Ocean Rig mulls restructuring move

Offshore deepwater drilling services provider Ocean Rig UDW is considering a restructuring move amid dwindling profit and revenues during the third quarter of 2016. 

In its 3Q 2016 report on Wednesday, the offshore driller said it continues to explore and consider various strategic alternatives with its financial and legal advisors, “which may include a possible restructuring under US bankruptcy laws or another jurisdiction.”

During the quarter that ended September 30, 2016, the company recorded net income of $38.9 million, down almost $100 million as compared to the net income of $138.4 million for the same period last year.

The company’s revenues also decreased by $102.1 million to $335 million for the three-month period ended September 30, 2016, as compared to $437.1 million for the same period in 2015.

Ocean Rig has five rigs, Eirik Raude, Ocean Rig Olympia, Ocean Rig Apollo, Ocean Rig Mylos, and Ocean Rig Paros, cold stacked in Greece. The company has six more rigs with redeliveries ranging from 1Q 2017 until 3Q 2021.

Fleet-wide utilization for the third quarter of 2016 was 97.43 percent and total backlog as of December 12, 2016, amounted to $1.8 billion.

Offshore Energy Today Staff

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