KCA Deutag, one of the world’s leading drilling and engineering contractors, is pleased to announce its results for the three months ended 31 December 2019, reporting EBITDA of $82.6m.
Summary:
- Full year revenues of $1,359.9m (2018: $1,262.6m)
- Group 2019 EBITDA of $299.2m (2018: $272.9m)
- Contract backlog of $5.7bn across a blue chip customer base
- A number of contract awards and extensions in Land drilling and the acquisition of 2 rigs in Iraq with ongoing contracts
- Significant progress made with the #enhancethebrand initiatives
- Proactively managing what we can control during the near term economic disruption
Commenting on the results Joseph Elkhoury, KCA Deutag’s Chief Executive Officer said:
“We are pleased to announce that we achieved full year revenue of $1.4bn and EBITDA of $299m.
The fourth quarter EBITDA was higher than both the third quarter of 2019 and the fourth quarter of 2018. Each of Land drilling, Offshore services and RDS had improved results compared to the third quarter.
In the last month however, we are of course now experiencing an unprecedented global event. Our priority as a company is to provide a safe environment to all employees and to continue to deliver safe trouble-free services to our customers wherever we can do so. As the world continues to develop its approach to managing the coronavirus outbreak, we, at KCA Deutag will review our plans in accordance with local government legislation and guidelines from the respective health authorities where we work. We are working with all our customers and are in constant dialogue with them to assess how we continue to operate in this difficult period.
We do however expect a significant impact on our Q2 numbers and beyond. On that basis we plan to utilize the applicable grace periods for the interest payments due on 1 April 2020 with respect to the 2022 Notes and 2023 Notes issued by KCA Deutag UK Finance plc. This will allow us the time to fully evaluate and assess the impact of the unprecedented market events 2 around the COVID-19 outbreak and OPEC’s recent measures. The company will of course be focusing on those business activities it can control while closely monitoring and preserving its liquidity position. We are initiating discussions with our creditors and we have agreed nondisclosure agreements with advisors representing the ad-hoc group of lenders and the RCF banks. The company is seeking to work closely with all relevant stakeholders to find a successful path forward.
We will make further announcements in due course, as appropriate.â€
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