NICOSIA, CYPRUS -- (Marketwire) -- 03/06/13 -- Ocean Rig UDW Inc. (NASDAQ: ORIG), or Ocean Rig or the Company, an international contractor of offshore deepwater drilling services today announced its unaudited financial and operating results for the fourth quarter ended December 31, 2012.
Fourth Quarter 2012 Financial Highlights
•For the fourth quarter of 2012, the Company reported a net loss of $71.0 million, or $0.54 basic and diluted loss per share.
Included in the fourth quarter of 2012 results are:
•Costs associated with the 10-year class survey for the Eirik Raude of $43.9 million, or $0.33 per share.
Excluding the above items, the Company's net results would have amounted to a net loss of $27.1 million, or $0.21 per share.
•The Company reported Adjusted EBITDA of $75.4 million for the fourth quarter of 2012, as compared to $128.8 million for the fourth quarter of 2011.(1)
Year Ended December 31, 2012 Financial Highlights
•For the year ended 2012, the Company reported a net loss of $132.3 million, or $1.00 basic and diluted loss per share.
Included in the year ended 2012 results are:
•Costs associated with the 10-year class survey for the Eirik Raude of $65.5 million, or $0.50 per share.
Excluding the above items, the Company's net results would have amounted to a net loss of $66.8 million, or $0.50 per share.
•The Company reported Adjusted EBITDA of $354.4 million for the year ended 2012, as compared to $387.9 million for the year ended 2011.(1)
(1) Adjusted EBITDA is a non-GAAP measure; please see later in this press release for reconciliation to net income.
- On March 3, 2013, our customer European Hydrocarbons Limited, or European Hydrocarbons, unilaterally cancelled our drilling contract in West Africa for the Eirik Raude. Under the terms of the contract, European Hydrocarbons will have to reimburse the Company with an early termination payment of approximately $13 million plus accrued work performed to date.
- On February 28, 2013, the Company signed definitive documentation for a $1.35 billion syndicated secured term loan facility to partially finance the construction costs of the newbuilding drillships Ocean Rig Mylos, the Ocean Rig Skyros and the Ocean Rig Athena, scheduled for delivery in July 2013, October 2013 and November 2013, respectively. The facility has a five-year term and a repayment profile of approximately 11 years and bears interest at LIBOR plus a margin.
- On February 14, 2013 the Company received a Letter of Award (LOA) from a major oil company for a three-year drilling contract offshore West Africa with an estimated backlog of approximately $680 million, including mobilization for the Ocean Rig Apollo, our newbuilding drillships schedule for delivery in January 2015. The contract is scheduled to commence in the first quarter of 2015. The customer has the option to extend the contract for four periods of six months each, with the first option exercisable not less than one year before the estimated completion date. The Company has the option to elect the Ocean Rig Apollo or similar vessel, to drill under this contract. The LOA is subject to definitive documentation and customary approvals.
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