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Highlights Second Quarter of 2023
· Total operating revenues of $187.5 million, an increase of $15.5 million or
9% compared to the first quarter of 2023.
· Net income of $0.8 million, an increase of $8.2 million compared to the
first quarter of 2023.
· Adjusted EBITDA of $84.0 million, an increase of $11.6 million or 16%
compared to the first quarter of 2023.
· Total contract revenue backlog as at June 30, 2023 of $1.65 billion.
Subsequent events
· 2023 year to date, we have been awarded seven new contracts and six
extensions to existing contracts representing 2,613 days and $376 million of
potential revenue.
CEO, Patrick Schorn commented:
"The second quarter of 2023 continued the positive trend experienced over the
last several quarters, with an increase in revenue of 9% to $187.5 million and
an increase in Adjusted EBITDA of 16% to $84.0 million.
We continue to see positive development in the market for jack-up drilling rigs
and year to date, we have been successful in securing seven new contracts and
LOAs for a total estimated duration of 1,771 days and $289 million in contract
value. This equates to market leading dayrates of approximately $163,000 per day
(including mobilisation related revenues).
In July 2023, one of our customers in West Africa cancelled previously exercised
options for our rig “Gerd”. Subsequently, we were immediately able to secure new
work for the rig in the Middle East at economics which we view as even more
favourable, and in a region where we see better long-term prospects. The change
of contract for this rig will lead to some idle time before it commences its new
contract in December 2023, which will impact results in the second half of this
year, however this will improve our position in 2024 and beyond. We also intend
to bring forward the rig’s periodic surveys during this idle period which will
mitigate out of service periods previously anticipated in 2024.
In addition, we have secured a short-term extension to the contract for our rig
“Prospector 1”, operating in the North Sea, a region that is experiencing lower
dayrate levels than the rest of the world. With the overall market continuing to
strengthen, particularly in other regions, we remain positive that this
extension will provide a bridge towards favourable long-term commitments
elsewhere.
Based on these developments, our full year Adjusted EBITDA in 2023 is now
estimated to be between $330 to $360 million. We expect our financial
performance in the third quarter of 2023 to be similar to the second quarter,
which we expect will be followed by an increase in the fourth quarter, when for
the first time all of the Company’s 22 delivered rigs will be in operation.
Supported by our confidence in the jack-up rig market, we are in active
discussions with Seatrium (formerly Keppel), for an expedited delivery of our
rigs “Vale” and “Var” to August and November 2024, respectively.
Following our recent contract awards, our fleet’s contract coverage for 2024
stands at 70%, including firm contracts and priced options, with an average
equivalent dayrate of approximately $123,000, including mobilisation related
revenues. Considering this firm contract coverage and projected dayrates for the
uncontracted days, we have narrowed the estimated range of Adjusted EBITDA for
full year 2024 to be between $500 to $550 million."
Questions should be directed to: Magnus Vaaler, CFO, +44 1224 289208
Kilde
