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Pacific Drilling reports healthy profit increase in first quarter

Pacific Drilling reports healthy profit increase in first quarter
Pacific Drilling has generated profits of $22.2m for the first quarter of 2014, up from $15.1m in the same period for the previous year.

Revenue for the period reached $225.6m, versus $175m in Q1 2013. The total also represented the fifth consecutive quarterly increase in revenue, from $200.5m in Q4 2014. Revenues were boosted the exercising of an option for a contract extension on Pacific Scirocco, to January 2017, which will generate $364m.

Although Pacific Drilling’s EBITDA increased 27% over Q1 2013 to $100.9m in 2014, ceo Chris Beckett stated that the company has “room to improve.”

“During the first quarter, the challenges of starting operations with the Pacific Khamsin were greater than we anticipated and resulted in a reduction to revenue and EBITDA,” explained Beckett.

“We saw an increase in bidding activity compared to the previous quarter; but this activity has yet to translate into signed contracts. Although there are very few modern, high-specification ultra-deepwater rigs available, we expect 2014 to continue to be a challenging market. There are many older fifth-generation rigs, which we expect will provide lower-priced competition on some projects.”

“In an effort to minimise the impact of these lower-specification units on our dayrates, we are focusing on opportunities that require the newest and highest-specification rigs. We are pleased to have extended Pacific Scirocco through 2017, our discussions to extend Pacific Mistral are ongoing, and we remain confident that we will contract Pacific Meltem prior to delivery.”