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In Odfjell Drilling's quarterly report for the third quarter, it appears that the company achieved a turnover of $ 181 million, or about $ 1.5 billion, over the period. This is a slight increase from $ 178 million in the same period last year.
This increase is attributable to increased activity in the company's drilling, technology and well services divisions.
Despite the increase in sales, the operating result (EBITDA) decreases. The total ends at $ 69 million, compared to $ 81 million in the third quarter of 2017. This corresponds to an EBITDA margin of 38%, compared to 45% in 2017.
Pressed prices give lower figures
"The efficiency programs put in place by the oil companies have resulted in a significant reduction in development and production costs in the field," writes Odfjell Drilling in his message, highlighting the dump in the price of oil in 2014.
The assembly company reported a quarterly pre-tax profit of $ 8 million, down from $ 18 million for the same period last year.
At the end of the quarter, Odfjell Drilling has assets worth $ 2.3 billion, which equals NOK 19.4 billion at today's exchange rate. Debts totaled $ 971 million, or about NOK 8.2 billion.
Think that scraping continues
The global drilling market is growing at a steady pace, writes the company. Odfjell is experiencing growing demand, especially in harsh environments.
The combination of increased demand and a significant number of old retired platforms permanently allows for increased use of the company's fleet for platforms tolerant of harsh environments. Odfjell Drilling mainly has semi-submersible 6th generation gear designed for extreme conditions.
"Based on the preferences for new, more efficient devices combined with high reactivation costs, we believe that the scratches of old retention platforms in the marine environment and in harsh environments will continue in the coming years", indicates the report.
A transition to more modern platforms will balance the market and therefore higher daily rates, writes the company in its report.
Fears more difficult access to capital
In April, the company bought the platform Stena Midmax, which it has renamed Deepsea Nordkapp.
The price of about 4 billion Norwegian kroner was partially funded by an Akastor investment, bank loans, equity and a seller credit from the yard. In September, the company announced that a $ 325 million bank loan had been contracted and that the platform was fully funded.
Odfjell Drilling now fears that the conditions of the banks for granting future loans will not create problems for the company.
"The significant reduction in the market capitalization of oil and gas service providers has led financial institutions to focus more on the backlog as a primary criterion for debt financing," the company writes.
In its quarterly report, the company writes that the platform market continues to be difficult and now fears that capital grant opportunities will shrink in the event of possible refinancing of the platforms. Platforms.
"Uncertainty in the current financial market represents a risk for the group in terms of financing if today's market conditions persist," the company writes in a statement. They say that work on cost reduction is continuing and that they will take steps to ensure that the liquidity position is exposed.
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