Dayrate is the daily rental charge for a piece of equipment and/or working crew, typically used in the oil & gas services industry.
Most oil & gas services companies report dayrates when they announce new contracts, or as part of their financial reporting. Offshore drilling companies provide status reports at regular intervals, showing the dayrate and contract period for each of their drilling rigs. During a period of rising dayrates, earnings rise rapidly as the operational costs associated with the equipment are relatively fixed.
Related Fool Articles
Recent Mentions on Fool.com
- The 3 Best Stocks to Invest in to Profit From Rising Dayrates
- Ensco plc Earnings May Look Rosy, But Investors Should Mind the Thorns
- 3 Things Investors Don?t Want to See When Atwood Oceanics Inc. Reports
- The Best Stocks to Invest in Oil Rigs
- Why Transocean LTD?s Stock Dropped 11% in March
- Why Atwood Oceanics Shares May Be Cheaper Than You Think