SDRL - Seadrill reports first quarter 2012 results

SDRL - Seadrill reports first quarter 2012 results 
HAMILTON, BERMUDA -- (Marketwire) -- 05/14/12 -- 


 
Highlights
  * Seadrill generates first quarter 2012 EBITDA*()) of US$595 million
  * Seadrill reports first quarter 2012 net income of US$439 million and
    earnings per share of US$0.89
  * Seadrill increases the ordinary quarterly cash dividend by 2 cents to
    US$0.82. In addition, Seadrill will pay a one-off dividend of US$0.15
    per share related to an equal cash distribution from our investment in
    SapuraCrest
  * Seadrill subsidiary North Atlantic Drilling Limited ("North Atlantic
    Drilling") completes a private placement raising US$300 million
  * Seadrill secures new contracts with a total revenue potential of US$870
    million
 
Subsequent events
  * Seadrill orders two ultra-deepwater harsh environment semi-submersible
    rigs, at Jurong and Hyundai, for a total consideration of US$1.3
    billion. As part of these construction agreements, the Company has
    received options for further units
  * Seadrill orders a ultra-deepwater drillship at Samsung for an estimated
    total cost of US$600 million with delivery in the second quarter 2014.
    The Company has also received a fixed price option for one additional 
    unit
  * Seadrill secures a three-year contract with revenue potential of US$710
    million for the ultra-deepwater semi-submersible rig West Leo
  * Seadrill secures a five-year contract for the tender rig T18 with a
    US$235 million revenue potential
  * Seadrill continues to monitor Master Limited Partnership ("MLP")
    opportunities

 
*)  EBITDA is defined as earnings before interest, depreciation and
amortization
equal to operating profit plus depreciation and
amortization. 
Condensed consolidated income statements 
First quarter 2012 results 
Consolidated revenues for the first quarter of 2012 amounted to
US$1,050 million
as compared to US$1,059 million in the fourth quarter
2011. 
Operating  profit for the quarter was  US$456 million compared to
US$436 million
in the preceding quarter. 
Net financial items for the quarter showed a gain of US$24 million
compared to a loss  of US$501 million in the previous quarter. The
previous quarter included a US$463  million impairment charge on our
39.9 percent ownership in Archer. While
this   quarter  includes  a 
gain  of  US$91  million  on  derivative financial
instruments 
compared to a gain of US$33  million in the previous quarter.
US$63
million  of the gain  is related to  the sale of  our holdings
in Ensco plc. The rest  is related to unrealized gains on currency
forward contracts, total return
swap arrangements and interest rate
swaps. 
Income  taxes for the first quarter were US$41 million unchanged from
the fourth
quarter. 
Net  income for the  quarter was US$439  million or basic  earnings
per share of US$0.89. 
Chief Executive Officer in Seadrill Management AS Alf C Thorkildsen
says in a
comment, "We are pleased to report another solid quarter
for Seadrill reflecting
a strong underlying operational performance. 
"Furthermore, the outlook and fundamentals for the oil and gas
industry remain
strong. Encouraging exploration successes in
established as well as frontier
basins are leading to an increasing
backlog of appraisal and development drilling projects. These strong
fundamentals support the expectation of continued strength in all
sectors of the contract drilling industry for the foreseeable future.
As a consequence we have ordered six newbuilds in the last
three
months and the Company now has 18 drilling units under construction.
We
remain bullish on the outlook for drilling services, in particular
related to
the demand for high-specification equipment." 
For further information, please see the first quarter 2012 report
attached. 
This information is subject of the disclosure requirements pursuant
to section
5-12 of the Norwegian Securities Trading Act. 
Fleet status report 1Q 2012:
http://hugin.info/135817/R/1611700/512732.pdf 
First quarter 2012 report:
http://hugin.info/135817/R/1611700/512731.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#1611700] 
Analyst contact
Rune Magnus Lundetrae
Chief Financial Officer
Seadrill Management AS
+47 51 30 99 19 
Media contact
Alf Thorkildsen
Chief Executive Officer
Seadrill Management AS
+47 51 30 99 19
 
 
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