Shelf Drilling reported on their Q2 results and here are the highlights
Highlights
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Q2 2021 Revenues of $130.5 million, a 0.6% sequential increase compared to Q1 2021.
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Q2 2021 Adjusted EBITDA of $34.4 million, representing an Adjusted EBITDA Margin of 26%.
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Q2 2021 Net Loss of $22.6 million.
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Q2 2021 Capital Expenditures and Deferred Costs totaled $26.5 million.
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The Company’s cash and cash equivalents balance at June 30, 2021 was $285.6 million.
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The Company’s total debt at June 30, 2021 was $1.2 billion.
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Contract backlog of $1.6 billion at June 30, 2021 across 28 contracted rigs.
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In June 2021, the Company secured a one-year contract for the Shelf Drilling Tenacious in Angola with planned start-up of operations in January 2022.
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In June 2021, the Company secured a short-term contract for the Shelf Drilling Mentor in Congo also with planned start-up of operations in January 2022. Both rigs are expected to be mobilized to West Africa during the fourth quarter of 2021.
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In June 2021, the Company secured a contract for the Baltic for operations in Nigeria, which commenced in late June 2021 with an expected duration of approximately one year.
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In July 2021, the Company executed an agreement to sell the High Island VII for $4.2 million for non-drilling purposes.
David Mullen, Chief Executive Officer, commented: “The series of steps taken since the beginning of the COVID-19 pandemic has ensured continuity of operations and improvement in our liquidity position. The recovery of oil prices since late 2020 is translating into improved demand for jack-up drilling services. In total, we have secured 13 new contracts or extensions on existing contracts adding 21 rig years of backlog thus far in 2021. We also continued our selective asset divestiture efforts to increase financial flexibility and reduce cost outlay for certain non-working rigs.”
Mullen added: “As we anticipated, EBITDA declined sequentially during the second quarter of 2021 following the completion of certain contracts in India and the Middle East. We also commenced projects to bring two rigs suspended in 2020 back into operation in the third quarter of 2021 and prepare four rigs for new contracts scheduled to commence in late 2021 or early 2022. With a stronger commodity price environment and our backlog position, we are very well positioned heading into 2022."
Source: Shelf
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