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.

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