Offshore rig operator Diamond Offshore Drilling (NYSE:DO) returned to profit with $11.6 million in Q1 earnings, a marked turnaround from its previous quarter loss.
The Houston-based firm posted losses of $145m in its fourth quarter results last year, but the driller has turned that figure around with total revenues of $274.6m in Q1.
Diamond Offshore said it secured $713m in new contract awards in the first quarter, including two-year contract extensions for the Ocean BlackLion and Ocean BlackHornet in the US Gulf of Mexico.
The firm also secured additional plug and abandonment work for the Ocean Patriot with Serica, which is currently underway.
Just after the end of Q1, Diamond also signed an estimated 30-day, one-well contract for the Ocean BlackRhino, bringing in approximately $18m in total contract value.
As of the 1st April, Diamond said its total order backlog reached $1.9 billion, with overall rig efficiency for the period sitting at 94%.
Elsewhere, Diamond said repairs on its Ocean GreatWhite are progressing well at Kishorn Port after an incident with the rig’s low marine riser package (LMRP) West of Shetland.
© Supplied by Kishorn PortDiamond said the Ocean GreatWhite is currently scheduled to be back on the well location in the first half of June.
Diamond Offshore Drilling president and chief executive officer Bernie Wolford Jr said the demand landscape “remains compelling” for the company.
“The high-specification deepwater rig supply-demand balance continues to tighten, which is resulting in strong contracting conditions that have already begun to benefit our fleet,” he said.
“The average contract dayrate across our fleet will notably increase as we transition to our recently awarded contracts.
“Looking ahead, we are focused on the Ocean GreatWhite returning to work safely, securing additional backlog for our rigs, and delivering operational excellence across the fleet to maximize our cash flow generation.”
Diamond deal for 7th generation drillships
In addition, Diamond said it has recently secured marketing rights for three seventh generation drillships, entering into an agreement with the owner of the West Dorado and West Draco.
Diamond will market the rigs in Brazil, Latin America, West Africa, Malaysia and Indonesia.
In addition, Diamond will also market the former West Libra rig, now known as the Tidal Action, in the US Gulf of Mexico on behalf of its owner.
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