Diamond Offshore (NYSE: DO) has been awarded $610 million of new contracts, with a new gig in the UK North Sea for the Ocean GreatWhite.
Work for the vessel, the world’s largest semisubmersible, means Diamond Offshore will have three rigs in operation in the UK.
Ocean GreatWhite has been awarded a five-well deal over 300 days, worth around $80 million, with options for another eight if needed.
The name of the operator awarding the contract, due to start in the first quarter of next year, hasn’t been disclosed.
Elsewhere the Ocean BlackHornet and another unnamed Diamond-managed rig have been awarded work in the Gulf of Mexico, along with a new deal for the Ocean Apex in Australia, which complete the remainder of the $610m.
The new deals add to $995m of backlog reported by the US-based drilling firm at the start of July.
CEO Bernie Wolford Jr said: “We are pleased to announce these significant backlog additions. The contract for the Ocean GreatWhite is a testament to the capabilities of this high-specification harsh environment asset and comes at a time when energy security and longer-term demand in the sector are increasingly visible.
“With the rig now contracted, we will have three assets working in the UK sector of the North Sea, allowing us to better serve our customer base while growing our presence in an established market.”
Alongside the Ocean GreatWhite, which has previously been stacked, Diamond Offshore has the Ocean Patriot and Ocean Endeavour, working for Apache and Shell respectively, in the UK North Sea.
The Ocean GreatWhite made a splash in the UK back in 2019 when it was contracted out for the Siccar Point Energy Lyon well, making a much-publicised pit stop at Kishorn Port.
Results
NASDAQ-listed Diamond reported the new contracts alongside its second quarter results for 2022, with pre-tax losses of $18.3m compared to a $43m deficit in Q1.
Revenues totalled $205.7m, up from $186.2m in the prior quarter, while average day rates were $228,000, up from $225,000.
Mr Wolford added: “With improved dayrates and approximately 75% of 2023 marketed capacity contracted, we have an opportunity to earn considerably higher margins in 2023.
“I would like to thank everyone involved in securing this backlog, as these awards are a testament to the class-leading Diamond Offshore brand, our unwavering commitment to HSE, and the hard-working people who contribute to the Diamond Difference.”
Shares in Diamond Offshore are trading at $6.79 (12.42pm GMT).
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