HOUSTON, Nov. 9, 2015 /PRNewswire/ -- Paragon Offshore plc
("Paragon") (NYSE: PGN) today reported a third quarter 2015 net
loss of $1.08 billion, or a loss
of $12.46 per diluted share as
compared to a third quarter 2014 net loss of $869.2 million, or a loss of $10.26 per diluted share. Results for the
current quarter included:
- a $1.15 billion, or $13.22 per share, non-cash asset impairment
charge comprising:
- $781.2 million related to five
rigs of Paragon's floating fleet including the Paragon MSS2,
Paragon MDS1, Paragon DPDS1, Paragon DPDS2, and Paragon
DPDS3;
- $289.3 million related to 16 rigs
of Paragon's jackup fleet including rigs currently
cold-stacked;
- $43.0 million related to deposits
previously made by subsidiaries of Prospector Offshore Drilling
S.A. to the shipyard for the construction of Prospector 6,
Prospector 7, and Prospector 8; and
- $37.4 million of goodwill related
to the company's previous acquisitions
- a $66.3 million, or $0.76 per share, tax benefit as a result of the
impairment
Excluding the above charge and tax benefit, Paragon's adjusted
net loss for the quarter (see Reconciliation of GAAP to Non-GAAP
Financial Measures Table for a reconciliation to net income) was
$0.3 million, or $0.00 per diluted share. Results for
the third quarter 2014 included a $928.0
million, or $10.95 per diluted
share, non-cash impairment charge net of tax benefits 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.
"Conditions in the contract drilling industry continued to
worsen during the third quarter as customers continued to curtail
capital spending in light of low commodity prices," said
Randall D. Stilley, President and
Chief Executive Officer. "Dayrates and utilization deteriorated for
all rig classes in all markets and as a result, our annual
assessment of asset values resulted in a required impairment of
various rig values. Despite these conditions, Paragon
delivered operational performance ahead of expectations for the
quarter."
Stilley continued, "Consistent with our strategy as the
high-quality, low-cost drilling contractor, we have taken steps to
lower costs as we aggressively market our available units. We
have quickly stacked idle rigs, reduced shorebased support costs,
and lowered our corporate operations support costs. As a
result, we expect our 2015 full-year contract drilling services
costs will be approximately 13% lower and our G&A costs to be
approximately 14% lower than 2014 totals, excluding certain costs
related to our ongoing review of strategic alternatives related to
our capital structure. We also expect our capital
spending for the year will be close to $60
million below 2014 levels. Finally, Paragon has a
significant available cash balance of $733
million, providing liquidity and flexibility in this
difficult market."
Total revenues for the third quarter of 2015 were $369.0 million compared to $393.2 million in the second quarter of 2015.
Paragon reported utilization for its marketed rig fleet, which
excludes available days related to rigs that were stacked and not
marketed during the quarter, as 69 percent for the second and third
quarters of 2015. Average daily revenues decreased three percent in
the third quarter of 2015 to $144,000
per rig compared to the previous quarter average of $149,000 per rig. Contract drilling services
costs declined in the third quarter to $190.5 million compared to $197.0 million in the second quarter of 2015.
Net cash from operating activities was $79.7 million in the third quarter of 2015 as
compared to $96.6 million for the
second quarter of 2015. Capital expenditures in the third
quarter totaled $43.7 million. At
September 30, 2015, liquidity, defined as cash and cash
equivalents plus availability under the company's revolving credit
facility, totaled $735.7 million
while the company's leverage ratio, the ratio of the company's net
debt to trailing twelve months EBITDA as defined in the company's
revolving credit facility, was 3.07 at September 30, 2015.
On July 24, 2015 the company
closed a sale-leaseback transaction in connection with
Prospector 1 and Prospector 5. Net of fees and
expenses, the company received proceeds of approximately
$291.6 million.
