SEVAN DRILLING ASA: Q2 Results 2011
Operating revenues for the quarter amounted to USD 33.3 million and EBITDAFX was USD 13.7 million. Sevan Driller had technical uptime of 94.4% in Q2 2011. Sevan Drilling ordered two new vessels from Cosco yards at very competitive terms and steel cutting for the first of these vessels started on 15 June. Sevan Brasil remains on track for delivery in Q1 2012 and startup in Q2 2012.
Operating profits were USD 5.3 million (USD 4.8 million in Q1 2011). Sevan Drilling (the Group) had a net loss of USD 5.8 million in the quarter, up from a net loss of USD 16.3 million in Q1 2011. Out of the USD 19.6 million in operating expenses (USD 18.2 million in Q1 2011), USD 0.7 million stems from pre-operational expenses related to Sevan Brasil.
Construction of the Sevan Brasil is progressing according to plan. The fabrication works of Sevan Brasil is 95% completed and the commissioning work has started. Commissioning is about 25% completed. Overall, Sevan Brasil is at present 87 % completed.
Sevan Drilling has entered into turnkey construction contracts with Cosco Shipyard for the construction of two new builds of the Sevan 650 design ultra deep water drilling rigs for delivery in Q4 2013 and Q2 2014. The all-in turnkey price for these two rigs is USD 526 million each.
Sevan Brasil will commence operation under a six year charter contract with Petrobras from Q2 2012.
Sevan Drilling has obtained approval from all the lenders under the Sevan Driller bank facility and the Sevan Brasil bank facility to remove all cross default provisions towards Sevan Marine ASA and all default or potential default related to Sevan Marine ASA as guarantor.
However, final removal of the Sevan Marine guarantee requires Ministry of Finance approval in respect of the Chinese lender. All lenders have agreed to waive any potential defaults associated with Sevan Marine until such time as all documentation is in place removing them as a guarantor.
Sevan Drilling expects good uptime in Q3 and Q4 and stable revenues as a consequence of that. The group will continue its efforts to improve operating costs and has already identified a number of potential areas for improvement.
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 www.sevandrilling.com. It is advised to log on to the webcast five 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.
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 2nd quarter 2011