Diamond Offshore Drilling (DO) has reported a 73.08 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $23.54 million, or $0.17 a share in the quarter, compared with $87.42 million, or $0.64 a share for the same period last year.
Revenue during the quarter dropped 20.47 percent to $374.23 million from $470.54 million in the previous year period. Gross margin for the quarter contracted 626 basis points over the previous year period to 42.82 percent. Total expenses were 86.41 percent of quarterly revenues, up from 76.29 percent for the same period last year. That has resulted in a contraction of 1012 basis points in operating margin to 13.59 percent.
Operating income for the quarter was $50.86 million, compared with $111.57 million in the previous year period.
"Despite a continually challenging market, Diamond Offshore achieved earnings per share of $0.17 for the first quarter of 2017," said Marc Edwards, president and chief executive officer. "Overall, I am pleased with our first quarter results and our ability to manage costs, while remaining focused on maintaining our operational and technical excellence. The Ocean GreatWhite, Ocean Scepter and the Ocean BlackRhino all commenced term contracts in the first quarter, enhancing our already strong liquidity." Edwards went on to say, “during the first quarter, the Ocean BlackLion successfully drilled and completed one of the deepest and most complex wells on record in the Gulf of Mexico."
Operating cash flow drops significantly Diamond Offshore Drilling has generated cash of $98.68 million from operating activities during the quarter, down 59.11 percent or $ 142.65 million, when compared with the last year period.
The company has spent $27.38 million cash to meet investing activities during the quarter as against cash inflow of $55.19 million in the last year period.
The company has spent $104.21 million cash to carry out financing activities during the quarter as against cash outgo of $286.62 million in the last year period.
Cash and cash equivalents stood at $123.32 million as on Mar. 31, 2017, down 4.35 percent or $5.61 million from $128.93 million on Mar. 31, 2016.
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