Ocean Rig Reports Second Quarter Results

During the 2nd quarter, Ocean Rig refinanced the company's debt and established record levels for new drilling contracts.

The 2nd Quarter 2005 consolidated accounts have been prepared in accordance with the International Financial Reporting Standards (IFRS).

The net result for the 2nd Quarter amounted to $ -25.3 million ($ -46.8 million), corresponding to earnings per share of $ -0.29 ($ -0.72), and diluted earnings per share of $ -0.29 ($ -0.72). The operating result for the 2nd Quarter amounted to $ 3.2 million ($ -32.3 million) and EBITDA was $ 17.0 million ($ 1.4 million). Adjusted for $ 6.6 million non cash expenses related to employee share options, EBITDA was $23.5 million. The net result was also effected by $ 11.1 million of costs associated with the prepayment of refinanced debt (prepayment fee and unamortized non-cash debt issuance cost of $ 4.6 million and $ 6.5 million respectively).

Main events:

  • May 25 - Repayment of NOK 139.5 million 11 % p.a. and 13 % p.a. convertible bonds
  • June 14 - Letter of Intent for a two year contract for Eirik Raude with ExxonMobil in Canada, UK and US GoM, starting 1st Quarter 2006.
  • June 24 - Total exercised a one year option for Leiv Eiriksson in Angola at a dayrate of $ 370,000, starting 1st Quarter 2006.
  • June 28 - Refinancing of all non-convertible debt completed through the raising of $ 430 million in new bank debt and the issue of $ 150 million of new bonds with blended interest rate of 6%.
  • June 29 - The board initiated a process for development of strategic alternatives for the company.
  • July 13 – Seadrill acquired 21.4 million shares of Ocean Rig equivalent to 24.5% of the company's outstanding shares.
  • July 18 – Morgan Stanley was engaged as advisor in the process of exploring opportunities for the strategic development of the company.

The Executive Chairman, Geir Aune said: "The completion of the refinancing of the company's debt marks a final step in the turnaround of Ocean Rig initiated two years ago. We have built a strong platform for the continuing development of the company".