Upcoming AWS Coverage on North Atlantic Drilling Post-Earnings Results
LONDON, UK / ACCESSWIRE / December 21, 2016 / Active Wall St. announces its post-earnings coverage on Ocean Rig UDW LLC (NASDAQ: ORIG). The Company released its financial results for the third quarter fiscal 2016 (Q3 FY16) on December 14, 2016. The Grand Cayman, Cayman Islands-based Company's total revenue and net income fell on a year-over-year basis, underperforming market consensus estimates. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of Ocean Rig's competitors within the Oil & Gas Drilling & Exploration space, North Atlantic Drilling Ltd. (NYSE: NADL), reported on November 22, 2016, its third quarter 2016 results. AWS will be initiating a research report on North Atlantic Drilling in the coming days.
Today, AWS is promoting its earnings coverage on ORIG; touching on NADL. Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=ORIG
http://www.activewallst.com/registration-3/?symbol=NADL
Earnings Reviewed
In Q3 FY16, Ocean Rig revenue declined 23.4% to $335.04 million from $437.17 million recorded at the end of Q3 FY15. Total revenue numbers for Q3 FY16 fell short of market consensus estimates by $25.66 million.
During the reported quarter, the Company's drilling units' operating expenses declined to $103.68 million from $135.48 million in the prior year's same period. For Q3 FY16, general and administrative expense came in at $23.17 million versus $23.24 million in Q3 FY15. Furthermore, the Company reported operating income during Q3 FY16 of $126.22 million, which was lower than the $188.75 million reported in the prior quarter. For Q3 FY16, the Company's adjusted EBITDA fell to $219.63 million in Q3 FY16 from $273.43 million in Q3 FY15.
The oil drilling Company reported net income attributed to Ocean Rig's common stockholders of $38.81 million, or $0.47 per diluted share in Q3 FY16 compared to $137.70 million, or $0.94 per diluted share, in Q3 FY15. Wall Street had estimated the Company to report net income attributed to Ocean Rig of $0.56 per diluted share.
Operating Metrics
For Q3 FY16, the Company's fleet operated at 97.4% utilization compared to 96.2% and 96.3% in Q1 FY16 and Q2 FY16, respectively. In the reported quarter, the Company's daily operating expenses of units in operation was about $115,441 a unit per day versus $113,016 a unit per day in Q2 FY16 and $136,242 a unit per day in Q3 FY15.
In Q3 FY16, the Company had 1012 calendar days out of which 469 days were uncontracted, while 9 days were spent on mobilization. Therefore, the Company had 534 available contracted drilling days in the reported quarter, of which 520 were revenue earning days, resulting in contracted operating efficiency of 97.4%.
Balance Sheet
As on September 30, 2016, the Company had cash, cash equivalents, and restricted cash balance of $754.75 million compared to $747.49 million as on December 31, 2015. Furthermore, the Company's free cash balance to reporting date is about $760 million.
Ocean Rig reported total debt amounting to $3.92 billion as on September 30, 2016, versus $4.33 billion as in December 31, 2015. Furthermore, the Company has weighted average debt maturity of 3.6 years with no near-term maturities; the next significant maturity is due in Q4 FY17.
Stock Performance
At the closing bell, on Tuesday, December 20, 2016, Ocean Rig's stock slipped 3.26%, ending the trading session at $1.78. A total volume of 4.93 million shares were traded at the end of the day, which was higher than the 3-month average volume of 3.34 million shares. In the last month and previous three months, shares of the company have advanced 40.16% and 119.75%, respectively. Moreover, the stock gained 9.20% since the start of the year. Shares of the company have a PE ratio of 0.50 and currently have a market capitalization of $131.58 million.
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