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

Legal

USCG Boatcrew Searching for Burglary Suspect

U.S. Coast Guard (USCG) search-and-rescue crews are currently searching for a burglary suspect in the vicinity of the Rickenbacker Causeway near Miami, Fla. Friday morning.

US Steel Producers Win Anti-dumping Case

The United States has approved anti-dumping duties against South Korea and other producers of steel pipes for the energy sector, a victory for domestic producers

China Appeals WTO Ruling on US Solar Panel Dispute

China has appealed against a WTO dispute panel report on anti-dumping duties applied on certain Chinese products by the United States, the World Trade Organization (WTO) said on Friday.

Finance

Airbus May Sell Stake in Submarine Supplier

Airbus is considering a sale of its 49 percent stake in submarine supplier Atlas Elektronik as part of a reshuffle of its military business, German newspaper Die

W.Africa Crude Slow to Trade; Nigerian Glut Fading

Angolan cargoes for October loading are so far finding buyers slowly, traders said on Friday, while there were further signs that an overhang of September-loading Nigerian cargoes is being absorbed.

US Steel Producers Win Anti-dumping Case

The United States has approved anti-dumping duties against South Korea and other producers of steel pipes for the energy sector, a victory for domestic producers

News

Scottish Sea Farms Orders Newbuilds

Macduff Shipyards Ltd. has received a contract worth more than £3.3 million pounds from Scottish Sea Farms for the design and build of four 19.8-meter 150T steel

Mexican Navy Delegation Visits NSSA

The U.S. Navy reported that its Norfolk Ship Support Activity (NSSA) welcomed the Mexican Navy Delegation to Building CEP-200, Naval Station Norfolk, Aug. 21 for

MARAD: Total Fuel Cycle Study for Natural Gas

The Maritime Administration (MARAD) released a study that evaluates total fuel cycle emissions for natural gas versus conventional marine fuels. Results showed

Marine Equipment

Mexican Navy Delegation Visits NSSA

The U.S. Navy reported that its Norfolk Ship Support Activity (NSSA) welcomed the Mexican Navy Delegation to Building CEP-200, Naval Station Norfolk, Aug. 21 for

MN 100: Caterpillar Marine

Neumühlen 9 22763 Hamburg/Germany Tel: (713) 895-1449 Email: cat_power@cat.com Website: www.marine.cat.com Managing Director: Nigel Parkinson The Company: Caterpillar

Servowatch to Showcase New AMC Range at SMM

Servowatch Systems, a U.K.-based business unit of the Electrical and Automation division of India’s engineering giant Larsen & Toubro, said its exhibition stand

Vessels

Scottish Sea Farms Orders Newbuilds

Macduff Shipyards Ltd. has received a contract worth more than £3.3 million pounds from Scottish Sea Farms for the design and build of four 19.8-meter 150T steel

400 Migrants Rescued by USCG & RBDF

Coast Guard crews and Royal Bahamian Defence Force (RBDF) rescued more than 400 Haitians illegally migrating in three separate at sea interdictions in the span of 11 days.

Navios Maritime Reports Better Revenues for 2Q & 1H, 2014

Navios Maritime Holdings Inc. a global, vertically integrated seaborne shipping and logistics company, today reported financial results for the second quarter and six months ended June 30, 2014.

Offshore Energy

Ferguson Norge Unveils New NORSOK Workshops

As a result of market demand for NORSOK workspace modules, Ferguson Norge, specialists in the rental of DNV 2.7-1 / EN 12079 certified offshore containers, refrigeration/freezer modules,

Bureau Veritas to Class, Certify FPSOs for Saipem

Bureau Veritas has been awarded a contract by Saipem to provide classification and certification services for the two Kaombo FPSOs for service off Angola. The

Kvaerner in Statoil Unmanned Platform Project

Kvaerner say that Statoil has awarded it a concept study related to a standardised, unmanned dry tree wellhead platform for the Oseberg Future Development project.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Port Authority Ship Repair Ship Simulators 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: 0.1811 sec (6 req/sec)