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We are an offshore drilling contractor providing worldwide offshore drilling services to the oil and gas industry. Our primary business is the ownership and operation of drillships and semi-submersible rigs for operations in shallow to ultra-deepwater in both benign and harsh environments.
Operating margin is thin at 3.27%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 3.8%, steady but not accelerating. Margins contracted 26.5pp, which offsets some of the top-line progress.
ROIC dropped from 9.12% to 1.06%, capital efficiency is deteriorating. Operating margin contracted 26.5pp YoY, cost discipline may be slipping.
Profitability & Returns
Revenue (TTM)
$1.46B
▲ +3.8% YoY
Net Income (TTM)
-$70M
▼ -117.3% YoY
Op. Margin
3.63%
▼ -26.5pp YoY
ROIC
1.20%
▼ -8.1pp YoY
Cash Flow & Balance Sheet
FCF
N/A
Op. Cash Flow (TTM)
-$23M
▼ -131.8% YoY
Net Debt
$327M
Cash & Equiv.
$304M
5Y CAGR: +0.7%
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