HOUSTON, Nov. 10, 2014 /PRNewswire/ -- Paragon
Offshore plc ("Paragon") (NYSE: PGN) today reported a third quarter
2014 net loss of $894 million, or
$10.14 per diluted share as compared
to third quarter 2013 net income of $158 million, or $1.80 per diluted share. Results for the
quarter include a $929 million, or
$10.53 per diluted share, non-cash
impairment charge related to Paragon's three drillships in
Brazil and its cold-stacked FPSO
in the U.S. Gulf of Mexico and a
$6.9 million, or $0.08 per diluted share, gain related to the
previously disclosed repurchase of an aggregate principal amount of
$50.2 million of its senior unsecured
notes. Excluding the impairment and the gain, Paragon's adjusted
net income (see Reconciliation of GAAP to Non-GAAP Financial
Measures Table for a reconciliation to net income) was $52 million, or $0.59 per diluted share. For periods prior
to Paragon's spin-off from Noble Corporation plc ("Noble") on
August 1, 2014 (the "Spin-Off"),
results of operations are based on Noble's standard-specification
business and include contributions from three standard
specification rigs retained by Noble and three standard
specification rigs that were sold prior to the Spin-Off. For
more information regarding the Spin-Off, please see Paragon's
filings with the U.S. Securities and Exchange Commission (the
"SEC") available on the company's website at
www.paragonoffshore.com.
"As a result of deteriorating market conditions in the third
quarter, Paragon engaged in a proactive evaluation of our fleet
value," said Randall D. Stilley,
President and Chief Executive Officer. "We concluded that the
current values of our drillships in Brazil and our FPSO are higher than the
current market values for similar units. Note that the impairment
does not affect our outlook for the Brazilian market, which will
continue to be important for Paragon. We remain committed to
serving Petrobras and we are actively seeking to secure extensions
for our rigs operating there."
Mr. Stilley continued, "I am proud that Paragon delivered some
very strong operating results in our first quarter as an
independent company. Despite rapidly evolving market
conditions, we have managed the transition well, added new
contracts for our rigs, controlled costs, and improved the balance
sheet. In short, we are executing the strategy we laid out to
deliver long-term shareholder value."
Total revenues for the third quarter of 2014 were $505 million compared to $479 million in the second quarter of 2014. Total
revenues for the third quarter and second quarter of 2014 include
$16 million and $42 million, respectively, for rigs retained or
sold by Noble. Excluding the revenues for the rigs retained by
Noble, total revenues for the third quarter of 2014 were
$489 and $437
million for the second quarter. Paragon reported utilization
for its marketed rig fleet, which excludes two cold stacked
floaters and one cold stacked jackup, as 82 percent for the third
quarter of 2014, which was flat compared to the second quarter of
2014. Average daily revenues increased two percent in the third
quarter to $151,000 per rig compared
to the previous quarter average of $148,000 per rig. Contract drilling operating
costs decreased two percent in the third quarter to $217 million compared to $222 million in the second quarter of 2014.
Net cash from operating activities was $160 million in the third quarter of 2014 as
compared to $206 million for the
second quarter of the year. Capital expenditures in the third
quarter totalled $72 million,
bringing the total for the nine months ended September 30, 2014 to $182
million. Liquidity, defined as cash and cash equivalents
plus availability under the company's revolving credit facility,
totalled $873 million at September 30, 2014.
Operating Highlights
Paragon's total contract backlog at September 30, 2014 was an estimated $2.0 billion compared to $2.3 billion at June 30,
2014.
Utilization of Paragon's marketed floating rig fleet was 100
percent in the third quarter of 2014 and in the second quarter of
2014. Average daily revenues for Paragon's floating rig fleet were
$291,000 per rig in the third quarter
of 2014, an improvement of approximately three percent compared to
$283,000 per rig in the second
quarter of 2014.
Third quarter 2014 utilization of Paragon's marketed jackup rig
fleet was 79 percent, a slight increase from the 78 percent
utilization achieved during the second quarter of 2014. Average
daily revenues for Paragon's jackup fleet during the third quarter
improved by approximately three percent to $117,000 per rig from $113,000 per rig during the second quarter of
2014.
At the end of the third quarter of 2014, 80 percent of Paragon's
available rig operating days for both floater and jackup units were
committed for the remainder of 2014. For 2015, an estimated
45 percent of the available rig operating days are committed,
including 66 percent and 41 percent of the floating and jackup rig
days, respectively. The calculations for committed operating days
exclude available days related to two floating units, one jackup
and the FPSO that are currently cold stacked.