Operating Highlights
Paragon's total contract backlog at September 30, 2015 was
an estimated $1.29 billion compared
to $1.59 billion at June 30, 2015, including approximately
$142.1 million of backlog for the
Paragon DPDS3 which Paragon's customer Petrobras has
indicated it may contest in connection with the length of prior
shipyard projects relating to the rig.
Utilization of Paragon's marketed floating rig fleet was 100
percent in both the third quarter and the second quarter of 2015.
Average daily revenues for Paragon's floating rig fleet increased
one percent to $260,000 per rig in
the third quarter of 2015 from $258,000 per rig in the second quarter of
2015.
Utilization of Paragon's marketed jackup rig fleet was 64
percent in the third quarter and in the second quarter of
2015. Average daily revenues for Paragon's jackup fleet
during the third quarter declined by six percent to $116,000 per rig from $124,000 per rig during the second quarter of
2015.
At the end of the third quarter of 2015, an estimated 55 percent
of the marketed rig operating days were committed for 2015,
including 56 percent and 54 percent of the floating and jackup rig
days, respectively. The calculations for committed operating days
exclude available days related to rigs that were stacked and not
marketed during the quarter.
During the quarter, Paragon added approximately $39.3 million in net backlog related primarily to
$209.8 million of previously
disclosed new contracts and extensions in the Middle East and North Sea, offset by
$170.5 million in backlog reductions
primarily related to the early release by Petrobras of the
Paragon DPDS2 in Brazil. In
the Middle East, the Paragon
B152 received a contract extension from late November 2015 to late November 2017 at a rate of $81,000 while the Dhabi II received a
contract extension from mid-July 2015
to mid-July 2017 at a dayrate of
$76,000. In the North Sea, the
Paragon C461 received a contract extension from mid-November 2015 to mid-November 2017 at a dayrate of $113,000. The Paragon C20051 received a
contract extension from early December
2015 to late May 2016 at
dayrates between $125,000 and
$135,000. The company agreed to a backlog swap between the
Paragon C462 and Paragon C463 and received a contract
extension from late December 2015 to
early March 2016 on the Paragon
C463 at a dayrate of $130,000. In
addition, the Paragon C462 received an accommodation
contract from early September 2015 to
late October 2015.
Paragon Extends Delivery of High Specification Jackup
Prospector 7
Paragon also reported that a wholly-owned subsidiary has signed
an agreement with Shanghai Waigaoqiao Shipbuilding Co., LTD., to
extend the delivery date of the high specification Friede and
Goldman JU-2000E jackup Prospector 7 to a date 12 months
after the subsidiary has technically accepted the unit from the
shipyard. The company anticipates that technical acceptance
of the unit will occur on or before December
31, 2015. Under the terms of the agreement, no
payments are due to the shipyard until the delivery date and upon
completion of the delivery protocol.
Paragon Comments on Advisory Process and Outlook
In September 2015, Paragon
announced the engagement of Lazard and Weil, Gotshal & Manges
LLP to advise the company on strategic alternatives related to its
capital structure. The company also drew down
substantially all of the remaining available capacity of its
Revolving Credit Facility in the amount of approximately
$332.0 million.
Mr. Stilley commented, "In light of current market conditions,
we do not expect the company to remain in compliance with our
Revolving Credit Facility leverage ratio covenant at some point
during the next twelve months. Accordingly, under the
direction of an independent committee of the board of directors,
the company has been proactively exploring long-term solutions to
improve Paragon's overall balance sheet strength and position the
company for long-term success. The board has approved
engagement with the company's lenders and noteholders with the
intent of maximizing value for the company's shareholders and other
stakeholders. We believe that significant value can be
unlocked through this process and we intend to work constructively
with all involved parties to move forward as quickly as possible
and reach our desired outcome. In the meantime, we continue
to operate normally and fulfill our commitments to our customers,
suppliers, and employees."
