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2015-08-27

Sevan Drilling Ltd: Sevan announces second quarter 2015 results

Highlights Second Quarter 2015

* Operating revenue in Q2 2015 was USD 99.4 million (Q2 2014 - USD 88.6
million).
* EBITDA in Q2 2015 was USD 52.1 million (Q2 2014 - USD 40.8 million).
* Net profit in Q2 2015 was USD 13.7 million (Q2 2014 - USD 9.2 million)
* Sevan Drilling completed the Migration of its parent company from Sevan
Drilling ASA to Sevan Drilling Limited, incorporated in Bermuda. The old
parent company was delisted from the Oslo Stock Exchange, and the new
parent company began trading on 30th June 2015. The group continues to use
the ticker "SEVDR".
* Following the Migration the Board of the Bermuda parent company needed to
be reconstituted to have majority non-Norwegian residents, and on 26
August, after approval of the Q2 2015 Interim Financial Report, Mr Erling
Lind resigned as Chairman and Director. Ms Birgitte Ringstad Vartdal was
appointed to replace Mr Lind as Chairman.
* The Board is pleased to announce the appointment of Svend Anton Maier as a
Director of the Company to fill the vacancy. Mr Maier is the Senior Vice
President, Americas in the Seadrill Group.

Financial performance summary

For the three months ended June 30, 2015

Operating revenue

Operating revenue was USD 99.4 million compared to USD 88.6 million in Q2
2014. The revenue increase is explained by a full quarter of operations of
the Sevan Louisiana, which commenced operations in May 2014 and operating for
the full period in 2015. The Sevan Louisiana achieved a Q2 2015 technical
utilization of 93.8% (89.9% in Q2 2014), Sevan Driller technical utilization
was 91.0% (94.7% in Q2 2014), and Sevan Brasil technical utilization was
98.9% (98.2% in Q2 2014).

Operating expenses

Total operating expense was USD 66.4 million compared to USD 64.3 million in
Q2 2014. The increase is the result of Sevan Louisiana operating in this
quarter compared to the prior year, offset by reductions in operating
expenses realized across the fleet. Average operating costs per day per rig
remained lower compared to historical averages, as the Company continued
executing cost savings initiatives that began early this year. General and
administrative costs reduced to USD 3.9 million compared to USD 5.6 million
in Q2 2014, from conclusion of the integration and restructuring.
Depreciation expense increased compared to Q2 2014 as a consequence of Sevan
Louisiana in service for the full period in Q2 2015.

Net financial items

Net financial items amounted to USD 17.3 million in Q2 2015 compared to USD
14.4 million in Q2 2014. Interest and commitment fees on the Revolving Credit
Facility with Seadrill ("RCF
") increased by USD 2.3 million.

Net profit for Q2 2015 was USD 13.7 million compared to a net profit of USD
9.2 million in Q2 2014.

For the six months ended June 30, 2015

Operating revenue

Operating revenue was USD 182.5 million for the six months ended June 30, 2015
compared to USD 148.7 million for the comparative period in 2014. The revenue
increase is due to the Sevan Louisiana commencing operations in May 2014 and
operating for the full period in 2015.

Operating expenses

Total operating expense was USD 129.7 million for the six months ended June
30, 2015 compared to USD 123.6 million for the comparative period in 2014. In
the first half 2015, operating expenses increased with USD 7.7 million mainly
explained by Sevan Louisiana operating for the full 2015 period, offset
through cost savings initiatives across the fleet. General and administrative
costs were USD 3.5 million lower from conclusion of the integration and
restructuring. Depreciation expense increased as a consequence of Sevan
Louisiana in service in the full period.

Net financial items

Net financial items amounted to USD 34.7 million for the six months ended June
30, 2015 compared to USD 25.9 million for the comparative period in 2014.
This is explained by increased interest and commitment fees on the RCF of USD
5.2 million and interest expense increased USD 2.7 million mainly due to no
interest being capitalized in 2015 due to the Sevan Louisiana being
completed.

The net profit was USD 15.9 million for the six months ended June 30, 2015
compared to a net loss of USD 1.2 million for the comparative period in 2014.

Balance sheet

Cash and cash equivalents amounted to USD 31.5 million as of June 30, 2015
compared to USD 30.2 million as of December 31, 2014.

During Q2 2015, interest and principal payments under the debt facility and
RCF were USD 11.6 million and USD 35.0 million, respectively. As of June 30,
2015, USD 160.0 million was drawn on the RCF.

Sevan is preparing its accounts on the assumption that the company is a going
concern. Liquidity remains sensitive to performance of the rigs under their
contracts, the continued availability of the RCF, and other market
conditions.

For further information, please contact:

Scott McReaken, CEO, Sevan Drilling Management AS

+47 91194651 mobile

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 of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.

Sevan Drilling Ltd Q2 2015 Report
http://hugin.info/147057/R/1947829/707376.pdf

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Sevan Drilling ASA via Globenewswire

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