North Atlantic Drilling Issues Results
Bermuda’s North Atlantic Drilling reported its third quarter 2011 results today [Nov.30].
North Atlantic Drilling Limited was incorporated in Hamilton as a wholly owned subsidiary of Bermuda’s Seadrill Limited in February, 2011.
Among the third quarter highlights were:
- North Atlantic Drilling generates third quarter 2011 EBITDA of US$142 million [ EBITDA is defined as earnings before interest, depreciation and amortisation equal to operating profit plus depreciation and amortisation].
- North Atlantic Drilling reports third quarter 2011 net income of
- US$44.4 million and earnings per share of US$0.044
- North Atlantic Drilling resolves to distribute a regular cash dividend of US$0.04 per share
- North Atlantic Drilling takes delivery of the harsh-environment jack-up rig West Elara from Jurong Shipyard
Consolidated revenues for the third quarter of 2011 amounted to $242.9 million, up from $ 233.0 million in the second quarter.
Operating profit for the quarter was $107.6 million, down by $5.1 million compared to the previous quarter.
Net financial items for the quarter amounted to a loss of $56.6 million and included $22.4 million in interest expenses, and a US$40.8 million loss on financial items, mainly related to interest rate swap agreements.
Income taxes for the third quarter were $6.6 million.
Net income for the quarter was $44.4 million and basic earnings per share $0.045.
Cash dividend for the third quarter is increased to $0.04 per share.
Chairman and CEO Alf C Thorkildsen commented: “North Atlantic Drilling delivers another strong quarter with a record utilisation and revenues and a very solid operating margin. The market uncertainty with a decline in long term interest rates had an adverse impact through the interest rate swaps and hence led to a reduction in earnings.
“Whilst our performance is strong, contract backlog is solid and the outlook for our business very favourable, we have taken decisive actions to protect shareholder value against increases in taxation.
“We have also decided to pursue a listing of our shares on one of the main stock exchanges in New York.”
