Filed under: Investing
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of drilling rig owner Ocean Rig UDW Inc. jumped as much as 10% today after reporting earnings.
So what: Fourth-quarter 2013 revenue jumped 50% to $345.5 million, and the company swung from a loss to net income of $39.7 million, or $0.30 per share. Analysts were only expecting $0.16 per share in earnings, so performance was well above what investors had already priced in.
Now what: The ultra-deepwater market that Ocean Rig has invested in continues to perform well, and the fleet operated with a 95.8% utilization rate. The momentum should continue this year with a new drillship coming in March, and two more in 2015. I'm leery of any company run by Ceorge Economou, who has a history of questionable shareholder capital allocation, but I like the ultra-deepwater market, and it continues to perform well for Ocean Rig.
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The article Why Ocean Rig UDW Inc.'s Shares Popped Today originally appeared on Fool.com.
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