loi for deep hole drilling contract ..., page-31

Lee

figures quoted below

ebit day rate = $6.81m

ebit meter rate = $25.57

nearly 4 times not double

you can reduce by interest and tax if you want but the differential remains the same


Figure 6: Day-rate scenarios
Low-case Mid-case High-case
Total revenue (typical 3500m well) 1.44 1.44 1.44
# wells per year 7.8 9.0 10.8
Utilisation 65% 75% 90%
Annualised Revenue ($m) 11.24 12.97 15.57
Cost of sales per well (0.72) (0.72) (0.72)
Annualised cost of sales ($m) (5.60) (6.46) (7.75)
Annualised Gross Profit ($m) 5.64 6.51 7.81
GP margin (incl mob costs) (%) 50.2% 50.2% 50.2%
EBITDA ($m) 5.64 6.51 7.81
EBITDA margin (%) 50.2% 50.2% 50.2%
Depreciation (straight-line) ($m) (1.00) (1.00) (1.00)
EBIT ($m) 4.64 5.51 6.81
EBIT margin (%) 41.3% 42.5% 43.8%
ROA (%) 37.1% 44.1% 54.5%
Source: Patersons estimates
Primarily due to low staff requirements under a day-rate scenario the GT3000 has the
potential to achieve EBIT margins of circa 42.5% in a ?mid-case? scenario based on
preliminary modelling. Comparable oil and gas rigs typically require over 20 on-site staff at
a time compared with approximately 5 for CKK?s rig.
Figure 7: Rate per metre scenarios
Rate per metre scenarios Low-case Mid-case High-case
Total revenue (typical 3500m well) 3.54 3.54 3.54
# wells per year 7.8 9.0 10.8
Utilisation 65% 75% 90%
Annualised Revenue ($m) 27.58 31.82 38.18
Cost of sales per well (1.08) (1.08) (1.08)
Annualised cost of sales ($m) (8.39) (9.68) (11.61)
Annualised Gross Profit ($m) 19.19 22.14 26.57
GP margin (incl mob costs) (%) 69.6% 69.6% 69.6%
EBITDA ($m) 19.19 22.14 26.57
EBITDA margin (%) 69.6% 69.6% 69.6%
Depreciation (straight-line) ($m) (1.00) (1.00) (1.00)
EBIT ($m) 18.19 21.14 25.57
EBIT margin (%) 66.0% 66.4% 67.0%
ROA (%) 145.5% 169.1% 204.6%