HOUSTON, May 15, 2013 /PRNewswire/ --
Highlights
(All $ in USD)
- Northern Offshore, Ltd. (Oslo Bors: NOF.OL) today reported net income for the three months ended March 31, 2013 of $1.1 million, or $0.01 per diluted share, on revenues of $41.4 million.
- The company generated $9.8 million of first quarter EBITDA.
- The positive net cash balance stands at $18 million.
- The company's directors have declared a dividend of $0.05 per share, or approximately $8.2 million.
Management Comment
Gary W. Casswell, Northern Offshore's president and CEO, commented, "Earnings for the quarter were slightly less than we expected because of approximately 20 days of downtime for the Energy Driller due to unscheduled maintenance on one of the pontoons. We are also expecting a flat second quarter due primarily to a transition of the Energy Endeavour back to operations in the UK and the Energy Searcher remaining idle. However, we still anticipate positive cash flow for the next quarter, as well as the second half of 2013, and expect to maintain the dividend distributions."
First Quarter Analysis
Net income for the three months ended March 31, 2013 of $1.1 million, or $0.01 per diluted share, on revenues of $41.4 million compares to a net loss of $14.1 million, or $0.09 per diluted share, for the first quarter of 2012, on revenues of $28.2 million.
Revenues for the three months ending March 31, 2013 were $13.2 million higher than the same period in 2012, primarily due to higher utilization of the semisubmersible Energy Driller and jackup Energy Enhancer, and higher dayrates for the jackup Energy Endeavour. Partially offsetting these increases was a decrease in dayrate revenues for the drillship Energy Searcher due to lower utilization as compared to the same period last year.
Tariff revenues from the floating production facility Northern Producer averaged approximately $110,000 per day in the first quarter of 2013. The company expects pricing levels to remain stable and production to decline slightly in the near term.
Drilling and production expenses for the three months ending March 31, 2013 were $5.1 million lower as compared to the same period in 2012, primarily due to a decrease in operating expenses for the jackup Energy Exerter, as the rig was sold in October 2012. This disposition also accounted for most of the $1.5 million decrease in depreciation expense for the current quarter as compared to the first quarter of the prior year. First quarter 2013 general and administrative expenses, interest expense, amortization of financing fees and other financial items were comparable to those of the same period in 2012.
As of May 14, 2013, the company had an outstanding credit facility balance of $22 million and a cash balance of approximately $40 million.
The company's directors have declared a dividend of $0.05 per share, or approximately $8.2 million. Shareholders of record with the VPS on May 31, 2013 will be entitled to receive the dividend, which will be paid on or around June 14, 2013. The shares of the company will be trading ex-dividend from May 29, 2013.
Conference Call Information
Northern Offshore, Ltd. will conduct a teleconference with security analysts at 9 a.m. CT, May 16, 2013 to discuss the company's quarterly results. Individuals wishing to participate in the teleconference should call (800) 884-5695 (in the U.S.) or (617) 786-2960 (outside the U.S.) about five to ten minutes prior to the scheduled start time and refer to participant password 79956446.
The conference call also will be accessible by logging on to the company's website at http://www.northernoffshorelimited.com. After logging on, go to "Investor Relations" and select the conference call webcast.
About the Company
Northern Offshore, Ltd. is a Bermuda holding company which operates offshore oil and gas drilling units and one production vessel in various markets around the world, including the North Sea, the Indian Ocean and Southeast Asia. The company's fleet consists of four drilling units (a drillship, a semisubmersible and two jackup drilling rigs) and one floating production facility. More information on Northern Offshore, Ltd. may be found by visiting the company's website at http://www.northernoffshorelimited.com.
This announcement contains statements that reflect the company's expectations or predictions of the future. These statements are forward-looking statements. These forward-looking statements may include statements regarding earnings guidance, capital allocation strategy, the impact of activity levels, business performance, and other market and industry conditions. The company's actual results could differ materially from those reflected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the company's regulatory filings. The company disclaims any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events or otherwise.
