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May 14, 2020updated 21 May 2020 10:46am

Shelf Drilling posts $185m loss in Q1 2020 results

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.

By Himaja Ganta

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.

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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.

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Identify the trends of tomorrow using filings sentiment analysis

Business sentiment continues to improve, showing a clear recovery since the onset of COVID-19. Sentiment in 2021 was up by 8% compared to 2020. Industrials had the highest sequential filings sentiment growth in Q3 2021. Optimism around digital themes and general outlook drove the positive trend in overall business sentiment. GlobalData’s Filing Analytics Annual Report 2021 on Industrials provides insights into sentiment and mention trends for companies, geographies, and themes. Get real-time analysis of:
  • Quarterly & annual reports
  • Earnings call transcripts
  • IPO filings
  • Events presentations
  • ESG filing trends
Understand the overall outlook for ADS, Construction, Mining, Oil & Gas, Power and Automotive, and spot the topics and themes that will be most impactful in the next few years. Download the full report to understand what to expect and how to align your business for success.
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