#PEMSA RIGS UPGRADE#

Other revenue increased to USD 114.6m (2010: USD 16.5m) primarily due to the addition of the Group’s new revenue streams including E&C activities and service business.Īcquisition of MIS of USD 10.5m including financial advisory, due diligence and legal fees and a one-off post acquisition charge for the MIS employee share options that were bought out as part of the MIS acquisition. Revenue from Land Rig Services, related to the refurbishment and construction of land rigs, reflected an increase over the prior year predominantly resulting from the ongoing work building two 3000HP land drilling rigs for Weatherford.

#PEMSA RIGS UPGRADE#

Revenue from jackup rig upgrade and refurbishment activity increased over the prior year, with a higher level of average expenditure per rig. This revenue and profit had not been previously recognised, despite the high level of completion of the project, as Hull 108 was not contracted to a customer. The contract award from PEMSA for the construction of Hull 108 in December 2011 allowed the Group to transfer this asset from inventory to contract work-in-progress, and to recognise revenue and profit in line with the percentage of completion of the project. Revenue in 2011 largely reflects the ongoing work on eight new build jackups, three liftboats for the offshore wind farm installation sector and two land rigs. Revenue generated from new build projects increased by 282.3% to USD 789.7m (2010: USD 206.6m).

The increase was largely driven by a higher level of revenue generated from the new build activity, and to a lesser extent an increase in the revenues from upgrade and refurbishment activities and from its service business. Group revenue increased by 127.8% to USD 1,147.9m (2010: USD 503.8m) reflecting an increase in activity from the prior year.

Pemsa rigs