*) 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 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.
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 Lundetræ, 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.