Northern Offshore Reports First Quarter 2013 Results -- HOUSTON, May 15, 2013 /PRNewswire/ -- Highlights (All $ in USD) Northern Offshore, Ltd. (Oslo Bors: NOF.OL) today reported net income for the three months ended March 31, 2013 of $1.1 million, or $0.01 per diluted share, on revenues of $41.4 million. The company generated $9.8 million of first quarter EBITDA. The positive net cash balance stands at $18 million. The company's directors have declared a dividend of $0.05 per share, or approximately $8.2 million. Management Comment Gary W. Casswell, Northern Offshore's president and CEO, commented, "Earnings for the quarter were slightly less than we expected because of approximately 20 days of downtime for the Energy Driller due to unscheduled maintenance on one of the pontoons. We are also expecting a flat second quarter due primarily to a transition of the Energy Endeavour back to operations in the UK and the Energy Searcher remaining idle. However, we still anticipate positive cash flow for the next quarter, as well as the second half of 2013, and expect to maintain the dividend distributions. First Quarter Analysis Net income for the three months ended March 31, 2013 of $1.1 million, or $0.01 per diluted share, on revenues of $41.4 million compares to a net loss of $14.1 million, or $0.09 per diluted share, for the first quarter of 2012, on revenues of $28.2 million. Revenues for the three months ending March 31, 2013 were $13.2 million higher than the same period in 2012, primarily due to higher utilization of the semisubmersible Energy Driller and jackup Energy Enhancer, and higher dayrates for the jackup Energy Endeavour. Partially offsetting these increases was a decrease in dayrate revenues for the drillship Energy Searcher due to lower utilization as compared to the same period last year. Tariff revenues from the floating production facility Northern Producer averaged approximately $110,000 per day in the first quarter of 2013. The company expects pricing levels to remain stable and production to decline slightly in the near term. Drilling and production expenses for the three months ending March 31, 2013 were $5.1 million lower as compared to the same period in 2012, primarily due to a decrease in operating expenses for the jackup Energy Exerter, as the rig was sold in October 2012. This disposition also accounted for most of the $1.5 million decrease in depreciation expense for the current quarter as compared to the first quarter of the prior year. First quarter 2013 general and administrative expenses, interest expense, amortization of financing fees and other financial items were comparable to those of the same period in 2012. As of May 14, 2013, the company had an outstanding credit facility balance of $22 million and a cash balance of approximately $40 million. Shareholders of record with the VPS on May 31, 2013 will be entitled to receive the dividend, which will be paid on or around June 14, 2013. The shares of the company will be trading ex-dividend from May 29, 2013. Northern Offshore, Ltd. will conduct a teleconference with security analysts at 9 a.m. CT, May 16, 2013 to discuss the company's quarterly results. Individuals wishing to participate in the teleconference should call (800) 884-5695 (in the U.S.) or (617) 786-2960 (outside the U.S.) about five to ten minutes prior to the scheduled start time and refer to participant password 79956446. The conference call also will be accessible by logging on to the company's website at http://www.northernoffshorelimited.com. After logging on, go to "Investor Relations" and select the conference call webcast. About the Company Northern Offshore, Ltd. is a Bermuda holding company which operates offshore oil and gas drilling units and one production vessel in various markets around the world, including the North Sea, the Indian Ocean and Southeast Asia. The company's fleet consists of four drilling units (a drillship, a semisubmersible and two jackup drilling rigs) and one floating production facility. More information on Northern Offshore, Ltd. may be found by visiting the company's website at http://www.northernoffshorelimited.com. This announcement contains statements that reflect the company's expectations or predictions of the future. These statements are forward-looking statements. These forward-looking statements may include statements regarding earnings guidance, capital allocation strategy, the impact of activity levels, business performance, and other market and industry conditions. The company's actual results could differ materially from those reflected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the company's regulatory filings. The company disclaims any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events or otherwise. For further information, please contact: Brian Hefty at (713) 739-7686, or via email at brian.hefty@northernoffshoreltd.com Thousands of US Dollars, except per share amounts Drilling and production General & administrative Gain on disposal of assets Amortization of deferred financing fees Other financial items Income/ (loss) before taxes Income taxes - benefit/ (expense) Net income/ (loss) Earnings per share (US$) Weighted average common shares (000's) Thousands of US Dollars Deferred mobilization costs Deferred insurance premium Noncurrent assets Property, plant & equipment, net Restricted cash, net of current portion Noncurrent deposit/escrow account Deferred mobilization costs, net of current portion Drydock costs, net of current portion Total noncurrent assets Current debt Consolidated Statements of Cash Flows - (Unaudited) provided by/ (used in) operating activities: Changes in operating assets and working capital Income taxes receivable Other current and noncurrent assets Other accrued liabilities Net cash provided by/ (used in) operating activities Changes in restricted cash Changes in noncurrent deposit/escrow account Net cash provided by/ (used in) investing activities Proceeds from drawdown of revolver facility Payment for taxes on vested shares Net cash provided by/ (used in) financing activities Net changes in cash and cash equivalents Supplemental disclosure of cash flow information Cash paid during the period for: Significant non-cash transactions during the period for: Accrued capital expenditures Accrued dividends Consolidated Statements of Shareholders' Equity Additional shares paid-in comprehensive Retained capital loss earnings Balance at December 31, 2011 Issuance of restricted stock Payments for taxes on vested shares Common shares dividends Balance at March 31, 2012 Reconciliation of GAAP to Non-GAAP Financial Results Net income/ (loss) (GAAP) EBITDA is defined as Net Income/ (Loss) before Interest, Taxes and Depreciation Jackups (2) Average rig utilization Operating days Average revenue per day Drillship (1) Semisubmersible (1) Total Drilling Rigs (4) Floating Production Facility (1) Days in period Production days Average bpd Average tariff revenue per day Average other revenue per day Total average revenue per day Note 1: Operating days represent actual days under contract. Note 2: Costs which are reimbursed by the client are included in the average revenue per day calculation. Note 3: Energy Exerter is excluded from Q1 2012 and Q4 2012 calculation for the jackup fleet. SOURCE Northern Offshore, Ltd. RELATED LINKS http://www.northernoffshorelimited.com