Pacific Drilling expects offshore rig dayrate recovery in 2019

Offshore ultra-deepwater driller Pacific Drilling expects that first signs of improving demand for the offshore drilling rigs will lead to dayrate recovery in 2019. For the last quarter of 2016, the driller posted a bigger loss when compared to the year-before period. 

The driller on Thursday reported a net loss for the fourth quarter 2016 of $43 million, compared to net loss of $13.6 million for the fourth quarter 2015.

In the report, Pacific Drilling CEO, Chris Beckett, said: “The market continues to develop as we have previously forecast, with the first signs of improving demand that we believe will lead to an eventual dayrate recovery in 2019.”

Pacific Drilling’s contract drilling revenue for the fourth quarter 2016 was $178 million, which included $29.4 million of deferred revenue amortization, versus revenues of $267.6 million for the corresponding period in 2015.

On December 9, 2016, the contract with Chevron was amended to change the contract end date for the drillship Pacific Santa Ana from April 28, 2017 to January 31, 2017 in exchange for a fee of $35.2 million. This fee was recognized ratably over the remaining term of the amended contract, and accounts for the majority of the deferred revenue increase from third-quarter 2016 to fourth-quarter 2016.

On December 17, 2016, the drillship Pacific Scirocco completed all contractual obligations for Total, which resulted in recognizing revenue at 80% of its operating dayrate of $489,000 for the remaining contractual days.

Revenues for fourth-quarter 2016 also benefited from an overall improved revenue efficiency performance of 2.2% during the quarter. These revenue increases were offset by the completion of the drillship Pacific Bora contract on September 27, 2016.

Offshore Energy Today Staff

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