Maersk Drilling profitable in 2015. Expects inferior 2016

  • Exploration & Production

Danish offshore drilling contractor Maersk Drilling reported a hike in profits both for the fourth quarter, and for the full year 2015. In 4Q 2015, the company’s profit was $181 million, up from $53 million a year ago.

For the full year, Maersk Drilling made a profit of $751 million, up from $478 million in 2014.

The company explained its results were positively impacted by good contract coverage, fleet growth, cost savings and strong operational performance.

Furthermore, Maersk Drilling said, the result benefited from fewer yard stays and additional gain from the sale of the Venezuela business partly offset by increased idle time and Maersk Endurer being decommissioned and recycled.

While the year was positive, Maersk Drilling has warned that 2016 would not be as successful as 2015.

The company said that three drilling rigs were available end of 2015, of which two will go on contracts later in 2016. However, as many as eight rigs will come off contracts during 2016.

Maersk Drilling expects a result significantly below 2015 mainly due to lower dayrates and more idle days.

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