Awilco Drilling second quarter profit, revenues tumble
- Exploration & Production
UK-based offshore drilling contractor Awilco Drilling posted a lower profit and revenues for the second quarter of 2016 when compared to the same period last year.
Awilco’s net profit for the quarter totaled $6.9 million, compared to $35.3 million in the corresponding period in 2015. However, when compared to the first quarter of 2016, the offshore driller returned to profit from a loss of $18.7 million.
Contract revenue for the quarter was $24.4 million, a drop compared to $69 million in the prior-year quarter. Further, the company’s contract backlog at the end of 2Q was approximately $231 million.
Awilco owns and operates two semi-sub drilling rigs, the WilPhoenix and the WilHunter.
At the end of 2Q 2016, the WilPhoenix had restarted operations for Apache North Sea at the Storr location.
At the end of June, WilPhoenix had a total remaining contract backlog of approximately $231 million. In April, the rig was declared ready to drill awaiting client instructions. During the period prior to start of rig mobilization to client location Awilco Drilling considers that WilPhoenix was on standby rate of $22.8 million. Apache North Sea does not agree that the rig was ready to drill nor that Awilco Drilling is entitled to standby rate for this period.
The company’s other rig, the WilHunter, remained stacked during the quarter in Invergordon.
In the second quarter, Awilco Drilling had rig operating expenses of $9.8 million while the company’s general and administration expenses were $2.5 million.
The company stated that the supply of drilling rigs in the UK continues to exceed demand and the market is expected to become increasingly seasonal through 2017.
Offshore Energy Today Staff