Northern Offshore Reports Fourth Quarter and Preliminary Full Year 2012 Results
HOUSTON, Feb. 20, 2013 /PRNewswire/ --
Highlights
(All $ in USD)
- Northern Offshore, Ltd. (Oslo Bors: NOF.OL) today reported net income for the three months ended December 31, 2012 of $13.2 million, or $0.08 per diluted share, on revenues of $48.8 million.
- For the full year ended December 31, 2012, net income was $19.2 million, or $0.12 per diluted share.
- The company's directors have declared a dividend of $0.05 per share, or approximately $8.2 million.
Fourth Quarter and Year End Analysis
The net income for the three months ended December 31, 2012 of $13.2 million, or $0.08 per diluted share, on revenues of $48.8 million, compares to a net loss of $10.7 million, or $0.07 per diluted share, for the fourth quarter of 2011, on revenues of $33.9 million. The financial results for the current fourth quarter included an after-tax gain of $7.5 million attributable to the sale of the jackup Energy Exerter.
The full year ended December 31, 2012 net income of $19.2 million, or $0.12 per diluted share, compares to a 2011 net loss of $3.4 million, or $0.02 per diluted share. Revenues in 2012 were $182.8 million, as compared to $161.1 million reported in 2011.
Revenues for the three months ended December 31, 2012 were approximately $14.9 million higher than the same period of 2011, primarily as a result of an increase in dayrate revenues due to higher utilization for the semisubmersible Energy Driller and higher average dayrates for the jackups Energy Endeavour and Energy Enhancer, as well as an increase in tariff revenues from the floating production facility Northern Producer. Partially offsetting these revenue increases was a decrease in dayrate revenues for the drillship Energy Searcher, as the unit was idle during the current quarter.
The tariff from the floating production facility Northern Producer averaged approximately $150,000 per day in the fourth quarter of 2012. Production for the fourth quarter was elevated due to a new well coming online and work-over operations that enhanced recovery from an existing well. The company expects pricing levels to remain stable and production volume to normalize in the high teens near term.
Drilling and production expenses for the three months ended December 31, 2012 were $4.0 million lower than the same period of last year, primarily due to lower drilling expenses while operating, compared to higher repair, maintenance and inspection costs incurred during the prior-year period when the semisubmersible Energy Driller was preparing for its three-year contract with ONGC. Partially offsetting this decrease were higher labor, inspection and mobilization costs related to the jackup Energy Enhancer's operations offshore Denmark.
Depreciation expense for the three months ended December 31, 2012 was $1.4 million lower compared with the same period in 2011, primarily due to the disposition of the jackup Energy Exerter. Fourth quarter 2012 general and administrative expenses, interest income and expense, amortization of financing fees and other financial items were comparable to those of the same period in 2011.
As of February 18, 2013, the company had an outstanding Revolving Credit Facility balance of $22.0 million and a cash balance of $43.0 million, resulting in a net cash position of $21.0 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 February 28, 2013 will be entitled to receive the dividend, which will be paid on or around March 15, 2013. The shares of the company will be trading ex-dividend from February 26, 2013.
The information contained in this press release is preliminary and is subject to change until the release of the 2012 annual report when approved by the Board of Directors.
Conference Call Information
Northern Offshore, Ltd. will conduct a teleconference with security analysts at 9 a.m. CT, February 21, 2013 to discuss the company's quarterly results. Individuals wishing to participate in the teleconference should call (866) 578-5784 (in the U.S.) or (617) 213-8056 (outside the U.S.) about five to ten minutes prior to the scheduled start time and refer to participant password 18005484.
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 December 31, |
Twelve Months Ended December 31, |
|||||
(Thousands of US Dollars, except per share amounts) |
Q3 2012 |
2012 |
2011 |
2012 |