For further information, please contact:
Brian Hefty at (713) 739-7686,
or via email at [email protected]
NORTHERN OFFSHORE, LTD. and SUBSIDIARIES |
|||
Consolidated Statements of Operations |
|||
(Unaudited) |
|||
Three Months Ended March 31, |
|||
(Thousands of US Dollars, except per share amounts) |
Q4 2012 |
2013 |
2012 |
Revenues |
48,812 |
41,413 |
28,238 |
Operating expenses: |
|||
Drilling and production |
(31,458) |
(30,079) |
(35,142) |
Depreciation |
(7,767) |
(7,937) |
(9,398) |
General & administrative |
(1,083) |
(2,011) |
(1,911) |
Gain on disposal of assets |
7,574 |
- |
- |
Total operating expenses |
(32,734) |
(40,027) |
(46,451) |
Operating income/(loss) |
16,078 |
1,386 |
(18,213) |
Interest expense |
(501) |
(395) |
(494) |
Amortization of deferred financing fees |
(123) |
(121) |
(138) |
Other financial items |
(193) |
469 |
(373) |
Total other expense |
(817) |
(47) |
(1,005) |
Income/(loss) before taxes |
15,261 |
1,339 |
(19,218) |
Income taxes - benefit/(expense) |
(2,098) |
(275) |
5,075 |
Net income/(loss) |
13,163 |
1,064 |
(14,143) |
Earnings per share (US$) |
|||
Basic |
0.08 |
0.01 |
(0.09) |
Diluted |
0.08 |
0.01 |
(0.09) |
Weighted average common shares (000's) |
|||
Basic |
156,134 |
157,060 |
155,689 |
Diluted |
156,134 |
157,217 |
155,689 |
NORTHERN OFFSHORE, LTD. and SUBSIDIARIES |
||
Consolidated Balance Sheets |
||
(Unaudited) |
||
(Thousands of US Dollars) |
March 31, 2013 |
December 31, 2012 |
Current assets |
||
Cash and cash equivalents |
22,034 |
26,504 |
Restricted cash |
150 |
- |
Accounts receivable, net |
25,520 |
29,386 |
Prepaid expenses |
3,452 |
4,099 |
Deferred mobilization costs |
1,719 |
2,209 |
Deferred insurance premium |
1,516 |
1,869 |
Other current assets |
1,711 |
1,711 |
Total current assets |
56,102 |
65,778 |
Noncurrent assets |
||
Property, plant & equipment, net |
197,326 |
201,077 |
Restricted cash, net of current portion |
5,436 |
5,436 |
Noncurrent deposit/escrow account |
7,098 |
5,198 |
Deferred mobilization costs, net of current portion |
1,289 |
1,596 |
Drydock costs, net of current portion |
4,534 |
5,093 |
Other noncurrent assets |
1,322 |
1,748 |
Total noncurrent assets |
217,005 |
220,148 |
Total assets |
273,107 |
285,926 |
Current liabilities |
||
Accounts payable |
11,604 |
16,760 |
Accrued expenses |
9,368 |
9,748 |
Income taxes payable |
595 |
933 |
Current debt |
22,000 |
22,000 |
Deferred revenue |
1,031 |
2,062 |
Total current liabilities |
44,598 |
51,503 |
Shareholders' equity |
||
Share capital |
40,888 |
40,122 |
Additional paid-in capital |
171,415 |
170,985 |
Accumulated other comprehensive loss |
(6,691) |
(6,691) |
Retained earnings |
22,897 |
30,007 |
Total shareholders' equity |
228,509 |
234,423 |
Total liabilities and shareholders' equity |
273,107 |
285,926 |
NORTHERN OFFSHORE, LTD. and SUBSIDIARIES |
||||||
Consolidated Statements of Cash Flows - (Unaudited) |
||||||
Three months ended March 31, |
||||||
(Thousands of US Dollars) |
2013 |
2012 |
||||
Cash flows from operating activities |
||||||
Net income/(loss) |
1,064 |
(14,143) |
||||
Adjustments to reconcile net income to net cash |
||||||
provided by/(used in) operating activities: |
||||||
Stock-based compensation |
1,470 |
999 |
||||
Depreciation |
7,937 |
9,398 |
||||
Amortization of deferred financing fees |
121 |
138 |
||||
Gain on disposal of assets |
(29) |
(22) |
||||
Changes in operating assets and working capital |
||||||
Accounts receivable |
3,866 |
17,441 |
||||
Prepaid expenses |
647 |
(831) |
||||
Income taxes receivable |
- |
(3,625) |
||||
Deferred mobilization costs |
797 |
(1,970) |
||||
Other current and noncurrent assets |
932 |
(1,706) |
||||
Accounts payable |
(6,839) |
(5,594) |
||||
Other accrued liabilities |
(568) |
(2,344) |
||||
Deferred revenue |
(1,031) |
(4,813) |
||||
Income taxes payable |
(338) |
(2,926) |
||||
Net cash provided by/(used in) operating activities |
8,029 |
(9,998) |
||||
Cash flows from investing activities |
||||||
Capital expenditures |
(2,189) |
(1,402) |
||||
Changes in restricted cash |
(150) |
2,604 |
||||
Changes in noncurrent deposit/escrow account |
(1,900) |
(915) |
||||
