Consolidated financial information
Second quarter 2013 results
Consolidated revenues for the second quarter of 2013 were US$1,268 million compared to US$1,265 million in the first quarter of 2013. The increase was despite the sale of the tender rig business, which operated for only 30 days in the quarter, resulting in a US$100 million revenue decline from 1Q 2013. Overall improvement in fleet performance more than offset this revenue reduction.
Operating profit for the quarter was US$507 million compared to US$552 million in the preceding quarter. The decrease is driven by gain on sale of the West Janus in the first quarter, offset by lower operating and SG&A expenses during the second quarter.
Net financial and other items for the quarter showed a gain of US$1,292 million compared to a loss of US$68 million in the previous quarter. The gain is primarily related to the sale of the tender rig business and positive impacts from interest rate swap movements.
Income taxes for the second quarter were US$49 million, an increase of US$5 million from the previous quarter.
Net income for the quarter was US$1,750 million representing basic and diluted earnings per share of US$3.68 and US$3.53, respectively.
As of June 30, 2013, total assets were US$21,801 million, an increase of US$595 million compared to March 31, 2013.
Total current assets increased to US$2,978 million from US$2,350 million over the course of the quarter, primarily driven by an increase in marketable securities and other current assets, offset by a decrease in amounts due from related party and the sale of the tender rig business.
Total non-current assets increased to US$18,823 million from US$18,856 million primarily due to yard payments on the West Auriga, West Vela, T-16, and West Mira, offset by the sale of the tender rig business.
Total current liabilities decreased to US$4,397 million from US$4,782 million largely due to decreases in short term debt to related party and liabilities associated with sale the tender rig business, offset by an increase in the current portion of long-term debt.
Long-term interest bearing debt increased to US$8,521 million from US$7,883 million over the course of the quarter and total net interest bearing debt decreased to US$11,186 million from US$11,674 million. The decrease is primarily due to repayments of related party debt.
Total equity increased to US$7,840 million from US$6,530 million as of June 30, 2013. The increase is primarily driven by net income for the quarter, offset by dividends paid.
As of June 30, 2013, cash and cash equivalents were US$437 million, an increase of US$109 million compared to the previous quarter.
Net cash from operating activities for the six month period ended June 30, 2013 was US$671 million and net cash used in investing activities for the same period was US$444 million. Net cash used in financing activities was US$108 million.
Rune Magnus Lundetræ
Chief Financial Officer
Seadrill Management Ltd.
+44 (0) 7766 071010
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.