HOUSTON, Aug. 28 /PRNewswire-FirstCall/ -- Northern Offshore, Ltd.
reported net income for the three months ended June 30, 2008 of US$22.5
million, or US$0.15 per diluted share, compared to net income of US$16.6
million, or US$0.11 per diluted share for the second quarter of 2007. Revenues
for the second quarter of 2008 were US$72.3 million compared to US$42.5
million for the second quarter of 2007.
(Logo: http://www.newscom.com/cgi-bin/prnh/20080415/LATU540LOGO)
For the six month period ended June 30, 2008 net income totaled US$32.0
million or US$0.21 per diluted share. For the same period in the prior year,
net income totaled US$41.9 million or US$0.29 per share. Revenues for the
first half of 2008 were US$124.9 million compared to US$84.3 million for the
same period last year
Northern Offshore President and CEO, Marion Woolie, commented, 'We are
pleased with our improved second quarter results. We are starting to realize
the benefits of higher market dayrates and are looking forward to the
additional growth that the recently announced acquisitions will bring in the
near future.'
Second Quarter Analysis
Revenues for the three months ended June 30, 2008 increased
US$29.8 million compared to the same period of 2007. The increase in revenue
for the second quarter of 2008 included the full quarter of operating results
from the three jackup rigs acquired from A.P. Moller Maersk A/S ('Maersk') in
mid June 2007 compared to just 15 days during the same period of 2007.
Additionally, the Energy Searcher experienced higher utilization and dayrates
during the 2008 quarter. This revenue growth was partially offset by lower
revenue from the Energy Driller, a semisubmersible that completed its upgrades
in mid April 2008 and was mobilized to India for a three-year contract, and
lower revenue from the Northern Producer, a floating production platform which
came off contract in June 2007. The Northern Producer is currently being
refurbished for a new life-of-field contract in the U.K. North Sea.
Operating, general and administrative and DD&A expenses for the second
quarter of 2008 all showed significant increases compared to the same period
of 2007, related primarily to the impact of the three jackup rigs acquired
from Maersk in mid June 2007. Similarly, the amortization of drilling
contract intangibles increased US$5.5 million and interest expense was up
US$4.0 million due to the 2007 rig acquisitions.
Operating Highlights
Several key items for the second quarter of 2008 are noted below:
-- The Energy Driller completed its upgrades in Singapore and subsequent
repairs in India following damage caused by Cyclone Nargis while mobilizing to
India. As a result of the cyclone, contract commencement was delayed until
July 1, 2008.
-- The Energy Exerter completed its contract preparation work in mid May
and mobilized to its first drilling location for a subsidiary of Gazprom in
early June where it is currently operating in the Pechora Sea, offshore
Russia. In addition, the Energy Exerter 'Safety Case' was approved by the
U.K. Health and Safety Executive. This approval will position the company to
operate the rig in the U.K. sector of the North Sea.
-- The Energy Searcher completed its contract with P.T. Easco Sepanjang in
late June and is currently available for work.
Conference Call Information
Northern Offshore, Ltd. will conduct a teleconference with security
analysts at 9 a.m. CDT, August 28, 2008 to discuss the company's quarterly
financial results. Individuals wishing to participate in the teleconference
should call 888-396-2386 (in the U.S.) or 617-847-8712 (outside the U.S.)
about five to ten minutes prior to the scheduled start time and refer to
participant password 60513441.
The conference call also will be accessible by logging on to the company's
website at http://www.northernoffshorelimited.com.
