Fred. Olsen Energy swings to loss. Braces for rig contract expiry with BP

fred-olsen-energy-swings-to-lossNorwegian offshore driller Fred. Olsen Energy sank to a loss in 3Q 2016 and saw a decrease in its revenues when compared to the prior-year quarter. The company also informed that a contract for one of its rigs is expiring tomorrow, October 27. 

The company on Wednesday posted a net loss totaling $33.9 million, including an estimated tax charge of $4.2 million, compared to a profit of $21.4 million in the same period last year.

Operating revenues in the third quarter this year were $213.6 million, a decrease when compared to $241.4 million in the same quarter last year.

Revenues from the offshore drilling division were $212.6 million, a decrease of $5.7 million compared to 2Q 2016. The company explained that the sequential decrease in revenues within the offshore drilling division was mainly due to reduced income for the rigs Belford Dolphin, Blackford Dolphin, and Bideford Dolphin, partly offset by an increased income for Borgland Dolphin due to early payment of the last well, which the client decided not to drill.

The driller’s operating costs were $94.5 million, an increase of $18 million compared with previous quarter this year. Operating costs within the offshore drilling division increased by $19.3 million, mainly due to cost related to the final settlement agreement regarding the cancellation of the Bollsta Dolphin rig with Hyundai Heavy Industries, to $91.9 million.

Fred. Olsen Energy also informed on Wednesday that a contract for its Byford Dolphin rig with the oil major BP is expiring on October 27, 2016. The unit will be preserved and maintained in Lyngdal, Norway, ready for new contracts.

Further, the company’s unit Borgsten Dolphin, operating as a Tender Support Vessel, will be cold stacked in Invergordon, Scotland following an early termination of its contract with Total at the end of September.

In addition, the ultra-deepwater drillship Bolette Dolphin continued drilling under its four-year drilling contract with Anadarko Petroleum Corporation. Fred. Olsen has agreed to drill approximately 240 days at a reduced rate ($419.000) and will be compensated with an extension of approximately 2.5 months at original contract rate. The corresponding contract expires in July 2018.

Offshore Energy Today Staff

Share this article

Follow Offshore Energy Today

Events>

<< Jul 2017 >>
MTWTFSS
26 27 28 29 30 1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
31 1 2 3 4 5 6

Offshore Energy 2017

Offshore Energy Exhibition & Conference (OEEC) is Europe’s leading offshore energy event…

read more >

03rd OIL & GAS TANZANIA 2017

After a successful Oil & Gas Exhibition in 2016, Expogroup is all set for the 6th OIL & GAS AFRICA 2017…

read more >

Technology Forum (30th Offshore Licensing Round)

The event will bring operators, prospective investors and technology developers together and will cover technology areas that are critical…

read more >

SPE Offshore Europe 2017

Attending SPE Offshore Europe, recognised by offshore E&P professionals as Europe’s leading E&P exhibition and conference, will ensure you…

read more >

Jobs>

Assistant Driller

Maersk Drilling Norge AS was established in 1990 and employs a staff of approximately 1000 people.

apply

QC Coordinator Offshore

Do you attach great importance to quality and do you have an affinity with offshore projects? Then read about what Van Oord can offer you.

apply

Electrician

For one of our clients we are looking for a Ships Electrician. Our client is a company with worldwide activities. You will work in a rotation of 4 till 6 weeks on and off.

apply