Financial highlights
First quarter 2017 results
Revenues for the first quarter
2017 were $72.6 million compared to $81.8 million for the fourth
quarter of 2016. The primary reason for the decrease is due to the
West Epsilon concluding its contract in the
fourth quarter and remaining idle. The fall is partly offset by the
West Phoenix commencing operations in February
2017.
Operating loss for the first
quarter was $24.5 million, compared to the fourth quarter of 2016
operating loss of $24.9 million. The impact on the total operating
income of the West Phoenix starting operations
is offset by the impact of the West Epsilon
concluding its contract in the fourth quarter as noted above.
Net financial items for the first
quarter of 2017 amounted to a charge of $28.5 million. The charge
included $26.4 million in interest expenses and a gain on financial
derivatives of $3.4 million, partly offset by a foreign exchange
loss of $0.7 million related to the NOK1,500 million bond. The
fourth quarter of 2016 incurred a net financial charge of $31.0
million, including interest expenses of $26.6 million, and a loss
on derivatives of $17.6 million, partly offset by a foreign
exchange loss of $14.9 million related to the NOK1,500 million
bond.
Net loss for the first quarter was
$52.9 million and net loss attributable to shareholders was $56.4
million, resulting in a basic loss per share of $2.34. This
is compared to net loss of $53.4 million and a net loss
attributable to shareholders of $56.9 million for the fourth
quarter of 2016.
Balance sheet as at March 31, 2017
As at March 31, 2017, total
assets decreased to $2,795.5 million from $2,918.4 million compared
to the previous quarter.
Total current assets decreased to
$108.4 million from $176.2 million compared to the previous
quarter. The decrease was mainly due to the fall in cash balances
following repayments of long term debt, as noted below. Accounts
receivables also decreased following the collection of receivables
as contracts concluded and other settlements were made.
Total non-current assets decreased
to $2,687.1 million from $2,742.2 million compared to the previous
quarter. The decrease was mainly due to depreciation on drilling
units.
Total current liabilities
decreased to $1,211.9 million from $1,260.9 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, as well as
a fall in the mark-to-market liability on our interest rate and
cross currency swaps.
Total interest bearing debt,
including related party debt and the current portion, decreased to
$2,229.9 million from $2,280.2 million during the quarter.
During the first quarter the Company repaid $11.9 million on the
SFL Linus $475 million credit facility. During the quarter, $21
million of the revolving credit facility with Seadrill was utilized
and then fully repaid, and no balance was outstanding at March 31,
2017.
Total equity decreased to $329.0
million from $386.0 million compared to the previous quarter. The
decrease is primarily due to the net loss for the quarter of $52.9
million.
Cash flow
As at March 31, 2017, cash
and cash equivalents decreased to $42.9 million from $68.7 million
compared to the fourth quarter of 2016.
For the three-month period ending
March 31, 2017, net cash provided by operating activities was
$25.8 million, net cash provided by investing activities amounted
to $2.3 million, and net cash used in financing activities was
$53.5 million. For the three-month period ending March 31,
2016, net cash used in operating activities was $15.0 million, net
cash provided by investing activities amounted to $2.3 million, and
net cash used in financing activities was $53.5 million. The
increase in net cash from operating activities compared to the
prior year is due to the increase in working capital inflows,
partly offset by lower operating income.
This information is subject to the
disclosure requirements pursuant to section 5-12 of the Norwegian
Securities Trading Act.