UK-based offshore drilling contractor Awilco Drilling has recorded increased profit and revenues in the second quarter of 2017 when compared to the same period last year.
Awilco’s said in its financial report that the net profit for the quarter was $15.1 million, compared to $6.9 million in the corresponding period in 2016.
Contract revenue for the quarter was $33.5 million, a rise compared to $24.4 million in the quarter from a year before. Also, the company’s contract backlog at the end of 2Q was approximately $113 million, a drop from the $231 million in 2Q 2016.
Awilco owns and operates two semi-sub drilling rigs, the WilPhoenix and the WilHunter. At the end of Q2 2017, the WilPhoenix was in operations for Apache North Sea Ltd at the Skene location in the UK North Sea, while the WilHunter was cold stacked in Invergordon.
In the second quarter, Awilco Drilling had rig operating expenses of $6.3 million while the company’s general and administrative expenses were $2.5 million.
The WilPhoenix had a revenue efficiency for the quarter of 97.6% with contract utilization of 100%. It is worth noting that the company’s entire backlog of $113 million is linked to this rig.
In addressing the market outlook, the company said that the stronger seasonal demand forecast from spring 2018 in the UK floater market has materialized as anticipated with a significant uptick in market inquiries and contract awards.
“While further term requirements are emerging from the second half of 2018, we anticipate seasonality remaining a strong feature of the UK floater market into 2019,” added Awilco.
The offshore driller also said that recent announcements that the northwest European floater fleet is to reduce further through attrition are also positive for the longer term market.