HOUSTON, June 1, 2015 /PRNewswire/ -- Hercules Offshore,
Inc. (NASDAQ: HERO) announced that it received from Saudi Aramco on
June 1, 2015, a notice reducing the
dayrates under its five year contracts for the Hercules 261
(as announced this morning the contract was reinstated with a
contract maturity date of September
29, 2019) and Hercules 262 to $67,000 per day. The reduced dayrates will apply
from January 1, 2015, through
December 31, 2016. Saudi Aramco also
advised the Company that the dayrate for the Hercules 266
has been reduced to $67,000 per day
for the remaining term of its contract.
As these dayrate concessions are effective retroactive to
January 1, 2015, the Company is
required to make an adjustment to its revenues for amounts earned
under these contracts during the period from January 1, 2015, through March 31, 2015. This adjustment, which
approximates $13 million, will be
recorded in the second quarter of 2015. The Company's financial
statements as of and for the three months ended March 31, 2015, will not be affected by this
concession.
About Hercules Offshore
Headquartered in Houston,
Hercules Offshore, Inc. operates a fleet of 29 jackup rigs,
including one rig under construction, and 24 liftboats. The Company
offers a range of services to oil and gas producers to meet their
needs during drilling, well service, platform inspection,
maintenance, and decommissioning operations in several key shallow
water provinces around the world. For more information, please
visit our website at http://www.herculesoffshore.com.
Statements above that are not historical fact are
forward-looking statements, including the status of contract
discussions, day rates, contract terms and financial statement
adjustments. Forward-looking statements by their nature involve
substantial risks, uncertainties and assumptions, including without
limitation, contract renegotiations with customers, early
termination by the customer pursuant to the contract or otherwise,
government and regulatory actions and other factors described in
the risks and uncertainties described in our periodic reports filed
with the Securities and Exchange Commission. Many of these factors
are beyond our ability to control or predict.
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SOURCE Hercules Offshore, Inc.