SDRL - Seadrill Limited Announces Second Quarter 2014 Results

Highlights

    ·           Seadrill Limited reports second quarter 2014 EBITDA* of US$641 million

    ·           The Seadrill Group* on a consolidated basis reports record EBITDA of US$865 million

    ·           Seadrill Limited reports second quarter 2014 net income of US$653 million and earnings per share of $1.29

    ·           Seadrill Limited maintains quarterly dividend at US$1 per share

    ·           Seadrill Group on a consolidated basis maintains orderbacklog of approximately US$20 billion

    ·           Seadrill secures contracts for the jack-up units West Tucana, West Telesto, West Ariel, and West Prospero and extends contract for the West Mischief.  The total revenue potential for the new contracts is approximately US$433 million.

    ·           Seadrill sells 230 million shares of SapuraKencana raising approximately US$300 million in proceeds.

    ·           Seadrill Partners completes US$1.1 billion add-on term loan B

    ·           North Atlantic Drilling announces extensive Investment and Co-operation Agreement with Rosneft to partner in the Russian market. 

    ·           Seadrill secures a contract with Total for employment of the West Jupiter.  The contract is for a firm period of 5 years and has a total revenue potential for the primary contract term of approximately US$1.1 billion inclusive of mobilization. 

Subsequent events

    ·           Seadrill and SapuraKencana's Joint Venture commenced operations of its first pipe-laying support vessel for Petrobras.  The contract is for a period of five years with an extension option for an additional five years. Total revenue potential for the firm contract period is estimated at US$445 million.

    ·           Seadrill receives a commitment for a US$1.35 billion credit facility to refinance the credit facilities secured by the West Pegasus, West Gemini, and West Orion.

    ·           Seadrill completes voluntary exchange offer for US$650mm convertible bond

    ·           Seadrill sells an additional 28% interest in Seadrill Operating LP to Seadrill Partners for approximately $373 million

    ·           North Atlantic Drilling secures 5 contracts with Rosneft commencing in Russian waters from 2015 through 2017 with a total revenue potential for the primary contract term of US$4.1 billion.

    ·           Seadrill secures a contract with ExxonMobil for employment of the West Saturn.  The contract is for a firm period of two years plus a one year option and has a total revenue potential for the primary contract term of approximately US$497 million, inclusive of mobilization.