Pacific Drilling Announces Second Quarter 2020 Results; Pacific Sharav received a new 10-well order in the US Gulf of Mexico | message
Pacific Drilling S.A. (NYSE: PACD) (hereinafter referred to as “Pacific Drilling” or the “Company”) today released its results for the second quarter of 2020. Net loss for the second quarter of 2020 was $ 87.4 million, or $ 1.16 per diluted share, compared to a net loss of $ 61.0 million, or $ 0.81 per diluted share, for the first quarter of 2020.
Pacific Drilling CEO Bernie Wolford commented, “During the second quarter, our crews and executives continued to demonstrate our commitment to safe and efficient operations, including implementing measures to address risks associated with COVID-19 -Transmission, achieving exceptional results for our customers, efficiently maintaining the value of our assets and significantly reducing overheads. ”
Wolford continued, “Although oil prices began to recover in the second quarter, customers have generally scaled back their drilling investments, as evidenced by Equinor’s decision to have the company’s third previously completed well for the Pacific Khamsin and Murphy’s decision to terminate the contract for two wells in Mexico for the Pacific Sharav to terminate. In both cases, our customers chose to pay a cancellation fee instead of running the drill programs. We assume that the current contract for the Pacific Khamsin expires in September 2020. Despite this headwind for 2020, we are actively pursuing contract opportunities and are proud to extend our relationship with Murphy through a new contract for the Pacific Sharav to expand over 10 fixed holes and 5 option holes in the Gulf of Mexico, which we expect to begin in the second quarter of 2021. ”
Mr. Wolford concluded: “Although we currently see more contract opportunities for 2021 compared to 2020, the contract terms remain relatively short on average and we assume that an oversupply of drilling rigs will maintain downward pressure on the daily rates. We have until No debt due in 2023 and cash in excess of $ 252 million as of June 30, 2020. We anticipate that we will have sufficient cash to meet our cash needs for the next 12 months, based on current market conditions and However, regarding our prospect of new orders through 2020 and 2021, we do not believe that our current capital structure will be sustainable. We have engaged financial and legal advisors to help us assess various alternatives to address our longer-term liquidity outlook and capital structure negotiated e include the restructuring of our debt, which is carried out under the protection of Chapter 11 of the US Bankruptcy Act. We are currently in discussions with a group of creditors who are trying to find acceptable terms for a restructuring. Any such arrangement that we may reach could include equating all or certain of the company’s debts, which would expose our common stockholders to the significant risk of losing all of their interests in the company. As we evaluate our strategic alternatives to improve our liquidity outlook and current capital structure, we continue to deliver the safe, efficient and high quality drilling services that PACIFIC DRILLING is known for in our industry. ”
Explanation of the operating and financial results for the second quarter of 2020
Contract drilling income for the second quarter of 2020 was $ 38.9 million and included recoverable income of $ 6.6 million. That compares to contract drilling income for the first quarter of 2020 of $ 89.4 million, including recoverable income of $ 6.4 million. The decline in income was primarily due to the Pacific Sharav and the Pacific Bora signed their contracts in early April and the Pacific Santa Ana April saw a lower force majeure rate and a lower standby rate for second quarter memories.
Operating expenses for the second quarter of 2020 were $ 61.9 million, including recoverable expenses of $ 4.5 million. By comparison, operating expenses for the first quarter of 2020 were $ 86.5 million, including recoverable expenses of $ 5.8 million. The decrease in operating expenses is due to the decrease in the cost of the assets transitioning from operating to standby and idle states.
Selling overheads for the second quarter of 2020 were $ 10.9 million, compared to $ 9.6 million for the first quarter of 2020. The increase is due to consulting fees of $ 2.6 million and severance pay costs of $ 0.3 million in the second quarter of 2020. Excluding the impact of these costs, the decrease in general and administrative expenses for the second quarter of 2020 resulted from a staff reduction implemented in May 2020 and a reduction in salaries for all employees.
Adjusted EBITDA(a) for the second quarter of 2020 was $ (31.1) million, compared to $ (1.8) million for the first quarter of 2020.
Capital expenditures were $ 1.0 million in the second quarter of 2020 compared to $ 5.9 million in the first quarter of 2020. The decrease was due to the postponement or cancellation of oil rig projects, which resulted in activity in the second quarter ending up in the required sustained capital expenditure remained limited.
