Sevan Drilling Ltd: Sevan announces first quarter 2017 results
Highlights First Quarter 2017
Economic Utilization of 97.0%
Operating revenue of USD 55.1 million
EBITDA of USD 25.4 million
Net loss of USD 7.5 million
Subsequent Events
On April 27, 2017, the delivery deferral agreement for the Sevan Developer was deferred to May 31, 2017 to finalize negotiations.
Financial performance summary
For the Three months ended March 31, 2017
Operating revenue
Operating revenue was USD 55.1 million (Q1 2016: USD 52.8 million). The increase in revenue is primarily due to improved operating performance on the Sevan Brasil. In Q1 2017 the Sevan Brasil achieved technical utilization of 99.7% (Q1 2016: 90.8%) and the Sevan Louisiana achieved 95.7% (Q1 2016: 96.9%). The Sevan Driller was idle for both periods.
Total operating expenses
Total operating expenses were USD 44.8 million (Q1 2016: USD 57.5 million). Vessel operating expenses were USD 25.6 million (Q1 2016: USD 33.7 million). The decrease is mainly due to the Sevan Driller being idle during the current quarter. General and administrative costs were USD 4.0 million (Q1 2016: USD 5.6 million), the decrease is driven by lower management and lower external adviser fees. Depreciation and amortization was USD 15.1 million (Q1 2016: USD 17.4 million) reflecting the impairment recognized in Q3 2016.
Net financial items
Net financial items amounted to USD 17.6 million in Q1 2017 (Q1 2016: USD 16.8 million). Interest and commitment fees on the Revolving Credit Facility ("RCF") with Seadrill increased by USD 1.2 million reflecting the rising LIBOR rate at the end of 2016. Interest expenses on the secured bank loan facility decreased by USD 0.4 million.
Net loss for Q1 2017 was USD 7.5 million (Q1 2016: USD 20.4 million).
Balance sheet
Cash and cash equivalents amounted to USD 22.2 million as of March 31, 2017 (December 31, 2016: USD 26.0 million). During Q1 2017, interest and principal payments under the debt facility were USD 44.2 million. Interest payments of USD 3.9 million were made under the RCF. As of March 31, 2017, USD 185.0 million was drawn on the RCF, no draw downs or repayments were made in the quarter.
For further information, please contact: Scott McReaken, CEO, Sevan Drilling Management AS +47 22 33 00 00 About Sevan Drilling: Sevan Drilling Limited is an international offshore drilling contractor specializing in the ultra deepwater segment. Sevan Drilling Limited is listed on Oslo Børs.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act. Sevan Drilling Ltd Q1 2017
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Source: Sevan Drilling ASA via GlobeNewswire
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