Seadrill Limited
OSLO : SDRL

August 25, 2011 03:02 ET

SDRL - Seadrill reports second quarter 2011 results

HAMILTON, BERMUDA--(Marketwire - Aug 25, 2011) -


Seadrill reports second quarter 2011 results:

Highlights

* Seadrill generates second quarter 2011 EBITDA*) of US$579 million

* Seadrill reports second quarter 2011 net income of US$645 million and earnings per share of US$1.34

* Seadrill distributes quarterly cash dividend of US$0.75 per share

* Seadrill records a US$416 million gain on realization of the Pride International Inc. shareholding ("Pride")

* Seadrill exercised its right to call and retire the US$750 million 2012 convertible bond

* Seadrill ordered a new ultra-deepwater drillship for an all-in cost of US$600 million

* Seadrill ordered a new tender barge rig for a total consideration of US$115 million and a new semi-tender rig for an all-in cost of US$200 million

* Seadrill agreed to sell the jack-up rig West Juno for a total consideration of US$248.5 million

* Seadrill agreed to sell the jack-up rig West Janus for a total consideration of US$73 million

Subsequent events

* Seadrill acquired a 33.75 percent ownership stake in Asia Offshore Drilling Ltd through a private placement

* Seadrill's majority owned subsidiary, North Atlantic Drilling Ltd, takes delivery of the harsh environment jack-up rig West Elara

* Seadrill completed the divestment of the jack-up rig West Juno for US$248.5 million in early July

* Seadrill secures two three-year contracts for two jack-ups with a US$348 million revenue potential

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

Second quarter 2011 results

Seadrill today reports consolidated revenues for the first quarter 2011 of US$995 million compared to US$1,110 million for the first quarter 2011. The reduction is due to de-consolidation of Archer Limited from end of February.

Operating profit for the first quarter was US$430 million in line with the preceding quarter.

Operating profit from the Floaters was US$341 million as compared to an operating profit of US$312 million in the first quarter 2011 due to improved average economical utilization rate.

Operating profit from the Jack-up Rigs amounted to US$49 million as compared to an operating profit of US$64 million in the first quarter 2011 as result of lower average economic utilization rate.

Operating profit from the Tender Rigs was US$40 million, down from US$49 million in the first quarter 2011 due to the retirement of the tender rig barge T8.

Net financial items for the quarter amounted to a gain of US$264 million compared to a gain of US$441 million in the previous quarter. The second quarter included a gain on realization of our Pride position of US$416 million whereas the first quarter benefited from a US$477 million gain in connection with the deconsolidation of Archer Limited formerly known as Seawell Limited. Loss on derivative financial instruments was US$90 million compared to a US$41 million gain in the first quarter.

Income taxes for the second quarter were US$50 million compared to US$48 million in the first quarter.

Net income for the quarter was US$645 million and basic earnings per share of US$1.35.

Chief Executive Officer in Seadrill Management AS Alf C Thorkildsen says in a comment, "Our second quarter results reflect solid operation and performance for our offshore drilling rigs. We are in particular satisfied with the improved utilization rate for our floaters that was up from 94% to 97%. Based on a sound outlook for our industry and our solid contract portfolio we continue to be optimistic about our future earnings potential and have resolved to uphold a cash dividend of US$0.75 per share for the quarter."

For further information, please see the second quarter 2011 report attached.

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Second quarter 2011 report: http://hugin.info/135817/R/1541117/471370.pdf

Fleet status report 2Q 2011: http://hugin.info/135817/R/1541117/471372.pdf

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Seadrill Limited via Thomson Reuters ONE

[HUG#1541117]

Contact Information

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

    Media contact
    Esa Ikaheimonen
    Chief Financial Officer
    Seadrill Management AS
    +47 51 30 99 19