2011 |
|
Revenues |
62,173 |
48,812 |
33,938 |
182,848 |
161,121 |
|
Operating expenses: |
||||||
Drilling and production |
(27,009) |
(31,458) |
(35,496) |
(122,500) |
(114,621) |
|
Depreciation |
(8,055) |
(7,767) |
(9,141) |
(34,471) |
(34,167) |
|
General & administrative |
(1,727) |
(1,083) |
(1,043) |
(6,437) |
(5,798) |
|
Gain on disposal of assets |
10 |
7,574 |
(784) |
7,493 |
(1,701) |
|
Total operating expenses |
(36,781) |
(32,734) |
(46,464) |
(155,915) |
(156,287) |
|
Operating income/(loss) |
25,392 |
16,078 |
(12,526) |
26,933 |
4,834 |
|
Interest income |
2 |
3 |
6 |
9 |
28 |
|
Interest expense |
(749) |
(504) |
(596) |
(2,415) |
(2,050) |
|
Amortization of deferred financing fees |
(123) |
(123) |
(144) |
(512) |
(2,593) |
|
Other financial items |
(295) |
(193) |
(811) |
(681) |
(1,409) |
|
Total other income/(expense), net |
(1,165) |
(817) |
(1,545) |
(3,599) |
(6,024) |
|
Income/(loss) before taxes |
24,227 |
15,261 |
(14,071) |
23,334 |
(1,190) |
|
Income taxes - benefit/(expense) |
(6,383) |
(2,098) |
3,409 |
(4,125) |
(2,195) |
|
Net income/(loss) |
17,844 |
13,163 |
(10,662) |
19,209 |
(3,385) |
|
Earnings per share (US$) |
||||||
Basic |
0.12 |
0.08 |
(0.07) |
0.12 |
(0.02) |
|
Diluted |
0.12 |
0.08 |
(0.07) |
0.12 |
(0.02) |
|
Weighted average common shares (000's) |
||||||
Basic |
156,046 |
156,134 |
155,220 |
155,940 |
155,018 |
|
Diluted |
156,046 |
156,134 |
155,220 |
155,940 |
155,018 |
NORTHERN OFFSHORE, LTD. and SUBSIDIARIES |
||
Consolidated Balance Sheets |
||
(Unaudited) |
||
(Thousands of US Dollars) |
December 31, |
December 31, |
Current assets |
||
Cash and cash equivalents |
26,120 |
10,601 |
Restricted cash |
- |
7,604 |
Accounts receivable, net |
29,386 |
36,649 |
Prepaid expenses |
4,099 |
2,083 |
Deferred mobilization costs |
2,209 |
246 |
Deferred insurance premium |
1,869 |
1,822 |
Other current assets |
1,711 |
820 |
Total current assets |
65,394 |
59,825 |
Noncurrent assets |
||
Property, plant & equipment, net |
201,077 |
253,740 |
Restricted cash, net of current portion |
5,436 |
5,436 |
Noncurrent deposit/escrow account |
5,198 |
- |
Deferred mobilization costs, net of current portion |
1,596 |
- |
Drydock costs, net of current portion |
5,093 |
4,967 |
Other noncurrent assets |
1,748 |
224 |
Total noncurrent assets |
220,148 |
264,367 |
Total assets |
285,542 |
324,192 |
Current liabilities |
||
Accounts payable |
16,376 |
27,435 |
Accrued expenses |
9,748 |
7,289 |
Income taxes payable |
933 |
2,926 |
Current debt |
22,000 |
45,436 |
Deferred revenue |
2,062 |
4,813 |
Total current liabilities |
51,119 |
87,899 |
Shareholders' equity |
||
Share capital |
40,122 |
39,546 |
Additional paid-in capital |
170,985 |
168,583 |
Accumulated other comprehensive loss |
(6,691) |
(6,691) |
Retained earnings |
30,007 |
34,855 |
Total shareholders' equity |
234,423 |
236,293 |
Total liabilities and shareholders' equity |
285,542 |
324,192 |
NORTHERN OFFSHORE, LTD. and SUBSIDIARIES |
||||||
Consolidated Statements of Cash Flows - (Unaudited) |
||||||
Twelve months ended |
||||||
(Thousands of US Dollars) |
2012 |
2011 |
||||
Cash flows from operating activities |
||||||
Net income / (loss) |
19,209 |
(3,385) |
||||
Adjustments to reconcile net income to net cash |
||||||
provided by operating activities: |
||||||
Stock-based compensation |
4,043 |
2,756 |
||||
Depreciation |
34,471 |
34,167 |
||||
Amortization of deferred financing fees |
512 |
2,593 |
||||
Gain on disposal of assets |
(7,493) |
1,701 |
||||
Changes in operating assets and working capital |
||||||
Accounts receivable |
7,263 |
19,091 |
||||
Prepaid expenses |
(2,016) |
517 |
||||
Deferred income taxes |
- |
(286) |
||||
Deferred mobilization costs |
(3,449) |
(35) |
||||
Other current and noncurrent assets |
(2,695) |
(2,836) |
||||
Accounts payable |
(15,309) |
5,421 |
||||
Other accrued liabilities |
1,810 |
(11,327) |
||||
Deferred revenue |
(2,751) |
2,417 |
||||
Income taxes payable |
(1,993) |
(503) |
||||
Other, net |
11 |
33 |
||||
Net cash provided by operating activities |
31,613 |
50,324 |
||||
Cash flows from investing activities |
||||||
Capital expenditures |
(14,578) |
(32,416) |
||||
Changes in restricted cash |
7,604 |
(6,593) |
||||
Changes in noncurrent deposit/escrow account |
(5,198) |
- |
||||
Proceeds from disposal of assets, net |
44,502 |
- |
||||
Net cash provided by / (used in) investing activities |
