Diamond Offshore Drilling, Inc. (DO) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $73.06 million, or $ 0.53 a share in the quarter, against a net loss of $245.38 million, or $1.79 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $73.06 million, or $0.53 a share compared with $13.93 million or $0.10 a share, a year ago.
Revenue during the quarter dropped 29.46 percent to $391.87 million from $555.56 million in the previous year period. Gross margin for the quarter expanded 194 basis points over the previous year period to 53.78 percent. Operating margin for the quarter period stood at positive 26.58 percent as compared to a negative 61.22 percent for the previous year period.
Operating income for the quarter was $104.14 million, compared with an operating loss of $340.10 million in the previous year period.
However, the adjusted operating income for the quarter stood at $104.14 million compared to $54.07 million in the prior year period. At the same time, adjusted operating margin improved 1684 basis points in the quarter to 26.58 percent from 9.73 percent in the last year period.
"Considering current market headwinds, I am pleased with our fourth quarter results, driven in part by continuing cost controls and improving rig efficiencies," said Marc Edwards, president and chief executive officer. "Despite an extremely challenging market environment, the Ocean GreatWhite, Ocean Scepter and the Ocean BlackRhino will all commence term contracts in the first quarter, contributing to our strong backlog and liquidity positions".
Operating cash flow declines
Diamond Offshore Drilling, Inc. has generated cash of $646.55 million from operating activities during the year, down 12.20 percent or $89.87 million, when compared with the last year.
The company has spent $426.34 million cash to meet investing activities during the year as against cash outgo of $817.56 million in the last year. It has incurred net capital expenditure of $430.95 million on net basis during the year, down 47.29 percent or $386.66 million from year ago.
The company has spent $183.01 million cash to carry out financing activities during the year as against cash outgo of $33.47 million in the last year period.
Cash and cash equivalents stood at $156.23 million as on Dec. 31, 2016, up 31.26 percent or $37.20 million from $119.03 million on Dec. 31, 2015.
Working capital increases sharply
Diamond Offshore Drilling, Inc. has recorded an increase in the working capital over the last year. It stood at $165.31 million as at Dec. 31, 2016, up 276.80 percent or $121.44 million from $43.87 million on Dec. 31, 2015. Current ratio was at 1.49 as on Dec. 31, 2016, up from 1.07 on Dec. 31, 2015.
Debt comes down
Diamond Offshore Drilling, Inc. has recorded a decline in total debt over the last one year. It stood at $2,085.08 million as on Dec. 31, 2016, down 8 percent or $181.28 million from $2,266.37 million on Dec. 31, 2015. Total debt was 32.72 percent of total assets as on Dec. 31, 2016, compared with 31.63 percent on Dec. 31, 2015. Debt to equity ratio was at 0.56 as on Dec. 31, 2016, up from 0.55 as on Dec. 31, 2015.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
