Diamond Offshore Drilling (DO) Posts Q4 GAAP Loss of $1.79/Share; Discontinues Dividend
Diamond Offshore Drilling (NYSE: DO) reported Q4 EPS of ($1.79), which may not compare with the analyst estimate of $0.54. Revenue for the quarter came in at $556 million versus the consensus estimate of $515.63 million.
Results for the quarter included a non-cash charge of $499 million associated with the impairment of nine drilling units, which resulted in an after-tax charge of $2.68 per share.
Diamond Offshore also announced that its Board of Directors has discontinued the quarterly cash dividend of $0.125 per share, which will preserve an additional $69 million on an annual basis.
"Given the severe and prolonged downturn in industry fundamentals, we believe it is prudent to bolster our already strong balance sheet," said Marc Edwards, President and Chief Executive Officer. "By conserving additional cash, we will have increased flexibility to manage the company through difficult market conditions and position ourselves for the eventual recovery in offshore drilling."
For earnings history and earnings-related data on Diamond Offshore Drilling (DO) click here.