Turning to the market outlook, Mr. Stilley concluded, "There is
no indication that conditions in offshore drilling markets will
improve in the near future. Current oil prices suggest that
our customers' 2016 capital budgets may be at or below 2015 levels,
placing additional pressure on utilization and dayrates in our
industry. We expect oil markets to begin a recovery late in
2016, with drilling activity, particularly in shallow waters, to
follow. In the meantime, Paragon remains committed to its
strategy of supplying safe, reliable, and efficient operations to
our customers. We will focus on our core areas of operation
and continue to optimize our cost structure for this environment in
order to best position ourselves for the recovery."
Paragon Provides Fleet Status Report; Provides Additional
Information; Going Concern Risk
Paragon also announced today that it issued a report on drilling
rig status and contract information as of November 9, 2015. The report, titled "Fleet
Status Report," can be accessed on the Company's website at
www.paragonoffshore.com under the "Our Fleet" or "Investor
Relations-Fleet Status Reports" sections of the website.
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 (our "Predecessor") 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.
Paragon's quarterly report on Form 10-Q for the third quarter
2015 will contain explanatory paragraphs regarding a potential
breach of financial covenants and adverse market conditions as they
relate to the the company's ability to continue as a going
concern. Investors are urged to review the contents of the
company's Form 10-Q including the discussions under "Risk
Factors" when the document is filed later today.
About Paragon Offshore
Paragon is a global provider of offshore drilling rigs.
Paragon's operated fleet includes 34 jackups, including two high
specification heavy duty/harsh environment jackups, and six
floaters (four drillships and two 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, cost reductions,
revenue, rig demand, fleet condition or performance, shareholder
value, contract commitments, dayrates, contract commencements,
contract extensions or renewals, contract disputes, industry
fundamentals, customer relationships and requirements, strategic
initiatives, future performance, growth opportunities, market
outlook, compliance with financial covenants, ability to achieve
value through lender and/or bondholder discussions, 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 annual report
on Form 10-K for the fiscal year ended December 31, 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 2015 results on Monday,
November 9, 2015, at 11:00
a.m. U.S. Central Time. The teleconference can be accessed
from the U.S. and Canada by
dialing 1-888-771-4371, or internationally by dialing
1-847-585-4405, and using access code: 40850324. 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
Monday, November 9, 2015, beginning
at approximately 2:00 p.m. U.S.
Central Time, through Monday, November 23,
2015, ending at approximately 11:00
p.m. U.S. Central Time. The phone number for the conference
call replay is 1-888-843-7419 or, for calls from outside of the
