Diamond Offshore 3Q Profit Up On Drilling Demand

HOUSTON (AP) — Contract driller Diamond Offshore Drilling Inc. on Thursday said third-quarter earnings rose 17 percent as rising crude prices drove up demand from oil companies for more drilling services.

As the economy showed signs of recovery in the third quarter, crude oil prices stabilized, trading as high as $76 per barrel, well above a 2009 low of $46.73 per barrel in February.

Diamond Offshore's quarterly earnings climbed to $364.1 million, or $2.62 per share, from $310.5 million, or $2.23 per share, during the same period last year.

Analysts polled by Thomson Reuters estimated a profit of $2.30 per share, on average.

Revenue rose nearly one percent to $908.4 million, up from $900.4 million in the prior-year period. Analysts forecast revenue of $874.2 million.

Besides higher sales, profit was aided by lower contract drilling costs, foreign currency gains and reduced taxes.

Shares of Diamond Offshore closed at $105.88 on Wednesday.