Songa Offshore returns to 3Q profit

Offshore driller Songa Offshore has reported a rise in its third-quarter revenue and profit. Revenue rose to $228.9 million, compared to $124.2 million for the third quarter 2015.

The main reason for the increase of $104.7 million is the increase in the company’s operating rig fleet and the increased revenue contribution from Songa Equinox, Songa Endurance, Songa Encourage and Songa Enabler offshore drilling rigs. All Songa Offshore’s operating rigs are working for Statoil on the Norwegian Continental Shelf.

Also, unlike the third quarter of 2015 when Songa Offshore posted a net loss of $297 million, this time, in the third quarter of 2016, the company reported a net profit of $65 million.

Providing its take on the drilling market future, the company which has two rigs stacked and marketed for work, Songa Dee and Songa Trym, sees a tough year ahead.

“The North Sea drilling market continues to be very challenging with a limited number of tenders in both the NCS and UK markets. As a result, further rigs have come off contract and have been stacked. Visibility is still low and the competition for the few tenders in the market is fierce. Songa Offshore continues to be of the view that 2017 will be a challenging year for the industry,” Songa Offshore said on Thursday.

Offshore Energy Today Staff

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