Outlook
During the quarter, Paragon added approximately $162 million in backlog related primarily to
contract extensions in the North Sea, Mexico, and West Africa. In the North
Sea, the Paragon C461 received a contract extension from early
March 2015 to mid-November 2015 at a dayrate of $170,000 and the Paragon C462 received a contract
extension from mid-January 2015 to
late December 2015 at a dayrate of
$167,000. In Mexico, the
Paragon L781 received a contract extension from mid-July 2014 to early February 2015 at a dayrate of $82,000. Paragon also reported two more contract
extensions in Mexico for the
Paragon M821 and M823 that were extended from late August 2014 and early September 2014 respectively to late March 2015 at their respective dayrates of
$69,000 and $85,000. In West Africa, the Paragon L783
received a contract extension from mid-October 2014 to early December 2014 at a dayrate of $145,000.
In addition, Paragon announced today three new contracts in
India for the Paragon M1161,
Paragon L786 and Paragon L1112, which have contract lengths of
three years each with respective net dayrates of $62,000, $53,000
and $62,000. The contracts for the
Paragon M1161 and Paragon L786 are expected to start in early 2015
following rig preparation and mobilization to India while the Paragon L1112 is expected to
begin its contract later in the year. Paragon operates in
India through a modified bareboat
charter agreement whereby our partner receives a portion of the
gross revenue with respect to these contracts.
Mr. Stilley concluded, "We have entered an environment with
falling commodity prices, where customers are increasingly focused
on maximizing their return on capital. We believe this will
create additional opportunities for our fleet of well-maintained
and safely operated rigs. We are aggressively pursuing those
opportunities and we are committed to maintain our status as a low
cost provider."
About Paragon Offshore
Paragon is a global provider of standard specification offshore
drilling rigs. Paragon's drilling fleet consists solely of
standard specification rigs and includes 34 jackups and eight
floaters (five drillships and three semisubmersibles). Paragon's
primary business is contracting its rigs, related equipment and
work crews to conduct oil and gas drilling and workover operations
for its exploration and production customers on a dayrate basis
around the world. Paragon's principal executive offices are located
in Houston, Texas. Paragon is a
public limited company registered in England and Wales with company number 08814042 and
registered office at 20-22 Bedford
Row, London, WC1R 4JS,
England. Additional information is
available at www.paragonoffshore.com.
Forward-Looking Disclosure Statement
This release contains forward-looking statements. Statements
regarding contract backlog, earnings, costs, revenue, rig demand,
fleet condition or performance, shareholder value, contract
commitments, dayrates, contract commencements, contract extensions
or renewals, industry fundamentals, customer relationships and
requirements, strategic initiatives, future performance, growth
opportunities, market outlook, as well as any other statements that
are not historical facts in this release, are forward-looking
statements that involve certain risks, uncertainties and
assumptions. These include but are not limited to risks associated
with the general nature of the oil and gas industry, risks
associated with the operation of Paragon as a separate, publicly
traded company, actions by regulatory authorities, customers and
other third parties, and other factors detailed in the "Risk
Factors" section of Paragon's registration statement on Form 10 as
filed with the SEC on July 14, 2014,
in Paragon's Quarterly Report on Form 10-Q for the fiscal quarter
ended June 30, 2014, and in Paragon's
other filings with the SEC, which are available free of charge on
the SEC's website at www.sec.gov. Should one or more of these risks
or uncertainties materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those
indicated.
Conference Call
Paragon also scheduled a teleconference and webcast related to
its third quarter 2014 results on Tuesday,
November 11, 2014, at 8:00
a.m. U.S. Central Standard Time. The teleconference can be
accessed from the U.S. and Canada
by dialling 1-855-307-2986, or internationally by dialling
1-508-938-6940, and using access code: 20077331. Interested parties
may also listen to the webcast through a link posted on Paragon's
website at www.paragonoffshore.com, under "Events &
Presentations" in the "Investor Relations" section of the
website.
A telephonic replay of the conference call will be available on
Tuesday, November 11, 2014, beginning
at approximately 12:00 p.m. U.S.
Central Standard Time, through Tuesday,
November 25, 2014, ending at approximately 11:00 p.m. U.S. Central Standard Time. The phone
number for the conference call replay is 1-855-859-2056 or, for
calls from outside of the U.S., 1-404-537-3406, using access code:
20077331. A replay of the conference call will also be
available on Paragon's website at www.paragonoffshore.com, under
"Events & Presentations" in the "Investor Relations" section of
the website.
