Offshore drilling contractor, Sevan Drilling, has posted a net profit of US$26.4 million, for the third quarter of 2015.
The drilling firm, who specialises in ultra deepwater drilling, has turned its fortunes around over the last 12 months, since it posted a net loss of US$21.1 million the same period last year.
Oslo based Sevan Drilling explained the turnaround in fortunes by the increased performance of its offshore drilling rigs.
The company said that its Sevan Driller rig achieved a 100% utilisation rate, compared with 76.5% over the same time last year, and its Sevan Brazil rig managed a 91.2% utilisation over 83.7% last year.
Most striking in the company’s figures, was the work rate of its Sevan Louisiana drilling rig, which managed a 97.5% utilisation rate over a 30.6% in the same period last year.
Sevan said that a further part of its turnaround was due to reductions in costs that the firm managed to make.
Total operating expenses were down, form a high of US$70.6 million in Q3 2014, to US$56.7 million in Q3 2015. Sevan said that this was owed to the reduction in their drilling fleets downtime.
However, a total of US$4.9 million of the costs were reduced from general administrative costs.
2016 Offshore Drilling
The future for Sevan Drilling does at least look a little more stable, over its previous performance and, in relation to the current offshore drilling climate- its competitors.
The company solely concentrates on the ultra deepwater drilling market, where competition is less fierce, but where the Capex for 2016 has been hit the hardest.
Like offshore production companies, Sevan is finding that, spending more money on maintaining their current asset’s integrity rather than expanding further, is whats bringing true value.