Songa Offshore Reports 4Q Net Loss of $218.9 million

Songa Offshore Reports 4Q Net Loss of $218.9 million

Songa Offshore SE, a Cyprus-headquartered offshore drilling contractor, reports operating revenue for the fourth quarter 2012 of USD 134.6 million and an EBITDA of USD 41.8 million. Net loss for the quarter is USD 218.9 million, including the recognition of an impairment loss of USD 213.3 million.

 “We have put a couple of very challenging months behind us, with major delays and cost overruns on Songa Delta and Songa Trym, changes in top management, and the sale of Songa Eclipse. On the positive side, we now have all five rigs on cash generating contracts, we have restored liquidity, and we have strengthened both the board and the management team. Songa will now focus on then financing of the CAT-D project, which are the most important task ahead. With three rigs in operation for Statoil, we will also ensure that we use the opportunity to obtain operational benefits of scale,” says interim CEO and Chairman of the Board, Jens A Wilhelmsen.

In addition to continuous operational improvements, the focus for Songa going forward will be to ensure that the company can take possession of the four new CAT D rigs on time and budget. Songa has strengthened the operational management team through the recruitment of Bjørnar Iversen as new president of Songa Rig AS, who will take responsibility for bringing the Cat D rigs in operation under the contracts with Statoil.

“The top management of Songa has recently been to Korea to assess the new build project first hand, and to discuss all aspects of the delivery with the DSME management. We are confident that the project is on track, with regard to both delivery and costs. With a contract back log of USD 6.6 billion, we are also confident that we will secure necessary financing of the new rigs,” says Jens A Wilhelmsen.

Press Release, February 25, 2013