Songa Offshore Puts Difficult Period Behind, CEO Says

Songa Offshore SE reports operating revenue for the third quarter 2012 of USD 145.4 million with a total loss of USD 108.4 million, following an impairment loss of USD 116.8 million due to the sale of the ultra deep water rig Songa Eclipse. EBITDA for the quarter was USD 56.8 million.

“Our ambition is to become a leading mid-water rig operator on the Norwegian continental shelf. The sale of Songa Eclipse represents a first step in streamlining the company and is an important step in this direction. It also contributes to strengthening our cash reserves with USD 280 million after repayment of a debt of USD 310 million”, says interim CEO and Chairman of the Board, Jens A Wilhelmsen.

In connection with the third quarter results presentation, Songa also specifies the cost overruns in connection with the upgrading and maintenance of Songa Delta and Songa Trym. While Songa’s net share of the costs for the upgrading of Songa Delta is estimated to USD 135 million, the estimated net cost for Songa Trym is 165 million.

“We have put a couple of very challenging months behind us, with cost overruns on Songa Delta and Songa Trym, a change in the top management and the sale of Songa Eclipse. Now that Songa Delta and Songa Trym again become operational, we will enter into a situation where we can focus more of our energy on optimizing our operations. We are going from one to three rigs in operation on the Norwegian continental shelf, and we must now ensure that we obtain the benefits of scale that the increase in activity will offer”, says Jens A Wilhelmsen.

 
Press Release, November 26, 2012