Diamond Offshore back to black

Offshore drilling contractor Diamond Offshore Drilling returned to profit in the first quarter of 2016, compared to a loss a year earlier. The company’s revenues on the other hand dropped in the first quarter of 2016. 

The drilling contractor posted a net income of $87 million in the first quarter of 2016, compared to a loss of $256 million in the first quarter of 2015.

The company’s revenues in the first quarter of 2016 were $471 million, compared to revenues of $620 million in the first quarter of 2015.

Namely, the company’s revenues for contract drilling dropped to $443.5 million in the 1Q 2016, from $599.6 million in the corresponding period in 2015.

“I am pleased with our solid first quarter results, which demonstrate Diamond Offshore’s ongoing efforts to manage costs while remaining focused on safe operations and fleet reliability,” said Marc Edwards, President and Chief Executive Officer.

“Fleet-wide, we achieved operational efficiency for the quarter of 98.2 percent, which is reflected in our earnings results and improved project economics for our clients.”

 Longest serving CFO in offshore drilling industry retires

Diamond Offshore Drilling also announced on Monday it has appointed Kelly Youngblood as Senior Vice President and Chief Financial Officer, to be effective May 3, 2016. Youngblood succeeds Gary T. Krenek, who is retiring after 33 years of service to the company and its predecessors.

According to Diamond Offshore, prior to joining the company, Youngblood held a variety of managerial positions with Halliburton company, one of the world’s largest providers of products and services to the energy industry. Most recently, he served as Vice President, Investor Relations. Youngblood joined Halliburton in 1988 as a Staff Accountant and served in numerous financial management positions for Halliburton and its subsidiaries, including Senior Director, Finance – Western Hemisphere and Director, External Reporting and Accounting Research.

“We are very pleased to have someone with Kelly’s industry knowledge, finance and accounting expertise and existing relationships throughout the investment community assume the role of Chief Financial Officer,” remarked Marc Edwards, President and Chief Executive Officer.

Edwards added, “Gary has made significant contributions to Diamond Offshore over his long career, which includes 18 years as Chief Financial Officer. As the longest serving CFO in the offshore drilling industry, he will be missed, and we wish him well in his retirement.”

Offshore Energy Today Staff