additional $48.0 million to the overall revenue growth. Management attributes the higher average daily revenue to dayrates earned by the Ocean BlackHornet and West Auriga, which operated under new contracts or extensions at higher dayrates than in the previous year.

Challenges

Despite the overall revenue growth, Diamond Offshore Drilling faced some challenges in the latest quarter. The company reported a decrease in utilization, which dropped from 65% in the previous year to 64% in the current year. This decline in utilization may indicate a lower demand for contract drilling services or increased competition in the industry.

Noteworthy

It is worth noting that Diamond Offshore Drilling's contract drilling revenue for the latest quarter included revenue from the Ocean GreatWhite and West Vela, which commenced drilling operations in the first quarter of 2023 and fourth quarter of 2022, respectively. Additionally, the Ocean BlackHawk operated in the Gulf of Mexico after completing its contract in Senegal.

Summary

Diamond Offshore Drilling delivered a strong performance in terms of revenue growth in the latest quarter. The company experienced a significant increase in contract drilling revenue, driven by higher average daily revenue and an increase in revenue-earning days. However, the decrease in utilization poses a challenge for the company. Overall, Diamond Offshore Drilling's financial performance reflects its ability to secure new contracts and operate at higher dayrates, contributing to its revenue growth.

Source documents

Form 10-K  filed on Feb 28, 2024
113 pages scanned

Reference data

Company financials Q4 revenue 280M
Analyst estimates Q4 EPS beat by 294.44%
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