S.D. Standard Drilling plc

11/08/2019 | Press release | Distributed by Public on 11/08/2019 02:54

SDSD: THIRD QUARTER 2019 FINANCIAL RESULTS

NOTE: THE COMPANY IS AN INVESTMENT ENTITY AND SHALL NOT CONSOLIDATE ITS
SUBSIDIARIES.

(Limassol, 8 November 2019) S.D. Standard Drilling Plc (Standard Drilling,
OSE:SDSD) had a positive adjusted EBITDA of USD 3.3 million in the third quarter
of 2019 from the underlying operations of Platform Supply Vessels (PSVs) (Q3
2018: USD 0.2 million), with a utilization of 95% on the six fully owned
large-sized PSVs (Q3 2018 85%).

Standard Drilling reported an operating profit of USD 0.6 million in the third
quarter of 2019 (Q3 2018: USD (0.2) million), following unrealized gain on
revaluation of financial assets of USD 1 million. Standard Drilling is an
investment entity and shall not consolidate its subsidiaries. Therefore, the
company measures its investments in PSVs based on fair value estimates from
reputable independent valuers. Revenues and EBITDA from chartering out the
vessels are not consolidated into, nor reflected in the financial statements.

The group had an underlying positive adjusted EBITDA, excluding non-recurring
cost and dry dock, special survey, maintenance and repair, in the third quarter
2019 of USD 3.3 million (Q3 2018 USD 0.2 million). The utilization of the
large-sized PSV's was 95% in the quarter (Q3 2018 85%). The total cash balance
was USD 28 million at the end of third quarter, including pro-rata ownership of
the subsidiaries and investments, up from USD 26.9 million at the end of second
quarter 2019.

Standard Drilling has in October completed the sale of the large size PSV
Standard Supporter for USD 13.5 million.
"Standard Drilling delivers its best result from the underlying operation of the
PSV fleet, with main contribution coming from the large size vessels. We have
had a good utilization during the quarter with acceptable rates. Our results in
2019 show that the market for PSV's are moving in the right direction after
several challenging years. The sale of Standard Provider in October contributed
to a solid increase of our cash holdings. It further demonstrates that we keep
following our strategy, to exploit the market opportunities that may arise,
including purchase and sale of vessels. Going into the winter season our main
short term focus will be on securing winter coverage ", says Martin Nes,
Chairman of the Board of Standard Drilling Plc.

Standard Drilling currently owns 100% of five large-size modern PSVs. In
addition, the company has invested in 9 mid-size PSVs, bringing the total fleet
of partly and fully owned vessels to 14 PSVs, including one vessel on a
bare-boat contract. The company has zero debt, cost effective operations and low
overhead cost.

ENDS
For additional information, please contact:
General Manager, Evangelia Panagide at +357 99 77 11 16
Chairman of the Board, Martin Nes at +47 92 01 48 14

Standard Drilling|www.standard-drilling.com
S.D. Standard Drilling was founded in 2010. The company currently has 100%
ownership interest in five large-size Platform Supply Vessels ('PSVs') and an
indirect ownership interest in nine mid-size PSVs including one vessel on a 1
year bare- boat contract.