Gulf Drilling Int’l earns QR240mn revenue from its offshore rigs in first half, 2013

By Santhosh V Perumal/Business Reporter

A substantial rise in average daily rates (ADR) in the second quarter and 100% utilisation helped Gulf Drilling International (GDI) earn QR240mn revenue from its offshore rigs during the first six months of this year.

Revenues from its five offshore rigs constituted a bulk of GDI’s total revenues during January-June this year, according to detailed financial statement of Qatar Exchange-listed Gulf International Services, whose subsidiary is GDI.

GDI revenues constituted 25% of the parent GIS’ kitty in the first six months of this year, the second largest contributor.

Its offshore rigs, with 100% utilisation (which measures the number of days rigs are under contract out of the number of days in total), contributed the most to GDI’s total revenue of QR381mn in January-June this year, up 27% over that in the previous year period.

The five offshore rigs are Al Doha, Al Rayyan, Al Wajbah, Al Khor and Al Zubarah. These rigs contributed 63% of GDI revenue in January-June this year against 74% in the year-ago period.

Revenue from offshore rigs grew only 9% year-on-year (y-o-y) in the six month period ended June 30, 2013.

However, offshore rigs revenue jumped 27% y-o-y to QR138mn in Q2 on the back of a 52% y-o-y rise in ADR to $146,000 but the first quarter had seen a 9% y-o-y fall to QR102mn although ADR was up 2% to $101,000.

There was a 35% jump in Q2 2013 revenue from Q1 of the same year as ADR went up 45% during the period in review. In the comparable period of 2012, offshore rigs revenue had reported a 3% fall on a 3% decline in ADR.

Onshore rigs, also with 100% utilisation, fetched GDI QR81mn in revenue during the first half of 2013, up 50% from that in the year-ago period. These rigs constituted 21% of GDI revenues (compared to 18% in the 2012 period).

Although the ADR was rather flat y-o-y at $31,000 in Q2 2013, revenues from onshore rigs grew 58% to QR41mn.

Despite a 6% slump in ADR to $29,000 in the first quarter, revenues were up 43% to QR40mn.

Between the second and first quarter of this year, GDI’s revenue from onshore rigs rose only 3% although there was about 7% improvement in ADR. In the same period of 2012, onshore rigs revenue had fallen 7% although ADR was flat.

Revenues from its barge (Al Zikreet) had risen by 13% to QR26mn in the first half of this year. Barge accounted for 7% of GDI revenue against 8% in the previous year period.

The barge utilisation was 100% in the first two quarters of this year against 94% in the comparable period of 2012.

Revenue from barge was flat year-on-year at QR13mn in Q2 2013 although it saw an increase of 30% to QR13mn in the first quarter.

Between the second and first quarter of 2013, revenue from barge was flat; while it had gained 30% in the comparable period of last year.

Additionally, GDI earned QR32mn from its lift boat (Dixie) with QR17mn coming from the first quarter (100% utilisation) and QR15mn in the second quarter (99% utilisation).

Between the second and first quarter of this year, revenue from lift boat was down 12%.