Maersk Drilling Q2 2014 Profit Dips

Posted by George Backwell
Thursday, August 21, 2014
Ultra-deepwater rig: Photo Maersk

Maersk Drilling informs that in Q2 2014 it delivered a profit (NOPAT) of USD 117-m (USD 150-m). While the underlying operational performance remained strong with an operational uptime of 97% (96%), the decrease in profit of USD 33-m compared to Q2 2013 was mainly due to planned activities with growing and maintaining the fleet. The return on invested capital (ROIC) was 7.2% (12.6%).

“Once again, Maersk Drilling delivers a strong operational performance, but as expected the financial result was impacted by three rigs undergoing planned maintenance, upgrades and class surveys, and start-up costs for new rigs entering the fleet,” says Claus V. Hemmingsen, CEO of Maersk Drilling and member of the Executive Board in the Maersk Group.

Maersk Drilling’s ambitious growth strategy includes investments of USD 5.2bn in eight new rigs being delivered between 2014 and 2016 that will grow Maersk Drilling’s market position in the ultra deepwater market and ultra harsh environment segments supporting the financial ambition of reaching a USD 1-bn NOPAT in 2018.

In Q2 2014, Maersk Drilling took delivery of Maersk Valiant, the second in a series of four ultra- deepwater drillships. Upon arrival in the US Gulf of Mexico the rig will commence a three year contract. Contracts have been secured for six of the eight newbuilds. Maersk Drilling is in discussions with oil companies for employment on both short and longer term contracts for the last two drillships, which have not yet achieved a contract.

In line with the growth strategy, Maersk Drilling has in Q2 2014 ordered four Blow-Out-Preventers (BOPs) and two risers to be used in the Project 20KTM, which is a joint development project with BP to develop the next generation ultra deepwater rigs capable of operating in high-pressure and high temperature reservoirs.

“Maersk Drilling see 20K as the next frontier, and we have an ambition of growing in what we call technically and operationally challenging areas. Our agreement with BP on Project 20K™ fits perfectly into this strategy, and with the order of the Blow Out Preventers, we have passed a key milestone in the development of a truly purpose built 20K™ Rig,” says Claus V. Hemmingsen.

Maersk Drilling’s forward contract coverage is 94% for the remaining part of 2014, 72% for 2015 and 49% for 2016. The total revenue backlog for Maersk Drilling at the end of Q2 2014 amounted to USD 7.0bn (USD 6.6bn).

“The high contract coverage provides a high degree of earnings visibility and reduces the exposure to near term market softening,” Claus V. Hemmingsen concludes.

Maersk Drilling still expects a result for 2014 below the result for 2013 (USD 528m) due to planned yard stays and high costs associated with training and start-up of operation of six new rigs.

www.maerskdrilling.com

Maritime Reporter October 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

Diana Extends Containership Time Charters

Diana Containerships Inc. announced direct continuation of time charter agreements for m/v Cap Domingo and m/v Cap Doukato   Diana Containerships Inc., a global

BMT Supports Samalaju Port Development

BMT subsidiaries in the Asia-Pacific region have been awarded a contract to provide design expertise for an advanced bulk-material handling system for the emerging port of Samalaju in East Malaysia.

EU: Ships Will Measure CO2 Emissions

Shippers to begin monitoring from 2018; Environmental groups say law is weak, shippers favorable. The shipping sector will for the first time have to monitor

Finance

New Company Takes Over OW Tanker

OW Tanker, a unit of bankrupt OW Bunker and owner of its marine fuel supply ships, has been taken over by a newly-created company, the fleet manager told Reuters on Wednesday.

WRRDA: Clearing the Channel for P3 Projects

A Creative Combination for Financing Inland Waterways Infrastructure Earlier this year, the U.S. maritime industry in general, and the inland waterways industry in particular,

Choosing the Best Financing Proposal

It isn’t always about the rate. In a robust boatbuilding market – like the one we see now – even the most successful, financially stable operators need to borrow.

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.3636 sec (3 req/sec)