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Maersk Drilling books profit following guidance upgrade

The bottom line shows black figures in the first half of the year for drilling company Maersk Drilling, which is seeing signs of an "impending recovery." The company raised its full-year guidance on Thursday. Updated.

Photo: Maersk Drilling

Maersk Drilling has upgraded its guidance for 2021.

The company now expects an operating result before interest, tax, depreciation and amortization of USD 290-330 million against the previously announced USD 260-310 million.

In a press release issued Thursday, the company informs that the upgraded guidance stems from a "strong operational performance."

"Particularly, the four deepwater floaters reactivated during Q1 and Q2 2021 have, since contract commencements, continued to outperform original operational expectations in terms of higher financial uptime and lower costs," the company writes in the press release.

At the same time, Maersk Drilling reports that it expects adjusted expenditure for investments in the range of USD 110-130 million against 120-140 million.

Profit in the first half

The upgraded guidance from Maersk Drilling occurred before the company presented its financial results for the first half of 2021, which came out Friday morning.

The results showed black figures on the bottom line with USD 41 million in profit before taxes. This was a marked improvement from the loss of USD 1.5 billion in the same period last year when the results were negatively influenced by impairments of the fleet. The operating result before special items (EBITDA) came to USD 163 million in the first six months of the year.

Most recently, revenue increased to USD 350 million in the second quarter from USD 264 million in the first quarter.

"I am very pleased with our financial performance in the first half of 2021, building on exemplary efficiency and service delivery across our rig fleet and supported by a strong commercial performance in a market that is showing signs of an impending recovery," says Maersk Drilling CEO Jørn Madsen in the earnings release.

In the second quarter, Maersk Drilling secured new contracts valued at USD 129 million. compared to USD 730 million in the first quarter. By the end of the first half, the orderbook comprised USD 1.6 billion against 1.8 billion at the end of March.

In the second quarter, Maersk Drilling divested its jackup rig Inspirer for a price of USD 373 million.

Article was updated and expanded on August 20 2021 at 08.15 am CET with Maersk Drilling's second quarter results.

Maersk Drilling sees largest quarterly orderbook growth since 2017

Norwegian authority criticizes safety on Maersk Drilling rig

Norwegian bank predicts consolidation wave in drilling over the next year 

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