Footnotes
(a) | EBITDA and Adjusted EBITDA are non-GAAP financial measures. A definition of EBITDA and adjusted EBITDA as well as a reconciliation to the net loss can be found in the table attached to this release. Management uses this operational metric to track company results and believes that this metric provides additional information in that it highlights the impact of our operational performance and the operational and support costs incurred in achieving our profitability goals. |
telephone conference
Pacific Drilling will discuss the results for Q2 2020 on Friday, August 7, 2020 at 10:00 AM Central Time in the United States (4:00 PM CEST). To gain access to the conference call, participants are invited to call bit.ly/Register2Q2020Call to register. Registered participants will immediately be sent an email with the dial-in number and access code. A replay of the conference call will be available the following day on the company’s website or on +1 866 583 1035 with access code 9928370 #.
About Pacific Drilling
With world class drillships and a highly experienced team, Pacific Drilling is committed to exceeding customer expectations by providing the safest, most efficient and most reliable deep sea drilling services in the industry. Pacific Drilling’s fleet of seven drillships is one of the youngest and most technologically advanced fleets in the world. Pacific Drilling is headquartered in Luxembourg and Houston. For more information about Pacific Drilling and our current fleet, please visit our website at www.pacificdrilling.com.
Forward-Looking Statements
Certain statements and information contained in this press release constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are typically associated with terms such as “anticipate”, “believe”, “may” , “estimate”, “expect”, “predict”, “intend”, “our ability”, “can”, “plan”, “potentially”, “predict”, “project”, “forecast”, “should”, “may”, “would” or similar other terms are to be recognized, which are usually not of a historical nature. The forward-looking statements speak only as of the date of announcement, and we assume no obligation to publicly update or revise any forward-looking statements after the date on which they are made, whether as a result of new information, future events or otherwise.
Our forward-looking statements express our current expectations or projections about possible future results or events, including the future impact of the COVID-19 pandemic on our business, future financial and operational performance and cash on hand, the potential outcome of our discussions with our creditors and the evaluation of our alternatives in terms of our liquidity prospects and capital structure, our future liquidity positions and efforts to improve our liquidity position, earnings efficiency levels, market outlooks, trend forecasts, future contract options with customers, contractual daily prices, our business strategies and plans or management goals, the estimated duration of customer contracts, arrears, Expected investments, projected costs, expectations regarding the application of our two subsidiaries to appeal the arbitration award against them together mmenhang with the as Pacific Zonda well-known drilling ship in favor of Samsung Heavy Industries Co. Ltd. (“SHI”), the outcome of the ongoing insolvency proceedings of these subsidiaries and the potential impact of the court’s decision on our future business, financial condition, results of operations and liquidity.
Although we believe that the assumptions and expectations reflected in our forward-looking statements are reasonable and made in good faith, these statements are not guarantees and actual future results could differ materially due to a variety of factors. These statements are subject to risks and uncertainties and are based on judgments and assumptions, as these statements are currently made about future events that are beyond our control. Actual events and results may differ materially from our expected, presumed or forecast statements due to a variety of possible factors, including if the risks or uncertainties mentioned occur or our underlying assumptions prove to be incorrect.
Important factors that could cause actual results to differ materially from our expectations include: evolving risks from the COVID-19 pandemic and the resulting significant disruptions in the international economies and in the international financial and oil markets, including a significant decline the oil price in 2020; the willingness and ability of our existing lenders and owners Bondsto agree to any changes we may request in the terms of our long-term debt; whether we have additional capital available at a reasonable cost; the global oil and gas market and its impact on the demand for our services; the offshore drilling market, including changes in our customers’ investments; Changes in global supply and demand for oil and gas; The availability and supply and demand for highly specified drilling vessels and other drilling rigs that compete with our fleet; our ability to enter into and negotiate favorable terms for new drilling contracts or renewals; our ability to successfully negotiate and finalize valid contracts and other customary conditions relating to letters of intent and awards we receive for our drill ships; actual contract start dates; possible termination, renegotiation, termination or suspension of drilling contracts due to force majeure, mechanical difficulties, performance, market changes or any other reason; Costs associated with stacking rigs and reactivating them; Downtime and other risks associated with the operation of offshore drilling rigs, including unscheduled repairs or maintenance, relocations, severe weather or hurricanes, or accidents; our small fleet and dependence on a limited number of customers; the risks of litigation in foreign jurisdictions and delays caused by third parties in connection with such litigation; the outcome of the bankruptcy proceedings of our two subsidiaries and any measures that SHI or others may take against the company and its subsidiaries in the context of bankruptcy or other proceedings; the risk that our common stock could be banned from trading on the New York Stock Exchange if we fail to regain compliance with the Minimum Standard for Continued Listing of the Share Price or other criteria for continued listing during the Subsequent Performance Period; and the other risk factors described in our 2019 Annual Report on Form 10-K filed with the SEC on March 12, 2020, and our subsequent filings with the SEC. These documents are available on our website at www.pacificdrilling.com or on the SEC’s website at www.sec.gov.
