Welcome!

Microsoft Cloud Authors: Pat Romanski, Lori MacVittie, Andreas Grabner, Jim Kaskade, John Basso

News Feed Item

Northern Offshore Reports Fourth Quarter and Preliminary Full Year 2012 Results

HOUSTON, Feb. 20, 2013 /PRNewswire/ --  

Highlights
(All $ in USD)

  • Northern Offshore, Ltd. (Oslo Bors: NOF.OL) today reported 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.
  • For the full year ended December 31, 2012, net income was $19.2 million, or $0.12 per diluted share.
  • The company's directors have declared a dividend of $0.05 per share, or approximately $8.2 million.

Fourth Quarter and Year End Analysis

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 prior-year 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.

The information contained in this press release is preliminary and is subject to change until the release of the 2012 annual report when approved by the Board of Directors.

Conference Call Information

Northern Offshore, Ltd. will conduct a teleconference with security analysts at 9 a.m. CT, February 21, 2013 to discuss the company's quarterly results. Individuals wishing to participate in the teleconference should call (866) 578-5784 (in the U.S.) or (617) 213-8056 (outside the U.S.) about five to ten minutes prior to the scheduled start time and refer to participant password 18005484.

The conference call also will be accessible by logging on to the company's website at http://www.northernoffshorelimited.com.  After logging on, go to "Investor Relations" and select the conference call webcast.

About the Company

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.  More information on Northern Offshore, Ltd. may be found by visiting the company's website at http://www.northernoffshorelimited.com.

This announcement contains statements that reflect the company's expectations or predictions of the future. These statements are forward-looking statements.  These forward-looking statements may include statements regarding earnings guidance, capital allocation strategy, the impact of activity levels, business performance, and other market and industry conditions.  The company's actual results could differ materially from those reflected in such forward-looking statements.  Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the company's regulatory filings.  The company disclaims any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events or otherwise.   

For further information, please contact:
Brian Hefty at (713) 739-7686,
or via email at [email protected]


NORTHERN OFFSHORE, LTD. and SUBSIDIARIES


Consolidated Statements of Operations


(Unaudited)











 Three Months Ended   December 31,  

Twelve Months Ended December 31, 


(Thousands of US Dollars, except per share amounts)

Q3 2012

2012

2011

2012

2011


Revenues

62,173

48,812

33,938

182,848

161,121


Operating expenses:







Drilling and production

(27,009)

(31,458)

(35,496)

(122,500)

(114,621)


Depreciation

(8,055)

(7,767)

(9,141)

(34,471)

(34,167)


General & administrative

(1,727)

(1,083)

(1,043)

(6,437)

(5,798)


Gain on disposal of assets

10

7,574

(784)

7,493

(1,701)


Total operating expenses

(36,781)

(32,734)

(46,464)

(155,915)

(156,287)


Operating income/(loss)

25,392

16,078

(12,526)

26,933

4,834


Interest income

2

3

6

9

28


Interest expense

(749)

(504)

(596)

(2,415)

(2,050)


Amortization of deferred financing fees

(123)

(123)

(144)

(512)

(2,593)


Other financial items

(295)

(193)

(811)

(681)

(1,409)


Total other income/(expense), net

(1,165)

(817)

(1,545)

(3,599)

(6,024)


Income/(loss) before taxes

24,227

15,261

(14,071)

23,334

(1,190)


Income taxes - benefit/(expense) 

(6,383)

(2,098)

3,409

(4,125)

(2,195)


Net income/(loss)

17,844

13,163

(10,662)

19,209

(3,385)









Earnings per share (US$)







     Basic

0.12

0.08

(0.07)

0.12

(0.02)


     Diluted

0.12

0.08

(0.07)

0.12

(0.02)









Weighted average common shares (000's)







     Basic

156,046

156,134

155,220

155,940

155,018


     Diluted

156,046

156,134

155,220

155,940

155,018

 

