UPDATE: Ocean Rig UDW Posts Downbeat Q4 Earnings, But Revenue Beats Expectations

Ocean Rig UDW Inc. ORIG reported weaker-than-expected earnings for the fourth quarter. However, the company's revenue exceeded analysts' estimates. The Nicosia, Cyprus-based company reported a quarterly net income of $87.5 million, or $0.66 per share, compared to $39.7 million, or $0.30 per share, in the year-ago period. Revenue from drilling contracts climbed to $499.4 million from $345.5 million. However, analysts were expecting earnings of $0.71 per share on revenue of $487.69 million. Adjusted EBITDA climbed to $276.7 million in the fourth quarter, up from $163.8 million in the year-ago quarter. Drilling rigs and drillships' operating expenses surged to $194.8 million in the quarter, versus $138.3 million last year. Total general and administrative expenses slipped to $34.8 million from $41.2 million. George Economou, Chairman and Chief Executive Officer of the Company, said, "We are pleased to report another solid quarter driven by strong operating results and a fleet utilization of approximately 95%...The market remains challenging and we continue to navigate this downturn by staying close to our customers, providing a first class service and showing flexibility as needed to reach solutions that benefit all parties." Ocean Rig UDW shares gained 1.45% to $8.40 in after-hours trading.