An axed contract in the UK North Sea wiped more than £11million off second quarter profits at US drilling contractor Diamond Offshore.
The Ocean Vanguard rig was due to start drilling in UK waters last month after a spell working on the Grane field in the Norwegian sector.
But Norwegian oil giant Statoil ended the £270,000-plus a day rig hire contract eight months earlier than expected, citing technical reasons.
Yesterday, Houston-based Diamond Offshore said the cancellation cost it £11.4million.
The firm reported net income of £53million for the second quarter of 2014, down from £109million a year earlier.
Revenue for the latest period came in at £407.5million, against £446.3million previously.
Results included a gain of about £7million from the sale of the jack-up rig Ocean Spartan
First half net income totalled £138.7million, compared with nearly £213million a year ago, with revenue down nearly £52million at £824.4million.
Diamond Offshore – whose global operations include a base in Aberdeen – has a fleet of 44 offshore drilling rigs, including five currently under construction.
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