NICOSIA, CYPRUS -- (Marketwired) -- 05/22/13 -- 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 first quarter ended March 31, 2013.
First Quarter 2013 Financial Highlights
•For the first quarter of 2013, the Company reported a net income of $6.4 million, or $0.05 basic and diluted earnings per share.
•The Company reported Adjusted EBITDA of $104.7 million for the first quarter of 2013, as compared to $50.7 million for the first quarter of 2012.(1)
(1) Adjusted EBITDA is a non-GAAP measure; please see later in this press release for reconciliation to net income.
- 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, Ocean Rig Skyros and Ocean Rig Athena, scheduled for delivery in August 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.
George Economou, Chairman and Chief Executive Officer of the Company commented:
"During the first quarter of 2013, our results were adversely impacted by the scheduled drydock, for contract-related upgrades, of the Leiv Eiriksson which commenced drilling operations for Rig Management Consortium offshore Norway on April 15th 2013. During the quarter, we also experienced certain blowout preventer- related downtime with respect to Eirik Raude and the Ocean Rig Mykonos which resulted in low operating efficiency for those two units. Our remaining four ultra-deepwater ("UDW") units performed at an average of 97% operating efficiency during the quarter, which we find satisfactory.
In 2013, our focus has turned to the relocation of our day-to-day management functions to Athens, the integration of our three newbuilding drillships -- the Ocean Rig Mylos, Ocean Rig Skyros and Ocean Rig Athena -- into our fleet and the reduction of our operating expenses and increasing operating efficiency.
I am pleased with the progress we have made year to date. I expect the new structure, with management headquarters in Athens, will help us manage our costs and increase our operating efficiency by utilizing our local hubs in Brazil, Angola and Norway.
Our on-the-water fleet is expected to grow this year by three 7th generation UDW drillships as we take delivery of the Ocean Rig Mylos, Ocean Rig Skyros and Ocean Rig Athena. We plan to leverage our experience gained in 2011, when we took delivery of four UDW units, to successfully integrate in our fleet the three newbuilding drillships. Although we expect a minor delay of a couple of weeks in the delivery of the Ocean Rig Mylos, to August 2013, we have already ramped up onshore operations to accommodate all three of the newbuilding units. In addition, we have already completed over 70% of our essential crewing needs for the three units.
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