Paragon Offshore Q3 Loss Widens On Charges

(RTTNews) - Paragon Offshore Plc. (PGN) Monday said its third-quarter net loss attributable to the company widened to $1.08 billion from $869.16 million in the prior year. Loss per share was $12.46, compared to $10.26 last year.

The latest results included a $1.15 billion, or $13.22 per share, non-cash asset impairment charge. Adjusted earnings per share were breakeven, compared to $0.59 last year.

On average, four analysts polled by Thomson Reuters expected earnings of $0.05 per share for the quarter. Analysts' estimates typically exclude special items.

Operating revenues fell to $368.97 million from last year's $505.22 million. Analysts expected revenues of $345.41 million.

The company expects full-year contract drilling services costs to decrease by 13 percent and G&A to decrease by 14 percent year-on-year.

Randall Stilley, President and CEO, said, "There is no indication that conditions in offshore drilling markets will improve in the near future. Current oil prices suggest that our customers' 2016 capital budgets may be at or below 2015 levels, placing additional pressure on utilization and dayrates in our industry. We expect oil markets to begin a recovery late in 2016, with drilling activity, particularly in shallow waters, to follow."