Pacific Drilling Revenue Up Again in Q1 2014
In its First-Quarter 2014 results Pacific Drilling announces revenue of $225.6 million for the three months ended March 31, 2014, as compared to revenue of $200.5 million for fourth-quarter 2013 and $175.0 million for first-quarter 2013. Net income for first-quarter 2014 was $22.2 million or $0.10 per diluted share. Net income for first-quarter 2013 was $15.1 million or $0.07 per diluted share. CEO Chris Beckett said, “We delivered our fifth consecutive quarter of increasing revenue. Cash flow from operations reached a new high, and EBITDA exceeded $100 million for the first time.
Pacific Drilling Gets Funding for Two Drillships
Pacific Drilling S.A. sign a $1 billion senior secured credit facility agreement to finance construction of the Pacific Sharav & Pacific Meltem. The term loan made pursuant to the credit facility will have a maturity of 5 years from the delivery date of the Pacific Meltem. A portion of the funding will be provided before delivery of the vessels, with all drawdowns from the facility subject to satisfaction of customary conditions precedent. The transaction was led and structured by Citibank and DNB, and supported by the Norwegian export credit agencies Garanti-Instituttet for Eksportkreditt (GIEK) and Eksportkreditt Norge AS. Also acting as Mandated Lead Arrangers were ABN AMRO, ING, SEB and Standard Chartered Bank.
SHI to Build Eighth Drillship for Pacific Drilling
Pacific Drilling exercises contract option for Samsung Heavy Industries to construct another Ultra-Deepwater Drillship. The drillship will have a rated water depth of 12,000 feet, be equipped for 40,000 feet drilling depth, have accommodation for 200 personnel and be equipped to support dual gradient drilling. The total cost, excluding capitalized interest, will be approximately $620 million and delivery is scheduled for March 16, 2015. Financing for the construction of this rig is expected to be provided by a combination of cash flows from ongoing operations and long-term debt. “We are extremely pleased to announce the order of our eighth ultra-deepwater drillship,” stated Pacific Drilling CEO Chris Beckett.
Pacific Drilling Charters Out 'Pacific Khamsin'
Pacific Drilling's ultra-deepwater drillship the 'Pacific Khamsin' contracted by a subsidiary of Chevron Corporation for operations in West Africa. The minimum duration of the contract is for an initial two-year term, with contract commencement expected by end of the third quarter of 2013. The contract provides for an option, to be exercised at the client’s discretion prior to shipyard delivery of the drillship, which could result in an additional year of contract term. Estimated maximum contract revenues related to the initial two-year term, including mobilization and demobilization, are expected to be approximately $527 million, bringing Pacific Drilling’s total contract backlog as of November 15, 2012, to approximately US$3.4-billion.
Five-year Contract for Pacific Drilling Vessel
Pacific Drilling S.A. Pacific Sharav is scheduled for delivery by Samsung Heavy Industries in Korea in the fourth quarter of 2013, upon completion of construction and client requested modifications. The drillship will be capable of operating in water depths of up to 12,000 feet and drilling wells up to 40,000 feet deep. The Chevron will require the drillship to operate in the Gulf of Mexico. Estimated maximum contract revenue, including mobilization and client requested modifications, is expected to be approximately $1,076 million, bringing Pacific Drilling’s total contract backlog as of June 22, 2012, to approximately $3.2 billion. Pacific Drilling CEO Chris Beckett stated, “We are proud to announce the expansion of our relationship with Chevron to include a third drillship.