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LIVE

Friday, 21 November, 2008, 23:20 GMT | more >>

Petrojack slides into the red

By Upstream staff

Norwegian rig player Petrojack slid into the red in the second quarter of 2006, posting a net loss of Nkr25.9 million ($4.1 million) for the quarter ended 30 June.

In the same period last year, the company booked a profit of Nkr2.03 million.

The company said expenses consist mainly of costs related to the management of the company.

Petrojack said that during the third quarter of 2006 it has sold rig one and rig three for a total amount of $420 million and that the sale will be incorporated in the accounts for the third quarter.

The company has still to generate any operating income and its operating loss increased to Nkr8.89 million from Nkr1.48 million a year ago.

Petrojack said the jack-up market has continued to develop positively, with improving day rates and rig utilisation. The utilisation for modem jack-up rigs is close to 100%, and the day rates for high specification jack-ups are in the $180,000 to $200,000 range, it said.

Petrojack said in spite of the significant new building activity, the expected medium term demand for modern rigs is expected to remain strong and that its two jack-up rig will be delivered on or before 15 January 2008.