Seadrill Limited (SDRL) - First quarter 2013 results

Seadrill Limited (SDRL) - First quarter 2013 results 
HAMILTON, BERMUDA -- (Marketwired) -- 05/28/13 --  
Highlights 
* Seadrill records its best operating quarterly result ever and
generates     first quarter 2013 EBITDA*()) of US$713 million 
* Seadrill reports first quarter 2013 net income of US$440 million
and     earnings per share of US$0.87 
* Seadrill increases the ordinary quarterly cash dividend by 3
cents to     US$0.88 
* Economic utilization for floaters increased to 92% in Q1 2013
from 86% in Q4     2012 
* Economic utilization for the jack-up fleet in Q1 2013 was 99%, up
from 94% 
in Q4 2012 
* Seadrill ordered four jack-ups for a total estimated project
price of US$230 
million per rig, with deliveries in 2015 
* Seadrill completed the acquisition of the ultra-deepwater
semi-submersible rig Songa Eclipse for a total consideration of
US$590 million 
* Seadrill secured a two-year extension for the ultra-deepwater
semi-submersible rig West Leo with a total estimated revenue
potential of US$430 
million 
* Seadrill completed the sale of the jack-up rig West Janus for
US$73 million 
recording a gain on sale of US$61 million 
* Seadrill issued a NOK1.8 billion unsecured bond maturing in March
2018 
Subsequent events 
* Seadrill completes the sale of 18 tender rigs to SapuraKencana
Petroleum 
Bhd. for a total consideration of US$2.9 billion on
April 30, 2013 
* Seadrill secures a three-year contract for the newbuild drillship
West     Neptune with a total estimated revenue potential of US$662
million 
* Seadrill completes the sale of the tender rig T15 to Seadrill
Partners LLC 
(SDLP) for a total consideration of US$210 million 
*) EBITDA is defined as earnings before interest, depreciation and
amortization
equal to operating profit plus depreciation and
amortization. 
Condensed consolidated income statements 
First quarter 2013 results 
Consolidated revenues for the first quarter of 2013 were US$1,265
million compared to US$1,215 million in the fourth quarter of 2012. 
The increase includes the addition of the West Eclipse for the full
quarter, West Hercules
for 60 days for quarter and overall
improvement in utilization for the fleet. 
Operating profit for the quarter was US$552 million compared to
US$441 million
in the preceding quarter.  The increase is driven by
higher revenues as discussed above, gain on sale of the of the 1985
built jack-up West Janus of
US$61 million, offset by higher operating
expenses in the first quarter 
Net financial items for the quarter showed a loss of US$68 million
compared to a loss of US$335 million in the previous quarter. The
decrease in the loss is due
to an impairment recognized in the fourth
quarter to our investment in Archer
Ltd which did not re-occur in
this quarter and a overall gain on our financial
derivative
arrangements in the first quarter compared to an overall loss in
the
fourth quarter. 
Income taxes for the first quarter were US$44 million, a decrease of
US$64 million from the previous quarter. 
Net income for the quarter was US$440 million representing basic and
diluted
earnings per share of US$0.87 and US$0.85, respectively. 
Balance sheet 
As of March 31, 2013, total assets were US$21,206 million, an
increase of US$1,574 million compared to December 31, 2012. 
Total current assets decreased to US$2,350 million from US$2,354
million over
the course of the quarter, primarily driven by an
increase in accounts receivable and cash; offset by a decrease in
other current assets. 
Total non-current assets increased to US$18,856 million from
US$17,278 million
primarily due to an increase in drilling units
following the acquisition of the
Songa Eclipse and the consolidation
of Asia Offshore Drilling Ltd at the end of the quarter, which added
one ultra-deepwater rig and three jack-ups under construction. These
rigs have been recognized at fair value on the date of acquisitions
as they are business acquisitions for accounting purposes. 
Total current liabilities increased to US$4,782 million from US$3,613
million
largely due to an increase in the current portion of
long-term debt and the addition of the estimated fair value
liabilities from the consolidation of Asia
Offshore Drilling Ltd. 
See Notes 7 and 8 to our interim financial statements
for further
discussion. 
Long-term interest bearing debt decreased to US$8,582 million from
US$8,695 million over the course of the quarter and net interest
bearing debt increased
to US$11,674 million from $11,039 million. The
increase is due to the issuance
of NOK 1,800 million senior unsecured
bond and the $450 million West Eclipse
facility. 
Total equity increased to US$6,530 million from US$6,024 million as
of March
31, 2013. The increase is primarily driven by net income for
the quarter. 
Cash flow 
As of March 31, 2013, cash and cash equivalents were US$361 million,
an increase
of US$43 million compared to the previous quarter. 
Net cash from operating activities for the period was US$423 million
and net
cash used in investing activities for the same period was
US$1,074 million, primarily related to additional payments for
newbuilds and the acquisition of
the Songa Eclipse. 
Net cash from financing activities was US$694 million, primarily
because of net
proceeds from the issuance of debt. 
Questions should be directed to: 
Fredrik Halvorsen: CEO and President, Seadrill Management Ltd 
Rune Magnus Lundetrae CFO and Senior Vice President, Seadrill
Management Ltd 
+44 2088 1147 00 
This information is subject of the disclosure requirements pursuant
to section
5-12 of the Norwegian Securities Trading Act. 
Seadrill Limited First quarter 2013 results: 
http://hugin.info/135817/R/1705094/563967.pdf 
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Source: Seadrill Limited via Thomson Reuters ONE 
[HUG#1705094] 
Seadrill
+47 51 30 99 00