For additional
information, contact:
|
|
|
For
Investors
|
Lee M.
Ahlstrom
|
&
Media:
|
Senior Vice President
– Investor Relations, Strategy and Planning
|
|
+1.832.783.4040
|
Logo - http://photos.prnewswire.com/prnh/20140731/132134
PARAGON
OFFSHORE PLC
|
CONSOLIDATED
AND COMBINED STATEMENTS OF INCOME
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
Contract
drilling services
|
|
$ 456,174
|
|
$ 468,348
|
|
$ 1,410,471
|
|
$ 1,345,967
|
|
Reimbursables
|
|
40,481
|
|
12,840
|
|
63,374
|
|
36,486
|
|
Labor contract
drilling services
|
|
8,562
|
|
8,466
|
|
24,919
|
|
26,150
|
|
Other
|
|
5
|
|
28
|
|
5
|
|
94
|
|
|
|
505,222
|
|
489,682
|
|
1,498,769
|
|
1,408,697
|
Operating
costs and expenses
|
|
|
|
|
|
|
|
|
|
Contract
drilling services
|
|
217,378
|
|
219,022
|
|
666,158
|
|
670,146
|
|
Reimbursables
|
|
35,592
|
|
9,588
|
|
51,442
|
|
27,185
|
|
Labor contract
drilling services
|
|
6,593
|
|
6,110
|
|
19,029
|
|
17,856
|
|
Depreciation
and amortization
|
|
108,027
|
|
105,445
|
|
331,147
|
|
306,046
|
|
General and
administrative
|
|
12,037
|
|
16,911
|
|
37,965
|
|
47,914
|
|
Loss on
impairment
|
|
928,947
|
|
3,585
|
|
928,947
|
|
3,585
|
|
Gain on
disposal of assets, net
|
|
-
|
|
(35,646)
|
|
-
|
|
(35,646)
|
|
Gain on
contract settlements/extinguishments, net
|
|
-
|
|
(22,573)
|
|
-
|
|
(24,373)
|
|
Gain on
repurchase of long-term debt
|
|
(6,931)
|
|
-
|
|
(6,931)
|
|
-
|
|
|
|
1,301,643
|
|
302,442
|
|
2,027,757
|
|
1,012,713
|
|
|
|
|
|
|
|
|
|
|
Operating
income (loss)
|
|
(796,421)
|
|
187,240
|
|
(528,988)
|
|
395,984
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
Interest
expense, net of amount capitalized
|
|
(22,453)
|
|
(1,318)
|
|
(28,725)
|
|
(3,553)
|
|
Interest income
and other, net
|
|
340
|
|
1,237
|
|
865
|
|
1,461
|
Income (loss)
before income taxes
|
|
(818,534)
|
|
187,159
|
|
(556,848)
|
|
393,892
|
|
Income tax
provision
|
|
(75,682)
|
|
(29,524)
|
|
(117,757)
|
|
(71,142)
|
Net income
(loss)
|
|
$ (894,216)
|
|
$ 157,635
|
|
$ (674,605)
|
|
$
322,750
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
(10.14)
|
|
$
1.80
|
|
$
(7.68)
|
|
$
3.68
|
PARAGON
OFFSHORE PLC
|
CONSOLIDATED
AND COMBINED BALANCE SHEETS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
2014
|
|
2013
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
81,908
|
|
$
36,581
|
|
Accounts
receivable
|
|
441,875
|
|
356,241
|
|
Prepaid and
other current assets
|
|
119,782
|
|
51,182
|
Total current
assets
|
|
643,565
|
|
444,004
|
|
|
|
|
|
|
Property and
equipment, net
|
|
2,033,635
|
|
3,459,684
|
|
|
|
|
|
|
Other
assets
|
|
103,092
|
|
79,111
|
|
Total
assets
|
|
$
2,780,292
|
|
$
3,982,799
|
|
|
|
|
|
|
LIABILITIES
AND EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Current
maturities of long-term debt
|
|
$
6,500
|
|
$
-
|
|
Accounts
payable
|
|
147,352
|
|
124,442
|
|
Accrued payroll
and related costs
|
|
66,753
|
|
60,738
|
|
Other current
liabilities
|
|
215,111
|
|
41,374
|
Total current
liabilities
|
|
435,716
|
|
226,554
|
|
|
|
|
|
|
Long-term
debt
|
|
1,670,087
|
|
1,561,141
|
Deferred income
taxes
|
|
79,482
|
|
101,703
|
Other
liabilities
|
|
120,110
|
|
88,068
|
|
Total
liabilities
|
|
2,305,395
|
|
1,977,466
|
|
|
|
|
|
|
Total
shareholders' equity
|
|
474,897
|
|
2,005,333
|
|
Total
liabilities and equity
|
|
$
2,780,292
|
|
$
3,982,799
|
PARAGON
OFFSHORE PLC
|
CONSOLIDATED
AND COMBINED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
|
|
2014
|
|
2013
|
Cash flows
from operating activities
|
|
|
|
|
|
Net
income
|
|
$ (674,605)
|
|
$ 322,750
|
|
Adjustments to
reconcile net income to net cash from operating
