NEW YORK (TheStreet) -- Ocean Rig UDW (ORIG stock is advancing 30.93% to $2.37 on heavy trading volume Friday morning after the company delivered better-than-expected financial results for the 2016 first quarter.

After Thursday's market close, the Cyprus-based offshore drilling contractor reported earnings of $2.07 per share for the three months ended March 31, beating earnings estimates of 72 cents per share.

Earnings included a non-cash gain of 90 cents per share related with the $125 million purchase of senior notes. Excluding the one-time gain, earnings totaled $1.17 per share.

Revenue increased 26% year over year to $508.01 million for the latest quarter, topping estimates of $424.66 million.

"Despite the current market conditions and our recent contract terminations, we are pleased to report another solid quarter, with a fleet utilization of approximately 96.3% and further reductions in corporate and operating expenses," CEO George Economou said in a statement.

So far today, 9.94 million shares of Ocean Rig have exchanged hands, more than four times its average daily volume of 2.32 million shares.

Separately, Ocean Rig has a "sell" rating and a letter grade of D+ at TheStreet Ratings because of the company's deteriorating net income, weak operating cash flow, generally high debt management risk, disappointing return on equity and generally disappointing stock performance.

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

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.