U.S., 1-630-652-3042, using access code: 40850324. 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
|
PARAGON OFFSHORE
plc
CONSOLIDATED AND
COMBINED STATEMENTS OF OPERATIONS
(In thousands,
except per share amounts)
(Unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Operating
revenues
|
|
|
|
|
|
|
|
|
Contract drilling
services
|
|
$
|
338,710
|
|
|
$
|
456,174
|
|
|
$
|
1,101,618
|
|
|
$
|
1,410,471
|
|
Labor contract
drilling services
|
|
6,853
|
|
|
8,562
|
|
|
21,224
|
|
|
24,919
|
|
Reimbursables and
other
|
|
23,410
|
|
|
40,486
|
|
|
70,023
|
|
|
63,379
|
|
|
|
368,973
|
|
|
505,222
|
|
|
1,192,865
|
|
|
1,498,769
|
|
Operating costs
and expenses
|
|
|
|
|
|
|
|
|
Contract
drilling services
|
|
190,536
|
|
|
217,378
|
|
|
612,610
|
|
|
666,158
|
|
Labor contract
drilling services
|
|
4,792
|
|
|
6,593
|
|
|
16,086
|
|
|
19,029
|
|
Reimbursables
|
|
19,517
|
|
|
35,592
|
|
|
58,173
|
|
|
51,442
|
|
Depreciation
and amortization
|
|
95,826
|
|
|
108,027
|
|
|
280,574
|
|
|
331,147
|
|
General and
administrative
|
|
12,800
|
|
|
12,037
|
|
|
41,901
|
|
|
37,965
|
|
Loss on
impairments
|
|
1,150,846
|
|
|
928,947
|
|
|
1,152,547
|
|
|
928,947
|
|
Gain on
disposal of assets, net
|
|
—
|
|
|
—
|
|
|
(12,717)
|
|
|
—
|
|
Gain on
repurchase of long-term debt
|
|
—
|
|
|
(6,931)
|
|
|
(4,345)
|
|
|
(6,931)
|
|
|
|
1,474,317
|
|
|
1,301,643
|
|
|
2,144,829
|
|
|
2,027,757
|
|
Operating
loss
|
|
(1,105,344)
|
|
|
(796,421)
|
|
|
(951,964)
|
|
|
(528,988)
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
Interest expense, net
of amount capitalized
|
|
(33,900)
|
|
|
(22,453)
|
|
|
(93,107)
|
|
|
(28,690)
|
|
Other, net
|
|
(983)
|
|
|
340
|
|
|
1,421
|
|
|
830
|
|
Loss before income
taxes
|
|
(1,140,227)
|
|
|
(818,534)
|
|
|
(1,043,650)
|
|
|
(556,848)
|
|
Income tax benefit
(provision)
|
|
55,389
|
|
|
(50,626)
|
|
|
67,301
|
|
|
(92,701)
|
|
Net
loss
|
|
$
|
(1,084,838)
|
|
|
$
|
(869,160)
|
|
|
$
|
(976,349)
|
|
|
$
|
(649,549)
|
|
Net income
attributable to non-controlling interest
|
|
—
|
|
|
—
|
|
|
(31)
|
|
|
—
|
|
Net loss
attributable to Paragon
|
|
$
|
(1,084,838)
|
|
|
$
|
(869,160)
|
|
|
$
|
(976,380)
|
|
|
$
|
(649,549)
|
|
|
|
|
|
|
|
|
|
|
Loss per
share
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
(12.46)
|
|
|
$
|
(10.26)
|
|
|
$
|
(11.39)
|
|
|
$
|
(7.66)
|
|
PARAGON OFFSHORE
plc
CONSOLIDATED
BALANCE SHEETS
(In
thousands)
(Unaudited)
|
|
|
|
September
30,
|
|
December
31,
|
|
|
2015
|
|
2014
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
732,960
|
|
|
$
|
56,772
|
|
Restricted
cash
|
|
3,000
|
|
|
12,502
|
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
335,132
|
|
|
539,376
|
|
Prepaid and other
current assets
|
|
106,355
|
|
|
104,644
|
|
Total current
assets
|
|
1,177,447
|
|
|
713,294
|
|
|
|
|
|
|
Property and
equipment, net
|
|
1,152,066
|
|
|
2,410,360
|
|
Other
assets
|
|
145,114
|
|
|
129,735
|
|
Total
assets
|
|
$
|
2,474,627
|
|
|
$
|
3,253,389
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Current maturities of
long-term debt
|
|
$
|
40,990
|
|
|
$
|
272,166
|
|
Accounts
payable
|
|
122,269
|
|
|
160,874
|
|
Accrued payroll and
related costs
|
|
51,438
|
|
|
81,416
|
|
Other current
liabilities
