Petróleo Brasileiro S.A aka Petrobras is planning to release details from a programme dubbed Procop that is to address its cost base in December. The goal is to optimize operating costs and media in the know has thrown numbers in between 5 and 15 billion reais (2-6 billion Euros or 14-42 billion NOK). This will have an effect on contractors of the company.
Newspaper Dagens Næringsliv (DN) interviewed industry experts on the matter. They opinionated that there is likely to consequences on its drilling activities, which in turn could pressure mid/deepwater segment where rates can be under pressure from an industry oversupply. DN listed firms such as Fred. Olsen Energy (OSE: FOE), Songa Offshore (OSE: SONG), Seadrill (OSE: SDRL) Awilco Drilling (OSE: AWDR) as those affected. A. P. Møller-Mærsk (OMX: MAERSK A, MAERSK B) could be affected to a lesser degree. Additionally offshore vessel makers, sellers and renters are likely to think of what is coming as well.
Showing posts with label Songa. Show all posts
Showing posts with label Songa. Show all posts
Saturday, 10 November 2012
Monday, 27 February 2012
Songa gains as Statoil picks option for two more rigs
Songa Offshore SE (OSE: SONG) received an order from Statoil ASA pertaining to the options for two further newbuild "cat D" semisubmersible rigs specified in the LOA for the first two-rig order from the company last summer. The contract value is 2.66 billion USD for a period of eight years. Statoil has options for extensions for extra 12 years per rig four years at a time. The delivery is expected in 2014/2015.
Like the first two, these rigs will be built by Daewoo Shipbuilding & Marine Engineering Co (DSME) at 570 million USD each. The drilling package will be delivered by Aker Solutions (OSE: AKSO). The drigs will be similar in design with the allowing to the possibility to interchange parts and crew.
Statoil enters into the contracts to improve recovery from existing fields on the Norwegian continental shelf. The costs of drilling and well completion can also be lowered. One of the rigs will be used on Norne, Heidrun and Åsgård licences with the other joining Statoil’s strategic fleet in year-round operations in the Barents Sea.
Songa Offshore situation has been pretty challenging and as was mentioned in connection with the Q4 report, the company needs to add to its liquid assets by Q3 this year. These new contracts were seen as increasing the likelihood of that situation being solved as well.
From H2 2012 onward Songa Offshore will operate three semisubmersible rigs from Statoil and with these four further rigs coming in later, Statoil obviously also has an interest in Songa’s continued success. Statoil has provided bridge financing to Songa for 20% of the down payment to DSME. Songa was up more than 10% on Friday.
Like the first two, these rigs will be built by Daewoo Shipbuilding & Marine Engineering Co (DSME) at 570 million USD each. The drilling package will be delivered by Aker Solutions (OSE: AKSO). The drigs will be similar in design with the allowing to the possibility to interchange parts and crew.
Statoil enters into the contracts to improve recovery from existing fields on the Norwegian continental shelf. The costs of drilling and well completion can also be lowered. One of the rigs will be used on Norne, Heidrun and Åsgård licences with the other joining Statoil’s strategic fleet in year-round operations in the Barents Sea.
Songa Offshore situation has been pretty challenging and as was mentioned in connection with the Q4 report, the company needs to add to its liquid assets by Q3 this year. These new contracts were seen as increasing the likelihood of that situation being solved as well.
From H2 2012 onward Songa Offshore will operate three semisubmersible rigs from Statoil and with these four further rigs coming in later, Statoil obviously also has an interest in Songa’s continued success. Statoil has provided bridge financing to Songa for 20% of the down payment to DSME. Songa was up more than 10% on Friday.
Monday, 13 February 2012
Songa offshore Q4 2011
Drilling contractor Songa Offshore SE (OSE: SONG) reported fourth operating profit of 3.8 million USD loss before tax of 8.9 million USD and after tax profit of 35.8 million (EPS 0.21 USD) on a 44.6 million income tax credit. Fleet utilization was down to 86% in Q4 due to bad weather and repairs. In January the situation has rectified.
