Maersk Drilling posts strong result
OFFSHORE: Maersk Drilling increased the revenue to USD 1,878 million compared to USD 1,627 million in 2010. Profit grew to USD 495 million compared to USD 399 million in 2010 and the return on invested capital (ROIC) rose to 12.7% compared to 11.0% in 2010.
“The 2011 annual result is very satisfying – in fact, our best result ever. The result was driven by higher day rates, solid contract coverage and a strong operational performance. In addition we continued the positive trend in our safety performance”, says Maersk Drilling CEO Claus V. Hemmingsen.
Total operational uptime in 2011 averaged 95.6% (96.7%) and the positive trend in safety performance continued. Maersk Drilling also secured several strong contracts resulting in a forward contract coverage of 93% for 2012 and 69% for 2013 providing a high degree of earnings visibility.
“The demand for offshore rigs continues to grow. We consider deepwater drilling to be the most compelling growth story in the offshore space, and we also continue to see good opportunities in the ultra harsh jack-up segment. Our strategy is fully aligned to this view and in 2011 we invested USD 3.9 billion in these two segment,,” says Claus V. Hemmingsen.
The ultra-harsh jack-up market remains solid with full utilisation and the recent large discoveries in Norway confirm the positive outlook for this segment. The number of jack-up rigs with near-term availability in the Norwegian market is limited, and the market is expected to remain tight and supportive of high day rates.
Similarly, the ultra deepwater market is characterised by full utilisation with increasing day rates establishing a new level around USD 500,000 per day. The increasing demand is primarily seen from the main growth regions West Africa and Brazil, and the growth is expected to absorb the current order book.
Source: Maersk Drilling / maritimedanmark.dk
