Awilco Drilling (OSL:AWDR) – good and bad news
Awilco Drilling PLC is a UK based (Oslo listed) drilling contractor owning and operating the two newly refurbished and enhanced mid-water semi-submersible drilling units WilHunter and WilPhoenix. It's a UK PLC that few in the UK will know about but which promises a great deal!
The good news is the announcement of a new 400-day contract with Hess for the semi WilHunter, at a dayrate of USD$360k, implying an annual EBITDA of around US$95m for this 30 year old rig – it doesn’t owe much. The work related to Hess’ 2013 and 2014 abandonment program in the Central North Sea. The firm contract duration is 400 days with a contract value of approximately US$144 million. Leading Oslo broker Pareto has stated that this is much higher than this cycle’s peak rate of US$315k per day for UK midwater rigs The contract is expected to start…