Maersk Drilling sees positive impact from rig fleet growth

Maersk Drilling has delivered a profit of $168 million in the first quarter of 2015 compared to $116 million in the first quarter last year. 

The company says that the result was positively impacted by fleet growth and continued good operational performance, but partly offset by two rigs being idle.

The underlying profit for the quarter was $195m ($109m) generating a ROIC of 8.5% (8.1%).

“Maersk Drilling continues its strong operational performance, and once again deliver a good result. The result is especially impacted by the many new rigs that were added to our fleet during the last year, all of them have shown good operational performance, since commencing on their contracts,” says Claus V. Hemmingsen, CEO in Maersk Drilling and member of the Executive Board in the Maersk Group.

According to Maersk Drilling, in Q1 tendering activity for offshore drilling rigs remained low, as oil companies continue reducing their exploration & development activities, resulting in lower day rates and lower rig utilization across all segments.

“Due to the current environment, we launched a cost reduction and efficiency enhancement programme last year. So far the programme has delivered a 5% savings on the operating cost level in Q1 2015 compared to Q1 2014. Furthermore, our high forward contract coverage reduces the uncertainties in the short term making us well positioned for the new oil reality,” says Claus V. Hemmingsen.

At the end of Q1 2015, Maersk Drilling’s forward contract coverage was 86% for the rest of 2015, 61% for 2016 and 32% for 2017. The total revenue backlog by the end Q1 2015 amounted to $5.9bn ($7.4bn).

Maersk Drilling took delivery of one ultra-harsh environment jack-up rig and one ultra deepwater drillship in Q1 2015, both with long term contracts. Maersk Drilling has one ultra-harsh environment jack-up rig under construction to be delivered in 2016.

Outlook

Maersk Drilling still expects a higher underlying result for 2015 than in 2014 ($471m) due to more rigs in operation, solid forward contract coverage as well as the initiated cost reduction and efficiency enhancement programme.

Share this article

Follow Offshore Energy Today

Events>

<< Dec 2019 >>
MTWTFSS
25 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

Africa Oil Week 2020

For over 25 years Africa Oil Week has been the meeting place for Africa’s most senior E&P stakeholders.

read more >

CERAWeek 2020

 Each year, CERA clients gathered for a few days in Houston…

read more >

Offshore Technology Conference (OTC) 2020

The Offshore Technology Conference (OTC) showcases leading-edge technology for offshore drilling, exploration…

read more >

2020 EXPLORATION AND PRODUCTION STANDARDS CONFERENCE ON OILFIELD EQUIPMENT AND MATERIALS

The development of consensus standards is one of API’s oldest and most successful programs.

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply