Diamond Offshore Drilling 1Q Profit Rises 20 Pct

HOUSTON (AP) — Diamond Offshore Drilling Inc. on Thursday said its first-quarter profit rose 20 percent on rising contract drilling sales, beating Wall Street expectations.

Earnings for the quarter climbed to $348.6 million, $2.51 per share, from $290.5 million, or $2.09 per share, during the prior-year period.

Analysts polled by Thomson Reuters estimated a profit of $2.22 per share, on average.

Revenue rose 13 percent to $885.7 million from $786.1 million posted in the first quarter of 2008. Analysts forecast an average revenue of $878.5 million.

On Thursday the company also declared a special cash dividend of $1.875 per share and a regular quarterly cash dividend of 12.5 cents per share, both payable June 1 to shareholders of record on May 1.

Shares of the company rose $2.89, or 4.1 percent, to $74.01 in Thursday trading.