|
|
133,932
|
|
|
207,838
|
|
Total current
liabilities
|
|
348,629
|
|
|
722,294
|
|
|
|
|
|
|
Long-term
debt
|
|
2,569,435
|
|
|
1,888,439
|
|
Deferred income
taxes
|
|
9,585
|
|
|
58,497
|
|
Other
liabilities
|
|
34,981
|
|
|
89,910
|
|
Total
liabilities
|
|
2,962,630
|
|
|
2,759,140
|
|
|
|
|
|
|
Total shareholders'
equity (deficit)
|
|
(488,003)
|
|
|
491,608
|
|
Non-controlling
interest
|
|
—
|
|
|
2,641
|
|
Total equity
(deficit)
|
|
(488,003)
|
|
|
494,249
|
|
Total liabilities
and equity
|
|
$
|
2,474,627
|
|
|
$
|
3,253,389
|
|
PARAGON OFFSHORE
plc
CONSOLIDATED AND
COMBINED STATEMENTS OF CASH FLOWS
(In
thousands)
(Unaudited)
|
|
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
|
2015
|
|
2014
|
Cash flows from
operating activities
|
|
|
|
|
Net loss
|
|
$
|
(976,349)
|
|
|
$
|
(649,549)
|
|
Adjustments to
reconcile net loss to net cash from operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
280,574
|
|
|
331,147
|
|
Loss on
impairments
|
|
1,152,547
|
|
|
928,947
|
|
Gain on disposal of
assets, net
|
|
(12,717)
|
|
|
—
|
|
Gain on repurchase of
long-term debt
|
|
(4,345)
|
|
|
(6,931)
|
|
Other changes in
operating activities
|
|
(52,959)
|
|
|
(37,512)
|
|
Net cash provided by
operating activities
|
|
386,751
|
|
|
566,102
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
Capital
expenditures
|
|
(156,753)
|
|
|
(182,351)
|
|
Proceeds from sale of
assets
|
|
29,316
|
|
|
6,570
|
|
Acquisition of
Prospector Offshore Drilling S.A. non-controlling
interest
|
|
(2,185)
|
|
|
—
|
|
Change in restricted
cash
|
|
(17,297)
|
|
|
—
|
|
Change in accrued
capital expenditures
|
|
(11,768)
|
|
|
(3,000)
|
|
Net cash used in
investing activities
|
|
(158,687)
|
|
|
(178,781)
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
Net change in
borrowings on Predecessor bank credit facilities
|
|
—
|
|
|
707,472
|
|
Proceeds from
issuance of Senior Notes and Term Loan Facility
|
|
—
|
|
|
1,710,550
|
|
Borrowings under
Revolving Credit Facility
|
|
697,000
|
|
|
—
|
|
Net proceeds from
Sale-Leaseback
|
|
291,576
|
|
|
—
|
|
Repayment of
Revolving Credit Facility
|
|
(154,000)
|
|
|
—
|
|
Repayment of
Sale-Leaseback
|
|
(8,365)
|
|
|
—
|
|
Repayment of Term
Loan Facility
|
|
(4,875)
|
|
|
—
|
|
Repayment of
Prospector Senior Credit Facility
|
|
(265,666)
|
|
|
—
|
|
Repayment of
Prospector Bonds
|
|
(101,000)
|
|
|
—
|
|
Purchase of Senior
Notes
|
|
(6,546)
|
|
|
(42,468)
|
|
Debt issuance
costs
|
|
—
|
|
|
(19,253)
|
|
Net transfers to
parent
|
|
—
|
|
|
(2,698,295)
|
|
Net cash provided by
(used in) financing activities
|
|
448,124
|
|
|
(341,994)
|
|
Net change in cash
and cash equivalents
|
|
676,188
|
|
|
45,327
|
|
Cash and cash
equivalents, beginning of period
|
|
56,772
|
|
|
36,581
|
|
Cash and cash
equivalents, end of period
|
|
$
|
732,960
|
|
|
$
|
81,908
|
|
PARAGON OFFSHORE
plc
OPERATIONAL
INFORMATION
(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,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2015
|
|
2014
|
|
2015
|
|
2015
|
|
2014
|
|
2015
|
Rig fleet
operating statistics (1)(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jackups:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
60
|
%
|
|
77
|
