Diamond Offshore’s Q2 Results Fall Short Of Consensus

Diamond Offshore Drilling, Inc DO reports its net income for the second quarter at $224.4 million, or $1.61 per share on a diluted basis, as compared to $387.4 million, or $2.79 per share, in the same quarter a year ago. DO’s revenues for the quarter were $822.6 million, as compared to $946.4 million in the year-ago quarter. The analysts expected Diamond Offshore to earn $1.78 on revenue of $863.30 million in the quarter. According to Larry Dickerson, President and CEO, “The decline in renewal contract dayrates from peak levels is continuing to impact our results. In a related statement today, we announced a special quarterly dividend of $.75 per share, representing a reduction of $.625 per share from the previous special dividend, as well as our regular quarterly dividend of $.125 per share. The reduction in the special dividend reflects the lower revenue stream and the continuing uncertainty surrounding a drilling moratorium in the Gulf of Mexico. We believe that given the current and anticipated industry conditions, it is increasingly prudent at this time to retain cash to maintain the Company’s financial strength and strategic flexibility, as well as to position us for potential rig acquisition opportunities. We believe that our special dividend policy is an important part of our efforts to enhance shareholder value.” DO's shares fell 2.87% to $62.30 in pre-market trading. Read more from Benzinga's Company news.
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Posted In: EarningsNewsDividendsMarketsEarningsEnergyOil & Gas Drilling
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