Scorpion Offshore Ltd. Announces 4th Quarter 2009 Financial Results
HAMILTON, BERMUDA - 19 August 2009
The Board of Directors of Scorpion Offshore Ltd. ("Scorpion" or the "Company") today approved the Company's audited consolidated annual financial statements for the year ended June 30, 2009. These financial statements are reported in US dollars and have been prepared in accordance with US Generally Accepted Accounting Principles.
Highlights - Fourth Quarter ended 30 June 2009
The Offshore Intrepid and the Offshore Freedom began their 42 and 48 month drilling contracts in the Arabian Gulf during May and June 2009, respectively.
In June 2009, Scorpion secured a $52 million loan which fully completes the equity and debt financing for the first six rigs.
Revenues increased by 19% or $13.0 million to $80.8 million during the 4th quarter ended 30 June 2009.
Excluding the $19.8 million impairment charges for the Offshore Mischief ($19.4 million) and other equipment ($0.4 million), operating income was $29.7 million, up 26% from the previous quarter.
The average day rate for the 4th quarter was $174,871 (versus $181,696 for the last quarter) as a result of a $3.8 million credit note issued to Gazprom for the Offshore Vigilant over a disputed dayrate reduction during a "fishing" job. The Company issued the credit note as specified by the contract with Gazprom in order to receive the undisputed portion of the monthly invoice. The Company believes that Gazprom's claim is without merit and expects to collect the full amount due.
The average daily rig operating cost was $63,393 compared to $63,371 for the previous quarter.
Revenue utilization averaged 94.3% for the quarter, down from 98.1% in the 3rd quarter due to the Offshore Vigilant's dispute with Gazprom mentioned above.
Highlights - Fiscal Year 2009
During the year Scorpion completed construction of 3 jackup rigs and began operations with 5 jackup rigs in four new countries. The Company currently has a total of 6 units in operation.
Revenues for the fiscal year ending increased by 173% from $91.2 million to $248.5 million.
By the end of the fiscal year 2009, Scorpion had accumulated a revenue contract backlog of US $744 million.
Excluding the asset impairment charges, operating income was $92.2 million, up 240% from the previous year.
Revenue utilization averaged 97% for the year.
The Company secured financing for its remaining construction payments on the Offshore Freedom and refinanced the amounts drawn under the Semisubmersible Bridge loan with Bayererische Hypo-und Vereinsbank AG in a new credit facility totaling $169 million.
2009 Results
The net loss for the fiscal year ending, June 30, 2009 totaled $32.1 million, compared to a net income of $15.6 million for the previous year. Net income was negatively impacted by asset impairment charges of $94.5 million during the year. Contract drilling revenue, excluding mobilization revenue of $17.0 million, totaled $231.5 million for the year which is an increase of 203% from $76.5 million for fiscal year 2008. Operating costs, excluding mobilization, totaled $87.3 million for the year compared to $28.1 million for the previous year. Interest expense was $22.6 million for the year compared to $2.1 million in 2008.
As of June 30, 2009, total assets were $1,342.0 million. This primarily consists of $82.2 million in cash, restricted cash and cash equivalents, $73.1 million in accounts receivable, $124.6 million in assets held for sale, and $973.2 million in property and equipment.
As of June 30, 2009, debt totaled $785.9 million, which is an increase of $313.6 million from $472.3 million at the same time last year. The $313.6 million increase was due to debt draw downs of $460.7 million and a foreign exchange adjustment of $4.3 million offset by $151.3 million in principle payments.
Shareholders' equity totaled $456.6 million, which is an increase of $123.9 million from the previous year.
The full financial report is attached or can be downloaded at:
http://www.scorpionoffshore.com/investor/index.html
HAMILTON, BERMUDA - 19 August 2009
The Board of Directors of Scorpion Offshore Ltd. ("Scorpion" or the "Company") today approved the Company's audited consolidated annual financial statements for the year ended June 30, 2009. These financial statements are reported in US dollars and have been prepared in accordance with US Generally Accepted Accounting Principles.
Highlights - Fourth Quarter ended 30 June 2009
The Offshore Intrepid and the Offshore Freedom began their 42 and 48 month drilling contracts in the Arabian Gulf during May and June 2009, respectively.
In June 2009, Scorpion secured a $52 million loan which fully completes the equity and debt financing for the first six rigs.
Revenues increased by 19% or $13.0 million to $80.8 million during the 4th quarter ended 30 June 2009.
Excluding the $19.8 million impairment charges for the Offshore Mischief ($19.4 million) and other equipment ($0.4 million), operating income was $29.7 million, up 26% from the previous quarter.
The average day rate for the 4th quarter was $174,871 (versus $181,696 for the last quarter) as a result of a $3.8 million credit note issued to Gazprom for the Offshore Vigilant over a disputed dayrate reduction during a "fishing" job. The Company issued the credit note as specified by the contract with Gazprom in order to receive the undisputed portion of the monthly invoice. The Company believes that Gazprom's claim is without merit and expects to collect the full amount due.
The average daily rig operating cost was $63,393 compared to $63,371 for the previous quarter.
Revenue utilization averaged 94.3% for the quarter, down from 98.1% in the 3rd quarter due to the Offshore Vigilant's dispute with Gazprom mentioned above.
Highlights - Fiscal Year 2009
During the year Scorpion completed construction of 3 jackup rigs and began operations with 5 jackup rigs in four new countries. The Company currently has a total of 6 units in operation.
Revenues for the fiscal year ending increased by 173% from $91.2 million to $248.5 million.
By the end of the fiscal year 2009, Scorpion had accumulated a revenue contract backlog of US $744 million.
Excluding the asset impairment charges, operating income was $92.2 million, up 240% from the previous year.
Revenue utilization averaged 97% for the year.
The Company secured financing for its remaining construction payments on the Offshore Freedom and refinanced the amounts drawn under the Semisubmersible Bridge loan with Bayererische Hypo-und Vereinsbank AG in a new credit facility totaling $169 million.
2009 Results
The net loss for the fiscal year ending, June 30, 2009 totaled $32.1 million, compared to a net income of $15.6 million for the previous year. Net income was negatively impacted by asset impairment charges of $94.5 million during the year. Contract drilling revenue, excluding mobilization revenue of $17.0 million, totaled $231.5 million for the year which is an increase of 203% from $76.5 million for fiscal year 2008. Operating costs, excluding mobilization, totaled $87.3 million for the year compared to $28.1 million for the previous year. Interest expense was $22.6 million for the year compared to $2.1 million in 2008.
As of June 30, 2009, total assets were $1,342.0 million. This primarily consists of $82.2 million in cash, restricted cash and cash equivalents, $73.1 million in accounts receivable, $124.6 million in assets held for sale, and $973.2 million in property and equipment.
As of June 30, 2009, debt totaled $785.9 million, which is an increase of $313.6 million from $472.3 million at the same time last year. The $313.6 million increase was due to debt draw downs of $460.7 million and a foreign exchange adjustment of $4.3 million offset by $151.3 million in principle payments.
Shareholders' equity totaled $456.6 million, which is an increase of $123.9 million from the previous year.
The full financial report is attached or can be downloaded at:
http://www.scorpionoffshore.com/investor/index.html
