Rig impairments drag Paragon Offshore deeper into red

Drilling contractor Paragon Offshore posted a deeper net loss for the fourth quarter 2016 compared to the prior-year fourth quarter due to jack-up rig impairments.

The driller on Friday reported fourth quarter 2016 net loss of $244.4 million, as compared to fourth quarter 2015 net loss of $23.3 million.

According to the company, results for the fourth quarter of 2016 included a $129.9 million non-cash asset impairment charge primarily related to six jack-ups and other capital spares.

Paragon’s total revenues for the fourth quarter of 2016 were $61 million compared to $125.1 million in the third quarter of 2016. In the fourth quarter of 2015, the driller’s revenues amounted to $299.6 million.

Paragon reported that utilization for its marketed rig fleet, which excludes available days related to rigs that were stacked and not marketed during the quarter, declined to 22 percent for the fourth quarter of 2016 compared to 34 percent for the third quarter of 2016.

Average daily revenues declined 21 percent in the fourth quarter of 2016 to $86,000 per day compared to the previous quarter average of $109,000 per day. Contract drilling services costs declined 16 percent in the fourth quarter of 2016 to $71.3 million compared to $85.1 million in the third quarter of 2016.

Paragon’s total contract backlog at December 31, 2016 was approximately $242 million compared to $365 million at September 30, 2016.

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