Hamilton, Bermuda, February 29, 2012 - Seadrill reports fourth quarter and preliminary 2011 results:
*) EBITDA is defined as earnings before interest, depreciation and amortization equal to operating profit plus depreciation and amortization.
Fourth quarter 2011 results
Consolidated revenues for the fourth quarter of 2011 amounted to US$1,059 million as compared to US$1,029 million in the third quarter.
Operating profit for the quarter was US$436 million compared to US$480 million in the preceding quarter. The third quarter included a US$23 million gain on sale of West Juno, while the fourth quarter includes a non-recurring US$16 million expense related to termination of a third party management agreement for two jack-up rigs in the Middle East. Termination of the management contract will provide for cost savings more than offsetting the non-recurring expense during the remaining contract period for the two rigs.
Net financial items for the quarter showed a loss of US$501 million compared to a loss of US$372 million in the previous quarter. This loss includes a US$463 million non-cash impairment charge on the Company's 39.9 percent ownership in Archer. The investment is written down to reflect the share price as of December 31, 2011. This loss is partly offset by a gain of US$33 million on other derivative financial instruments for the quarter whereas we the previous quarter had a loss of US$330 million on such instruments.
Income taxes for the fourth quarter were US$17 million, down from US$50 million in the previous quarter.
Net loss for the quarter was US$82 million corresponding to a basic loss per share of US$0.23.
Chief Executive Officer in Seadrill Management AS Alf C Thorkildsen says in a comment, "The market prospects for our industry are looking increasingly promising based on growth in rig demand due to our customers' significant exploration success and the prevailing favorable energy prices. We are of the opinion that this development will provide us opportunities to continue the growth of our Company. The strong cash-flow from operations is supporting our growth and our cash dividend. As a reflection of this, we are pleased to further raise the quarterly dividend and are confident in our ability to continue to deliver on our promises to our shareholders."
For further information, please see the fourth quarter and preliminary 2011 results report attached.
VP Investor Relations
Seadrill Management AS
+47 51 30 99 19
Chief Financial Officer
Seadrill Management AS
+47 51 30 99 19
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Call-in details for today's Conference Call
Management will do a conference call today February 29, 2012 at 09:00 a.m. ET time and 3:00 p.m. (Norwegian time).
To listen to the management presentation of the results, the following options are available:
In order to listen to the presentation on the web, you need to have a sound card installed on your computer.
B. Conference call
Norway Free call 800 56 053
Norway + 47 23 16 27 71
International call +44 (0)20 7136 2050
UK Free call 0800 279 4977
US +1 646 254 3364
US Free call 1877 280 2296
Participants will be asked for their name, company and conference ID. The Seadrill conference ID is: 4715361.
There will be a Q&A session subsequent to the presentation. Information on 'how to ask management questions' will be given at the beginning of the Q&A session.
In order to view the presentation while listening to the conference, the presentation material from be downloaded from www.seadrill.com
If you are unable to participate in the conference call, there is an opportunity to listen to a replay on www.seadrill.com (Investor Relations) or to listen to a playback by dialing:
UK : +44 (0)20 7111 1244
US : + 1 347 366 9565
Norway: +47 21 00 04 98
- followed by replay access number: 4715361#
Participant list information required: Full name & company
Replay will be available until March 7, 2012.