Shelf Drilling is seeing encouraging signs of an improving jack-up market with the recent recovery and stabilization of the oil price, the company’s chief executive officer, David Mullen, has revealed.
“We have seen a number of recent contract awards and have built a solid pipeline of marketing opportunities,” Mullen said in the company’s first quarter 2021 results statement, which was published on the company’s website on Tuesday.
“We remain focused on delivering safe and best in class services to our customers and believe Shelf Drilling is well positioned to capitalize on opportunities in our sector,” he added in the statement.
Mullen noted that the company delivered good operational and financial performance in the first quarter of this year, despite the “very challenging” environment imposed by the Covid-19 pandemic.
“The recent surge in infections has been particularly harmful in several of the geographies in which we work,” Mullen said.
In the first quarter of 2021, Shelf Drilling reported revenues of $129.7 million, which marked a seven percent sequential increase compared to the fourth quarter of last year, and an adjusted EBITDA of $46.5 million, representing an adjusted EBITDA margin of 36 percent. The company recorded a first quarter net Loss of $16.4 million, including $10.1 million in loss on debt extinguishment in relation to the company’s debt refinancing transactions.
In March, Shelf Drilling completed a $310 million issuance of new senior notes due in 2024, which Mullen said improves the company’s balance sheet, simplifies its capital structure, and significantly increases its liquidity position and financial flexibility.
Shelf Drilling describes itself as a leading contractor of jack-up rigs. The company is headquartered in Dubai and has rig operations across four core operating regions; Southeast Asia, India, West Africa, and MENAM (the Middle East, North Africa, and the Mediterranean).
To contact the author, email andreas.exarheas@rigzone.com
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