Q1 2024 Diamond Offshore Drilling Inc Earnings Call Transcript
Key Points
- Diamond Offshore Drilling Inc (DO) secured $713 million of new backlog during the quarter, equating to 4.2 rig years of work across three rigs.
- The company reported strong financial results with total revenue and adjusted EBITDA for the first quarter at $275 million and $64 million respectively.
- Diamond Offshore Drilling Inc (DO) has significantly increased the visibility of its revenues for 2024 and beyond, with 88% of its marketed capacity contracted for 2024.
- The company successfully managed the GreatWhite incident, with repairs progressing well and the rig expected to be back on location in the first half of June.
- Diamond Offshore Drilling Inc (DO) has secured marketing rights for three seventh generation stranded new-build drillships, potentially increasing exposure to the seventh generation drillship market.
- The GreatWhite incident led to the rig being off contract for two months in the first quarter, impacting revenue.
- The estimated financial impact of the GreatWhite incident on EBITDA and cash flow is approximately $25 million to $30 million.
- The company reported a quarter-over-quarter decrease in revenue, primarily due to the completion of one of the managed rig contracts and the GreatWhite being off contract.
- There are concerns over future rig availability which could impact day rates and contracting conditions.
- Regulatory uncertainties and potential national elections in the U.K. are causing volatility and could defer program decisions, affecting demand for rigs like the Patriot.
Ladies and gentlemen, thank you for standing by. Welcome to Diamond Offshore Drilling first-quarter 2024 earnings call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would like now to turn the conference over to Kevin Bordosky, Senior Director of Investor Relations. Please go ahead.
Thank you, Michelle. Good morning and afternoon to everyone, and thank you for joining us. With me on the call today are Bernie Wolford, President and Chief Executive Officer; Dominic Savarino, Senior Vice President and Chief Financial Officer; and Jon Richards, Senior Vice President and Chief Operating Officer.
Before we begin our remarks, I'll remind you that information reported on this call speaks only as of today, and therefore, time-sensitive information may no longer be accurate at the time of any replay of this call. Some of the information referenced in our call today is included in the slide presentation that you can find in the Investor Relations
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
