Northern Offshore reports Q4 and preliminary FY 2012 results
Northern Offshore, Ltd. net income for the three months ended December 31, 2012 of $13.2 million, or $0.08 per diluted share, on revenues of $48.8 million, the company reports.
The net income for the three months ended December 31, 2012 of $13.2 million, or $0.08 per diluted share, on revenues of $48.8 million, compares to a net loss of $10.7 million, or $0.07 per diluted share, for the fourth quarter of 2011, on revenues of $33.9 million. The financial results for the current fourth quarter included an after-tax gain of $7.5 million attributable to the sale of the jackup Energy Exerter.
The full year ended December 31, 2012 net income of $19.2 million, or $0.12 per diluted share, compares to a 2011 net loss of $3.4 million, or $0.02 per diluted share. Revenues in 2012 were $182.8 million, as compared to $161.1 million reported in 2011.
Revenues for the three months ended December 31, 2012 were approximately $14.9 million higher than the same period of 2011, primarily as a result of an increase in dayrate revenues due to higher utilization for the semisubmersible Energy Driller and higher average dayrates for the jackups Energy Endeavour and Energy Enhancer, as well as an increase in tariff revenues from the floating production facility Northern Producer. Partially offsetting these revenue increases was a decrease in dayrate revenues for the drillship Energy Searcher, as the unit was idle during the current quarter.
The tariff from the floating production facility Northern Producer averaged approximately $150,000 per day in the fourth quarter of 2012. Production for the fourth quarter was elevated due to a new well coming online and work-over operations that enhanced recovery from an existing well. The company expects pricing levels to remain stable and production volume to normalize in the high teens near term.
Drilling and production expenses for the three months ended December 31, 2012 were $4.0 million lower than the same period of last year, primarily due to lower drilling expenses while operating, compared to higher repair, maintenance and inspection costs incurred during the prioryear period when the semisubmersible Energy Driller was preparing for its three-year contract with ONGC. Partially offsetting this decrease were higher labor, inspection and mobilization costs related to the jackup Energy Enhancer’s operations offshore Denmark.
Depreciation expense for the three months ended December 31, 2012 was $1.4 million lower compared with the same period in 2011, primarily due to the disposition of the jackup Energy Exerter. Fourth quarter 2012 general and administrative expenses, interest income and expense, amortization of financing fees and other financial items were comparable to those of the same period in 2011.
As of February 18, 2013, the company had an outstanding Revolving Credit Facility balance of $22.0 million and a cash balance of $43.0 million, resulting in a net cash position of $21.0 million.
The company’s directors have declared a dividend of $0.05 per share, or approximately $8.2 million. Shareholders of record with the VPS on February 28, 2013 will be entitled to receive the dividend, which will be paid on or around March 15, 2013. The shares of the company will be trading ex-dividend from February 26, 2013.
Northern Offshore, Ltd. is a Bermuda holding company which operates offshore oil and gas drilling units and one production vessel in various markets around the world, including the North Sea, the Indian Ocean and Southeast Asia. The company’s fleet consists of four drilling units (a drillship, a semisubmersible and two jackup drilling rigs) and one floating production facility.
