Highlights Second Quarter 2017
- Operating revenue of USD 45.9 million
- EBITDA of USD 20.6 million
- Net loss of USD 12.7 million
Subsequent Events
- On July 4, 2017 the Sevan Developer deferral period was extended to June 30, 2020 and Cosco refunded USD 25.3 million of the yard installment plus interest, leaving USD 1.0 million invested in the rig.
- On July 17, 2017 Ms. Ragnhild Wiborg resigned from the board of directors and Mr. Douglas Smith was appointed to fill the vacancy as director and audit committee chair.
Financial performance summary
For the Three months ended June 30, 2017
Operating revenue
Operating revenue was USD 45.9 million (Q2 2016: USD 61.5 million). The decrease in revenue primarily relates to the conclusion of the Sevan Louisiana contract, on June 10, 2017, and the Sevan Driller being idle for a full quarter in 2017. In Q2 2017, the Sevan Brasil achieved technical utilization of 96.5% (Q2 2016: 99.5%) and the Sevan Louisiana achieved 99.7% (Q2 2016: 96.9%). The Sevan Driller was idle during the quarter (Q2 2016: 99.4%).
Total operating expenses
Total operating expenses were USD 41.0 million (Q2 2016: USD 49.0 million). Vessel operating expenses were USD 21.3 million (Q2 2016: USD 27.8 million). The decrease is mainly due to the Sevan Driller being idle during the current quarter. General and administrative costs were USD 4.0 million (Q2 2016: USD 3.8 million). Depreciation and amortization was USD 15.7 million (Q2 2016: USD 16.6 million).
Net financial items
Net financial items amounted to USD 17.4 million (Q2 2016: USD 18.5 million). Commitment and guarantee fees to Seadrill decreased by USD 1.1 million is mainly due to an amendment to the interest on the RCF.
Net loss for Q2 2017 was USD 12.7 million (Q2 2016: USD 7.4 million).
For the Six months ended June 30, 2017
Operating revenue
Operating revenue was USD 101.0 million (Q2 2016: USD 114.3 million). The decrease in revenue is primarily due to the Sevan Driller, which was idle for the first six months of 2017 as compared to four months in 2016. In addition, the Sevan Brasil operated at a reduced day rate from February 2016. In Q2 2017, the Sevan Brasil achieved technical utilization of 98.2% (Q2 2016: 90.8%) and the Sevan Louisiana achieved 97.7% (Q2 2016: 96.9%). The Sevan Driller was idle during this period (Q2 2016: 100.0%).
Total operating expenses
Total operating expenses were USD 85.8 million (Q2 2016: USD 106.5 million). Vessel operating expenses were USD 46.9 million (Q2 2016: USD 61.5 million). The decrease is primarily due to the Sevan Driller being idle in 2017. General and administrative costs were USD 8.0 million (Q2 2016: USD 9.4 million), the decrease is driven by lower overhead as a result of the reduction in operational activities. Depreciation and amortization was USD 30.8 million (Q2 2016: USD 34.0 million).
Net financial items
Net financial items amounted to USD 35.0 million in Q2 2017 (Q2 2016: USD 35.3 million).
Net loss for Q2 2017 was USD 20.2 million (Q2 2016: USD 27.8 million).
Balance sheet
Cash and cash equivalents amounted to USD 49.5 million as of June 30, 2017 (December 31, 2016: USD 26.0 million). For six months ended June 30, 2017, interest and principal payments under the debt facility were USD 88.4 million and interest under the RCF of USD 7.2 million was charged. As of June 30, 2017, USD 245.0 million was drawn on the RCF. The facility was drawn down by USD 60.0 million and no repayments were made in the six months ended June 30, 2017.
Change to Reporting Cycle
Following revised guidance from the Oslo Bors in respect of reporting periods, effective from January 1, 2017, the Company has elected to change its reporting cycle to half-yearly. The next results report will therefore be issued for the six month period ended December 31, 2017, and the expected date of the earnings release and call is February 22, 2018.
For further information, please contact:
Scott McReaken, CEO, Sevan Drilling Management AS
+47 22 33 00 00
About Sevan Drilling:
Sevan Drilling Limited is an international offshore drilling contractor specializing in the ultra deepwater segment. Sevan Drilling Limited is listed on Oslo Børs.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
