The leading drilling player, Diamond Offshore Drilling Inc (NYSE:DO), announced financial results for the recently concluded 4Q2015. As per the reports, the net loss for the quarter was $1.79 per diluted share or $245 million in total. During the same time in the previous year, Diamond Offshore reported net income of $99 million or $0.72 per share.

The net loss for the quarter comprised of non-cash charges of $499 million against impairment of nine drilling units.

Insights of Financial Result For The Quarter

Revenues generated by Diamond Offshore during the quarter were $556 million as compared to $675 million in the previous year. The net loss for the entire 2015 year climbed to $274 million or $2 per share against the net income of $387 million or $2.81 per share in 2014. Diamond Offshore paid a total of $860 million as part of impairment of 17 drilling units. Overall, it generated a total of $2.419 billion revenue in 2015 against $2.815 billion revenues in 2014.

To overcome this unfavorable financial situation, Diamond Offshore management announced that it would stop paying the quarterly cash dividend of $0.125 per share. This cost cutting is expected to save around $69 million on an annual basis.

The senior management team of Diamond Offshore was delighted to announce these financial results and hoped that its cost-cutting efforts would lead to a favorable position in the coming months. According to Marc Edwards, CEO & President, Diamond Offshore, given that the market conditions aren’t that good at this moment, it’s always great to shift the focus back to strengthening the balance sheet. The initiatives taken towards saving cash will help the company going through this tough time and position well in the offshore drilling market.

Going forward, it will announce many more such initiatives to save additional cash and strengthen its financial position.