Seadrill Limited : SDRL - Seadrill reports fourth quarter and preliminary 2012 results

Seadrill Limited : SDRL - Seadrill reports fourth quarter and preliminary 2012
                                   results

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

Highlights

  oSeadrill generates fourth quarter 2012 EBITDA*^) of US$604 million
  oSeadrill reports fourth quarter 2012 net income of US$50 million and
    earnings per share of US$0.04
  oSeadrill prepaid US$0.85 per share in dividend for the fourth quarter 2012
    in December 2012.
  oSeadrill Partners LLC listed its common units on the NYSE raising US$207
    million
  oSeadrill 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
  oSeadrill secured a two-year extension for the jack-up West Epsilon with a
    total estimated revenue potential of US$215 million
  oSeadrill added in total US$2.3 billion to the orderbacklog during the
    fourth quarter
  oSeadrill increases ownership in Asia Offshore Drilling to 66.16 percent

Subsequent events

  oSeadrill 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
  oSeadrill secures a two-year extension for the ultra-deepwater
    semi-submersible rig West Leo with a total estimated revenue potential of
    US$430 million
  oSeadrill completes the acquisition of the ultra-deepwater semi-submersible
    rig Songa Eclipse for a total consideration of US$590 million
  oSeadrill 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
  oSeadrill takes delivery of the newbuild tender rig T15
  oSeadrill participates in a private placement in Archer Limited,
    maintaining its shareholding at 39.9 percent
  oSeadrill 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.

Income taxes for the fourth quarter were US$56 million, an increase of US$17
million in the previous quarter.

Net income for the quarter was US$50 million representing basic earnings per
share of US$0.04.

The Company reports operating revenues of US$4,478 million, operating income
of US$1,791 million and a net income of US$1,257 million for the year 2012.
This compares to operating revenues of US$4,192 million, operating income of
US$1,774 million and a net income of US$1,482 million for the year 2011.



Balance sheet
As of December 31, 2012, total assets amounted to US$19,633 million, an
increase of US$154 million compared to September 30, 2012.

Total current assets increased from US$2,298 million to US$2,355 million over
the course of the quarter primarily related to an increase in accounts
receivable and marketable securities offset by a decrease in cash and cash
equivalents.

Total non-current assets increased from US$17,181 million to US$17,278 million
mainly due to payments for the yard installments for T-15 and West Mira.

Total current liabilities increased from US$2,896 million to US$3,561 million
largely due to an increase in current portion of long-term debt.

Long-term interest bearing debt decreased from US$9,296 million to US$8,695
million over the course of the quarter and net interest bearing debt increased
from $10,354 million to US$11,039 million.

Total equity decreased from US$6,567 million to US$6,077 million as of
December 31, 2012. The decrease is mainly due to the paid dividend for the
third quarter and the accelerated payment for the fourth quarter, offset by
net income and the proceeds from the private placement in our subsidiary
Seadrill Partners LLC in October 2012. 



Cash flow
As of December 31, 2012, cash and cash equivalents amounted to US$318 million,
which corresponds to a decrease of US$200 million compared to the previous
quarter. Net cash from operating activities for the period was US$1,590
million whereas net cash used in investing activities for the same period
amounted to US$1,360 million, primarily related to additions to newbuilds. Net
cash used for financing activities was US$395 million mainly due to dividend
payments and net proceeds from debt.

Outstanding shares
As of December 31, 2012, the issued common shares in Seadrill Limited totaled
469,178,074 adjusted for our holding of 72,859 treasury shares. In addition,
we had stock options for 3.9 million shares outstanding under various share
incentive programs for management, out of which approximately 1.2 million have
vested and are exercisable.

For further information, please see the fourth quarter and preliminary 2012
report attached.



This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
Fourth quarter and preliminary 2012 results

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Source: Seadrill Limited via Thomson Reuters ONE
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