activities:
|
|
|
|
|
Depreciation
and amortization
|
|
331,147
|
|
306,046
|
|
Loss on
impairment
|
|
928,947
|
|
3,585
|
|
Gain on
disposal of assets, net
|
|
-
|
|
(35,646)
|
|
Gain on
repurchase of Senior Notes
|
|
(6,931)
|
|
-
|
|
Other changes
in operating activities
|
|
(12,456)
|
|
(9,221)
|
|
Net cash from
operating activities
|
|
566,102
|
|
587,514
|
|
|
|
|
|
|
Cash flows
from investing activities
|
|
|
|
|
|
Capital
expenditures
|
|
(182,351)
|
|
(283,290)
|
|
Proceeds from
sale of assets
|
|
6,570
|
|
61,000
|
|
Change in
accrued capital expenditures
|
|
(3,000)
|
|
(17,313)
|
|
Net cash from
investing activities
|
|
(178,781)
|
|
(239,603)
|
|
|
|
|
|
|
Cash flows
from financing activities
|
|
|
|
|
|
Net change in
borrowings outstanding on bank credit facilities
|
|
707,472
|
|
973,055
|
|
Proceeds from
issuance of Senior Notes and Term Loan Facility
|
|
1,710,550
|
|
-
|
|
Repurchase of
Senior Notes
|
|
(42,468)
|
|
-
|
|
Net transfers
to parent
|
|
(2,698,295)
|
|
(1,333,416)
|
|
Debt issuance
costs
|
|
(19,253)
|
|
(2,432)
|
|
Net cash from
financing activities
|
|
(341,994)
|
|
(362,793)
|
|
Net change in
cash and cash equivalents
|
|
45,327
|
|
(14,882)
|
Cash and
cash equivalents, beginning of period
|
|
36,581
|
|
70,538
|
Cash and
cash equivalents, end of period
|
|
$ 81,908
|
|
$ 55,656
|
PARAGON
OFFSHORE PLC
|
OPERATIONAL
INFORMATION
|
(In thousands,
except operating statistics)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Rigs Retained or
Sold by Noble
|
|
As
Adjusted
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
June
30,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2014
|
|
2013
|
|
2014
|
|
2014
|
|
2013
|
|
2014
|
Rig fleet
operating statistics (1)(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jackups:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
77%
|
|
93%
|
|
76%
|
|
50%
|
|
100%
|
|
50%
|
|
77%
|
|
93%
|
|
78%
|
|
Marketed Utilization
(3)
|
|
79%
|
|
96%
|
|
78%
|
|
50%
|
|
100%
|
|
50%
|
|
80%
|
|
96%
|
|
80%
|
|
Operating
Days
|
|
2,447
|
|
3,096
|
|
2,492
|
|
31
|
|
184
|
|
91
|
|
2,416
|
|
2,912
|
|
2,401
|
|
Average
Dayrate
|
|
$ 116,967
|
|
$ 105,413
|
|
$ 113,125
|
|
$ 98,194
|
|
$ 96,614
|
|
$ 98,625
|
|
$ 117,208
|
|
$ 105,969
|
|
$ 113,675
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Floaters:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
76%
|
|
67%
|
|
78%
|
|
100%
|
|
100%
|
|
100%
|
|
75%
|
|
63%
|
|
75%
|
|
Marketed Utilization
(3)
|
|
100%
|
|
86%
|
|
100%
|
|
100%
|
|
100%
|
|
100%
|
|
100%
|
|
83%
|
|
100%
|
|
Operating
Days
|
|
583
|
|
552
|
|
637
|
|
31
|
|
92
|
|
91
|
|
552
|
|
460
|
|
546
|
|
Average
Dayrate
|
|
$ 291,498
|
|
$ 257,210
|
|
$ 283,221
|
|
$ 414,839
|
|
$ 354,596
|
|
$ 355,174
|
|
$ 284,571
|
|
$ 237,733
|
|
$ 271,229
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
77%
|
|
84%
|
|
76%
|
|
67%
|
|
60%
|
|
67%
|
|
77%
|
|
87%
|
|
77%
|
|
Marketed Utilization
(3)
|
|
82%
|
|
90%
|
|
82%
|
|
67%
|
|
60%
|
|
67%
|
|
83%
|
|
94%
|
|
83%
|
|
Operating
Days
|
|
3,030
|
|
3,648
|
|
3,129
|
|
62
|
|
276
|
|
182
|
|
2,968
|
|
3,372
|
|
2,947
|
|
Average
Dayrate
|
|
$ 150,548
|
|
$ 128,381
|
|
$ 147,752
|
|
$ 256,516
|
|
$ 182,605
|
|
$ 226,901
|
|
$ 148,334
|
|
$ 123,943
|
|
$ 142,865
|
|
|
(1)
|
We define average rig
utilization for a specific period as the total number of days our
rigs are operating under contract, divided by the product of the
total number of our rigs, including cold-stacked rigs, and the
number of calendar days in such period. Information reflects
our policy of reporting on the basis of the number of available
rigs in our fleet.