%
|
|
64
|
%
|
|
n/a
|
|
50
|
%
|
|
n/a
|
|
60
|
%
|
|
77
|
%
|
|
64
|
%
|
Marketed Utilization
(3)
|
|
64
|
%
|
|
79
|
%
|
|
64
|
%
|
|
n/a
|
|
50
|
%
|
|
n/a
|
|
64
|
%
|
|
80
|
%
|
|
64
|
%
|
Operating
Days
|
|
1,891
|
|
|
2,447
|
|
|
1,989
|
|
|
n/a
|
|
31
|
|
|
n/a
|
|
1,891
|
|
|
2,416
|
|
|
1,989
|
|
Average
Dayrate
|
|
$
|
116,071
|
|
|
$
|
116,967
|
|
|
$
|
123,556
|
|
|
n/a
|
|
$
|
98,194
|
|
|
n/a
|
|
$
|
116,071
|
|
|
$
|
117,208
|
|
|
$
|
123,556
|
|
Floaters:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
83
|
%
|
|
76
|
%
|
|
83
|
%
|
|
n/a
|
|
100
|
%
|
|
n/a
|
|
83
|
%
|
|
75
|
%
|
|
83
|
%
|
Marketed Utilization
(3)
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
n/a
|
|
100
|
%
|
|
n/a
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
Operating
Days
|
|
459
|
|
|
583
|
|
|
455
|
|
|
n/a
|
|
31
|
|
|
n/a
|
|
459
|
|
|
552
|
|
|
455
|
|
Average
Dayrate
|
|
$
|
259,844
|
|
|
$
|
291,498
|
|
|
$
|
257,764
|
|
|
n/a
|
|
$
|
414,839
|
|
|
n/a
|
|
$
|
259,844
|
|
|
$
|
284,571
|
|
|
$
|
257,764
|
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
64
|
%
|
|
77
|
%
|
|
67
|
%
|
|
n/a
|
|
67
|
%
|
|
n/a
|
|
64
|
%
|
|
77
|
%
|
|
67
|
%
|
Marketed Utilization
(3)
|
|
69
|
%
|
|
82
|
%
|
|
69
|
%
|
|
n/a
|
|
67
|
%
|
|
n/a
|
|
69
|
%
|
|
83
|
%
|
|
69
|
%
|
Operating
Days
|
|
2,350
|
|
|
3,030
|
|
|
2,444
|
|
|
n/a
|
|
62
|
|
|
n/a
|
|
2,350
|
|
|
2,968
|
|
|
2,444
|
|
Average
Dayrate
|
|
$
|
144,158
|
|
|
$
|
150,548
|
|
|
$
|
148,537
|
|
|
n/a
|
|
$
|
256,516
|
|
|
n/a
|
|
$
|
144,158
|
|
|
$
|
148,334
|
|
|
$
|
148,537
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
Amounts exclude the Paragon
FPSO1.
|
(3)
Marketed utilization excludes the impact
of Paragon cold-stacked rigs for the current quarter.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PARAGON OFFSHORE
plc
CALCULATION OF
BASIC AND DILUTED LOSS PER SHARE
(In thousands,
except per share amounts)
(Unaudited)
|
The following table
sets forth the computation of basic and diluted loss per
share:
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Allocation of
loss:
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
|
|
|
|
|
|
Net loss attributable
to Paragon
|
|
$
|
(1,084,838)
|
|
|
$
|
(869,160)
|
|
|
$
|
(976,380)
|
|
|
$
|
(649,549)
|
|
Earnings allocated to
unvested share-based payment awards (1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net loss to
ordinary shareholders - basic and diluted
|
|
$
|
(1,084,838)
|
|
|
$
|
(869,160)
|
|
|
$
|
(976,380)
|
|
|
$
|
(649,549)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - basic and diluted
|
|
87,077
|
|
|
84,753
|
|
|
85,703
|
|
|
84,753
|
|
|
|
|
|
|
|
|
|
|
Weighted average
unvested share-based payment awards (1)
|
|
6,947
|
|
|
2,973
|
|
|
6,023
|
|
|
1,002
|
|
|
|
|
|
|
|
|
|
|
Loss per
share
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
(12.46)
|
|
|
$
|
(10.26)
|
|
|
$
|
(11.39)
|
|
|
$
|
(7.66)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) No earnings
were allocated to unvested share-based payment awards in our
earnings per share calculation for the three and nine months ended
September 30, 2015 and 2014 due to net losses in the current and
comparable periods.
