Shelf Drilling, Ltd. announced results for the fourth quarter and full year of 2021 ending December 31.
David Mullen, Chief Executive Officer, commented: “During the fourth quarter of 2021, our EBITDA increased sequentially by 28% to $43.5 million, primarily due to a rise in revenue. We have successfully completed a period with a high concentration of out-of-service projects, and three additional rigs commenced new contracts in January, which we expect to drive further improvements in EBITDA in 2022.”
Mullen added: “Our marketing momentum continued in the fourth quarter with long-term contract extensions in India, Italy and Thailand. As of December 31, 2021, our contract backlog was $1.7 billion with 28 of our 30 rigs under contract, representing a marketed utilization of 93%. We firmly believe that the worst of the pandemic’s impacts are now behind us and anticipate that the current oil and gas price environment and improving rig supply and demand balance will lead dayrates higher in the months ahead. Shelf Drilling‘s unique platform, customer relationships and track record of outstanding operational performance will position us strongly as the jack-up market continues to recover.”
Fourth Quarter Highlights
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Q4 2021 Revenues of $136.1 million, a 4.5% sequential increase compared to Q3 2021.
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Q4 2021 Adjusted EBITDA of $43.5 million, representing an Adjusted EBITDA Margin of 32%.
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Full Year 2021 Revenue of $526.6 million and Adjusted EBITDA of $158.3 million. Adjusted EBITDA Margin was 30%.
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Q4 2021 Net Loss of $17.2 million. Full Year Net loss of $78.6 million.
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Q4 2021 Capital Expenditures and Deferred Costs totaled $33.7 million, primarily impacted by the contract preparation project on the Shelf Drilling Tenacious. Full Year 2021 Capital Expenditures and Deferred Costs were $113.1 million.
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The Company’s cash and cash equivalents balance at December 31, 2021 was $232.3 million.
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The Company’s total debt at December 31, 2021 was $1.2 billion.
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Contract backlog was $1.7 billion at December 31, 2021 across 28 contracted rigs.
Source: Shelf Drilling
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