Island Drilling swings to loss on impairment

Island Drilling, a Norwegian drilling contractor owning the Island Innovator semi-submersible drilling rig, has recorded a net loss of $51.5 million in the fourth quarter of 2014.

The company has said that due to the general decline in the market values for drilling rigs, it has taken an impairment charge on the Island Innovator rig value of $61 million.

Adjusted for the impairment loss, the net profit in the fourth quarter was USD 9,5 million. Operating revenues were 42.3 million.While EBITDA in the quarter amounted to $23,5 million.

While many offshore drilling contractors have predicted tough times ahead in securing work for its drilling rigs, Island Offshore, which owns one drilling unit is secured, at least in the short term.

While acknowledging that the negative trend seen in the rig market throughout 2014 is continuing, Island Offshore has said that since its rig still has six wells left under its 12-well Lundin charter contract, the weaker rig market has no impact on the company’s profitability.

Offshore Energy Today Staff