Maersk Drilling profits down to USD 116m Q1 2014

By Joseph R. Fonseca
Thursday, May 22, 2014
Maersk Drilling - Jack Up Rig

 

Maersk Drilling delivered a profit (NOPAT) of USD 116m (USD 146m) in the first quarter of 2014. The result was negatively impacted with USD 30m compared to the first quarter result last year mainly due to planned yard stays and the intake of two new rigs.

“2014 is a year of execution in progressing on Maersk Drilling’s ambitious growth strategy. As expected our first quarter result is negatively impacted by planned yard stays and the intake of two new rigs in our fleet. However, it is positive to see that we still deliver a stellar operational performance with 97% uptime for the fifth consecutive quarter in a row, which proves the strength of our business and our ability to deliver on our long-term goal of USD 1bn by 2018,” says Claus V. Hemmingsen, CEO of Maersk Drilling and member of the Executive Board in the A.P. Moller - Maersk Group.

Maersk Drilling’s ambitious growth strategy includes investments of USD 5.2bn in eight new rigs being delivered between 2014 and 2016. In the first quarter in 2014, Maersk Drilling took delivery of its first drillship, the Maersk Viking, and the first ultra harsh environment jack-up rig, the Maersk Intrepid. 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.

“We are currently seeing a slowdown in the deepwater market due to oil companies postponing several drilling programmes. We expect intensified competition in especially 2014 and 2015 for longer term jobs. However, there are still many short-term jobs, which will help absorb the supply. Despite the short term challenges, we maintain our positive long term view on the deepwater market, and our strong contract coverage shows that we are in the right markets, and that our services offered resonate well with our customers,” says Claus V. Hemmingsen.

Maersk Drilling’s forward contract coverage is 93% for the remaining part of 2014, 70% for 2015 and 50% for 2016. The total revenue backlog for Maersk Drilling at the end of Q1 2014 amounted to USD 7.4bn (USD 6.5bn). Maersk Drilling expects a result for 2014 below the result for 2013 (USD 528m) due to an extensive yard stay programme, one-time costs associated with training and start-up of operation of six new rigs and delays in the delivery of newbuilds due to interruptions in the delivery of certain equipment and services from sub-suppliers.

Facts about the first quarter 2014 performance:
Profit of USD 116m (USD 146m)
ROIC was 8.1% (13.0 %)
Operational uptime averaged 97% (96%)

Maersk Drilling

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

Legal

UN Throws the Book at North Korea Ship Operator

A U.N. Security Council committee on Monday blacklisted the operator of a North Korean ship, which was seized near the Panama Canal last year for smuggling Soviet-era arms,

Desulfurization of Exhaust Gases in Shipping

Are shipowners prepared to enter SECA zones?   Due to existing regulations on air exhaust emissions from the International Maritime Organization (IMO), and with

Tanker with Iraqi Kurdish Oil Anchors off Texas Port

A tanker carrying crude oil from Iraqi Kurdistan was anchored near the Port of Galveston, Texas, and must undergo a routine safety inspection by the U.S. Coast

Finance

Corvus Energy, GMC Close Financing Agreement

Corvus Energy today announced that it has completed a strategic investment by Green Marine Capital (GMC) previously announced on May 5, 2014. Green Marine Capital,

Cummins Reports Revenue Jump in Q2 2014

Cummins Inc. reported its results for the second quarter of 2014. According to the report, second quarter revenue of $4.8 billion increased 7 percent from the same quarter in 2013.

GPA Sets Tonnage Record

The Georgia Ports Authority moved more than 29 million tons of cargo, 3 million twenty-foot equivalent container units (TEUs) and more than 700,000 auto and machinery units in Fiscal Year 2014.

Energy

Prelude By the Numbers

Out at sea, look! It’s a ship! It’s a floating rig! It’s SuperFLNG! While not “faster than a speeding bullet,” Shell’s shipzilla Prelude is certainly more powerful than a speeding locomotive,

FLNG Prelude: A New Dawn in the Age of Maritime & Energy

Longer than four football fields, as big as six Nimitz-class aircraft carriers and almost as tall as the Taipei 101 skyscraper, Royal Dutch Shell PLC is hoping that its record-setting,

Valemon Topsides Installed

On Monday, July 28, the topsides were lifted into place on the steel jacket on the Valemon field in the North Sea. Produced by Samsung Heavy Industries this is

News

HMS Prince of Wales Delivery Begins

A huge section of hull for HMS Prince of Wales, the second aircraft carrier being delivered to the Royal Navy, has today departed BAE Systems in Glasgow on a 600-mile

Gondan to Build Spanish Patrol Boats

Gondan Shipyard has recently signed a contract with the Guardia Civil, Spain’s Civil Guard, for the building of two patrol boats. The aluminum and fiber (PRFV ) vessels will measure 20.

Marseilles Fos Reports Mixed First Half

First-half container traffic at leading French port Marseilles Fos totalled 583,287 teu – up 7% on the first six months last year - marked by a 10% increase at the deepsea Fos terminals.

Marine Equipment

Cummins Reports Revenue Jump in Q2 2014

Cummins Inc. reported its results for the second quarter of 2014. According to the report, second quarter revenue of $4.8 billion increased 7 percent from the same quarter in 2013.

Master Marine Delivers Z Drive Towboat

Master Marine, Inc. delivered its first 2,000 hp Z Drive inland river towboat last month. The towboat represents the first vessel (Entech Design) of this series by the yard.

Wagenbourg New Crane for Oil, Gas, Energy Sector

Wagenborg Nedlift has expanded her crane fleet with a brand new 700 tonnes mobile crane. With this crane the fleet is significantly strengthened. Equipped with

Vessels

UN Throws the Book at North Korea Ship Operator

A U.N. Security Council committee on Monday blacklisted the operator of a North Korean ship, which was seized near the Panama Canal last year for smuggling Soviet-era arms,

HMS Prince of Wales Delivery Begins

A huge section of hull for HMS Prince of Wales, the second aircraft carrier being delivered to the Royal Navy, has today departed BAE Systems in Glasgow on a 600-mile

Gondan to Build Spanish Patrol Boats

Gondan Shipyard has recently signed a contract with the Guardia Civil, Spain’s Civil Guard, for the building of two patrol boats. The aluminum and fiber (PRFV ) vessels will measure 20.

Offshore Energy

Prelude By the Numbers

Out at sea, look! It’s a ship! It’s a floating rig! It’s SuperFLNG! While not “faster than a speeding bullet,” Shell’s shipzilla Prelude is certainly more powerful than a speeding locomotive,

FLNG Prelude: A New Dawn in the Age of Maritime & Energy

Longer than four football fields, as big as six Nimitz-class aircraft carriers and almost as tall as the Taipei 101 skyscraper, Royal Dutch Shell PLC is hoping that its record-setting,

Corvus Energy, GMC Close Financing Agreement

Corvus Energy today announced that it has completed a strategic investment by Green Marine Capital (GMC) previously announced on May 5, 2014. Green Marine Capital,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Navigation Offshore Oil Pipelines Pod Propulsion Port Authority Salvage Ship Repair Sonar
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: 0.1671 sec (6 req/sec)