Houston-based offshore driller Diamond Offshore sank to a loss in the fourth quarter of 2017 as its revenues decreased compared to the same period of 2016.
The driller on Monday posted a net loss of $31.94 million for the fourth quarter of 2017 compared to a profit of $116.1 million in the same period of 2016.
Diamond’s revenues in the fourth quarter of 2017 dropped to $346.2 million from $391.87 million in the prior-year quarter.
“Although market conditions continue to be challenging, we were able to secure additional work for the Ocean Valor and Ocean Valiant, extending both of the rigs’ current contracts through 2020,” said Marc Edwards, President and Chief Executive Officer.
“These contract extensions comprise a majority of the additional 48 months of backlog Diamond was able to secure this past quarter.”
Edwards went on to say, “The moored market continues to tighten, evidenced by our three other contract wins during the quarter.”
Operational efficiency of the company’s fleet was 98.8% in the fourth quarter, compared to 94.3% in the third quarter of 2017, reflecting continued improvements from the company’s Pressure Control by the Hour service model.
As of December 31, 2017, the company’s total contracted backlog was $2.4 billion, which represents approximately 21 rig years of work.