Net cash provided by/(used in) investing activities |
(4,239) |
287 |
||||
Cash flows from financing activities |
||||||
Proceeds from drawdown of revolver facility |
- |
14,564 |
||||
Payment for taxes on vested shares |
(274) |
(563) |
||||
Dividends paid |
(7,986) |
(4,753) |
||||
Net cash provided by/(used in) financing activities |
(8,260) |
9,248 |
||||
Net changes in cash and cash equivalents |
(4,470) |
(463) |
||||
Cash and cash equivalents at beginning of period |
26,504 |
10,601 |
||||
Cash and cash equivalents at end of period |
22,034 |
10,138 |
||||
Supplemental disclosure of cash flow information |
||||||
Cash paid during the period for: |
||||||
Income taxes |
87 |
1,126 |
||||
Significant non-cash transactions during the period for: |
||||||
Accrued capital expenditures |
1,968 |
1,279 |
||||
Accrued dividends |
188 |
60 |
NORTHERN OFFSHORE, LTD. and SUBSIDIARIES |
||||||||
Consolidated Statements of Shareholders' Equity |
||||||||
(Unaudited) |
||||||||
Accumulated |
||||||||
Common |
Additional |
other |
||||||
shares |
Share |
paid-in |
comprehensive |
Retained |
||||
(Thousands of US Dollars) |
('000) |
capital |
capital |
loss |
earnings |
Total |
||
Balance at December 31, 2011 |
158,184 |
39,546 |
168,583 |
(6,691) |
34,855 |
236,293 |
||
Net loss |
- |
- |
- |
- |
(14,143) |
(14,143) |
||
Issuance of restricted stock |
2,277 |
569 |
(569) |
- |
- |
- |
||
Payments for taxes on vested shares |
- |
- |
(563) |
- |
- |
(563) |
||
Stock-based compensation |
- |
- |
999 |
- |
- |
999 |
||
Common shares dividends |
- |
- |
- |
- |
(4,813) |
(4,813) |
||
Balance at March 31, 2012 |
160,461 |
40,115 |
168,450 |
(6,691) |
15,899 |
217,773 |
||
Balance at December 31, 2012 |
160,488 |
40,122 |
170,985 |
(6,691) |
30,007 |
234,423 |
||
Net income |
- |
- |
- |
- |
1,064 |
1,064 |
||
Issuance of restricted stock |
3,064 |
766 |
(766) |
- |
- |
- |
||
Payments for taxes on vested shares |
- |
- |
(274) |
- |
- |
(274) |
||
Stock-based compensation |
- |
- |
1,470 |
- |
- |
1,470 |
||
Common shares dividends |
- |
- |
- |
- |
(8,174) |
(8,174) |
||
Balance at March 31, 2013 |
163,552 |
40,888 |
171,415 |
(6,691) |
22,897 |
228,509 |
NORTHERN OFFSHORE, LTD. and SUBSIDIARIES |
|||
Reconciliation of GAAP to Non-GAAP Financial Results |
|||
(Unaudited) |
|||
Three Months Ended |
|||
March 31, |
|||
(Thousands of US Dollars) |
Q4 2012 |
2013 |
2012 |
Net income/(loss) (GAAP) |
13,163 |
1,064 |
(14,143) |
Add Back: |
|||
Net interest expense |
624 |
516 |
632 |
Income taxes |
2,098 |
275 |
(5,075) |
Depreciation |
7,767 |
7,937 |
9,398 |
EBITDA (Non-GAAP) |
23,652 |
9,792 |
(9,188) |
EBITDA is defined as Net Income/(Loss) before Interest, Taxes and Depreciation |
NORTHERN OFFSHORE, LTD. and SUBSIDIARIES |
||||
Operating Statistics |
||||
(Unaudited) |
||||
Three Months Ended |
||||
March 31, |
||||
Q4 2012 |
2013 |
2012 |
||
Jackups (2) |
||||
Average rig utilization |
100% |
100% |
58% |
|
Operating days |
184 |
180 |
106 |
|
Average revenue per day |
103,195 |
105,545 |
63,477 |
|
Drillship (1) |
||||
Average rig utilization |
0% |
0% |
45% |
|
Operating days |
0 |
0 |
41 |
|
Average revenue per day |
0 |
0 |
309,530 |
|
Semisubmersible (1) |
||||
Average rig utilization |
100% |
100% |
0% |
|
Operating days |
92 |
90 |
0 |
|
Average revenue per day |
172,108 |
138,013 |
0 |
|
Total Drilling Rigs (4) |
||||
Average rig utilization |
75% |
75% |
40% |
|
Operating days |
276 |
270 |
147 |
|
Average revenue per day |
126,456 |
116,368 |
132,104 |
|
Floating Production Facility (1) |
||||
Days in period |
92 |
90 |
91 |
|
Production days |
92 |
90 |
91 |
|
Average bpd |
24,965 |
18,273 |
15,919 |
|
Average tariff revenue per day |
149,789 |
109,636 |
95,515 |
|
Average other revenue per day |
1,408 |
1,406 |
1,393 |
|
Total average revenue per day |
151,197 |
111,042 |
96,908 |
|
Note 1: Operating days represent actual days under contract. |
||||
Note 2: Costs which are reimbursed by the client are included in the average revenue per day calculation. |
||||
Note 3: Energy Exerter is excluded from Q1 2012 and Q4 2012 calculation for the jackup fleet. |
SOURCE Northern Offshore, Ltd.
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