Apexindo obtains two new drilling contracts

IDX-listed oil and gas drilling contractor PT Apexindo Pratama Duta Tbk has obtained two new offshore drilling contracts worth a combined US$73 million.

Apexindo said in a filing with the Indonesia Stock Exchange Thursday that it has won a $30 million contract from Premier Oil Natuna Sea BV. The period of the contract, signed April 10, is for 459 days.

The second contract is worth $43 million from PT Pertamina Hulu Energi Offshore North West Java for a period of 24 months.

Apexindo allocates $10 million for capital expenditure this year, much of which to be used for rig maintenance. The company is optimistic it could increase its rig utilization rate to 70 percent this year from 66 percent last year.

As per the first nine months of last year, Apexindo saw its revenue dropped by more than 57 percent to $87.28 million year-on-year primarily due to a 63.46 percent drop in revenue from drilling services. As a result, the company suffered net loss of $11.08 million compared to profit of $38.42 million in the nine-month period of 2015. (*)