Songa Offshore SE Announce Third Quarter 2015 Results

Songa Offshore SE Announce Third Quarter 2015 Results

Songa Offshore SE reports total revenue for the third quarter 2015 of USD 124 million and EBITDA of USD 64 million.

“The Cat D project has advanced to another phase with Songa Equinox arriving in Norway in October and progress of mobilization and construction of the other newbuilds on track. We target to get Songa Equinox on dayrate late November at the same time as Songa Endurance will arrive in Norway and we take delivery of Songa Encourage. Clients acceptance testing and the Acknowledgement of Compliance (AoC) process are both progressing well. We are also satisfied to see that our existing fleet continues to deliver high uptime, as well as safe and cost efficient operations”

says Songa Offshore CEO, Bjørnar Iversen.
songa

Songa Offshore SE (“Songa Offshore” or “the Group” or “the Company”) reports:

  1. o Revenue of USD 124.2 million in the third quarter 2015 and USD 354.4 million for the nine months of 2015
  1. o EBITDA in the third quarter of USD 63.8 million and USD 177.8 million for the nine months of 2015, with EBITDA margins of 51% for the third quarter 2015 and 50% for the nine months of 2015
  1. o An impairment loss in the third quarter 2015 of USD 328.3 million was recognized
  1. o Loss in the third quarter of USD 317.5 million and USD 311.5 million for the nine months of 2015
  1. o Loss per share in the third quarter of USD 0.04 and USD 0.03 for the nine months of 2015
    Highlights

o The Company took delivery of Songa Endurance on 24 August 2015 and has drawn down the rig related financing accordingly

o Songa Equinox arrived in Norwegian waters 22 October 2015

o Songa Dee, Songa Delta and Songa Trym delivered 100% operational efficiency and an average of 97.6% earnings efficiency in the third quarter 2015

o Average operating expense in the third quarter 2015 was USD 137,000 per rig per day compared to USD141,000 per rig per day in the second quarter 2015

o EBITDA in the third quarter 2015 was USD 63.8 million, compared to USD 60.4 million in the second quarter 2015, reflecting both higher revenue and lower cost

o Following further developments in the Norwegian Continental Shelf (NCS) drilling market during the quarter, the Company performed an impairment test of its rigs, resulting in the recognition of an impairment for the third quarter 2015 of USD 328.3 million related to Songa Dee, Songa Delta and Songa Trym

o On 2 November 2015 the Company received a notice of cancellation of the drilling contract with Statoil for Songa Trym effective from when the current well is completed around 12 November 2015. The Company will receive a contractual cancellation fee based on the current full day rate of USD 377,000 and the contractual end date early March 2016

Read More: Songa Financials Report 2015
Source: Songa Offshore

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