Danish drilling contractor Maersk Drilling delivered a strong financial performance with a profit (NOPAT) of USD 148m (USD 84m) and a return on invested capital of 11.7% (8.5%). The increase in profit compared to Q3 2012 was mainly driven by higher average day rates and higher operational uptime, while managing to keep costs unchanged for rigs in operation.
“It is a very satisfactory result, which in combination with the strong results delivered in the first and second quarter of 2013, shows the strength of our business. While preparing for the delivery of our newbuild rigs over the coming years, we have managed to keep a high operational uptime across the rig fleet. Meanwhile, we continue to grow our business with an additional investment in a new ultra harsh environment jack-up and to secure new contracts from our customers. We are on track to deliver a solid full year 2013 result, and well positioned to reach our ambition of delivering a profit of USD 1bn by 2018,” says Claus V. Hemmingsen, CEO of Maersk Drilling and member of the Executive Board of the A.P. Moller – Maersk Group.
In Q3 2013, Maersk Drilling ordered a new ultra harsh environment jack-up rig, the XL Enhanced 4, backed by a firm five-year contract with BP Norway. With this order Maersk Drilling now has eight rigs under construction with expected delivery in 2014-2016.
Of the eight rigs under construction, long-term contracts have been secured for all four jack-up rigs and the first two drillships. Maersk Drilling is in discussions with oil companies for employment of the two remaining drillships.
With the new contracts secured during Q3 2013, Maersk Drilling’s forward contract coverage is 100% for the remaining part of 2013. For 2014 the forward contract coverage is 90%, 61% for 2015, and 45% for 2016. Maersk Drilling’s total revenue backlog amounts to USD 7.7bn.
For the full year 2013 Maersk Drilling specifies its result to be above USD 500m.
Press Release, November 14, 2013