Awilco Drilling suspends dividend despite market improvement (updated)

Awilco Drilling

15/08/2018 07:26

(Adds reason for dividend suspension)
    Aug 15 (Reuters) - Awilco Drilling PLC  AWDR.OL  says:
    * Reported q2 contract revenue of usd 9.0 million (usd 34.1
million in q1)
    * Q2 ebitda usd 1.9 million loss (usd 24.0 million profit in
q1)
    * Contract backlog at end of q2 was approximately usd 44.2
million
(approximately usd 7.6 million end of q1)
    * Since june 2013 awilco drilling has consistently paid a
quarterly dividend and during this time has distributed usd
12.00 (nok 83.22) per share
    * With the ordering of one new-build high-end
semisubmersible rig
in march this year, plus an agreement for a further three
independent rig options, the company is now in a growth and
investment phase
    * Board of directors has, therefore, decided to suspend
dividend
and will resume same when company again reaches an appropriate
free cash flow situation
    * Q2 contract utilisation was 13.9% during quarter (50% in
q1).
    * In the norwegian market for modern high-end semi
submersibles
additional new fixtures have materialized with leading edge
dayrates now above usd 300,000 per day
    * Further long term demand development is anticipated,
underpinning the current positive impact seen on contract
utilization and dayrates in that segment
    * Awilco drilling about uk rig market: we see some increased
activity on the back of a robust oil price and in combination
with expected attrition, utilisation is expected to improve but
remain seasonal also going into 2020

Source text for Eikon:  ID:nGNEbmJfp 
Further company coverage:  AWDR.OL 

 (Gdynia Newsroom)
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