Scorpion Reports Prelim 2006 Results
The Audit Committee of the Board of Directors of Scorpion Offshore Ltd. ("Scorpion" or the "Company") approved the Company's 2006 audited consolidated annual financial statements. These audited consolidated financial statements will be presented to the full Board for approval on 29 August 2006 and the Company will post a press release confirming approval by the full Board immediately thereafter. These audited consolidated financial statements were prepared in accordance with US Generally Accepted Accounting Principles ("GAAP").
The Company incurred a net loss of USD 4.1 million for the year ended 30 June 2006 compared to a loss of USD 0.8 million for the period ended 30 June 2005. For the year ended 30 June 2006, we incurred equity placement and debt commitment fees of USD 6.8 million and USD 1.4 million, respectively, offset by interest income of USD 5.9 million. General and administrative expenses totaled USD 2.3 million for the year. We expensed interest of USD 1.2 million during the year and recorded an unrealized a gain of USD 2.7 million on our interest rate derivative.
For the period 15 April (date of inception) to 30 June 2006, the cumulative net loss was USD 4.9 million. This period included equity placement fees of USD 7.5 million, debt commitment fees of USD 1.4 million and general and administrative expenses of USD 2.4 million which were offset by USD 5.9 million in interest income and a USD 2.7 million unrealized gain on our interest rate derivative.
Total assets as of 30 June 2006 were USD 458 million. This primarily consists of USD 154 million in cash and cash equivalents and USD 295 in construction in progress. Long term debt totaled USD 225 million and shareholder's equity USD 218 million.
The Offshore Courageous, Offshore Defender and Offshore Resolute are currently under construction at the Keppel AmFELS shipyard in Brownsville, Texas . All three rigs remain ahead of schedule and have met their progress milestones on time and on budget. Construction on the Offshore Vigilant and Offshore Intrepid is expected to commence in October 2006 and February 200, respectively.
With the exception of the US Gulf of Mexico jackup market, all other segments of the global rig market demonstrate increased strength as evidenced by current global demand and forecasted rig supply deficits. While softening today, due to hurricane related operator malaise, the Company expects the US Gulf of Mexico jackup market to rebound towards the end of the year and into 2007.
Leading edge dayrates have recently exceeded USD 220,000 in some of the markets being pursued by the Company. Scorpion is currently pursuing work globally and expects the three rigs currently under construction to be deployed internationally. Scorpion is not marketing its rigs in the US Gulf of Mexico at this time due to the availability of longer-term contracts internationally and also due to the forecasted costs and limitations currently associated with wind storm damage insurance coverage required for operations in the US Gulf of Mexico.
Scorpion Offshore Ltd. is a Bermuda-based corporation founded in 2005 to own and operate state-of-the-art offshore drilling rigs.
- Keppel FELS Delivers Floatel Triumph, Upcoming Work at Wheatstone Field (Sep 30)
- Asia Oil, Gas Layoffs Mount as Industry Recovery Stays Elusive (Sep 08)
- Keppel FELS Delivers Jackup UMW Naga 8 to Malaysia's UMW Oil & Gas (Sep 02)
Company: Scorpion Offshore more info
- Seadrill's Mandatory Offer to Purchase All Scorpion Shares (Jul 15)
- Seadrill Increases Ownership in Scorpion Offshore (May 31)
- UPDATE: Ensco Ends Partial Offer for Scorpion Offshore (May 28)