Financial highlights
Fourth quarter 2016 results
Revenues for the fourth quarter
2016 were $81.8 million compared to $136.7 million for the third
quarter of 2016. The primary reason for the decrease is due to the
West Epsilon coming to an end of its contract
in October 2016, and a full quarter of the West
Alpha and West Phoenix, which came off
contract in August 2016. In addition the demobilization revenue for
the West Alpha was received in the third
quarter of 2016, not repeated in the fourth quarter. The fall is
partly offset by the contract termination fee received for the
West Epsilon, which is recorded within "other
revenues".
Operating loss for the fourth
quarter was $24.9 million, a decrease of $53.6 million compared to
the third quarter of 2016 operating income of $28.7 million. This
decrease is primarily due to the West Phoenix,
West Alpha and West Epsilon concluding
contracts.
Net financial items for the fourth
quarter of 2016 amounted to a charge of $31.0 million. The charge
included $26.6 million in interest expenses and a loss on financial
derivatives of $17.6 million, partly offset by a foreign exchange
gain of $14.9 million related to the NOK1,500 million bond.
Net loss for the fourth quarter
was $53.4 million and net loss attributable to shareholders was
$56.9 million, resulting in a basic loss per share of $2.36.
Results for the year ended
December 31, 2016
The Company reports operating
revenues of $534.7 million, operating income of $90.8 million and a
net loss of $52.4 million for the twelve months ended
December 31, 2016. This compares to operating revenues of
$747.7 million, operating income of $97.5 million and a net loss of
$56.8 million for the restated twelve months ended
December 31, 2015.
Balance sheet as at December 31, 2016
As at December 31, 2016,
total assets decreased to $2,918.4 million from $3,038.3 million
compared to the previous quarter.
Total current assets decreased to
$176.2 million from $230.4 million compared to the previous
quarter. The decrease was mainly due to a decrease in accounts
receivables on the completion of the West
Alpha and West Epsilon drilling
contracts.
Total non-current assets decreased
to $2,742.2 million from $2,807.9 million compared to the previous
quarter. The decrease was mainly due to depreciation on drilling
units.
Total current liabilities
decreased to $1,260.9 million from $1,291.0 million compared to the
previous quarter. The decrease is primarily due to repayments of
debt of $41.7 million on the $2 billion credit facility.
Total interest bearing debt,
including related party debt and the current portion, decreased to
$2,280.2 million from $2,343.0 million during the quarter.
During the fourth quarter the Company repaid $11.9 million on the
SFL Linus $475 million credit facility. In addition the net
pensions liability decreased by $14.8 million due to actuarial
gains driven by a rising discount rate and foreign exchange and
settlement of leavers from the schemes.
Total equity decreased to $386.0
million from $433.0 million compared to the previous quarter. The
decrease is primarily due to the net loss for the quarter of $53.4
million, partly offset by the actuarial gains on the net pension
liability of $10.0m.
Cash flow
As at December 31, 2016, cash
and cash equivalents decreased to $68.7 million from $86.1 million
compared to the previous quarter.
For the year ending
December 31, 2016, net cash provided by operating activities
was $128.7 million, net cash provided by investing activities
amounted to $1.3 million, and net cash used in financing activities
was $218.2 million. For the year ending December 31, 2015, net
cash provided by operating activities was $339.9 million, net cash
used in investing activities amounted to $39.0 million, and net
cash used in financing activities was $264.1 million. The fall in
net cash from operating activities compared to the prior year is
due to the fall in operating income and the increase in outflows of
working capital balances.
This information is subject
to the disclosure requirements pursuant to section 5-12 of the
Norwegian Securities Trading Act.