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
- Writedowns or Operating Results? Making Sense of Seadrill Ltd Earnings
- Is Offshore Drilling Sunk or Destined to Recover?
- Halliburton Company Details the Biggest Threat Facing Offshore Drillers
- Atwood Oceanics, Inc. Earnings Jump on Ultra-Deepwater Strength
- Earnings Fuel a 13% Jump in Atwood Oceanics, Inc.'s Stock
- 5 Things Ensco Plc's Management Wants You to Know