OSLO: Norway's Odfjell Drilling suspended its dividend and share buyback programme on Wednesday and said it expected the offshore drilling market to remain weak over the next "couple of years" after oil prices halved.
Odfjell Drilling also took a $73 million impairment charge on two drill-ships and said its quarterly earning before interest, taxes, depreciation and amortisation (EBITDA) fell to $21 million from $88 million, trailing expectations for $85.8 million in a Reuter’s poll.
"We are implementing adequate measures to remain competitive and robust under these market conditions which we expect will continue over the next years," Chief Executive Simen Lieungh said in a statement.
"We expect the drilling market to remain weak over the next couple of years. This is due to continued delivery of new builds and oil companies' increased cost focus and capital discipline, resulting in an increasing number of stacked units and continued downward pressure on day rates," the firm added.
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