Songa Offshore Reports Net Profit of $10.6 Mln

Songa Offshore, a Cyprus-based drilling contractor has reported a profit for the second quarter of 2012 of USD 10.6 million.  

Operating revenue for the second quarter was USD 151.2 million. This includes mobilization and demobilization revenue of USD 2.5 million.  Total expenses for the second quarter were USD 101.9 million. EBITDA for the second quarter was USD 59.3 million. Net financial expenses for the second quarter were USD 11.4 million.

Earnings per share (EPS) and diluted earnings per share (DEPS) for the second quarter were USD 0.05.

Market conditions and outlook

“We have seen several projects that were bid in 2012 delayed to 2013, especially in the SEA market, raising the prospects for both the Songa Mercur and Songa Venus as they roll off contract mid-2013. Bidding activity in previous quarters consisted mainly of short term jobs and overly ambitious commencement dates. Today, early signs of a tightening midwater market prevail with requests for quotation containing longer terms, and being sent up to 1 year in advance of commencement. We continue to expect day rates in the shallow end of the midwater segment to remain flat until operators begin to issue awards on their already released tenders, at which point we look to a healthier midwater market,” said the company in a statement.

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Press Release, August 20, 2012