NADL - North Atlantic Drilling Ltd. reports first quarter 2015 results

5/28/2015, 2:32 PM (Source: GlobeNewswire)
Highlights from the first quarter
  • North Atlantic Drilling generates first quarter 2015 EBITDA* of $92.4 million
  • North Atlantic Drilling reports first quarter 2015 net loss of $11.3 million and loss per share of $0.06
  • Seadrill Limited provides guarantees for North Atlantic Drilling's NOK1.5 billion bond maturing in 2018 and for North Atlantic Drilling's two secured credit facilities. In exchange, the lenders have agreed to replace North Atlantic Drilling's financial covenants with Seadrill's financial covenants
Subsequent events
  • North Atlantic Drilling successfully extends the termination date of the Framework Agreement with Rosneft until May 31, 2017
  • The Board announces the resignation of Ms. Cecilie Fredriksen and Mr Harald Thorstein as directors of the Company. Ms. Fredriksen and Mr Thorstein are leaving the Board to focus on other responsibilities and activities, including those in related companies.
  • The Board is also pleased to announce the appointment of Orjan Svanevik as a Director to fill a vacancy on the Board. Mr. Svanevik is an employee of the Seatankers Group.  He was previously Managing Director for the investment advisory firm, Oavik Capital.  Prior to Oavik, he was Head of M&A and a Partner at Aker ASA, and COO and EVP of Kværner ASA.  Svanevik also worked nearly a decade in corporate advisory and investment banking.  He started his career at Schlumberger, where he held various international financial management positions.  Svanevik has an AMP from Harvard Business School and a MBA from Thunderbird.Mr. Svanevik is also a director of Seadrill Limited
Condensed consolidated income statements

First quarter 2015 results

Consolidated revenues for the first quarter 2015 were $192.0 million compared to $291.2 million for the fourth quarter of 2014. The primary reason for the decrease is the West Navigator being idle for most of the quarter and downtime in January for one unit.

Operating income for the first quarter was $36.9 million, an increase of $440.1 million compared to the fourth quarter operating loss of $403.2 million. The increase is primarily due to a non-cash charge to goodwill of $480.6 million in the fourth quarter.

Net financial items for the first quarter of 2015 amounted to a loss of $45.9 million. The loss included $24.6 million in interest expenses and $34.3 million loss related to financial derivatives, partly offset by foreign exchange gains of $14.4 million mainly related to the NOK1,500 million bond loan.  The fourth quarter of 2014 incurred a loss of $60.2 million, including interest expenses of $25.8 million and $59.5 million loss related to financial derivatives partly offset by foreign exchange gains of $25.8 million mainly related to the NOK1,500 million bond loan.

Income taxes for the first quarter were $2.3 million, compared to $11.3 million in the fourth quarter.

Net loss for the first quarter was $11.3 million resulting in a basic loss per share of $0.06.

The Company reports operating revenues of $192.0 million, operating income of $36.9 million and a net loss of $11.3 million for the three months ended March 31, 2015. This compares to operating revenues of $273.7 million, operating income of $71.2 million and a net income of $20.2 million for the three months ended March 31, 2014.
Questions should be directed to North Atlantic Management AS represented by:
Ragnvald Kavli: Chief Financial Officer
Management will address highlights from the first quarter 2015 results in a conference call to be held at 11:00 a.m. EDT / 5:00 p.m. CEST on Thursday May 28, 2015. The details for the conference call are available on the Company's website
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: North Atlantic Drilling Ltd. via Globenewswire

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