Diamond Offshore Drilling Inc (DO)

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$DO Diamond Offshore -6% as Q1 revenue, dayrates drop

Diamond Offshore Drilling (DO -6.3%) sinks deep into the red after reporting a slightly smaller than expected Q1 loss, a 21% Y/Y decline in revenues and steadily lower average dayrates for its vessels.

Contract drilling revenue fell during the quarter mostly due to lower average daily revenue earned ($30.5M) and the effect of 74 fewer revenue-earning days ($25.9M).

DO says average dayrates for its fleet in Q1 were $309K, down from $315K in Q4 last year and $351K in the year-ago quarter.

Total contracted backlog at the end of Q1 was $1.8B, which excludes backlog secured in April 2019 from new four-year contracts with Woodside Petroleum for the Ocean BlackRhino and Ocean BlackHawk drillships in Senegal; the new dayrates are not disclosed.