Awilco Drilling posts rise in profit. Looks for rig contract in uncertain market

Awilco Drilling, a UK based drilling contractor, on Wednesday reported its net profit for the quarter was $35.3 million, up from $26 million reported in the second quarter of 2014.

Revenue also rose to $69 million for the quarter, from $65 reported in the corresponding period a year ago.

The company’s two mid-water semi-submersible drilling rigs, the WilPhoenix, and WilHunter were both active during the quarter.

The WilPhoenix was in continued drilling operations for Apache and the WilHunter was moved to Invergordon following completion of the decommissioning program for Hess Ltd.

Awilco in July agreed with Hess to terminate the WilHunter contract ahead of the December 1, 2015 contract date, as the rig completed the decommissioning program for Hess earlier than originally planned.

Awilco said there were no negative financial effects as a result of the early release.

Providing its take on the market situation Awilco Drilling said that the UK market remained quiet with limited tendering activity.

“Rigs are continuing to come off contracts and with limited prospects of new work, rig availability and subsequent stacking are set to increase further in 2015 and 2016. The uncertain market outlook has led to some cold stacking and attrition,” Awilco Drilling said.

The company did not comment specifically on the potential prospects, or stacking plans, for the 1983-built, out of contract, WilHunter. In a statement issued earlier, on July 31, the company said the rig, equipped for operations in water depths up to 1,500 feet, “is being actively marketed against future opportunities.”

Offshore Energy Today Staff