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Diamond Offshore Doubles

But numbers miss targets.
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Diamond Offshore

(DO) - Get Diamond Offshore Drilling, Inc. Report

third-quarter earnings doubled but missed Wall Street estimates as survey costs rose.

The Houston-based drilling contractor made $165 million, or $1.19 a share, for the quarter ended Sept. 30, up from the year-ago $82 million, or 60 cents a share.

Revenue rose to $515 million from $310 million a year earlier.

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Analysts surveyed by Thomson Financial were looking for a $1.25-a-share profit on sales of $519 million.

Revenue was flat sequentially, despite increasing dayrates on numerous rigs.

Contributory factors included downtime associated with mandatory surveys and related repair time, and lower revenues earned by three semisubmersible rigs because of previously established job sequencing that caused the units to temporarily roll to older contracts with lower dayrates.

Results were also hit by higher expenses related to mooring enhancement activities, and to surveys performed during the quarter.

The higher survey costs included increased expenses for survey-related services and higher boat charges associated with moving rigs to and from shipyards.