Diamond Offshore posts solid Q2 2024 performance despite challenges

Diamond Offshore achieves adjusted EBITDA of USD 58 million in Q2 2024, despite lower revenues and repair costs for the Ocean GreatWhite

Share:

Diamond Offshore résultats financiers T2

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Diamond Offshore Drilling Inc, a major player in offshore drilling, publishes its financial results for the second quarter of 2024, demonstrating notable robustness despite significant operational challenges. With an adjusted EBITDA of 58 million USD, the company manages to maintain financial stability while dealing with costly repairs and declining revenues.

Q2 2024 financial results

Diamond Offshore reported second-quarter revenues of USD 253 million, down from USD 275 million in the previous quarter.
This decrease was mainly due to the absence of revenues from the West Auriga, which was returned to its owner following charter termination, and the temporary shutdown of the Ocean GreatWhite for repairs.
However, this decrease was partially offset by USD 8.7 million in performance bonuses earned in Senegal.
Contract drilling expenditure amounted to USD 164 million, a reduction of USD 20 million on the previous quarter.
This was due to lower operating costs at West Auriga and the recovery of costs related to the Ocean GreatWhite incident.
General and administrative costs rose to 23 million USD, including financial and legal advisory fees associated with the announced merger with Noble Corporation plc.

New contracts and operational prospects

Diamond Offshore secures a two-year contract extension for the Ocean Blackhawk, adding 350 million USD to the order book.
In addition, subsequent to the end of the quarter, the Ocean BlackRhino secures a contract worth 89 million USD for a minimum of 180 days in the Gulf of Mexico.
These new awards bring the total value of contracts secured in 2024 to almost 1.2 billion USD, with a total backlog exceeding 2 billion USD as of July 1, 2024.
An early termination notice for a campaign offshore Côte d’Ivoire allows the company to retain USD 8 million in prepaid deposits.
This termination demonstrates Diamond Offshore’s flexibility in managing contractual contingencies.

Operating performance and repairs

Diamond Offshore platforms maintain outstanding operational performance, with revenue efficiency averaging 95% for the third consecutive quarter, excluding the Ocean GreatWhite incident.
The Ocean BlackHawk and Ocean BlackRhino platforms accumulate USD 20.5 million in performance bonuses in Senegal, reflecting the efficiency and safety of their operations.
Repairs to the Ocean GreatWhite have been completed, and the platform resumed operations in the North Sea in early July.
Repair costs are covered by the company’s insurance, with an expected recovery of 90 days of lost revenue through business interruption insurance.
This effective incident management demonstrates Diamond Offshore’s operational resilience.

Sector outlook and analysis

Second-quarter results show that Diamond Offshore continues to successfully navigate a complex business environment, balancing operational challenges with growth opportunities.
Securing new contracts and managing contractual contingencies are strengthening the company’s position in the global offshore drilling market.
The outlook for the rest of the year remains positive, with promising projects and contracts underpinning Diamond Offshore’s continued growth.
Operational efficiency and proactive management of repairs and costs demonstrate the company’s ability to maintain a solid performance in the face of industry challenges.
Diamond Offshore continues to show notable resilience, adapting its operations and securing strategic contracts, thus ensuring financial and operational stability in a volatile market.

Amid rising global demand for low-carbon technologies, several African countries are launching a regional industrial strategy centred on domestic processing of critical minerals.
Maersk and CATL have signed a strategic memorandum of understanding to strengthen global logistics cooperation and develop large-scale electrification solutions across the supply chain.
ABB made several attempts to acquire Legrand, but the French government opposed the deal, citing strategic concerns linked to data centres.
Aramco becomes Petro Rabigh's majority shareholder after purchasing a 22.5% stake from Sumitomo, consolidating its downstream strategy and supporting the industrial transformation of the Saudi petrochemical complex.
Chevron India expands its capabilities with a 312,000 sq. ft. engineering centre in Bengaluru, designed to support its global operations through artificial intelligence and local technical expertise.
Amid rising energy costs and a surge in cheap imports, Ineos announces a 20% workforce reduction at its Hull acetyls site and urges urgent action against foreign competition.
Driven by growing demand for strategic metals, mining mergers and acquisitions in Africa are accelerating, consolidating local players while exposing them to a more complex legal and regulatory environment.
Ares Management has acquired a 49% stake in ten energy assets held by EDP Renováveis in the United States, with an enterprise value estimated at $2.9bn.
Ameresco secured a $197mn contract with the U.S. Naval Research Laboratory to upgrade its energy systems across two strategic sites, with projected savings of $362mn over 21 years.
Enerflex Ltd. announced it will release its financial results for Q3 2025 before markets open on November 6, alongside a conference call for investors and analysts.
Veolia and TotalEnergies formalise a strategic partnership focused on water management, methane emission reduction and industrial waste recovery, without direct financial transaction.
North Atlantic and ExxonMobil have signed an agreement for the sale of ExxonMobil’s stake in Esso S.A.F., a transaction subject to regulatory approvals and financing agreements to be finalised by the end of 2025.
The Canadian pension fund takes a strategic minority stake in AlphaGen, a 11 GW U.S. power portfolio, to address rising electricity demand from data centres and artificial intelligence.
Minnesota’s public regulator has approved the $6.2bn acquisition of energy group Allete by BlackRock and the Canada Pension Plan, following adjustments aimed at addressing rate concerns.
The Swiss chemical group faces two new lawsuits filed in Germany, bringing the total compensation claims from oil and chemical companies to over €3.5bn ($3.7bn) in the ethylene collusion case.
Statkraft continues its strategic shift by selling its district heating unit to Patrizia SE and Nordic Infrastructure AG for NOK3.6bn ($331mn). The deal will free up capital for hydropower, wind, solar and battery investments.
Petronas Gas restructures its operations by transferring regulated and non-regulated segments into separate subsidiaries, following government approval to improve transparency and optimise the group’s investment management.
Marubeni Corporation has formed a power trading unit in joint venture with UK-based SmartestEnergy, targeting expansion in Japan’s fast-changing deregulated market.
Exxon Mobil plans to reduce its Singapore workforce by 10% to 15% by 2027 and relocate its offices to the Jurong industrial site, as part of a strategic investment shift.
Phoenix Energy raised $54.08mn through a preferred stock offering now listed as PHXE.P on NYSE American, with an initial dividend scheduled for mid-October.

All the latest energy news, all the time

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.