Offshore drilling contractor Pacific Drilling S.A. has reported net income for the first quarter 2015 of $51.7 million, compared to a net income of $22.2 million for the first quarter of 2014.
CEO Chris Beckett said, “The company had an exceptional fourth quarter in 2014, and our first-quarter operational and financial performance very nearly matched it. With an operating fleet of five and a half rigs, during the quarter we generated a record level of cash flow from operations.”
To remind, in the fourth quarter of 2014, which Beckett mentioned above, the drilling company’s net income was $68.0 million.
Clients want hi-spec rigs
When it comes to the state of the offshore drilling market, Beckett added, “We continue to experience a very weak market, but are pleased to have the highest-quality contract portfolio in the industry. The market for offshore rigs continues to develop as we anticipated, with clients increasingly focused on the capabilities and efficiencies of the rigs in their contracted fleets.”
He added: “In this regard, clients are more and more discerning about both the quality of the asset and the drilling service delivered, and we believe our high-specification fleet and focus on the client relationship will provide a competitive advantage. We expect industry-wide contracting activity in the remainder of 2015 to be limited, but provided oil prices continue to rebound, exploration drilling picks up, and industry rationalization of supply does not falter, we should begin to see market improvement.”
Pacific Drilling is one of the youngest drilling contractors out there and it has a fleet of seven recently built ultra deepwater drillships capable of operating in 10,000 feet water depth. The eighth drillship, the Pacific Zonda, is under construction in South Korea.