Rig delays for Songa Offshore

Songa Offshore SE reports operating revenue for the fourth quarter of USD 154.7 million and an EBITDA of USD 65.3 million.

Net profit for the quarter was USD 1.4 million including the recognition of an impairment charge for Songa Mercur and Songa Venus of USD 24.7 million in the quarter corresponding to the rigs’ EBITDA in the quarter and consistent with accounting practise for Assets Held for Sale.

“We have again delivered a strong quarter operationally, with an operating efficiency of 99.7%. In combination with increased cost control and reduced operating costs, we are delivering the strongest quarterly EBITDA in three years”, says Songa Offshore CEO, Bjørnar Iversen.
Regarding the Cat D rigs, the yard has fallen behind on the delivery schedule for all the rigs. The delivery of the first rig, Songa Equinox, is now slipping into early first quarter 2015, with one rig being delivered each subsequent quarter. As a consequence, the average USD 660 million “ready-to-drill” cost will increase by 2-3%.

“We are clearly unsatisfied with the delays and have taken action in order to ensure that appropriate measures are put in place. The yard has now allocated 300 to 400 more staff to complete the first unit. We are monitoring the situation closely and are confident that the revised delivery schedules will be met”, says Bjørnar Iversen.

 

Press Release, May 26, 2014

 

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