Highlights for the second quarter
- Revenues of $61.7 million.
- Operating loss of $40.1 million.
- Economic Utilization of 96%.
- Net loss of $59.1 million and net loss
attributable to shareholders of $62.3 million. The loss per share
was $2.59.
Financial highlights
Second quarter 2017 results
Revenues were $61.7 million (1Q17:
$72.6 million). The primary reason for the decrease is due to lower
dayrates on the West Elara and West Linus.
This is partly offset by the West Phoenix
commencing operations in February 2017.
Operating loss was $40.1 million,
(1Q17: operating loss of $24.5 million). The increased loss is
primarily due to the reduced dayrates on the West
Elara and West Linus, in addition to
higher general and administrative expenses of $5.6 million
primarily due to advisory fees related to the ongoing
restructuring.
Net financial items were an
expense of $33.0 million (1Q17: $28.5 million). The increase is
driven by higher foreign exchange losses due to strengthening of
NOK against the USD offset by a higher gain on derivative financial
instruments.
Net loss for the second quarter
was $59.1 million (1Q17: loss of $52.9 million) and net loss
attributable to shareholders was $62.3 million (1Q17: loss $56.4
million). The resulting basic loss per share for the second quarter
was $2.59.
Balance sheet as at June 30, 2017
As at June 30, 2017, total
assets decreased to $2,714.6 million (1Q17: $2,795.5 million).
Total current assets decreased to
$82.9 million (1Q17: $108.4 million). The decrease was mainly due
to the fall in cash balances following repayments of long term
debt, as noted below.
Total non-current assets decreased
to $2,631.7 million (1Q17: $2,687.1 million). The decrease was
mainly due to depreciation on drilling units.
Total current liabilities
decreased to $1,204.8 million (1Q17: $1,211.9 million). The
decrease is primarily due to the draw down of revolving credit
facility with Seadrill in the quarter partly offset by repayments
of debt on the $2 billion credit facility.
Total non-current liabilities
decreased to $1,241.3 million (1Q17: $1,254.6 million). The
decrease is primarily attributable to pension payments, settlements
of related party balances and normal deferred revenues
amortization.
Total interest bearing debt,
including related party debt and net of debt issuance costs,
increased to $2,243.4 million (1Q17: $2,229.9 million) during the
quarter. This reflects normal quarterly repayments and a net
drawn down of the revolving credit facility with Seadrill.
Total equity was $268.5 million
(1Q17: $329.0 million), reflecting the net loss for the quarter of
$59.1 million.
Cash flow
As at June 30, 2017, cash and
cash equivalents decreased to $21.6 million (1Q17: $42.9
million).
For the six-month period ending
June 30, 2017, net cash used in operating activities was $6.5
million (2Q16: provided by $35.8 million). Net cash provided by
investing activities amounted to $1.3 million (2Q16: $0.4 million),
and net cash used in financing activities was $41.6 million (2Q16:
$111.2 million).
This information is subject
to the disclosure requirements pursuant to section 5-12 of the
Norwegian Securities Trading Act.