Diamond Offshore Drilling (DO) swung to a net loss for the quarter ended Mar. 31, 2015. The company has made a net loss of $255.71 million, or $ 1.86 a share in the quarter, against a net profit of $145.81 million, or $1.05 a share in the last year period. Revenue during the quarter dropped 12.60 percent to $620.06 million from $709.42 million in the previous year period. Gross margin for the quarter contracted 433 basis points over the previous year period to 40.21 percent. Operating margin for the quarter stood at negative 43.47 percent as compared to a positive 26.26 percent for the previous year period.
Operating loss for the quarter was $269.53 million, compared with an operating income of $186.28 million in the previous year period.
"We have continued to implement cost savings measures while maintaining our focus on safe operations and delivering performance for our clients," said Marc Edwards, President and chief executive officer. "Our first-quarter safety statistics were the best that we have recorded." "During the second quarter, our next two newbuild drillships will begin working in the Gulf of Mexico, and the yard will complete our fourth drillship, which will also be headed to the U.S., where all four of drillships will work on term contracts extending into 2019 or beyond," added Mr. Edwards.
Working capital drops significantly
Diamond Offshore Drilling has witnessed a decline in the working capital over the last year. It stood at $72.74 million as at Mar. 31, 2015, down 94.85 percent or $1,338.46 million from $1,411.20 million on Mar. 31, 2014. Current ratio was at 1.09 as on Mar. 31, 2015, down from 2.87 on Mar. 31, 2014. Days sales outstanding went up to 66 days for the quarter compared with 56 days for the same period last year.
Debt comes down
Diamond Offshore Drilling has recorded a decline in total debt over the last one year. It stood at $2,244.57 million as on Mar. 31, 2015, down 10.01 percent or $249.67 million from $2,494.24 million on Mar. 31, 2014. Total debt was 29.79 percent of total assets as on Mar. 31, 2015, compared with 29.95 percent on Mar. 31, 2014. Debt to equity ratio was almost stable at 0.54 as on Mar. 31, 2015, when compared with the last year. Interest coverage ratio deteriorated to 11.24 for the quarter from 10.26 for the same period last year.
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