Diamond Offshore Drilling Reports Decrease in Contract Drilling Revenue in Latest Quarter
Segments of revenue
In the three months ended September 30, 2023, Diamond Offshore Drilling reported total revenues of $244.96 million. The majority of the revenue came from contract drilling services, which amounted to $224.93 million. Additionally, the company generated $20.03 million in revenues related to reimbursable expenses.
Despite a decrease in contract drilling revenue compared to the previous quarter, Diamond Offshore Drilling demonstrated strength in its average daily revenue, which increased by $6.2 million. This increase partially offset the negative impact of a 155-day decrease in revenue-earning (R-E) days. Furthermore, the company reported $4.3 million in revenue associated with the termination of a second well option program for the Ocean Apex.
Diamond Offshore Drilling faced challenges in the third quarter of 2023, as R-E days decreased compared to the second quarter. This decline was primarily due to downtime associated with a shipyard project for the Ocean BlackHawk and the warm stacking of the Ocean Patriot.
It is worth noting that Diamond Offshore Drilling's operating income improved significantly compared to the same period last year. The company reported an operating income of $863,000 in the latest quarter, compared to a loss of $7.57 million in the third quarter of 2022.
Diamond Offshore Drilling experienced a decrease in contract drilling revenue in the latest quarter, primarily due to a decrease in R-E days. However, the company's average daily revenue showed strength, partially offsetting the decline. Diamond Offshore Drilling also reported a positive operating income, indicating improved financial performance compared to the same period last year. The challenges faced by the company, such as downtime associated with shipyard projects, should be monitored in future quarters.