Songa Offshore Reports on Third Quarter Earnings
Songa Offshore's consolidated loss after tax for the third quarter 2008 was US $27.5 million. Accumulated for the first nine months of 2008 the after tax loss was US $1.8 million.
Revenue for the third quarter was US $87.5 million. US $5.6 million in mobilization revenue received this quarter is capitalized and will be recognized next quarter together with the corresponding opex. Accumulated the revenue was US $250.6 million.
Total expenses for the third quarter were US $80.9 million, the high figure is due to a non operational loss of US $33.8 million posted under "other gain and loss." The loss is split between loss on financial instruments with US $29.6 million, US $2.1 million in allowance for doubtful debt, US $1.4 million in currency loss and US $0.7 in loss on buy back of bonds. Accumulated the total expenses were US $154.6 million of which US $29.6 million was posted under "other gain and loss" as a loss.
EBITDA for the third quarter was US $6.6 million. This figure is after taken into effect "other gain and loss" and deferred mobilization fee mentioned above. Accumulated EBITDA was US $96.1 million.
Net financial expenses for the third quarter were US $18.8 million. This figure includes a write off of US $5.1 million in fees on the old bank facility in connection with the refinancing in August. Accumulated net financial expenses were US $43.3 million.
Earnings per share (EPS) for the third quarter were US $ -0.28. Accumulated earnings per share (EPS) were USD 0.00. Diluted earnings per share (DEPS) for the third quarter were US $ -0.28. Accumulated diluted earnings per share (DEPS) were USD 0.00.
The results for the first nine months of 2008 have been restated. The financial expenses in the first quarter have been adjusted with US $2.6 million due to changes in how certain loans are amortized. Further, discussions with customers on the drilling campaign in Equatorial Guinea and Ghana for Songa Saturn led to adjustments in day rates based on lower tax estimates; this has led to a reduction of revenues with US $6.0 million in the first quarter and US $1.5 million in the second quarter. A complete set of restated financial statements for all three quarters can be found at the end of this document.
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