NOTE: THE COMPANY IS AN INVESTMENT ENTITY AND SHALL NOT CONSOLIDATE ITS SUBSIDIARIES.
(Limassol, 18 February 2021) S.D. Standard Drilling Plc (Standard Drilling, OSE:SDSD) had a negative adjusted EBITDA of USD 1 million in the fourth quarter of 2020 from the underlying operations of Platform Supply Vessels (PSVs) (Q4 2019: USD (0.5) million), with an utilization of 73% on fully owned large-sized PSVs (82%).
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Standard Drilling reported an operating loss of USD 6.6 million in the fourth quarter of 2020 (USD (1.6) million), following unrealized loss on revaluation of financial assets of USD 6.8 million. Standard Drilling is an investment entity and shall not consolidate its subsidiaries. Therefore, the company measures its investments in PSVs and VLCC based on fair value estimates from reputable independent valuers. Revenues and EBITDA from chartering out the vessels are not consolidated into, nor reflected in the financial statements.
From operating the PSVs the group had an underlying negative adjusted EBITDA* in the fourth quarter 2020 of USD 1 million (USD (0.5) million). For the full year 2020 the group had a negative EBITDA of USD 4 million compared to positive USD 6 million in 2019. The utilization of the large-sized PSV’s was 73 % in the quarter (82%).
“The operating result from the PSV fleet in the fourth quarter was corresponding to the result in the third quarter. This reflects, as we see it, the low activity level in the North Sea and numbers of vessels available in the market. To reduce the risk and secure utilization we have secured term contracts for two of our four large size PSV’s. We do expect that we will see increased rates in the upcoming spring and summer season compared to the last six months. The sale of Carrick and Aberdour has reduced our risk in the medium size PSV segment.", says Martin Nes, Chairman of the Board of Standard Drilling Plc.
The total cash balance was USD 32.9 million at the end of fourth quarter, including pro-rata ownership of the subsidiaries and investments, down from USD 38.6 million at the end of third quarter 2020, mainly due to the purchase of own shares of USD 4.5 million
The VLCC Gustavia S, of which SDSD owns 33.3%, completed its fourth voyage in February 2021.
In addition to the part-ownership of the VLCC vessel Gustavia S, Standard Drilling currently owns 100% of four large-size modern PSVs. Further, the company has invested in 6 mid-size PSVs through Northern Supply AS, bringing the total fleet of partly and fully owned PSVs to 10. The company has zero debt, cost effective operations and low overhead cost.
ENDS
For additional information, please contact:
General Manager, Evangelia Panagide at +357 99 77 11 16
Chairman of the Board, Martin Nes at +47 92 01 48 14
Standard Drilling|www.standard-drilling.com
*Excluding non-recurring cost and dry dock, special survey, maintenance and repair
S.D. Standard Drilling was founded in 2010. In addition to a 33.3% ownership of a VLCC, the company currently has 100% ownership interest in four large-size Platform Supply Vessels (‘PSVs’) and an indirect ownership interest in six mid-size PSVs.
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