Shelf Drilling, Ltd. announces results for the third quarter of 2021 ending September 30.
David Mullen, Chief Executive Officer, commented: “Our results in the third quarter of 2021 were in line with the prior quarter, as we near the end of a period with a high concentration of contract preparation activity. Five of our rigs returned to operations after completing suspension periods or out of service projects in recent months, and three additional contracts are scheduled to commence in the first quarter of 2022, which we anticipate will drive sequential improvements in revenue over the next two quarters. As of November 2021, 27 of our 30 marketable rigs are under contract.”
Mullen added: “Based on the current strength in oil and gas prices and the recent increase in tendering activity in our areas of operations, we expect to see an improvement in global jack-up demand and pricing in the near term. With our contract backlog and liquidity position, we believe we are well positioned to capitalize on new opportunities in our sector.”
Third Quarter Highlights:
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Q3 2021 Revenues of $130.3 million, a 0.2% sequential decrease compared to Q2 2021.
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Q3 2021 Adjusted EBITDA of $33.9 million, representing an Adjusted EBITDA Margin of 26%.
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Q3 2021 Net Loss of $22.4 million.
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Q3 2021 Capital Expenditures and Deferred Costs totaled $36.3 million, primarily impacted by the contract preparation project on the Shelf Drilling Tenacious.
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The Company’s cash and cash equivalents balance at September 30, 2021 was $251.3 million.
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The Company’s total debt at September 30, 2021 was $1.2 billion.
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Contract backlog of $1.5 billion at September 30, 2021 across 26 contracted rigs.
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In August 2021, the Company completed the sale of the High Island VII for net proceeds of $3.9 million.
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In September 2021, the Company received an award for a three-year contract for the Parameswara in India with planned start-up of operations in the first quarter of 2022
Source: Shelf Drilling
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