Songa Offshore SE : Report for the first quarte...

Songa Offshore SE (the "Company") reports operating revenue for the fourth quarter of USD 154.7 million and an EBITDA of USD 65.3 million. Net profit for the quarter was USD 1.4 million including the recognition of an impairment charge for Songa Mercur and Songa Venus of USD 24.7 million in the quarter corresponding to the rigs' EBITDA in the quarter and consistent with accounting practise for Assets Held for Sale. 

"We have again delivered a strong quarter operationally, with an operating efficiency of 99.7%. In combination with increased cost control and reduced operating costs, we are delivering the strongest quarterly EBITDA in three years", says Songa Offshore CEO, Bjørnar Iversen.

Regarding the Cat D rigs, the yard has fallen behind on the delivery schedule for all the rigs. The delivery of the first rig, Songa Equinox, is now slipping into early first quarter 2015, with one rig being delivered each subsequent quarter. As a consequence, the average USD 660 million "ready-to-drill" cost will increase by 2-3%.

"We are clearly unsatisfied with the delays and have taken action in order to ensure that appropriate measures are put in place. The yard has now allocated 300 to 400 more staff to complete the first unit. We are monitoring the situation closely and are confident that the revised delivery schedules will be met", says Bjørnar Iversen.

Please see attached the Q1 2014 Report.

26 May 2014

Limassol, Cyprus

Board of Directors

Songa Offshore SE

Questions should be directed to:

Jan Rune Steinsland, CFO ([phone])

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

 

 

Songa Offshore SE Q1 2014 Report

---

This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Songa Offshore SE via Globenewswire

HUG#1788345