NEW YORK (TheStreet) -- Diamond Offshore Drilling  (DO - Get Report) stock is advancing by 6.54% to $21.18 in early morning trading on Monday, as the company adds $333 million to its revenue backlog and reports better-than-expected 2015 third quarter earnings results.

The offshore rig contractor ended contracts for two rigs with Brazil's Petrobras (PBR) earlier than expected, and thereafter finalized an 875-day extension for another rig with the company, Reuters reports. 

The extension should add $333 million to Diamond Offshore Drilling's revenue backlog, while the two terminated contracts will decrease revenue backlog by roughly $91 million, Reuters adds.

Additionally, this morning Diamond Offshore Drilling reported earnings of 99 cents per share for the most recent quarter, up from 38 cents per share for the year ago period.

Revenue declined year over year, to $609.7 million from $737.7 million for the 2014 third quarter.

Analysts had forecast for earnings of 60 cents per share on revenue of $594.5 million. 

"I am pleased with our solid third quarter results, which demonstrate Diamond Offshore's ability to execute on managing our costs and controlling downtime," CEO Marc Edwards said in a statement. "During the quarter, our three newbuild drillships delivered operational efficiency of 99.3 percent, which directly benefits our topline and improves project economics for our clients."

Separately, TheStreet Ratings team rates DIAMOND OFFSHRE DRILLING INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

We rate DIAMOND OFFSHRE DRILLING INC (DO) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself.

You can view the full analysis from the report here: DO

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