Ocean Rig profit spikes in first quarter

Eirik Raude semi-sub; Image: Ocean Rig
Eirik Raude semi-sub; Image: Ocean Rig

Offshore deepwater drilling services provider Ocean Rig posted a rise in its profit and revenues for the first quarter of 2016 when compared to the year-ago quarter. 

The offshore driller on Thursday reported a net income of $288 million in the first quarter of 2016, as compared to a net income of $41.1 million in the same period last year.

According to the company’s report, included in the first quarter 2016 results are non-cash gains associated with the purchase of the 7.25% Senior Unsecured Notes due 2019 and the 6.5% Senior Secured Notes due 2017 totalling $125 million.

Excluding these items, the company would have reported net income of $163 million.

During the quarter, Ocean Rig’s revenues increased by $105.9 million to $508 million, as compared to $402.1 million for the same period in 2015.

Drilling units’ operating expenses decreased to $145.6 million for the first quarter of 2016, from $152.9 million in the year-ago quarter.

George Economou, Chairman and Chief Executive Officer of the Company, commented: “Despite the current market conditions and our recent contract terminations, we are pleased to report another solid quarter, with a fleet utilization of approximately 96.3% and further reductions in corporate and operating expenses.”

The company’s total backlog as of May 17, 2016 amounted to $2.43 billion.

Ocean Rig owns two semi-submersible drilling rigs – Eirik Raude and Leiv Eiriksson – in its fleet otherwise made up of drillships.

In its quarterly report, Ocean Rig said that its semi-submersible rig Eirik Raude was currently en route to its stacking location as the rig’s contract with Premier got cancelled earlier this year.

Further, the 2001-built Leiv Eiriksson is currently undergoing a yard stay in Norway before starting its contract with Lundin in Norway during the third quarter of 2016. The contract is for a minimum of 3 wells with an estimated backlog of approximately $23.6 million.

Offshore Energy Today Staff

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