Ocean Rig Inc Reports Financial and Operating Results For The Q1 2016

By Finance

Ocean Rig UDW Inc. (Ocean Rig), an international contractor of offshore deepwater drilling services, announced on Thursday (May 19) its unaudited financial and operating results for the quarter ended March 31, 2016.

First Quarter 2016 Financial Highlights

  • For the first quarter of 2016, the Company reported a net income of $288.0 million, or $2.07 basic and diluted earnings per share.

Included in the first quarter 2016 results are:

- Non-cash gains associated with the purchase of the 7.25% Senior Unsecured Notes due 2019 and the 6.5% Senior Secured Notes due 2017 totaling $125.0 million, or $0.90 per share.

Excluding the above items, the Company would have reported net income of $163.0 million, or $1.17 per share.

  • The Company reported Adjusted EBITDA(1) of $343.0 million for the first quarter of 2016.

Ocean Rig Inc Reports Financial and Operating Results For The Q1 2016

George Economou, Chairman and Chief Executive Officer of the Company, commented: “Despite the current market conditions and our recent contract terminations, we are pleased to report another solid quarter, with a fleet utilization of approximately 96.3% and further reductions in corporate and operating expenses. Our performance is a testament to the superior operating results associated with modern assets and the collective efforts of our operating team.”

(1) Adjusted EBITDA is a non-GAAP measure; please see later in this press release for reconciliation to net income

Financial Review: 2016 First Quarter

The Company recorded net income of $288.0 million, or $2.07 basic and diluted earnings per share, for the three-month period ended March 31, 2016, as compared to a net income of $41.1 million, or $0.31 basic and diluted earnings per share, for the three-month period ended March 31, 2015.

Revenues increased by $105.9 million to $508.0 million for the three-month period ended March 31, 2016, as compared to $402.1 million for the same period in 2015.

Drilling units’ operating expenses decreased to $145.6 million and total depreciation and amortization decreased to $85.9 million for the three-month period ended March 31, 2016, from $152.9 million and $88.4 million, respectively, for the three-month period ended March 31, 2015.

Total general and administrative expenses decreased to $18.8 million in the first quarter of 2016 from $28.0 million during the same period in 2015.

Interest and finance costs, net of interest income, decreased to $59.7 million for the three-month period ended March 31, 2016, compared to $61.7 million for the three-month period ended March 31, 2015.

Full Report here

Source: Ocean Rig