NOTE: THE COMPANY IS AN INVESTMENT ENTITY AND SHALL NOT CONSOLIDATE ITS
(Limassol, 15 May 2019) S.D. Standard Drilling Plc (Standard Drilling, OSE:SDSD)
had a positive adjusted EBITDA of USD 0.5 million in the first quarter of 2019
from the underlying operations of Platform Supply Vessels (PSVs) (Q1 2018: USD
0.2 million), with a utilization of 89% on the five fully owned large-sized PSVs
(Q1 2018 93%).
Standard Drilling reported an operating profit of USD 3 million in the first
quarter of 2018 (Q1 2018: USD 0.15 million), following unrealized gain on
revaluation of financial assets of USD 2.9 million. Standard Drilling is an
investment entity and shall not consolidate its subsidiaries. Therefore, the
company measures it's
investments in PSVs based on fair value estimates from reputable independent
valuers. Revenues and EBITDA from chartering out the vessels are not
consolidated into, nor reflected in the financial statements.
The group had an underlying positive adjusted EBITDA, excluding non-recurring
cost and dry dock, special survey, maintenance and repair, in the first quarter
2019 of USD 0.5 million (Q1 2018 USD 0.2 million). The utilization of the
large-sized PSV's was 89% in the quarter (Q1 2018 93%). The total cash balance
was USD 26.3 million at the end of first quarter, including pro-rata ownership
of the subsidiaries and investments, up from USD 25.6 million at the end of
2018. The company has no debt.
"We see that the expected upturn in the PSV market is materializing. This upturn
and an attractive fleet of vessels has resulted in solid term contracts for four
of our six large size vessels in the second quarter. The current spot market
indicates that the strong market will continue into the summer season. The
utilization of 99% for the large size vessels in April supports this statement.
After acquiring Standard Olympus at an attractive price level, Standard Drilling
is positioned to take advantage of the strong market with the rest of the fleet
" says Martin Nes, Chairman of the Board of Standard Drilling Plc.
Standard Drilling currently owns 100% of six large-size modern PSVs. In
addition, the company has invested in 9 mid-size PSVs, bringing the total fleet
of partly and fully owned vessels to 15 PSVs, including one vessel on a
bare-boat contract. The company has zero debt, cost effective operations, low
overhead cost and is utilizing the strong PSV market.
For additional information, please contact:
General Manager, Evangelia Panagide at +357 99 77 11 16
Chairman of the Board, Martin Nes at +47 92 01 48 14
S.D. Standard Drilling was founded in 2010. The company currently has 100%
ownership interest in six large-size Platform Supply Vessels ('PSVs') and an
indirect ownership interest in nine mid-size PSVs including one vessel on a 1
year bare- boat contract.