Seadrill Limited : Seadrill Limited (SDRL) - First quarter 2013 results
oSeadrill records its best operating quarterly result ever and generates
first quarter 2013 EBITDA*^) of US$713 million
oSeadrill reports first quarter 2013 net income of US$440 million and
earnings per share of US$0.87
oSeadrill increases the ordinary quarterly cash dividend by 3 cents to
oEconomic utilization for floaters increased to 92% in Q1 2013 from 86% in
oEconomic utilization for the jack-up fleet in Q1 2013 was 99%, up from 94%
in Q4 2012
oSeadrill ordered four jack-ups for a total estimated project price of
US$230 million per rig, with deliveries in 2015
oSeadrill completed the acquisition of the ultra-deepwater semi-submersible
rig Songa Eclipse for a total consideration of US$590 million
oSeadrill secured a two-year extension for the ultra-deepwater
semi-submersible rig West Leo with a total estimated revenue potential of
oSeadrill completed the sale of the jack-up rig West Janus for US$73
million recording a gain on sale of US$61 million
oSeadrill issued a NOK1.8 billion unsecured bond maturing in March 2018
oSeadrill completes the sale of 18 tender rigs to SapuraKencana Petroleum
Bhd. for a total consideration of US$2.9 billion on April 30, 2013
oSeadrill secures a three-year contract for the newbuild drillship West
Neptune with a total estimated revenue potential of US$662 million
oSeadrill 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.
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
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.
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
Rune Magnus Lundetræ CFO and Senior Vice President, Seadrill
+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
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Source: Seadrill Limited via Thomson Reuters ONE
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