PACIFIC DRILLING S.A. AND SUBSIDIARIES | ||||||||||||||||||||
Summarized Consolidated Income Statement | ||||||||||||||||||||
(in thousands of USD, with the exception of information per share) (unaudited) | ||||||||||||||||||||
Three months until the end of the term | Six month period to | |||||||||||||||||||
June 30th | March 31 | June 30th | June 30th | June 30th | ||||||||||||||||
2020 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||
Income | ||||||||||||||||||||
Contract drilling | $ | 38,910 | $ | 89,433 | $ | 76,415 | $ | 128,343 | $ | 142,331 | ||||||||||
Costs and expenses | ||||||||||||||||||||
Operating expenses | 61,854 | 86,475 | 52,254 | 148,329 | 104,550 | |||||||||||||||
Distribution overheads | 10,857 | 9,643 | 10,010 | 20,500 | 21,256 | |||||||||||||||
Depreciation of property, plant and equipment and intangible assets | 26,811 | 26,931 | 59,330 | 53,742 | 118.229 | |||||||||||||||
Receivables from unconsolidated subsidiaries | – | – | 700 | – | 2,024 | |||||||||||||||
99,522 | 123.049 | 122.294 | 222,571 | 246.059 | ||||||||||||||||
Operating loss | (60.612 | ) | (33.616 | ) | (45.879 | ) | (94.228 | ) | (103.728 | ) | ||||||||||
Other income / (expenses) | ||||||||||||||||||||
Interest expenses | (26.607 | ) | (25.127 | ) | (24.406 | ) | (51.734 | ) | (48.445 | ) | ||||||||||
Redevelopment posts | (248 | ) | (114 | ) | (878 | ) | (362 | ) | (1.881 | ) | ||||||||||
Interest income | 520 | 807 | 1,665 | 1,327 | 3,637 | |||||||||||||||
Other income / (expenses) | 1 | (213 | ) | (220 | ) | (212 | ) | (311 | ) | |||||||||||
Loss before income tax | (86.946 | ) | (58.263 | ) | (69.718 | ) | (145.209 | ) | (150.728 | ) | ||||||||||
Income tax expense | 452 | 2,700 | 3,868 | 3.152 | 6,837 | |||||||||||||||
Net loss | $ | (87.398 | ) | $ | (60.963 | ) | $ | (73.586 | ) | $ | (148.361 | ) | $ | (157.565 | ) | |||||
Loss per ordinary share, undiluted | $ | (1.16 | ) | $ | (0.81 | ) | $ | (0.98 | ) | $ | (1.97 | ) | $ | (2.10 | ) | |||||
Weighted average of shares in circulation, undiluted | 75.199 | 75.184 | 75.001 | 75.191 | 75,016 | |||||||||||||||
Loss per common share, diluted | $ | (1.16 | ) | $ | (0.81 | ) | $ | (0.98 | ) | $ | (1.97 | ) | $ | (2.10 | ) | |||||
Weighted average number of shares in circulation, diluted | 75.199 | 75.184 | 75.001 | 75.191 | 75,016 | |||||||||||||||
PACIFIC DRILLING S.A. AND SUBSIDIARIES | ||||||||||||
Combined consolidated balance sheet | ||||||||||||
(in thousands) (unchecked) | ||||||||||||
June 30th | March 31 | December 31 | ||||||||||
2020 | 2020 | 2019 | ||||||||||
Assets: | ||||||||||||
Liquid funds and cash equivalents | $ | 246.311 | $ | 273,957 | $ | 278.620 | ||||||
Restricted payment methods | 6.106 | 6.106 | 6,089 | |||||||||
Net receivables | 27,084 | 65,629 | 29,252 | |||||||||
Material and supplies | 45.101 | 45,577 | 43,933 | |||||||||
Accrued costs, current | 8,441 | 10,979 | 16,961 | |||||||||
Prepaid expenses and other current assets | 13,196 | 21,532 | 15,732 | |||||||||
Total current assets | 346.239 | 423.780 | 390,587 | |||||||||
Property, plant and equipment, net | 1,790,927 | 1,816,969 | 1,842,549 | |||||||||
Other assets | 29,777 | 26,158 | 23,423 | |||||||||
Total assets | $ | 2,166,943 | $ | 2,266,907 | $ | 2,256,559 | ||||||
Liabilities and equity: | ||||||||||||
liabilities | $ | 19,046 | $ | 24,017 | $ | 24,223 | ||||||
Anticipatory liabilities | 23,738 | 25,733 | 27,924 | |||||||||
Accrued interest | 15,703 | 31,406 | 15,703 | |||||||||
Deferred income, current share | 4.129 | 5,428 | 7,567 | |||||||||
Total short-term liabilities | 62,616 | 86,584 | 75,417 | |||||||||
Long-term liabilities | 1,142,431 | 1,132,826 | 1,073,734 | |||||||||
Other long-term liabilities | 38.052 | 38,061 | 38,577 | |||||||||
Total liabilities | 1,243,099 | 1,257,471 | 1,187,728 | |||||||||
Equity: | ||||||||||||
Common stock | 752 | 752 | 751 | |||||||||
Capital reserve | 1,656,054 | 1,654,248 | 1,652,681 | |||||||||
Own shares, at the buyback price | (652 | ) | (652 | ) | (652 | ) | ||||||
Cumulative deficit | (732.310 | ) | (644.912 | ) | (583.949 | ) | ||||||
Total equity | 923,844 | 1,009,436 | 1,068,831 | |||||||||
