P.O. Box 309, Ugland House
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [ ].
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [ ].
Attached to this Report on Form 6-K as Exhibit 99.1 is a copy of the press release of Ocean Rig UDW Inc., dated February 22, 2016: Ocean Rig UDW Inc. reports financial and operating results for the fourth quarter 2016.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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OCEAN RIG UDW INC.
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Dated: February 24, 2017
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By:
/s/George Economou
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George Economou
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Chief Executive Officer
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OCEAN RIG UDW INC. REPORTS FINANCIAL AND OPERATING RESULTS
FOR THE FOURTH QUARTER 2016
February 22, 2017,
Grand Cayman, Cayman Islands - Ocean Rig UDW Inc. (NASDAQ:ORIG), or Ocean Rig or the Company, an international contractor of offshore deepwater drilling services, today announced its unaudited financial and operating results for the quarter ended December 31, 2016.
Fourth Quarter 2016 Financial Highlights
Ø
For the fourth quarter of 2016, the Company reported a net loss of $3,711.6 million, or $45.08 basic and diluted loss per share.
The fourth quarter 2016 results include an impairment loss of $3,751.2 million, or $45.56 per share, associated with the impairment of the book value of the Companys drilling units.
Ø
The Company reported Adjusted EBITDA
(1)
of $242.7 million for the fourth quarter of 2016.
Recent Highlights
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Fleet wide utilization for the fourth quarter of 2016 was 95.49%.
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On February 6, 2017, the Company reached an agreement with Premier Oil and Noble Energy to settle the disputed invoices related to the contract of the
Eirik Raude
against a total payment of $25.0 million. This settles all claims by all parties.
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On February 10, 2017, the Company reached an agreement with ConocoPhillips to terminate the contract of the
Ocean Rig Athena
. As part of the agreement, ConocoPhillips will pay a termination fee. The
Ocean Rig Athena
is presently en-route to its final lay-up location in Greece where the unit will be cold stacked.
Restructuring Update
The Company continues to explore and consider various strategic alternatives with its financial and legal advisors, which may include a possible restructuring of the Companys debt. The Company expects that any comprehensive deleveraging plan is likely to result in significant dilution to current shareholders and potential losses for other financial stakeholders. If a consensual solution cannot be reached among all stakeholders, the Company will consider all available options including implementation of a restructuring plan through schemes of arrangement or under Chapter 11.
Financial Review: 2016 Fourth Quarter
The Company recorded net loss of $3,711.6 million, or $45.08 basic and diluted loss per share, for the three-month period ended December 31, 2016, as compared to a net loss of $174.4 million, or $1.26 basic and diluted loss per share, for the three-month period ended December 31, 2015.
Revenues decreased by $120.3 million to $355.4 million for the three-month period ended December 31, 2016, as compared to $475.7 million for the same period in 2015.
Drilling units operating expenses decreased to $93.7 million and total depreciation and amortization decreased to $82.3 million for the three-month period ended December 31, 2016, from $150.9 million and $95.1 million, respectively, for the three-month period ended December 31, 2015. Total general and administrative expenses increased to $35.0 million for the three-month period ended December 31, 2016 from $23.7 million for the three-month period ended December 31, 2015. The increase is mainly attributed to professional fees.
An impairment loss of $3,751.2 million was recognized for the three-month period ended December 31, 2016, as compared to $415.0 million for the three-month period ended December 31, 2015.
Interest and finance costs, net of interest income, decreased to $53.5 million for the three-month period ended December 31, 2016, compared to $68.2 million for the three-month period ended December 31, 2015.
Other
The Company will not host a conference call to discuss its unaudited financial and operating results for the quarter ended December 31, 2016.
4
Operating Fleet
The table below describes our operating fleet profile as of February 22, 2017:
Total backlog as of February 22, 2017 amounted to $ 1.5 billion.
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Unit
Leiv Eiriksson
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Year built
2001
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Redelivery
Q3 17
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Ocean Rig Corcovado
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2011
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Q2 18
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Ocean Rig Poseidon
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2011
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Q3 - 17
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Ocean Rig Mykonos
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2011
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Q1 18
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Ocean Rig Skyros
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2013
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Q3 21
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Note: The drilling units
Eirik Raude
,
Ocean Rig Olympia
,
Ocean Rig Apollo, Ocean Rig Mylos
and
Ocean Rig Paros
, have completed their preservation works and are currently cold stacked in Greece, remaining available for further employment. The drilling unit
Ocean Rig Athena
is presently en-route to its final lay-up location in Greece where the unit will be cold stacked.
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Ocean Rig UDW Inc.
Financial Statements
Unaudited Consolidated Statements of Operations
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(Expressed in thousands of U.S. Dollars
except for share and per share data)
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Three Months Ended
December 31,
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Year Ended
December 31,
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2015
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2016
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2015
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2016
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REVENUES:
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Revenues
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$
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475,727
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$
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355,385
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$
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1,748,200
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$
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1,650,991
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EXPENSES:
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Drilling units operating expenses
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150,932
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93,655
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582,122
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454,329
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Depreciation and amortization
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95,119
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82,287
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362,587
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334,155
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Impairment loss
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414,986
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3,751,186
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414,986
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3,751,186
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General and administrative expenses
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23,667
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34,985
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100,314
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103,961
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Loss on sale of assets
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5,177
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25,274
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5,177
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25,274
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Legal settlements and other, net
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643
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(915)
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(2,591)
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(8,720)
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Operating (loss)/ income
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(214,797)
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(3,631,087)
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285,605
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(3,009,194)
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OTHER INCOME/(EXPENSES):
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Interest and finance costs, net of interest income
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(68,205)
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(53,500)
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(270,537)
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(223,532)
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Gain from repurchase of senior notes
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136,961
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-
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189,174
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125,001
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Gain/ (loss) on interest rate swaps
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4,765
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88
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(11,513)
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(4,388)
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Other, net
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357
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(5,572)
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(12,899)
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(84)
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Income taxes
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(33,480)
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(21,534)
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(99,816)
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(116,390)
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Total other income/ (expenses), net
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40,398
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(80,518)
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(205,591)
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(219,393)
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Net (loss) / income attributable to Ocean Rig UDW Inc.
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$
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(174,399)
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$
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(3,711,605)
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$
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80,014
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$
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(3,228,587)
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Net (loss)/ income attributable to Ocean Rig UDW Inc. common stockholders
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$
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(174,399)
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$
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(3,711,605)
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$
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78,839
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$
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(3,228,587)
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(Loss)/ Earnings per common share, attributable to common stockholders, basic and diluted
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$
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(1.26)
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$
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(45.08)
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$
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0.57
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$
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(33.30)
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Weighted average number of common shares, basic and diluted
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138,377,314
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82,335,348
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138,757,176
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96,950,847
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