|
|
|
PARAGON OFFSHORE
plc
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands,
except per share amounts)
(Unaudited)
|
The following table
sets forth the reconciliation of net loss to adjusted net income
(loss) (non-GAAP):
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Net
loss attributable to Paragon
|
|
$
|
(1,084,838)
|
|
|
$
|
(869,160)
|
|
|
$
|
(976,380)
|
|
|
$
|
(649,549)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Gain on repurchase of
long-term debt
|
|
—
|
|
|
(6,931)
|
|
|
(4,345)
|
|
|
(6,931)
|
|
Gain loss on disposal
of assets, net
|
|
—
|
|
|
—
|
|
|
(12,717)
|
|
|
—
|
|
Loss on
impairments
|
|
1,150,846
|
|
|
928,947
|
|
|
1,152,547
|
|
|
928,947
|
|
Tax impact of loss on
impairments
|
|
(66,341)
|
|
|
(977)
|
|
|
(66,341)
|
|
|
(977)
|
|
Adjusted net
income (loss)
|
|
$
|
(333)
|
|
|
$
|
51,879
|
|
|
$
|
92,764
|
|
|
$
|
271,490
|
|
|
|
|
|
|
|
|
|
|
Allocation of
adjusted net income (loss):
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
|
|
|
|
|
|
Adjusted net income
(loss)
|
|
$
|
(333)
|
|
|
$
|
51,879
|
|
|
$
|
92,764
|
|
|
$
|
271,490
|
|
Earnings
allocated to unvested share-based payment awards (1)
|
|
—
|
|
|
(1,758)
|
|
|
(6,091)
|
|
|
(3,172)
|
|
Adjusted net
income (loss) to ordinary shareholders - basic and
diluted
|
|
$
|
(333)
|
|
|
$
|
50,121
|
|
|
$
|
86,673
|
|
|
$
|
268,318
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding - basic and diluted
|
|
87,077
|
|
|
84,753
|
|
|
85,703
|
|
|
84,753
|
|
|
|
|
|
|
|
|
|
|
Weighted average
unvested share-based payment awards (1)
|
|
6,947
|
|
|
2,973
|
|
|
6,023
|
|
|
1,002
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
per share
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
—
|
|
|
$
|
0.59
|
|
|
$
|
1.01
|
|
|
$
|
3.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) No earnings
were allocated to unvested share-based payment awards in our
adjusted earnings per share calculation for the three months
ended September 30, 2015 due to our adjusted net loss in the
current quarter.
|
PARAGON OFFSHORE
plc
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES (Cont'd)
(In
thousands)
(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,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2015
|
|
2014
|
|
2015
|
|
2015
|
|
2014
|
|
2015
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling
services
|
|
$
|
338,710
|
|
|
$
|
456,174
|
|
|
$
|
363,089
|
|
|
n/a
|
|
$
|
15,904
|
|
|
n/a
|
|
$
|
338,710
|
|
|
$
|
440,270
|
|
|
$
|
363,089
|
|
Labor contract
drilling services
|
|
6,853
|
|
|
8,562
|
|
|
7,206
|
|
|
n/a
|
|
—
|
|
|
n/a
|
|
6,853
|
|
|
8,562
|
|
|
7,206
|
|
Reimbursables and
other
|
|
23,410
|
|
|
40,486
|
|
|
22,949
|
|
|
n/a
|
|
327
|
|
|
n/a
|
|
23,410
|
|
|
40,159
|
|
|
22,949
|
|
|
|
368,973
|
|
|
505,222
|
|
|
393,244
|
|
|
|
|
16,231
|
|
|
|
|
368,973
|
|
|
488,991
|
|
|
393,244
|
|
Operating costs
and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling
