Brief: Awilco Drilling Suspends Dividend Despite Market Improvement

Awilco Drilling

15/08/2018 06:18

Aug 15 (Reuters) - Awilco Drilling PLC  AWDR.OL :
    * REPORTED 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)
    * 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 

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