QGOG Constellation 4Q17 Credit Report - debt payments postponed amid revenue, liquidity constraints

25 May 2018
 
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On 9 May 2018, QGOG deferred interest payments on its 9.5% senior notes due 2024 and its 6.25% senior notes due 2019. It decided to use an available 30-day grace period in order to advance ongoing discussions with certain lenders and a group of bondholders representing a material amount of the 2024 notes. The company is seeking an extension with banks for project finance and working capital loans, and has asked lenders for a two-year grace period. QGOG had a cash balance of USD 269m at 4Q17 and short-term debt totaling USD 656m. 
 
Estimated 2018 revenues of USD 557m would represent a decline of 41% (USD 389m) from actual revenues of USD 946m for full-year 2017. Average uptime for the ultra-deep water (UDW) fleet was 91% for full-year 2017. Contracts for two of five UWD rigs in operation as of 1 January  expired in 1Q18, with the remaining three expiring in 2H18. Projected 2H18 revenues of USD 165m represent a substantial decline from projected revenues for 1H18 totaling USD 392m. The company’s backlog for the years 2019 and 2020 only includes annual revenues of USD 43m, associated with operations of the deep water rig Olinda Star. 
 
CLICK HERE  to access the QGOG Constellation 3Q17 Credit Report