Ocean Rig UDW Inc (NASDAQ: ORIG) reported mixed quarterly results Tuesday after market close, and subsequently has begun sinking in premarket trading Wednesday.
Prior to the release, earnings expectations were at $0.78 on the Street with analysts' consensus between $0.37 and $1.02 EPS. Revenue expectations were between $444.10 million and $518.00 million, with the average coming in at $481.15 million.
Q4 EPS came in at $(1.26), adjusted EBITDA at $300.8 million and sales of $475.727 million versus an estimated $481 million, profit came in at $78.8 million and revenue at $1.75 billion.
According to the company's report, the positives include a continuation of debt buybacks at discounted prices, decreased G&A costs compared to the year-ago figures, higher drilling expenses, 99.5 percent fleet utilization in Q4 and a new contract extension.
Negatives include a $174.4 million net loss, news that the company is likely to owe on an Ocean Rig Apollo related-loan, contract terminations and income drops from $499.4 million to $475.7 million for the quarter and comparative quarter last year.
Down more than 4 percent in premarket trading, Ocean Rig was down more than 10 percent shortly following the opening bell, trading around the $1.30 handle.
Seadrill Ltd (NYSE: SDRL) is also seeing significant sell-offs, down roughly 9 percent in early morning trading, recently seen trading at $4.40.
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