Seadrill Limited
OSLO : SDRL

November 30, 2011 03:39 ET

SDRL - Seadrill reports third quarter and nine months 2011 results

HAMILTON, BERMUDA--(Marketwire - Nov 30, 2011) - Seadrill reports third quarter and nine months 2011 results:

Highlights

* Seadrill generates third quarter 2011 EBITDA*()) of US$612 million

* Seadrill reports third quarter 2011 net income of US$58 million and earnings per share of US$0.07

* Seadrill resolves quarterly cash dividend per share of US$0.76

* Seadrill completes the divestment of the jack-up rig West Juno and records a US$23 million gain on sale

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

* Seadrill secures a four-year contract with a revenue potential of US$787 million for the ultra-deepwater semi-submersible rig West Hercules

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

* Seadrill participates in two private placements in Archer Limited and increases its ownership to 39.9 percent

Subsequent events

* Seadrill secures contracts with a total revenue potential of US$1.6 billion for the ultra-deepwater rigs West Capricorn, West Leo and West Aquarius

* Seadrill secures contracts with a total revenue potential of US$115 million for the jack-up rigs West Ariel, West Callisto and West Prospero

* Seadrill raises US$950 million in debt through two new secured credit Facilities

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

Second quarter 2011 results

Consolidated revenues for the third quarter of 2011 amounted to US$1,029 million as compared to US$995 million in the second quarter.

Operating profit for the quarter was US$480 million, up from an operating profit of US$430 million in the preceding quarter. The improvement is related to an increase in the number of units in operation and sale of the jack-up rig West Juno.

Operating profit from the Floaters was US$349 million up from US$341 million in the second quarter 2011 due to the newbuild ultra-deepwater rig West Pegasus commencing operations in the Mexican Gulf.

Operating profit from the Jack-up Rigs amounted to US$71 million as compared to an operating profit of US$49 million in the second quarter 2011. The increase in contribution was related to gain on sale of the jack-up rig West Juno.

Operating profit from the Tender Rigs was US$60 million, up from US$40 million in the second quarter 2011. The improvement was due to higher utilization for the tender rigs as well as the second quarter being adversely impacted by the retirement of the tender barge T8.

Net financial items for the quarter showed a loss of US$372 million compared to a gain of US$264 million in the previous quarter. The adverse contribution is mainly related to a loss of US$330 million on derivative financial instruments for the quarter whereas the second quarter had a gain of US$416 million on realization of holdings in the former offshore drilling company Pride International Inc offset by a loss on derivative financial instruments of US$90 million.

Income taxes for the third quarter were US$50 million in line with previous quarter.

Net income for the quarter was US$58 million and basic earnings per share of US$0.07.

Chief Executive Officer in Seadrill Management AS Alf C Thorkildsen says in a comment, "At a point in time when there is turbulence in the financial markets we are very pleased to deliver one of our best quarterly operating profit ever reflecting solid performance and operation of our rig fleet. The market uncertainty has resulted in a significant drop in interest rate levels. This has adversely impacted our earnings in the quarter as we have booked an unrealized loss on interest rate swaps that we entered into in order to cap our interest expenses at attractive long-term levels. We have since our last reporting secured US$2.5 billion in new contracts bringing our order backlog to a record US$13.5 billion. This provides for a solid operating profit performance going forward. The outlook for our business continues to be strong and we have resolved to increase our cash dividend to US$0.76 per share for the quarter."

For further information, please see the third quarter and nine months 2011 report attached.

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

Third quarter 2011 report: http://hugin.info/135817/R/1567547/487040.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#1567547]

Contact Information

  • Analyst contact
    Jim Datland
    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