Order backlog has USD 4.39 billion of firm orders and 4.77 billion in options. An unsecured bond issue of 1.4 billion NOK was completed in November. Liquidity situation needs to be improved by third quarter this year and the company is considering various measures such as rig divestments and joint ventures to address that. The stock opened with a clear plus but has since dived to trade at -3%.
Order backlog has USD 4.39 billion of firm orders and 4.77 billion in options. An unsecured bond issue of 1.4 billion NOK was completed in November. Liquidity situation needs to be improved by third quarter this year and the company is considering various measures such as rig divestments and joint ventures to address that. The stock opened with a clear plus but has since dived to trade at -3%.
Monday, 25 July 2011
Songa Offshore to fully own Songa Eclipse, lands a major contract
Songa Offshore SE (OSE: SONG) is in the news this morning. The company announced that it has received an order worth 268 million USD from a major oil operator for its newbuild ultra-deepwater semisubmersible into offshore Angola in West Africa. The order contains three one-year options of escalated day rate. Songa hopes to build upon its earlier relationship with the said major operator
The newbuild in question, a 6th generation Friede & Goldman ExD ultra-deepwater semi-submersible called Songa Eclipse, is under construction at Jurong Shipyard in Singapore and is scheduled for delivery in August. The new contract kicks in right after delivery. Shortly afterward Songa announced it has agreed to buy out the minority shareholders of Songa Eclipse Limited . Songa will pay 65 million USD for the shares (48.1%) plus potential bonuses to the sellers Omega ASA (35.1%) and Pareto World Wide Offshore AS (13.1%).
The newbuild in question, a 6th generation Friede & Goldman ExD ultra-deepwater semi-submersible called Songa Eclipse, is under construction at Jurong Shipyard in Singapore and is scheduled for delivery in August. The new contract kicks in right after delivery. Shortly afterward Songa announced it has agreed to buy out the minority shareholders of Songa Eclipse Limited . Songa will pay 65 million USD for the shares (48.1%) plus potential bonuses to the sellers Omega ASA (35.1%) and Pareto World Wide Offshore AS (13.1%).
Wednesday, 6 July 2011
Songa Offshore receives LOA from Statoil
Norwegian-Cypriot drilling contractor Songa Offshore (OSE: SONG) announced that it’s subsidiary has received a letter of award from Statoil (OSE: STL, NYSE: STO) for two new build semisubmersibles with firm 8 year terms for each. The order contains an option to extend the term to 20 years. Statoil also has an option for two additional rigs.
The firm term of the awarded contract will provide 2.47 billion USD of revenue to Songa and escalation provisions will contribute to a higher contract value upon commencement in 2011. The rigs should be up and running in the Troll-license in 2014.
Rig construction work will be done at the Daewoo Shipbuilding & Marine Engineering Co., Ltd’s yard in South-Korea and Aker Solutions(OSE: AKSO) was selected as the supplier of the drilling equipment by Songa. Aker Solutions already commented on an order from DSME the day before yesterday.
Contract was expected and markets were satisfied with the terms as Songa gained mildly on Tuesday’s trading. The possibility to further strengthen the relationship with Statoil coupled with increased earnings visibility are other positives to take home from the deal. Statoil's chief procurement officer Jon Arnt Jacobsen said the following on their release: “Through joint efforts we intend to rejuvenate the rig fleet on the NCS and ensure that we use the right rig for the right purpose."
The firm term of the awarded contract will provide 2.47 billion USD of revenue to Songa and escalation provisions will contribute to a higher contract value upon commencement in 2011. The rigs should be up and running in the Troll-license in 2014.
Rig construction work will be done at the Daewoo Shipbuilding & Marine Engineering Co., Ltd’s yard in South-Korea and Aker Solutions(OSE: AKSO) was selected as the supplier of the drilling equipment by Songa. Aker Solutions already commented on an order from DSME the day before yesterday.
Contract was expected and markets were satisfied with the terms as Songa gained mildly on Tuesday’s trading. The possibility to further strengthen the relationship with Statoil coupled with increased earnings visibility are other positives to take home from the deal. Statoil's chief procurement officer Jon Arnt Jacobsen said the following on their release: “Through joint efforts we intend to rejuvenate the rig fleet on the NCS and ensure that we use the right rig for the right purpose."
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