Maersk Positions Self for 'New Oil Reality' as Profit Fall
The company said its results were positively impacted by a $73 million after-tax gain from the sale of its 10 cantilevered drilling barges in Venezuela to Barrystar Holding S.A. and strong operational performance across its fleet. However, the company’s financial results were hurt by impairments of $85 million, or $73 million after-tax. These impairments included a $50 million ($38 million after-tax) impairment related to its Egyptian Drilling Company joint venture.
Maersk also incurred additional operating cost last year related to the start-ups and operational expenses for five newbuild rigs that started working last year and start-up costs for three remaining newbuild rigs to be delivered this year and in 2016. The cost level on the existing fleet excluding newbuilds was on level with costs seen in 2013, Maersk noted.
In 2014, Maersk took delivery of Maersk Viking (UDW drillship), Maersk Valiant (UDW drillship), and Maersk Venturer (UDW drillship), the first three rigs in a series of four ultra-deepwater drilliships, from Samsung Heavy Industries in South Korea. The company also took delivery of Maersk Intrepid (492’ ILC) and Maersk Interceptor (492' ILC) from Keppel FELS in Singapore, the first two rigs in a series of four ultra-harsh environment jackups. All five rigs commenced operations in 2014. The company completed five yard stays and two offshore upgrades, making 2014 “a very busy year”.
Operational uptime averaged 97 percent, the same level seen in 2013. As of the end of last year, Maersk’s forward contract coverage was 80 percent for this year, 52 percent for 2016 and 30 percent for 2017. The total revenue backlog by the end of 2014 amounted to $6 billion, down from $7.9 billion. Return on invested capital (ROIC) was 7.1 percent, down from 10.8 percent in 2013.
Looking forward, the company aims to achieve net operating profit after tax of $1 billion in 2018 and ROIC of more than 10 percent. It also will seek to secure contracts for the Maersk Venturer (UDW drillship) and Maersk Voyager (UDW drillship) and to secure contracts for rigs rolling off contract this year.
12
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- North America Enters Rig Loss Streak
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension