courtesy Songa Offshore

Rig owner Songa Offshore said Friday that 2008’s net profit was down some 63 percent over the year before, down to $17.5 million despite 25 percent more revenue.

A slightly weaker fourth quarter year-on-year produced net profit of $19.3 million, or more than the result for the year.

Revenues of $386.6 million in the year were offset in the final quarter by consigning three rigs to a ledger for quarterly depreciations of $22.6 million.

Year 2008 saw “the tender process for drilling rigs stopped up”, as “Oil companies had to redo their assessments and assumptions,” Songa leaders told shareholders in a statement.

But there are signs the rig market is picking up, although just one Songa rig, the Deepsea Delta, is contracted to work in 2012. All have work in 2009, but three — Songa Mercur, Songa Venus and Songa Saturn — are available for a year from summer 2009.

“During the recent weeks we have seen activity coming back, however the psychology is obviously changed from six months ago,” the board statement read.

With half the company’s rigs in need of assignments in 2011, the company has “a number of good leads” to fill-out drill orders. Meanwhile, Brazil, Mexico and India offer long-term drilling opportunity.

Meanwhile, shareholders in February will vote on moving the company’s seat from Oslo to Limassol, Cyprus, where 25 staff already man a main office.

Tags: Songa Offshore ASA