SOURCE: Seadrill Limited

November 24, 2008 11:47 ET

SDRL - Seadrill reports third quarter 2008 results

HAMILTON, BERMUDA--(Marketwire - November 24, 2008) -


Highlights

Seadrill generates EBITDA of US$234 million based on solid operational performance.

Seadrill reports net income of US$69 million and earnings per share of US$0.18 for the third quarter of 2008.

Seadrill takes delivery of three newbuilds (one drillship and two semi-submersible units).

Seadrill paid US$0.30 per share in dividends in September and postpones distribution of further cash dividends.

Seadrill signs a five-year contract for the semi-tender West Alliance.

Seadrill has taken delivery of five of eight deepwater units scheduled for delivery in 2008.

Seadrill commences operations with deepwater newbuild West Sirius in Gulf of Mexico in July, deepwater drillship West Polaris in Brazil in October and deepwater semis West Hercules in China in November.


Third quarter results

Seadrill today reported consolidated revenues for the third quarter 2008 of US$566 million compared to US$603 million for the second quarter 2008. The decrease was a result of a US$80 million gain from sale of the jack-up rig West Titania in the second quarter.

Operating profit for the third quarter was US$174 million as compared to US$132 million in the second quarter (excluding the gain of sales).

Operating profit from the Mobile units amounted to US$126 million as compared to an operating profit of US$90 million in the second quarter (excluding the gain of sales). The increase was mainly due to start-up of operations for the deepwater newbuild semi West Sirius and jack-up West Ariel.

Operating profit from the Tender rigs amounted to US$34 million as compared to US$25 million in the second quarter. The increase was mainly due to a full quarter operation for the new tender rig T11, as well as T4 resuming operations after a mandatory yard-stay.

Operating profit from Well Services amounted to US$14 million as compared to US$17 million in the second quarter. The decrease was mainly related to lower level of wireline activity during the quarter as well as a weaker Norwegian Krone.

Net financial items for the quarter resulted in a loss of US$71 million compared to a gain of US$7 million in the preceding quarter. Contribution from associated companies amounted to US$12 million whereas other financial items amounted to a loss of approximately US$61 million primarily related to foreign exchange losses and total return swap agreements.

Income before income taxes amounted to US$103 million.

Income taxes were US$22 million.

Net income for the quarter amounted to US$69 million.

Earnings per share were US$0.18 for the third quarter.

For further information, please see the third quarter 2008 report attached. http://hugin.info/135817/R/1272629/282559.pdf

This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.

Copyright © Hugin AS 2008. All rights reserved.

Contact Information

  • Analyst contact:
    Jim Dåtland,
    VP Investor Relations,
    Seadrill Management AS
    +47 51 30 99 19

    Media contact:
    Trond Brandsrud,
    Chief Financial Officer,
    Seadrill Management AS
    +47 51 30 99 19