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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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