PDR ASA - PRELIMINARY RESULT AS PER 2nd QUARTER 2008
Summary:
Building values
Petrolia Drilling continues to strengthen its exposure to the drilling market through the investments in PetroMena (51.5%), Venture Drilling (50%), Petrojack (39.9 %) and PetroProd (42.3 %, indirectly through Petrojack). The market value of the company’s deepwater floaters under construction has increased during the first half year. Construction of similar rigs is more expensive and financing is both more expensive and more difficult to obtain.
Petrolia Drilling has with effect from 01.01.2008 changed presentation currency from NOK to USD. All comparative figures have been
converted and presented in USD for information purposes. As a consequence of this, the company has registered an unrealized disagio
of mUSD 23.0 in the first half of 2008. Total net result after tax is mUSD -44.8.
PetroMena’s PetroRig I, II and III have an average contract price of mUSD 490 for each unit, excluding project- and financing costs.
Contract prices for recent fixtures for similar units are approximately mUSD 680, excluding project- and financing costs.
The construction programs in PetroMena are running according to schedule and on budget. On 3 February 2008, SS Petrolia started
operations under the contract with Pemex. EBITDA for the subsidiary PetroMena in the first half of 2008 was mUSD 13.6 and net result
mUSD -33.3. The negative result was mainly impacted by an unrealized USD/NOK disagio of mUSD 22.5 on PetroMena’s debt nominated
in NOK.
Petrojack took delivery of Petrojack II 28 March 2008 and entered into an agreement with Saipem for hire of the jack-up rig. The hire
under the time charter is USD 100.000 per day. The agreement includes a put/call option at a price of mUSD 199.1, with expiration 12
months after the beginning of the contract. The construction program for the remaining jack-up rig is developing according to
schedule. EBITDA for Petrojack in the first half of 2008 was mUSD -0.8 and the net result was mUSD -43.8 including an unrealized
disagio of mUSD 12.8 on Petrojack’s debt nominated in NOK.
EBITDA from Venture Drilling was mUSD 41.5 in the first half of 2008. Net result after tax was mUSD 26.7.
Revenue and EBITDA from Petrolia Services in the first half of 2008 totaled mUSD 35.6 and mUSD 15.9 respectively. Drilling equipment
is depreciated over five years. In the first half of 2008 depreciation amounts to mUSD 14.7. Book value of drilling equipment per
30.06.08 is mUSD 123.7. Market value is expected to be higher.
Financial information
The financial data have been prepared in accordance with the International Financial Reporting Standards (IFRS).
Total revenues in the first half of 2008 were mUSD 70.8 whereof mUSD 35.0 came from SS Petrolia and mUSD 35.6 came from Petrolia Services. In the first half of 2007, total revenues equaled mUSD 55.3.
EBITDA for the first half of 2008 was mUSD 22.4 compared to mUSD 29.0 for the first half of 2007.
Total operating expenses equaled mUSD 48.4 in the first half of 2008 whereof mUSD 11.0 is opex for SS Petrolia and mUSD 19.7 relates to Petrolia Services. The rest of the operating expenses relates to management services under the contracts with LOG and various other operative and administrative expenses.
EBIT for the first half of 2008 equaled mUSD 6.3, including mUSD 16.1 in depreciation of equipment mainly related to Petrolia Services. EBIT for the first half of 2007 equaled mUSD 17.3, including mUSD 11.7 in depreciations.
The net, after-tax result for the first half of 2008 was mUSD -44.8. This includes net financial items of mUSD -52.0. These expenses include the effect of PetroMena’s change of functional currency from NOK to USD. The USD has depreciated during the first half of 2008 resulting in an unrealized loss of mUSD 23.0 for the group as a total, related to debt nominated in NOK. The USD has depreciated against NOK from 5.41 to 5.08 during the first half of 2008. The net result also includes negative result from investment in associated company of mUSD 13.1 and a result from Venture Drilling of mUSD 13.5 after tax. The first half year of 2007 net, after-tax result was mUSD 6.5, due to lower deprecation and lower net financial items than in the first half of 2008.
Enclosure : Preliminary result as per 2nd quarter 2008.
For further information please contact : Mr. Lars Moldestad, phone +47 906 99 197.
Bergen/Oslo, 27 August 2008
Board of Directors
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