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Sevan Drilling ASA: Q1 Results 2011

The numbers below assume that Sevan Drilling ASA ("the Company") is the owner of Sevan Drilling Invest AS during the whole quarter. Sevan Drilling Invest AS is the sole owner of the Sevan Driller Ultradeep Water drilling rig currently under contract to Petrobras S.A.  Sevan Drilling Invest AS was transferred to Sevan Drilling by Sevan Marine as a contribution in kind in April, 2011.

Operating revenue for the quarter amounted to USD 34 million EBITDAFX was USD 15.8 million. Operating profit was USD 4.8 million, and net loss was USD 16.3 million.

Operating revenue includes the revenues of the charter contract for Sevan Driller with Petrobras S.A. which commenced operations in June 2010. Sevan Driller had a technical uptime of 90 % in Q1 2011 and a commercial uptime of 91 %. In April, Sevan Driller had a technical uptime of 86 % and 98 % in May. 

Of operating expense of USD 18.2 million, USD 1.2 million is related to pre-operational expenses related to Sevan Brasil. The cash operational expenses per day on the Sevan Driller was USD 179.000 and the remaining operating expenses are overhead. We expect the cash operational expenses to be lower on average during second quarter 2011.

Financial expense of USD 17.0 million consist of three main cost areas.  First, interest expenses of USD 7 million under the Senior Secured Term Loan Facility, the Bond Loan Facility and the Vendor Credit.  Second is an USD 2.9 million amortization of upfront fee under the Bond Loan Facility.  And the last costs area is associated with the call premium on the Bond Loan facility which was called on March 26, 2011.  This call premium amounted to USD 7.1million.

The foreign exchange loss of USD 7.1 million is related to the NOK 1.0 billion Bond Loan Facility and caused by the depreciation of US dollars against Norwegian Kroner. The Bond Loan Facility was called on March 26, 2011, and fully repaid May 6, 2011. In addition the financial expenses includes a call premium of USD 7.1 mill under the Bond Loan Facility. .

As of March 31, 2011, total assets amounted to USD 1,298.2 million, of which USD 999 million was capitalized as drilling rigs. Cash and cash equivalents amounted to USD 215.1 million USD 191 mill was deposited on escrow account March 26, 2011, and used to fully repay the Bond Loan Facility May 6, 2011.  

As of March 31, 2011, the Group has an undrawn long term vendor credit facility relating to Sevan Brasil of approximately USD 80 million. In addition, the Group has undrawn USD 343 million on a bank facility to fund the construction of Sevan Brasil which is not reflected on the balance sheet as per March 31, 2011.

 

 

Scott Kerr (CEO) and Jon Wilmann (CFO)will at 1:00 p.m. today give a presentation of the results at Shippingklubben, Haakon VII`s gate 1, Oslo. The presentation will be in English.

 

The presentation will also be broadcasted LIVE at http://www.sevandrilling.com/.  It is advised that you log on to the webcast 5 minutes in advance.

 

If you wish to call-in to listen to the presentation, please find the call-in details attached.

 

The information in this announcement is subject to the disclosure requirements of the Norwegian Securities Trading Act section 5-12 and/or the Oslo Børs - Continuing Obligations.

 

The information in this announcement is subject to the disclosure requirements of the Norwegian Securities Trading Act section 5-12 and/or the Oslo Børs - Continuing Obligations.

 

Sevan Drilling ASA is an international offshore drilling contractor specializing in the ultra deepwater segment. Sevan Drilling ASA is listed on Oslo Axess.

For further information, please contact:

Scott Kerr, CEO, Sevan Drilling ASA (Media)

+47 99283890 mobile

 

Jon H. Wilmann, CFO, Sevan Drilling ASA (Analysts)

+47 64001847 office

+47 90560406 mobile

Report for 1st quarter 2011

Conference Call_ Information

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