Songa Offshore in Red Despite $80M Revenue Increase
Songa Offshore, a drilling contractor, has reported a significant loss during the second quarter of 2016 due to impairment charges which totalled over $118m for the same period.
The Norwegian company stated on Friday that it’s Q2 loss was $86.3m, which is massively down from it’s profit of $17.3m made in the same period in 2015.
Total revenue for the second quarter was $200.2 million as opposed to $121.9m in the same period in 2015.
Although the organisations revenue grew, Songa Offshore had to absorb an impairment charge of $118m in it’s second quarter reflecting “a continued challenging market” for the company’s fleet.
The whole sum regarding the impairments came from the Songa Dee, Songa Delta, and Songa Trym rigs.
Providing its take on the future Songa Offshore said:“On the back of the continuous weak oil price, the North Sea drilling market continues to be very challenging with a limited number of tenders in both the NCS and UK markets. As a result, further rigs have come off contract and have been stacked. Visibility is still low and the competition for the few tenders in the market is fierce. Songa Offshore continues to be of the view that 2016 and 2017 will be two challenging years for the industry.
