Maersk Drilling: Profit hit by yard stays, startup costs of new rigs
- Business & Finance
Danish drilling contractor Maersk Drilling recorded a drop in its first quarter 2014 profit.
The company made a profit of $116 million, compared to $146 million earned in the corresponding period of 2013.
According to the company’s quarterly report the 1Q 2014 profit was impacted by three rigs on planned yard stays and startup costs for new rigs entering the fleet.
Maersk Drilling currently has six offshore rigs under construction with contracts secured for four of the newbuild rigs.
Cash flow from operating activities was $79 million (1Q 2013: 178 million) and cash flow used for capital expenditure was $852 million (1Q 2013: 543 million)
As for the full year outlook, the company said it expects 2014 to generate a result lower to the one achieved last year ($528m) due to planned yard stays and high costs associated with training and start-up of operation of
six new rigs.