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Offshore drilling contractor Shelf Drilling has registered a net loss of $184.9m in the first quarter of this year after it booked a non-cash impairment charge of $188m on long-lived assets.
The company’s cash and equivalents balance stood at $69m at the end of March this year.
Meanwhile, the company’s revenue for Q1 2020 was $181.4m. This was a 13.5% increase compared to the previous quarter.
Shelf Drilling CEO David Mullen said: “The Covid-19 pandemic has significantly affected global economic activity creating unprecedented uncertainties with near and medium term oil and gas demand.
In the wake of current market conditions as a result of coronavirus outbreak, Shelf Drilling has initiated cost-cutting measures including headcount reductions.
Mullen added: “Many operators are considering to either terminate, suspend or renegotiate contracts or delay planned activities, all of which will impact our future activity. In response to this situation, we have taken actions to protect our employees, ensure continuity of our operations, reduce costs and preserve liquidity.
“In addition to these actions, our proven track record of delivering best-in-class operating performance and backlog strengthen our resilience in limiting the impact of the current crisis.”
While it holds $69m in liquid assets, Shelf Drilling’s total debt at the end of March was $1bn, including $55m drawn from the company’s revolving credit facility.
On 31 March, the company’s contract backlog was 1.9bn across 32 contracted rigs.
In July 2018, Shelf Drilling signed a definitive agreement to acquire the Ocean Scepter jack-up drilling rig from the subsidiaries of Diamond Offshore.