More red ink for Pacific Drilling

Offshore ultra-deepwater driller Pacific Drilling sank deeper into the red during the first quarter of 2017 while its revenues almost halved during the period when compared to the year-before quarter. 

The driller on Friday posted a net loss for the first quarter 2017 of $99.8 million, compared to net loss of $43 million for the fourth quarter 2016, and net loss of $2.5 million for the first quarter of 2016.

The driller’s contract drilling revenue for the first quarter 2017 was $105.5 million, which included $31.1 million of deferred revenue amortization, compared to fourth-quarter 2016 contract drilling revenue of $178 million, which included $29.4 million of deferred revenue amortization. The company’s revenues in the first quarter 2016 were $205.4 million.

According to the company, the decrease in revenues resulted primarily from the Pacific Scirocco drillship being offhire throughout the first-quarter and the Pacific Santa Ana completing its contract in January 2017, partially offset by the Pacific Bora going back to work in February 2017 compared to being offhire throughout the fourth quarter 2016.

During first-quarter 2017, the company’s operating fleet achieved average revenue efficiency of 98%.

Pacific Drilling CEO, Chris Beckett, said, “Market conditions are still challenging, although we have experienced an uptick in tenders and inquiries versus 2016. This supports our previously stated expectation of demand improvement through 2017 partially offsetting increased supply from rigs rolling off contract, which we believe will eventually lead to improving utilization in 2018.”

As of March 31, 2017, Pacific Drilling’s total outstanding debt was $3 billion.

In mid-March the company reported the expiration of certain non-disclosure agreements it had entered into with an ad hoc group of holders of its capital markets indebtedness.

Commenting on this, CFO Paul Reese, stated: “While currently, there is no consensus as to the form or structure of any restructuring, we continue to be engaged in discussions with all of our stakeholders, including our largest shareholder, our bank lenders and the ad hoc group, regarding a restructuring of our existing capital structure to be sustainable in the longer term.”

Offshore Energy Today Staff

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