UK-based driller Awilco Drilling has swung back to a profit in Q2, but is set to cold-stack its WilHunter semisubmersible due to lack of work opportunities for it in the short-term.
The WilHunter will join a fleet of seven cold-stacked floating rigs and two warm stacked floating rigs in the UK North Sea. Of those floaters with current work, four are due off contract in 2016, with more in 2017.
However, the firm says the continued "rig attrition" is positive for future rebalancing of the market. Discussions around decommissioning work are also increasing.
Awilco reported contract revenue of US$24.4 million ($ nil in Q1), and net profit of $6.9 million ($18.7 million loss in Q1).
Contract backlog at the end of Q2 was approximately USD 231 million (approximately USD 258 million Q1), with the WilPhoenix now on contract to Apache in the North Sea up to Q1 2018, with 27 month options.
Contract utilization including unpaid shipyard time was 50% during the quarter, (50% in Q1), with the WilPhoenix held on standby for a period. Average operating costs per rig was $56,500 per day.