|
(2)
|
Excludes the Paragon
FPSO1.
|
(3)
|
Excludes the impact
of Paragon cold-stacked rigs.
|
PARAGON
OFFSHORE PLC
|
CALCULATION
OF BASIC AND DILUTED EARNINGS PER SHARE
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
The following
table sets forth the computation of basic and diluted net income
and earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Allocation
of net income
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
|
|
|
|
|
|
|
Net
income
|
|
$ (894,216)
|
|
$ 157,635
|
|
$ (674,605)
|
|
$ 322,750
|
Earnings
allocated to unvested share-based payment awards
|
|
35,181
|
|
(5,307)
|
|
24,004
|
|
(10,867)
|
Net income to
ordinary shareholders - basic and diluted
|
|
$ (859,035)
|
|
$ 152,328
|
|
$ (650,601)
|
|
$ 311,883
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares outstanding - basic and
diluted
|
|
84,753
|
|
84,753
|
|
84,753
|
|
84,753
|
|
|
|
|
|
|
|
|
|
Weighted
average unvested share-based payment awards
|
|
3,471
|
|
2,953
|
|
3,127
|
|
2,953
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
$ (10.14)
|
|
$ 1.80
|
|
$ (7.68)
|
|
$ 3.68
|
PARAGON OFFSHORE
PLC
|
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
|
|
(In thousands,
except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
The following
tables sets forth the reconciliation of adjusted net income
(non-GAAP) to net income:
|
|
|
|
|
|
|
|
|
Three
Months
|
|
|
|
Ended
|
|
|
|
September
30,
|
|
|
|
2014
|
|
|
|
|
|
Net income
(loss)
|
|
$
(894,216)
|
|
Less:
|
|
|
|
Gain on
repurchase of long-term debt
|
|
(6,931)
|
|
Add:
|
|
|
|
Loss on
impairment
|
|
928,947
|
|
Tax impact of
loss on impairment
|
|
24,079
|
|
Adjusted net
income
|
|
$
51,879
|
|
|
|
|
|
Allocation
of adjusted net income
|
|
|
|
Basic and
Diluted
|
|
|
|
Adjusted net
income
|
|
$
51,879
|
|
Earnings
allocated to unvested share-based payment awards
|
|
(2,041)
|
|
Adjusted net
income to ordinary shareholders - basic and diluted
|
|
$
49,838
|
|
|
|
|
|
Weighted
average number of shares outstanding - basic and
diluted
|
|
84,753
|
|
|
|
|
|
Weighted
average unvested share-based payment awards
|
|
3,471
|
|
|
|
|
|
Adjusted
earnings per share
|
|
|
|
Basic and
Diluted
|
|
$
0.59
|
|
PARAGON
OFFSHORE PLC
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES (cont'd)
|
(In thousands,
except operating statistics)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Rigs Retained or
Sold by Noble
|
|
As
Adjusted
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
June
30,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2014
|
|
2013
|
|
2014
|
|
2014
|
|
2013
|
|
2014
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling
services
|
|
$ 456,174
|
|
$ 468,348
|
|
$ 462,334
|
|
$ 15,904
|
|
$ 50,399
|
|
$ 41,296
|
|
$ 440,270
|
|
$ 417,949
|
|
$ 421,038
|
|
Labor contract
drilling services
|
|
8,562
|
|
8,466
|
|
8,146
|
|
-
|
|
-
|
|
-
|
|
8,562
|
|
8,466
|
|
8,146
|
|
Reimbursables and
other
|
|
40,486
|
|
12,868
|
|
8,477
|
|
327
|
|
917
|
|
1,078
|
|
40,159
|
|
11,951
|
|
7,399
|
|
|
|
505,222
