Awilco sees loss after impairment charge in 4Q

WilPhoenix

Awilco Drilling, a UK based drilling contractor that owns two semi-submersible drilling rigs, has posted a net loss of $32.9 million for the fourth quarter of 2015 after an impairment charge of $30 million. 

As a comparison, Awilco made a profit of $38.9 million in the 4Q of 2014.

In the fourth quarter 2015, Awilco Drilling incurred an impairment charge of $30 million, primarily due to the negative developments in both the UKCS and global drilling markets.

Furthermore, Awilco Drilling reported contract revenue of $19.1 million in the fourth quarter of 2015, versus $70.87 million in 4Q 2014.

Contract utilisation including unpaid shipyard time was 50% during the quarter, excluding unpaid shipyard time was 26.1%.

The company’s contract backlog at the end of 4Q was approximately $258 million.

Awilco also said that the Board approved a dividend distribution payable in 1Q 2016 of $0.25 per share in support of its main objective to maximise returns to shareholders.

 

Renewal survey for WilPhoenix

 

Awilco Drilling owns and operates two drilling rigs, WilPhoenix, built in 1982 and upgraded in 2011, and WilHunter, built in 1983 and upgraded in 1999 and 2011.

The company is only operating in the mid-water segment in the UK sector of the North Sea

In 4Q 2015, the WilPhoenix was in continued operations for Apache North Sea until November 17 when the rig proceeded to the Able Shipyard in Hartlepool to start the five yearly renewal survey, where it remained through the end of the quarter.

The company said in its 4Q 2015 report that the SPS and capital work on the WilPhoenix was substantially complete. The rig is currently undergoing final project acceptance, which is delaying the rig’s return to operations. The total cost of the yard stay project is expected to be less than the budget of $42.5 million, the offshore driller noted.

Revenue efficiency for the quarter was 97.7% and contract utilisation was 52.2% excluding 44 days of shipyard time.

In 4Q 2015, the WilHunter, stacked since July 2015, remained hot stacked in Invergordon.

According to the drilling contractor, the current low oil prices are likely to push new drilling programmes further out in time and few new requirements are emerging. This indicates, Awilco said, that the fleet of available units is likely to increase in 2016/17.

Offshore Energy Today Staff

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