Maersk Drilling Reports Q3 2012 Less Profitable

Press Release
Monday, November 12, 2012
'Maersk Discoverer': Photo courtesy of Maersk Drilling

In its interim third quarter financial report the company says it remains on track to attain its long-term profit target.

Maersk Drilling’s profit in the third quarter 2012 was US$ 87-million compared to US$ 139-million in the third quarter of 2011. The latest quarterly result was negatively impacted by two delayed start-ups and maintenance yard stays for two drilling rigs.

With the recent US$ 700-million contract for the second newbuild drillship and a high forward contract coverage Maersk Drilling report it is well positioned to reach its strategic aspiration of delivering a profit of US$ 1-billion. The third quarter result was negatively impacted by costly start-up issues on two drilling units.

“The start-up issues materialising in the second and third quarter are hampering our result for 2012, which is obviously not satisfying. However, these are bumps on the road and not jeopardizing our longer term strategic aspiration. We have a strong forward contract coverage providing us with a high degree of earnings visibility and the market remains very encouraging as illustrated by our latest contract for the second of our newbuild drillships,” says Claus V. Hemmingsen, CEO of Maersk Drilling and member of the Executive Board of the A.P. Moller - Maersk Group.

By the end of the third quarter Maersk Drilling’s forward contract coverage was 100% for the remaining part of 2012 and the contract coverage stays high in 2013 (97%) and 2014 (64%). In October 2012 Maersk Drilling reported a new contract of around USD 700 million for its second newbuild drillship for operations in the U.S. Gulf of Mexico. With this contract Maersk Drilling has signed contracts for five out of seven drilling units currently under construction.

Maersk Drilling is one of the four strategic core business units in the A.P. Moller - Maersk Group prioritized for investments. Maersk Drilling’s financial ambition is to deliver US$ 1-billion to the Group’s profit by 2018 by growing its business within the ultra harsh environment jack-up and ultra deepwater floater segments.

 


 

Maritime Reporter June 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

DNV-GL Approves Kongsberg Engine Room Simulators

Kongsberg Maritime has received DNV-GL certification for three of its latest engine room simulator models designed to provide in-depth training on the K-Sim Engine simulator platform.

Container Shipping Lucky to Break Even in 2015

A toxic mixture of overcapacity, weak demand and aggressive commercial pricing is threatening liner shipping industry profitability for the rest of 2015, according

CMA CGM's OPDR Acquisition Approved by EU

The CMA CGM Group announced that the European Commission has approved its acquisition of OPDR. In order to finalize the acquisition, which was announced on November 25, 2014 by Jacques R.

Offshore

Shell's Icebreaker Vessel Damaged in Alaska

Royal Dutch Shell Plc's  icebreaker vessel Fennica returned to the Dutch Harbor in Alaska with a small breech in the hull, raising concerns about the company's

Research Vessel Concept a First for Voith

The new fisheries research vessel of the Shanghai Ocean University will be a first for Voith in several respects.   It is the first fisheries research vessel

Ocean Safety’s New Liferaft Facility Opens

Ocean Safety, a specialist in the worldwide supply, distribution, service and hire of marine safety equipment, has opened a new liferaft hire division.   Ocean

Finance

Greece Port Operations Update

An update on Greece’s port operations and local conditions was issued today by maritime services provider Inchcape Shipping Services (ISS).   According to ISS,

Container Shipping Lucky to Break Even in 2015

A toxic mixture of overcapacity, weak demand and aggressive commercial pricing is threatening liner shipping industry profitability for the rest of 2015, according

Dry Bulk Market Crisis: Opportunity or Threat?

The shipping industry is experiencing the biggest dry bulk market recession since the 1980s, as uncertain global economic outlook and increased imbalance between

 
 
Maritime Careers / Shipboard Positions Navigation Offshore Oil Pod Propulsion Port Authority Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | 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: 0.2523 sec (4 req/sec)