NORTHERN OFFSHORE, LTD. and SUBSIDIARIES

Consolidated Balance Sheets

(Unaudited)




(Thousands of US Dollars)

December 31, 
2012

December 31,
2011

Current assets 



Cash and cash equivalents

26,120

10,601

Restricted cash 

-

7,604

Accounts receivable, net

29,386

36,649

Prepaid expenses 

4,099

2,083

Deferred mobilization costs 

2,209

246

Deferred insurance premium

1,869

1,822

Other current assets

1,711

820

Total current assets

65,394

59,825

Noncurrent assets 



Property, plant & equipment, net

201,077

253,740

Restricted cash, net of current portion 

5,436

5,436

Noncurrent deposit/escrow account

5,198

-

Deferred mobilization costs, net of current portion

1,596

-

Drydock costs, net of current portion

5,093

4,967

Other noncurrent assets 

1,748

224

Total noncurrent assets

220,148

264,367

Total assets

285,542

324,192

Current liabilities



Accounts payable

16,376

27,435

Accrued expenses

9,748

7,289

Income taxes payable

933

2,926

Current debt

22,000

45,436

Deferred revenue

2,062

4,813

Total current liabilities

51,119

87,899

Shareholders' equity



Share capital

40,122

39,546

Additional paid-in capital

170,985

168,583

Accumulated other comprehensive loss

(6,691)

(6,691)

Retained earnings

30,007

34,855

Total shareholders' equity

234,423

236,293

Total liabilities and shareholders' equity  

285,542

324,192

 

NORTHERN OFFSHORE, LTD. and SUBSIDIARIES

Consolidated Statements of Cash Flows - (Unaudited)










Twelve months ended  
December 31,

(Thousands of US Dollars)



2012

2011

Cash flows from operating activities




Net income / (loss)



19,209

(3,385)

Adjustments to reconcile net income to net cash




  provided by operating activities:




Stock-based compensation 



4,043

2,756

Depreciation



34,471

34,167

Amortization of deferred financing fees


512

2,593

Gain on disposal of assets


(7,493)

1,701

Changes in operating assets and working capital




Accounts receivable


7,263

19,091

Prepaid expenses                          


(2,016)

517

Deferred income taxes


-

(286)

Deferred mobilization costs



(3,449)

(35)

Other current and noncurrent assets


(2,695)

(2,836)

Accounts payable


(15,309)

5,421

Other accrued liabilities


1,810

(11,327)

Deferred revenue


(2,751)

2,417

Income taxes payable


(1,993)

(503)

Other, net


11

33

Net cash provided by operating activities


31,613

50,324

Cash flows from investing activities




Capital expenditures



(14,578)

(32,416)

Changes in restricted cash



7,604

(6,593)

Changes in noncurrent deposit/escrow account


(5,198)

-

Proceeds from disposal of assets, net


44,502

-

Net cash provided by / (used in) investing activities

32,330

(39,009)

Cash flows from financing activities




Proceeds from drawdown of revolver facility


14,564

52,436

Principal payments on revolver facility


(38,000)

(50,000)

Debt issuance costs



(405)

(1,072)

Payment for taxes on vested shares


(1,065)

(435)

Dividends paid



(23,518)

(14,230)

Net cash used in financing activities


(48,424)

(13,301)

Net changes in cash and cash equivalents


15,519

(1,986)

Cash and cash equivalents at beginning of period


10,601

12,587

Cash and cash equivalents at end of period


26,120

10,601







Supplemental disclosure of cash flow information



Cash paid during the period for:





    Income taxes



2,561

2,505

    Interest




2,802

734







Significant non-cash transactions during the period for:



Accrued capital expenditures



3,592

4,849

Deferred - other



110

363

Accrued dividends



539

254

 

NORTHERN OFFSHORE, LTD. and SUBSIDIARIES

 Consolidated Statements of Shareholders' Equity

(Unaudited)
















