Houston-based offshore driller Diamond Offshore has revealed it has stacked two rigs in the last quarter and it intends to scrap another two.

In its quarterly results, Diamond said that semi-submersible rig Ocean Endeavor and jackup rig Ocean Sceptre have been stacked to minimise costs, "while ensuring the rigs are preserved in such a manner as to enable a quick reactivation when the market recovers”.

The company also revealed it intends to scrap semi-submersible rigs Ocean Quest and Ocean Star, both of which are currently cold stacked.

Diamond Offshore booked a loss of US$589.9m for the quarter caused by impairment charges and related taxes of US$612m.