NADL - North Atlantic Drilling Ltd. reports first quarter 2017 result

Highlights for the first quarter

• Revenues of $72.6 million.
• Operating loss of $24.5 million.
• EBITDA of $30.6 million.
• Economic Utilization of 98%.
• Net loss of $52.9 million and net loss attributable to shareholders of $56.4 million. The loss per share was $2.34.
• April 11, 2017, the Company announced it secured 10-year contract awards for the West Elara and West Linus with ConocoPhillips Skandinavia AS

Financial highlights

First quarter 2017 results

Revenues for the first quarter 2017 were $72.6 million compared to $81.8 million for the fourth quarter of 2016. The primary reason for the decrease is due to the West Epsilon concluding its contract in the fourth quarter and remaining idle. The fall is partly offset by the West Phoenix commencing operations in February 2017.

Operating loss for the first quarter was $24.5 million, compared to the fourth quarter of 2016 operating loss of $24.9 million. The impact on the total operating income of the West Phoenix starting operations is offset by the impact of the West Epsilon concluding its contract in the fourth quarter as noted above.

Net financial items for the first quarter of 2017 amounted to a charge of $28.5 million. The charge included $26.4 million in interest expenses and a gain on financial derivatives of $3.4 million, partly offset by a foreign exchange loss of $0.7 million related to the NOK1,500 million bond. The fourth quarter of 2016 incurred a net financial charge of $31.0 million, including interest expenses of $26.6 million, and a loss on derivatives of $17.6 million, partly offset by a foreign exchange loss of $14.9 million related to the NOK1,500 million bond.

Net loss for the first quarter was $52.9 million and net loss attributable to shareholders was $56.4 million, resulting in a basic loss per share of $2.34.  This is compared to net loss of $53.4 million and a net loss attributable to shareholders of $56.9 million for the fourth quarter of 2016.

Balance sheet as at March 31, 2017

As at March 31, 2017, total assets decreased to $2,795.5 million from $2,918.4 million compared to the previous quarter.

Total current assets decreased to $108.4 million from $176.2 million compared to the previous quarter. The decrease was mainly due to the fall in cash balances following repayments of long term debt, as noted below. Accounts receivables also decreased following the collection of receivables as contracts concluded and other settlements were made.