Odjfell Revenues, Profits Decline during 3Q

Norwegian oilfield services firm Odfjell Drilling reported Wednesday that it saw a year-on-year decline in both its operating revenue and profits during the third quarter.

Odfjell's third-quarter operating revenue came in at $275 million (3Q 2013: $300 million) while its 3Q 2014 EBITDA profit decreased 18.4 percent to $84 million. The firm's net profit for the period was $17 million (3Q 2013: $31 million).

Odjfell's order backlog also declined compared to a year earlier. At the end of the quarter it stood at $4.3 billion compared with $5.4 billion at the end of 3Q 2013.

The company said that the softening in demand for its services experienced during the first half of the year has continued into the second half. It suffered from the early termination by TAQA of a drilling contract on the Harding Platform during the third quarter, as well as Statoil deciding not to exercise its two-year option for the Deepsea Atlantic (DW semisub) rig, for which the existing contract ends in August 2015.

In spite of this, Odfjell's management said that it is of the opinion that "in the medium-to-long-term the oil industry's demand for drilling services will continue to be supported by the need for reserves replacement, and by continued spending on exploration and field development in the main offshore regions".

Odfjell CEO Simen Lieungh particularly noted a continued soft market for engineering and well services "primarily in the North Sea region".

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