Total liabilities and equity | $ | 2,166,943 | $ | 2,266,907 | $ | 2,256,559 | ||||||
PACIFIC DRILLING S.A. AND SUBSIDIARIES | ||||||||
Summarized consolidated cash flow statement | ||||||||
(in thousands) (unchecked) | ||||||||
Six month period to | ||||||||
June 30th | June 30th | |||||||
2020 | 2019 | |||||||
Cash generated from operations: | ||||||||
Net loss | $ | (148.361 | ) | $ | (157.565 | ) | ||
Adjustments to match net loss to net cash for operating activities: | ||||||||
Depreciation of property, plant and equipment and intangible assets | 53,742 | 118.229 | ||||||
Depreciation of deferred income | (8.943 | ) | (1.146 | ) | ||||
Amortization of deferred costs | 15,422 | 586 | ||||||
Repayment of deferred financing costs | 269 | – | ||||||
Repayment of the debt capital premium, net | (332 | ) | (221 | ) | ||||
Interest payments in kind | 19,029 | 16,923 | ||||||
Deferred income tax | 82 | 4,760 | ||||||
Share-based Compensation Expenses | 3,654 | 3,064 | ||||||
Losses from unconsolidated subsidiaries | – | 2,024 | ||||||
Changes in the company’s asset structure: | ||||||||
requirements | 2,168 | (24.854 | ) | |||||
Material and supplies | (1.168 | ) | (2.012 | ) | ||||
Deferred costs | (12.713 | ) | (4.347 | ) | ||||
Accrual for prepaid expenses and other assets | 3,460 | (12.906 | ) | |||||
Settlement liabilities and anticipatory liabilities | (5.041 | ) | 3,155 | |||||
Deferred income | 5,505 | 2,444 | ||||||
Net cash used in continuing operations | (73.227 | ) | (51.866 | ) | ||||
Cash flow from investing activities: | ||||||||
Capital expenditure | (6.967 | ) | (21.454 | ) | ||||
Net cash for investing | (6.967 | ) | (21.454 | ) | ||||
Cash flow from financing activities: | ||||||||
Payments for shares issued under share-based compensation plans | (280 | ) | – | |||||
Long-term debt proceeds | 50,000 | – | ||||||
Payments for financing costs | (1.818 | ) | (1.115 | ) | ||||
Erwerb eigener Aktien | — | (652 | ) | |||||
Nettobarmittel aus/(für) Finanzierungstätigkeit | 47.902 | (1.767 | ) | |||||
Nettoabnahme liquider Mittel und Bargegenwerte | (32.292 | ) | (75.087 | ) | ||||
Liquide Mittel, Bargegenwerte und verfügungsbeschränkte Zahlungsmittel zu Beginn des Abrechnungszeitraums | 284.709 | 389.075 | ||||||
Liquide Mittel, Bargegenwerte und verfügungsbeschränkte Zahlungsmittel zum Ende des Abrechnungszeitraums | $ | 252.417 | $ | 313.988 | ||||
Abgleichung von EBITDA und bereinigtem EBITDA
EBITDA wird als Erträge vor Zinsen, Steuern und Abschreibungen definiert. Beginnend mit dem vierten Quartal 2019 hat das Management das EBITDA für die laufende und die Vergleichsperiode neu definiert, um die Amortisierung von abgegrenzten Einnahmen und abgegrenzten Kosten auszuschließen, die in der Betriebsrechnung in den Einnahmen aus Vertragsbohrungen bzw. in den Betriebsausgaben enthalten sind. Das Management ist der Ansicht, dass ein solches Maß des EBITDA mit der herkömmlichen Definition des EBITDA übereinstimmt, eine größere Transparenz der Kernbetriebsleistung des Unternehmens ermöglicht und mit der historischen Behandlung durch bestimmte andere große Offshore-Bohrunternehmen und Versorgungsschiffseigner übereinstimmt. Das bereinigte EBITDA ist definiert als EBITDA vor Verlust aus nicht konsolidierten Tochterunternehmen und Sanierungsposten. EBITDA und bereinigtes EBITDA stellen keine Alternativen zu Nettogewinn, Betriebsergebnis, Cashflow aus laufender Geschäftstätigkeit oder anderen Kennzahlen der finanziellen Leistung dar, die gemäß den US-amerikanischen Grundsätzen ordnungsgemäßer Buchführung (“GAAP”) ausgewiesen werden, und sind nicht als solche auszulegen. Zudem sind unsere Berechnungen von EBITDA und bereinigtem EBITDA möglicherweise nicht mit den von anderen Unternehmen bilanzierten Werten vergleichbar. EBITDA und bereinigtes EBITDA sind hier enthalten, weil sie von der Geschäftsleitung zur Bemessung der operativen Tätigkeiten des Unternehmens genutzt werden. Die Geschäftsleitung ist der Ansicht, dass EBITDA und bereinigtes EBITDA den Anlegern nützliche Informationen zur betrieblichen Leistung des Unternehmens bieten.
