SDRL - Seadrill reports fourth quarter and preliminary 2012 results

Seadrill Limited (SDRL) - Fourth quarter and preliminary 2012 results

Highlights

• Seadrill generates fourth quarter 2012 EBITDA*⁾ of US$604 million
• Seadrill reports fourth quarter 2012 net income of US$50 million and earnings per share of US$0.04
• Seadrill prepaid US$0.85 per share in dividend for the fourth quarter 2012 in December 2012.
• Seadrill Partners LLC listed its common units on the NYSE raising US$207 million
• Seadrill secured a five-year commitment with Husky for the newbuild ultra-deepwater semi-submersible rig West Mira for operations offshore Canada, with an estimated total revenue potential of US$1.2 billion
• Seadrill secured a two-year extension for the jack-up West Epsilon with a total estimated revenue potential of US$215 million
• Seadrill added in total US$2.3 billion to the orderbacklog during the fourth quarter
• Seadrill increases ownership in Asia Offshore Drilling to 66.16 percent

Subsequent events

• Seadrill announces the signing of the sale and purchase agreement for the sale of 18 tender rigs to SapuraKencana Petroleum Bhd. for a total enterprise value of US$2.9 billion
• Seadrill secures a two-year extension for the ultra-deepwater semi-submersible rig West Leo with a total estimated revenue potential of US$430 million
• Seadrill completes the acquisition of the ultra-deepwater semi-submersible rig Songa Eclipse for a total consideration of US$590 million
• Seadrill orders two jack-ups for a total estimated project price of US$230 million per rig, with deliveries in the first and second quarter 2015
• Seadrill takes delivery of the newbuild tender rig T15
• Seadrill participates in a private placement in Archer Limited, maintaining its shareholding at 39.9 percent
• Seadrill participates in a private placement in Sevan Drilling ASA, increasing the ownership from 28.5 to 30.31 percent

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

Condensed consolidated income statements
Fourth quarter and preliminary 2012 results

 

Consolidated revenues for the fourth quarter of 2012 amounted to US$1,215 million compared to US$1,092 million in the third quarter 2012.

Operating profit for the quarter was US$441 million compared to US$413 million in the preceding quarter.

Net financial items for the quarter showed a loss of US$335 million compared to a loss of US$158 million in the previous quarter, mainly related to recording an impairment charge of US$221 million on our investment in Archer in the fourth quarter 2012. In addition, we recorded a gain of US$17 million on forwards and cross currency interest rate swap agreements during the quarter.