HOUSTON (AP) — Diamond Offshore Drilling Inc. said Thursday that its third-quarter profit dropped 47 percent, pulled down by lost revenue and expenses related to customers with cash flow issues.
Larry Dickerson, the company's president and CEO, said the customer-related problems were "highly unusual" and that the overall market remains stable with oil prices over $100 a barrel.
The Houston-based company earned $94.7 million, or 68 cents per share, down from $178.2 million, or $1.28 per share, in the same quarter of 2012.
The recent quarter's results included 54 cents per share in charges related to customer non-payments. Excluding those, the company earned an adjusted $1.22 per share.
Revenue fell 3 percent to $706.2 million from $729.1 million, as contract drilling revenue dropped 3 percent to $690.7 million.
Analysts, on average, expected a profit of $1.16 per share and $751.6 million in revenue, according to FactSet.
The company also on Thursday declared a special quarterly cash dividend of 75 cents and a regular quarterly cash dividend of 12.5 cents. Both dividends will be paid on Dec. 2 to shareholders of record as of Nov. 5.
In premarket trading, shares of Diamond Offshore fell $1.17, or 1.9 percent, to $62.06 with about 30 minutes to go until the market open.