Ocean Rig Reports 3Q Net Loss of $12.2 Mln

Ocean Rig Reports 3Q Net Loss of $12.2 Mln

Ocean Rig UDW, an international drilling contractor which specializes in the ultra-deepwater and harsh-environment segment of the offshore drilling industry today reported a net loss of $12.2 million for the third quarter 2012.

In a press release issued today, Ocean Rig announced that the company’s results would have amounted to a net income of $26.2 million had there not been for the costs associated with the 10-year class survey for the Eirik Raude of $16.8 million, or $0.13 per share; Non-cash write offs associated with the full repayment of the $1.04 billion senior secured credit facility totaling $18.3 million, or $0.14 per share; and non-cash mark-to-market losses on interest rate swaps totaling $3.3 million or $0.03 per share.

George Economou, Chairman and Chief Executive Officer of the Company commented:

“Adjusted for one-time factors, Ocean Rig reported solid results for the quarter, with our drilling units operating at acceptable levels of efficiency. The scheduled drydock of the Eirik Raude, which is scheduled to be completed in the fourth quarter of 2012, combined with costs mainly associated with two of our units preparing to work in Angola resulted in higher operating expenses. Following the completion of certain upgrades to the Leiv Eiriksson early next year, we look forward to having all six of our drilling units operating efficiently in their respective locations throughout the remainder of 2013. In addition, in 2014 we will enjoy the additional revenue contribution from our three newbuilding drillships scheduled to be delivered in 2013.”

  November 15, 2012