Diamond Offshore Drilling Inc (DO.N), one of the world’s top-five offshore rig contractors, reported a much higher-than-expected quarterly profit, helped by demand for its high-tech ultra-deepwater rigs and a drop in operating costs.
Modern, faster rigs are cheaper to run and they can drill more efficiently, making them attractive to oil and gas companies, which are looking to cut spending due to low oil prices.
Diamond Offshore, majority owned by U.S. conglomerate Loews Corp (L.N), said on Monday that revenue from its ultra-deepwater business rose 72.8 percent to $315.7 million in the second quarter.
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Reuters by Anet Josline Pinto and Darshana Sankararaman