Maersk Drilling reports rise in profit. Expects slowdown in 2014

Danish offshore drilling contractor Maersk Drilling made a profit of $528M in 2013, up from $347M.

During 2013 Maersk Drilling entered into several new major contracts and has now secured contracts for six out of eight new drilling rigs to be delivered in 2014-2016.

The revenue backlog increased to $7.9bn ($7.0bn in 2012), and the one-year forward coverage by the end of 2013 was 94% (98%). Operational uptime averaged 97% (92%). Cash flow from operating activities was $775 million ($ 597 million in 2012) and cash flow used for capital expenditure was USD 1.5bn (USD 555m).

As for the outlook for 2014, Maersk Drilling said it expects a result lower that $528 million achieved in 2013 due to planned yard stays in 2014 and high costs associated with training and start-up of operation of six new rigs.

The company earlier this week took delivery of its first ultra deepwater drillship, Maersk Viking, from the Samsung Heavy Industries (SHI) shipyard in Geoje-Si, South Korea. Maersk Viking has started its voyage to the US Gulf of Mexico where it will start a three year contract with ExxonMobil.