Maersk Drilling expects capex to drop in 2021

Oil&Gas Materials 19 February 2021 13:09 (UTC +04:00)
Maersk Drilling expects capex to drop in 2021

BAKU, Azerbaijan, Feb.19

By Leman Zeynalova – Trend:

For 2021, Denmark-based Maersk Drilling expects profit before depreciation and amortisation, impairment losses/reversals and special items (EBITDA before special items) in the range of USD 225m–275m, Trend reports citing the company.

Capital expenditures are expected to be in the range of USD 120m–140m, as compared to USD 162m in 2020. The profitability guidance for 2021 is partly secured through the current contract backlog. Achieving the higher end of the 2021 guidance range requires that additional contracts are secured within both the North Sea and International divisions.

The capital expenditures guidance is linked to the assumed commercial activity providing certain flexibility in total spend and timing.

“Our guidance for 2021 is subject to risks and uncertainties as various factors, many of which are beyond Maersk Drilling’s control, may cause the actual development and results to differ materially from expectations. EBITDA before special items is primarily sensitive to the level of contracting of additional days to the current backlog, especially in the high margin North Sea segment, and the day rates thereon. Capital expenditures are sensitive to final scheduling and scoping of rig upgrades and yard stays, which are subject to commercial and operational planning. The table below lists two additional sensitivities, all else being equal,” said the company.

In the unprecedented 2020 market, Maersk Drilling's strong financial position stood out from its peers. The demand in key markets is expected to grow in 2021 and beyond. The long-term energy transition towards low-carbon energy will drive efficiency, use of new technologies, repositioning and alternative use of offshore drilling rigs.


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