Power Hedge
Macro, energy, alternative energy, contrarian

Ocean Rig: Cost Reductions And New Contracts Mean Growth

Ocean Rig UDW Inc. (NASDAQ:ORIG) announced its second quarter 2013 results on August 7, 2013. The company swung to a profit in this quarter compared to the net loss that it reported in the year ago quarter. The company managed to achieve this despite a slight decline in year-over-year revenue. The reason for this is cost control: Ocean Rig saw its drilling rig operating expenses fall from $145 million a year ago to $117 million in the most recent quarter. The company also saw its adjusted EBITDA increase year over year, from $101.1 million to $115.8 million. This continues the recent trend of rising earnings in the offshore drilling industry, driven largely by overall industry strength.

As usual,...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details