Diamond Offshore Drilling Q3 Profit Falls Amid Customer Non-payments

(RTTNews) - Diamond Offshore Drilling, Inc. (DO) Thursday said third-quarter profit declined from the prior year as revenues dropped amid cash flow issues with customers.

Net income decreased to $94.75 million or $0.68 per share from $178.19 million or $1.28 per share in the same period last year.

The latest results included the unfavorable impact of $0.54 per share related to customer non-payments.

On average, 36 analysts polled by Thomson Reuters expected earnings of $1.16 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues dropped to $706.17 million from $729.14 million in the previous year. Contract drilling revenues slid to $691 million from $714 million in the prior-year quarter. Analysts expected revenues of $750.66 million.

Larry Dickerson, CEO, said, "Although our results were adversely affected this quarter by customers with cash flow issues, which is highly unusual, we are working hard to reposition these rigs. The overall market remains stable, supported by Brent oil prices above $100 per barrel and ongoing rig demand."