32,330 |
(39,009) |
||||
Cash flows from financing activities |
||||||
Proceeds from drawdown of revolver facility |
14,564 |
52,436 |
||||
Principal payments on revolver facility |
(38,000) |
(50,000) |
||||
Debt issuance costs |
(405) |
(1,072) |
||||
Payment for taxes on vested shares |
(1,065) |
(435) |
||||
Dividends paid |
(23,518) |
(14,230) |
||||
Net cash used in financing activities |
(48,424) |
(13,301) |
||||
Net changes in cash and cash equivalents |
15,519 |
(1,986) |
||||
Cash and cash equivalents at beginning of period |
10,601 |
12,587 |
||||
Cash and cash equivalents at end of period |
26,120 |
10,601 |
||||
Supplemental disclosure of cash flow information |
||||||
Cash paid during the period for: |
||||||
Income taxes |
2,561 |
2,505 |
||||
Interest |
2,802 |
734 |
||||
Significant non-cash transactions during the period for: |
||||||
Accrued capital expenditures |
3,592 |
4,849 |
||||
Deferred - other |
110 |
363 |
||||
Accrued dividends |
539 |
254 |
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, 2010 |
156,708 |
39,176 |
166,632 |
(6,691) |
52,470 |
251,587 |
||
Net loss |
- |
- |
- |
- |
(3,385) |
(3,385) |
||
Issuance of restricted stock |
1,476 |
370 |
(370) |
- |
- |
- |
||
Payments for taxes on vested shares |
- |
- |
(435) |
- |
- |
(435) |
||
Stock-based compensation |
- |
- |
2,756 |
- |
- |
2,756 |
||
Common shares dividends |
- |
- |
- |
- |
(14,230) |
(14,230) |
||
Balance at December 31, 2011 |
158,184 |
39,546 |
168,583 |
(6,691) |
34,855 |
236,293 |
||
Balance at December 31, 2011 |
158,184 |
39,546 |
168,583 |
(6,691) |
34,855 |
236,293 |
||
Net income |
- |
- |
- |
- |
19,209 |
19,209 |
||
Issuance of restricted stock |
2,304 |
576 |
(576) |
- |
- |
- |
||
Payments for taxes on vested shares |
- |
- |
(1,065) |
- |
- |
(1,065) |
||
Stock-based compensation |
- |
- |
4,043 |
- |
- |
4,043 |
||
Common shares dividends |
- |
- |
- |
- |
(24,057) |
(24,057) |
||
Balance at December 31, 2012 |
160,488 |
40,122 |
170,985 |
(6,691) |
30,007 |
234,423 |
NORTHERN OFFSHORE, LTD. and SUBSIDIARIES |
||||||
Reconciliation of GAAP to Non-GAAP Financial Results |
||||||
(Unaudited) |
||||||
Three Months Ended |
Twelve Months Ended |
|||||
December 31, |
December 31, |
|||||
(Thousands of US Dollars) |
Q3 2012 |
2012 |
2011 |
2012 |
2011 |
|
Net income/(loss) (GAAP) |
17,844 |
13,163 |
(10,662) |
19,209 |
(3,385) |
|
Add Back: |
||||||
Net interest expense |
870 |
624 |
734 |
2,918 |
4,615 |
|
Income taxes |
6,383 |
2,098 |
(3,409) |
4,125 |
2,195 |
|
Depreciation |
8,055 |
7,767 |
9,141 |
34,471 |
34,167 |
|
EBITDA (Non-GAAP) |
33,152 |
23,652 |
(4,196) |
60,723 |
37,592 |
|
EBITDA is defined as Net Income/(Loss) before Interest, Taxes and Depreciation |
NORTHERN OFFSHORE, LTD. and SUBSIDIARIES |
||||||
Operating Statistics |
||||||
(Unaudited) |
||||||
Three Months Ended |
Twelve Months Ended |
|||||
December 31, |
December 31, |
|||||
Q3 2012 |
2012 |
2011 |
2012 |
2011 |
||
Jackups (3) |
||||||
Average rig utilization |
67% |
94% |
67% |
56% |
52% |
|
Operating days |
184 |
184 |
184 |
565 |
567 |
|
Average revenue per day |
101,756 |
103,195 |
69,695 |
94,760 |
69,886 |
|
Drillship (1) |
||||||
Average rig utilization |
98% |
0% |
58% |
62% |
15% |
|
Operating days |
90 |
0 |
53 |
225 |
53 |
|
Average revenue per day |
186,194 |
0 |
105,306 |
202,333 |
225,101 |
|
Semisubmersible (1) |
||||||
Average rig utilization |
100% |
100% |
0% |
70% |
67% |
|
Operating days |
92 |
92 |
0 |
257 |
243 |
|
Average revenue per day |
179,229 |
172,108 |
0 |
165,218 |
208,955 |
|
Total Drilling Rigs (5) |
||||||
Average rig utilization |
80% |
73% |
52% |
60% |
47% |
|
Operating days |
366 |
276 |
237 |
1,047 |
863 |
|
Average revenue per day |
141,994 |
126,456 |
94,988 |
135,172 |
118,577 |
|
Floating Production Facility (1) |
||||||
Days in period |
92 |
92 |
92 |
366 |
365 |
|
Production days |
92 |
92 |
92 |
366 |
365 |
|
Average bpd |
18,250 |
24,965 |
21,653 |
18,585 |
23,648 |
|
Average tariff revenue per day |
109,514 |
149,789 |
129,921 |
111,509 |
141,889 |
|
Average other revenue per day |
1,387 |
1,408 |
(5,190) |
1,395 |
1,396 |
|
Total average revenue per day |
110,901 |
151,197 |
124,731 |
112,904 |
143,285 |
|
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. |
SOURCE Northern Offshore, Ltd.
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