Pacific Drilling posts $84M 1Q loss. Rig demand improving, CEO says

  • Exploration & Production

Offshore drilling contractor Pacific Drilling has posted a loss for the first quarter of 2019, but the CEO is optimistic about the signs of rising demand for hi-spec rigs.

Pacific Drilling drillships stacked in Las Palmas / Image by Rab Lawrence, Flickr – Shared under by 2.0

Pacific Drilling on Tuesday said its net loss for the quarter was $84 million, which is an improvement from a loss of $96 million in the same quarter a year ago.

First quarter contract drilling revenue was $65.9 million, down from $82 million a year ago. Providing revenue guidance for the second quarter, Pacific Drilling, which owns seven deepwater drillships, all delivered between 2010 and 2014, said it expected revenue between $72 million and $77 million.

Pacific Drilling CEO Bernie Wolford said: ”While the market remains challenging, we are encouraged by the upturn in utilization within the sector and continued improvement in demand as indicated by tender activity and direct discussions with clients. We are ideally positioned to benefit from this increasing demand for our available 6th and 7th generation drillships.”

As of the April 8 rig fleet status report, Pacific Drilling, which last year emerged from bankruptcy, had three rigs smart-stacked in Las Palmas and had four rigs with secured contracts including the recently awarded contract for the Pacific Khamsin drillship with Equinor in the Gulf of Mexico.

Wolford on Tuesday said the Equinor contract was “a clear acknowledgment of our record of delivering exceptional performance.”

“Having capable and experienced crews maintaining our smart-stacked rigs supported by a strong technical team committed to performance will allow us to deliver the 7th generation Pacific Khamsin drillship in a ready to work condition with economy and efficiency,” he said.

The contract with Equinor is expected to begin in November 2019, and end in January 2020.

Offshore Energy Today Staff

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