Ocean Rig UDW (ORIG) Tops Q2 EPS by 27c

Ocean Rig UDW (NASDAQ: ORIG) reported Q2 EPS of $0.54, $0.27 better than the analyst estimate of $0.27. Revenue for the quarter came in at $433.2 million versus the consensus estimate of $423.84 million.

George Economou, Chairman and Chief Executive Officer of the Company, commented:

"We are pleased to report another solid quarter with high fleet utilization of approximately 98% and further reductions in operating and corporate expenses. Our performance is a testament to the superior operating results associated with modern assets and the collective efforts of our team.

"In July, we came to an agreement to exchange the remaining $80 million owed to us by DryShips for approximately 17.8 million of our shares owned by DryShips. Once consummated, this transaction settles for good the intercompany loan to our parent DryShips and is immediately accretive to our shareholders.

"We still believe in the long-term market recovery and in the solid fundamentals of our industry but currently the market remains challenging and we are in the midst of a significant downturn in offshore drilling. The recent volatility in the price of oil and increased availability of drilling units do not allow for a short-term market improvement. As such, our Board has decided to suspend our quarterly dividend until market conditions improve.

"Our $4.3 billion of contracted backlog (best in class 93% and 69% of our calendar days under contract in 2015 and 2016 respectively) and approximately $821 million of free cash enables us to not only weather this storm but also to pursue distressed asset opportunities as they arise."

For earnings history and earnings-related data on Ocean Rig UDW (ORIG) click here.

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