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Sevan Drilling ASA : Sevan Drilling ASA Announces First Quarter 2015 Results

Highlights - First Quarter 2015

  • Operating revenue in Q1 was USD 83.1 million (Q1 2014 - USD 60.1 million).
  • EBITDA in Q1 was USD 38.3 million (Q1 2014 - USD 15.7 million).
  • Net profit in Q1 was USD 2.2 million (Q1 2014 - net loss of USD 10.4 million).
  • On 15 May, Sevan Drilling ASA held an Annual General Meeting where the 2014 annual accounts, report, and all proposals were approved by the shareholders.
  • On 26 May, the Board of Directors of Oslo Børs resolved to admit the shares in Sevan Drilling Limited to listing on Oslo Børs


Financial performance summary

Operating revenue
Operating revenue was USD 83.1 million compared to USD 60.1 million in Q1 2014.

The revenue increase is explained by Sevan Louisiana commencing operations in Q2 2014 and achieving a Q1 2015 technical utilization of 80.8% (mobilization in Q1 2014). Sevan Driller technical utilization was 94.9% (93.8% in Q1 2014), which was partly offset by Sevan Brasil at 71.8% (89.9% in Q1 2014). 

Operating expenses
Total operating expense was USD 63.3 million compared to USD 59.3 million in Q1 2014.

The increase is the result of Sevan Louisiana operating in this quarter offset by improved operating expenses on Sevan Driller and Sevan Brazil.  Average operating costs per day were at USD 151,000 in Q1 2015, which result from cost reduction initiatives realized through the Seadrill management service agreements, specifically reducing labor costs offshore and onshore, and through deferring non-critical maintenance into later periods.  

General and administrative and restructuring expenses were reduced from conclusion of the integration.

Depreciation expense increased as a consequence of Sevan Louisiana in service through Q1 2015.

Net financial items

Net financial items amounted to USD 17.4 million in Q1 2015 compared to USD 11.5 million in Q1 2014, which increased USD 2.9 million from interest and commitment fees on the revolving credit facility ("RCF") and USD 2.3 million from capitalizing interest on Sevan Louisiana in Q1 2014.

Net profit for Q1 2015 was USD 2.2 million compared to a net loss of USD 10.4 million in Q1 2014.

Balance sheet

Cash and cash equivalents amounted to USD 39.3 million as of 31 March 2015 compared to USD 30.2 million as of 31 December 2014.

In Q1 2015, interest and principal payments under the debt facility and RCF were USD 11.3 million and USD 35.0 million, respectively. As of 31 March 2015, USD 140.0 million was drawn on the RCF.

Sevan is preparing its accounts on the assumption that the company is a going concern. Liquidity is sensitive to performance of the rigs under their contracts and the continued availability of the RCF.

 

For further information, please contact:
Scott McReaken, CEO, Sevan Drilling ASA 
+47 91194651

About Sevan Drilling ASA and Sevan Drilling Limited:

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

Sevan Drilling Limited is an international offshore drilling contractor specializing in the ultra deepwater segment. On 15 May 2015 the Annual General Meeting of Sevan Drilling ASA resolved to move the parent company in the Sevan Drilling Group from Norway to Bermuda through a capital reduction distributing all shares in Sevan Drilling Limited to the Company's shareholders as repayment of paid-in capital (the "Migration"). Sevan Drilling Limited was approved for listing at Oslo Børs 26 May 2015. The migration and listing of Sevan Drilling Limited is expected to take place on or about 30 June 2015. 

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Sevan Drilling ASA Q1 2015 Report

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