Consensus for RIG calls for earnings of $0.28 and revs of $1.1 bln. If realized, that would be an EPS decrease of -75% from $0.96 and a revenue decrease of 46.2% YoY from $2.04 bln

For RIG, what matters most is the spending of oil explorers and producers. Capital spending for this group has been cut over and over again by many companies since last year, which hurts companies in the drilling and oil service and equipment industries.

For now, oil drillers are aiming to reduce costs to help try and weather the oil slump. But there may be a little relief as the oil rig count, as measured by Baker Hughes (BHI), is expected to bottom in the second quarter.

The most recent weekly oil rig count data, released last Friday, showed that oil rig fell for a sixth consecutive week and are now down at levels not seen since 2009.

Q4 recap:

• Co reports Q4 earnings of $1.68 per share on Feb 24, excluding non-recurring items, $1.04 better than the Capital IQ Consensus of $0.64; revenues fell 17.3% year/year to $1.85 bln vs the $1.41 bln Consensus
• Other revenues increased $356 million due to early contract terminations on the Polar Pioneer, Discoverer Americas, and Sedco 714
• Contract drilling revenues decreased $113 million due to reduced activity and rig retirements partially offset by higher ultra-deepwater revenue efficiency and higher demobilization revenues
• Capital expenditures totaled $665 million, down from $940 million in the prior quarter