|
|
489,682
|
|
478,957
|
|
16,231
|
|
51,316
|
|
42,374
|
|
488,991
|
|
438,366
|
|
436,583
|
Operating costs
and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling
services
|
|
217,378
|
|
219,022
|
|
222,317
|
|
5,701
|
|
18,813
|
|
16,972
|
|
211,677
|
|
200,209
|
|
205,345
|
|
Labor contract
drilling services
|
|
6,593
|
|
6,110
|
|
6,223
|
|
-
|
|
-
|
|
-
|
|
6,593
|
|
6,110
|
|
6,223
|
|
Reimbursables
|
|
35,592
|
|
9,588
|
|
5,224
|
|
158
|
|
729
|
|
497
|
|
35,434
|
|
8,859
|
|
4,727
|
|
Depreciation and
amortization
|
|
108,027
|
|
105,445
|
|
112,536
|
|
3,877
|
|
11,727
|
|
11,255
|
|
104,150
|
|
93,718
|
|
101,281
|
|
General and
administrative
|
|
12,037
|
|
16,911
|
|
12,683
|
|
536
|
|
1,781
|
|
901
|
|
11,501
|
|
15,130
|
|
11,782
|
|
Loss on
impairment
|
|
928,947
|
|
3,585
|
|
-
|
|
-
|
|
3,585
|
|
-
|
|
928,947
|
|
-
|
|
-
|
|
Gain on disposal of
assets, net
|
|
-
|
|
(35,646)
|
|
-
|
|
-
|
|
(35,646)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Gain on contract
settlements/extinguishments, net
|
|
-
|
|
(22,573)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(22,573)
|
|
-
|
|
Gain on repurchase of
long-term debt
|
|
(6,931)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(6,931)
|
|
-
|
|
-
|
|
|
|
1,301,643
|
|
302,442
|
|
358,983
|
|
10,272
|
|
989
|
|
29,625
|
|
1,291,371
|
|
301,453
|
|
329,358
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
(796,421)
|
|
187,240
|
|
119,974
|
|
5,959
|
|
50,327
|
|
12,749
|
|
(802,380)
|
|
136,913
|
|
107,225
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
of amount capitalized
|
|
(22,453)
|
|
(1,318)
|
|
(2,972)
|
|
n/a
|
|
n/a
|
|
n/a
|
|
(22,453)
|
|
(1,318)
|
|
(2,972)
|
|
Interest income and
other, net
|
|
340
|
|
1,237
|
|
338
|
|
n/a
|
|
n/a
|
|
n/a
|
|
340
|
|
1,237
|
|
338
|
Income (loss)
before income taxes
|
|
(818,534)
|
|
187,159
|
|
117,340
|
|
5,959
|
|
50,327
|
|
12,749
|
|
(824,493)
|
|
136,832
|
|
104,591
|
|
Income tax
provision
|
|
(75,682)
|
|
(29,524)
|
|
(22,292)
|
|
n/a
|
|
n/a
|
|
n/a
|
|
(75,682)
|
|
(29,524)
|
|
(22,292)
|
Net income
(loss)
|
|
$ (894,216)
|
|
$ 157,635
|
|
$ 95,048
|
|
$ 5,959
|
|
$ 50,327
|
|
$ 12,749
|
|
$ (900,175)
|
|
$ 107,308
|
|
$ 82,299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
provision
|
|
|
|
|
|
|
|
|
|
|
|
|
|
75,682
|
|
29,524
|
|
22,292
|
|
Interest expense, net
of amount capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22,453
|
|
1,318
|
|
2,972
|
|
Loss on
impairment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
928,947
|
|
-
|
|
-
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
104,150
|
|
93,718
|
|
101,281
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on repurchase of
long-term debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6,931)
|
|
-
|
|
-
|
|
Interest income and
other, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(340)
|
|
(1,237)
|
|
(338)
|
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 223,786
|
|
$ 230,631
|
|
$ 208,506
|
SOURCE Paragon Offshore plc