Accumulated






Common 


Additional

other






shares

Share 

paid-in

comprehensive

Retained 


(Thousands of US Dollars)


('000)

capital

capital

loss

earnings

Total










Balance at December 31, 2010

156,708

39,176

166,632

(6,691)

52,470

251,587










Net loss



-

-

-

-

(3,385)

(3,385)

Issuance of restricted stock


1,476

370

(370)

-

-

-

Payments for taxes on vested shares

-

-

(435)

-

-

(435)

Stock-based compensation 


-

-

2,756

-

-

2,756

Common shares dividends


-

-

-

-

(14,230)

(14,230)

Balance at December 31, 2011

158,184

39,546

168,583

(6,691)

34,855

236,293










Balance at December 31, 2011

158,184

39,546

168,583

(6,691)

34,855

236,293










Net income



-

-

-

-

19,209

19,209

Issuance of restricted stock


2,304

576

(576)

-

-

-

Payments for taxes on vested shares

-

-

(1,065)

-

-

(1,065)

Stock-based compensation 


-

-

4,043

-

-

4,043

Common shares dividends


-

-

-

-

(24,057)

(24,057)

Balance at December 31, 2012

160,488

40,122

170,985

(6,691)

30,007

234,423

 


NORTHERN OFFSHORE, LTD. and SUBSIDIARIES


Reconciliation of GAAP to Non-GAAP Financial Results


(Unaudited)

























 Three Months Ended 

Twelve Months Ended




 December 31, 

 December 31, 


(Thousands of US Dollars)

Q3 2012

2012

2011

2012

2011









Net income/(loss) (GAAP)

17,844

13,163

(10,662)

19,209

(3,385)









Add Back:







Net interest expense

870

624

734

2,918

4,615


Income taxes

6,383

2,098

(3,409)

4,125

2,195


Depreciation

8,055

7,767

9,141

34,471

34,167









EBITDA (Non-GAAP)

33,152

23,652

(4,196)

60,723

37,592























EBITDA is defined as Net Income/(Loss) before Interest, Taxes and Depreciation

 

 

NORTHERN OFFSHORE, LTD. and SUBSIDIARIES

Operating Statistics

(Unaudited)











 Three Months Ended 

 Twelve Months Ended 




 December 31, 

 December 31, 


Q3 2012


2012

2011

2012

2011








Jackups (3)














Average rig utilization 

67%


94%

67%

56%

52%

Operating days 

184


184

184

565

567

Average revenue per day 

101,756


103,195

69,695

94,760

69,886








Drillship (1)














Average rig utilization 

98%


0%

58%

62%

15%

Operating days

90


0

53

225

53

Average revenue per day 

186,194


0

105,306

202,333

225,101








Semisubmersible (1)














Average rig utilization 

100%


100%

0%

70%

67%

Operating days

92


92

0

257

243

Average revenue per day

179,229


172,108

0

165,218

208,955








Total Drilling Rigs (5)














Average rig utilization 

80%


73%

52%

60%

47%

Operating days 

366


276

237

1,047

863

Average revenue per day 

141,994


126,456

94,988

135,172

118,577








Floating Production  Facility (1)














Days in period 

92


92

92

366

365

Production days

92


92

92

366

365

Average bpd

18,250


24,965

21,653

18,585

23,648

Average tariff revenue per day

109,514


149,789

129,921

111,509

141,889

Average other revenue per day 

1,387


1,408

(5,190)

1,395

1,396

Total average revenue per day 

110,901


151,197

124,731

112,904

143,285















Note 1: Operating days represent actual days under contract.


Note 2: Costs which are reimbursed by the client are included in the average revenue per day calculation.  

SOURCE Northern Offshore, Ltd.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, drew together recent research and lessons learned from emerging and established compa...
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web co...
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, will discuss how AI can simplify cloud operations. He will cover the following topics: why clou...
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, will share examples from a wide range of industries – includin...
"We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and sh...
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Onalytica. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...