Awilco Drilling’s profit sinks in 4Q
- Business & Finance
UK-based offshore drilling contractor Awilco Drilling posted a lower profit and revenues for the last quarter of 2016 when compared to the year-before period.
The driller posted a net profit of $14.9 million for the fourth quarter 2016 compared to a profit of $66.7 million in the same period of 2015.
Further, Awilco reported revenues of $35.1 million for the quarter versus revenues of $90.4 million in 4Q 2015.
During the quarter, the company’s contract utilization was 50% and contract backlog at the end of the quarter was approximately $159 million.
Awilco has two semi-sub drilling rigs, the WilPhoenix and the WilHunter.
During the quarter, the WilPhoenix was in continued operations for Apache North Sea at the Kinord location before handing over to TAQA Bratani in December for operations at the Sturgeon location.
The standby revenue billing of $22.8 million booked in 2Q in respect of the period that Awilco Drilling was awaiting client instructions remains unresolved. Awilco Drilling and Apache North Sea are still in discussions to resolve this matter. In the event this is resolved, then an adjustment to revenue to reflect this will be included in the annual audited accounts.
The company’s other rig, the WilHunter, is still cold stacked in Invergordon.
Looking ahead, Awilco said the UK floater market of 2017 is expected to see modestly higher levels of marketed utilization in the summer season. This seasonal demand being adequately filled by active rigs rolling off contract, albeit at close to breakeven rates.
The company further added that the sustained current oil price, combined with a reduced market fleet, gives optimism for better prospects from 2018, particularly when early indications of activity from operators are combined with currently forecast decommissioning requirements.
Offshore Energy Today Staff