SOURCE: Seadrill Limited

February 26, 2009 11:42 ET

SDRL - Seadrill reports fourth quarter and preliminary 2008 results

HAMILTON, BERMUDA--(Marketwire - February 26, 2009) -


Highlights

  * Seadrill generates EBITDA*) of US$226 million for the fourth
    quarter 2008
  * Seadrill reports net loss of US$739 million and loss per share of
    US$1.86 for the fourth quarter 2008
  * Seadrill takes delivery of three deepwater newbuilds (one
    drillship and two semi-submersible units)
  * Seadrill signs three and five year contracts for the semi-tenders
    West Pelaut and West Vencedor, respectively
  * Seadrill takes US$615 million in write downs related to the
    ownership holdings in Pride, Scorpion and SapuraCrest
  * Seadrill books mark-to-market losses on interest rate swaps of
    approximately US$160 million
  * Seadrill has taken delivery of seven out of eight deepwater units
    scheduled for delivery in 2008
  * Seadrill has since October received more than US$2 billion from
    various financing facilities and thereby secured a fully funded
    Company when entering into 2009


*) EBITDA  defined as earnings before interest, depreciation and
amortization equal to operating profit plus depreciation and
amortization

Preliminary results 2008

Seadrill today reports preliminary consolidated revenues for 2008 of US$2,186 million as compared to revenues of US$1,676 million in the 2007 accounts. The increase in revenues mainly reflects that several newbuilds were delivered and started operations during 2008. In addition, a number of units commenced new contracts at higher dayrates as well as the Well Services division increased its overall activities through existing contracts and acquisitions completed in 2008.

Operating profit for the full year amounted to US$649 million as compared to US$489 million in the 2007 accounts. Net financial expenses were US$748 million. The year resulted in a net loss of US$197 million as compared to a net income of US$502 million in the 2007 accounts.

Fourth quarter 2008 results

Consolidated revenues for the fourth quarter 2008 amounted to US$579 million as compared to US$566 million for the preceding quarter. Operating profit for the fourth quarter was US$153 million as compared to US$174 million in the third quarter.

Operating profit from the Mobile units amounted to US$98 million as compared to an operating profit of US$126 million in the third quarter. The decrease was mainly a consequence of three jack-ups being idle in the latter part of the quarter. The commencement of operations for the ultra-deepwater newbuilds West Hercules and West Polaris partly offset this reduction.

Operating profit from the Tender rigs amounted to US$41 million as compared to US$34 million in the third quarter. The increase was mainly due to escalations of dayrates for some units as well as a full quarter operation for the tender T4 after a mandatory yard-stay early third quarter.

Operating profit from Well services amounted to US$14 million, unchanged compared to the preceding quarter.

Net financial items for the fourth quarter resulted in a net expense of US$847 million as compared to an expense of US$71 million in the third quarter. This includes an impairment charge related to financial assets amounting to US$615 million and refers to the shares and forwards in Pride International, Scorpion Offshore and SapuraCrest. All of these shares and forward contracts have been written down to the market value as of December 31, 2008.

Income loss before income taxes amounted to US$693 million.

Income taxes were US$19 million.

Net loss for the quarter amounted to US$739 million.

For further information, please see the Fourth quarter and preliminary 2008 report and Fleet update attached.

http://hugin.info/135817/R/1293690/293176.pdf

http://hugin.info/135817/R/1293690/293175.pdf

Seadrill Limited
Hamilton, Bermuda
February 26, 2009

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

Copyright © Hugin AS 2009. 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