services
|
|
190,536
|
|
|
217,378
|
|
|
196,969
|
|
|
n/a
|
|
5,701
|
|
|
n/a
|
|
190,536
|
|
|
211,677
|
|
|
196,969
|
|
Labor contract
drilling services
|
|
4,792
|
|
|
6,593
|
|
|
5,681
|
|
|
n/a
|
|
—
|
|
|
n/a
|
|
4,792
|
|
|
6,593
|
|
|
5,681
|
|
Reimbursables
|
|
19,517
|
|
|
35,592
|
|
|
18,678
|
|
|
n/a
|
|
158
|
|
|
n/a
|
|
19,517
|
|
|
35,434
|
|
|
18,678
|
|
Depreciation and
amortization
|
|
95,826
|
|
|
108,027
|
|
|
94,673
|
|
|
n/a
|
|
3,877
|
|
|
n/a
|
|
95,826
|
|
|
104,150
|
|
|
94,673
|
|
General and
administrative
|
|
12,800
|
|
|
12,037
|
|
|
13,737
|
|
|
n/a
|
|
536
|
|
|
n/a
|
|
12,800
|
|
|
11,501
|
|
|
13,737
|
|
Loss on
impairments
|
|
1,150,846
|
|
|
928,947
|
|
|
1,701
|
|
|
n/a
|
|
—
|
|
|
n/a
|
|
1,150,846
|
|
|
928,947
|
|
|
1,701
|
|
Loss on disposal of
assets, net
|
|
—
|
|
|
—
|
|
|
4,078
|
|
|
n/a
|
|
—
|
|
|
n/a
|
|
—
|
|
|
—
|
|
|
4,078
|
|
Gain on repurchase of
long-term debt
|
|
—
|
|
|
(6,931)
|
|
|
—
|
|
|
n/a
|
|
—
|
|
|
n/a
|
|
—
|
|
|
(6,931)
|
|
|
—
|
|
|
|
1,474,317
|
|
|
1,301,643
|
|
|
335,517
|
|
|
|
|
10,272
|
|
|
|
|
1,474,317
|
|
|
1,291,371
|
|
|
335,517
|
|
Operating income
(loss)
|
|
(1,105,344)
|
|
|
(796,421)
|
|
|
57,727
|
|
|
|
|
5,959
|
|
|
|
|
(1,105,344)
|
|
|
(802,380)
|
|
|
57,727
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
of amount capitalized
|
|
(33,900)
|
|
|
(22,453)
|
|
|
(29,029)
|
|
|
n/a
|
|
n/a
|
|
n/a
|
|
(33,900)
|
|
|
(22,453)
|
|
|
(29,029)
|
|
Other, net
|
|
(983)
|
|
|
340
|
|
|
156
|
|
|
n/a
|
|
n/a
|
|
n/a
|
|
(983)
|
|
|
340
|
|
|
156
|
|
Income (loss)
before income taxes
|
|
(1,140,227)
|
|
|
(818,534)
|
|
|
28,854
|
|
|
n/a
|
|
5,959
|
|
|
n/a
|
|
(1,140,227)
|
|
|
(824,493)
|
|
|
28,854
|
|
Income tax benefit
(provision)
|
|
55,389
|
|
|
(50,626)
|
|
|
18,477
|
|
|
n/a
|
|
n/a
|
|
n/a
|
|
55,389
|
|
|
(50,626)
|
|
|
18,477
|
|
Net income
(loss)
|
|
$
|
(1,084,838)
|
|
|
$
|
(869,160)
|
|
|
$
|
47,331
|
|
|
n/a
|
|
$
|
5,959
|
|
|
n/a
|
|
$
|
(1,084,838)
|
|
|
$
|
(875,119)
|
|
|
$
|
47,331
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
and amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
95,826
|
|
|
104,150
|
|
|
94,673
|
|
Loss on
impairments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,150,846
|
|
|
928,947
|
|
|
1,701
|
|
Loss on disposal of
assets, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
4,078
|
|
Gain on repurchase of
long-term debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
(6,931)
|
|
|
—
|
|
Interest expense, net
of amount capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33,900
|
|
|
22,453
|
|
|
29,029
|
|
Income tax (benefit)
provision
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(55,389)
|
|
|
50,626
|
|
|
(18,477)
|
|
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
140,345
|
|
|
$
|
224,126
|
|
|
$
|
158,335
|
|
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SOURCE Paragon Offshore plc