Diamond Offshore Drilling Inc (DO)

[eFinanceMarkets]

$DO Diamond Offshore +3% after strong Q2 earnings beat

Diamond Offshore Drilling (DO +3.3%) enjoys strong gains after easily beating Q2 earnings expectations, boosted by higher utilization in the ultra-deep and deepwater segments.

Q2 revenues in DO's ultra-deepwater segment rose 16% Q/Q in Q2, representing 72% of total drilling revenues vs. 67% in Q1, with utilization of 59% vs. Q1's 50% but at a slightly lower dayrate of $436K.

DO says its contracted backlog as of June 30 was $2.9B.

Additionally, DO says it stacked one semi-sub rig and is selling five others, according to its latest fleet status report; the Ocean Victory reportedly was stacked after working for BP offshore Trinidad and Tobago under a two-year term which ended in May at a dayrate of $398K.