PACIFIC DRILLING S.A. UND TOCHTERGESELLSCHAFTEN | ||||||||||||||||||||
Zusätzliche Angaben – Abstimmung zwischen Nettoverlust und den nicht GAAP-konformen Kennzahlen EBITDA sowie bereinigtes EBITDA | ||||||||||||||||||||
(in Tausend) (ungeprüft) | ||||||||||||||||||||
Drei Monate bis zum Ende der Laufzeit | Sechsmonatszeitraum bis | |||||||||||||||||||
30. Juni | 31. März | 30. Juni | 30. Juni | 30. Juni | ||||||||||||||||
2020 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||
Nettoverlust | $ | (87.398 | ) | $ | (60.963 | ) | $ | (73.586 | ) | $ | (148.361 | ) | $ | (157.565 | ) | |||||
Zuzüglich: | ||||||||||||||||||||
Zinsaufwendungen | 26.607 | 25.127 | 24.406 | 51.734 | 48.445 | |||||||||||||||
Abschreibungen auf Sachanlagen und immaterielle Vermögenswerte | 26.811 | 26.931 | 59.330 | 53.742 | 118.229 | |||||||||||||||
Sonstige Amortisation, netto (a) | 2.146 | 4.333 | (423 | ) | 6.479 | (560 | ) | |||||||||||||
Ertragssteueraufwand | 452 | 2.700 | 3.868 | 3.152 | 6.837 | |||||||||||||||
EBITDA (b) | $ | (31.382 | ) | $ | (1.872 | ) | $ | 13.595 | $ | (33.254 | ) | $ | 15.386 | |||||||
Zuzüglich: | ||||||||||||||||||||
Forderungen gegen nicht konsolidierte Tochtergesellschaften | — | — | 700 | — | 2.024 | |||||||||||||||
Sanierungsposten | 248 | 114 | 878 | 362 | 1.881 | |||||||||||||||
Bereinigtes EBITDA (b) | $ | (31.134 | ) | $ | (1.758 | ) | $ | 15.173 | $ | (32.892 | ) | $ | 19.291 | |||||||
(a) | Sonstige Amortisation, netto beinhaltet die Amortisation von abgegrenzten Kosten abzüglich der Amortisation von abgegrenzten Einnahmen. | |
(b) | Das EBITDA und das bereinigte EBITDA enthalten 2,6 Mio. USD an Beratungsgebühren und 2,5 Mio. USD an Abfindungen sowohl für die drei als auch für die sechs Monate, die am 30. Juni 2020 endeten; die Beratungsgebühren sind in den allgemeinen und administrativen Kosten enthalten, 0,3 Mio. USD an Abfindungen sind in den allgemeinen und administrativen Kosten enthalten und der Saldo der Abfindung ist in den Betriebskosten enthalten. |
Die Ausgangssprache, in der der Originaltext veröffentlicht wird, ist die offizielle und autorisierte Version. Übersetzungen werden zur besseren Verständigung mitgeliefert. Nur die Sprachversion, die im Original veröffentlicht wurde, ist rechtsgültig. Gleichen Sie deshalb Übersetzungen mit der originalen Sprachversion der Veröffentlichung ab.
Originalversion auf businesswire.com ansehen: https://www.businesswire.com/news/home/20200808005022/de/