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Diamond Offshore's profit beats estimates on lower costs
[BENGALURU] Diamond Offshore Drilling Inc reported a higher-than-expected quarterly profit, helped by lower costs.
Total operating expenses in the quarter fell 10 per cent to US$323.36 million.
Contract drilling revenue fell 18 per cent to US$363.56 million from the first quarter.
Offshore projects, which take years to develop and are capital intensive, were the hardest hit by the slump in crude prices, as oil and gas producers slashed spending. Diamond Offshore, majority owned by Loews Corp, said net income fell to US$23.5 million, or 17 cents per share, for the first quarter ended March 31, from US$87.4 million, or 64 cents per share, a year earlier.
Excluding items, the rig contractor earned 17 cents per share, higher than average analysts' estimate of 12 cents per share, according to Thomson Reuters I/B/E/S.
Total revenue fell 20.5 per cent to US$374.2 million, but beat analysts' estimate of US$363.49 million.