SDRL - Seadrill reports first quarter 2012 results

Hamilton, Bermuda, May 14, 2012 - Seadrill reports first quarter 2012 results:

Highlights

  • Seadrill generates first quarter 2012 EBITDA*) of US$595 million
  • Seadrill reports first quarter 2012 net income of US$439 million and earnings per share of US$0.89
  • Seadrill increases the ordinary quarterly cash dividend by 2 cents to US$0.82. In addition, Seadrill will pay a one-off dividend of US$0.15 per share related to an equal cash distribution from our investment in SapuraCrest
  • Seadrill subsidiary North Atlantic Drilling Limited ("North Atlantic Drilling") completes a private placement raising US$300 million
  • Seadrill secures new contracts with a total revenue potential of US$870 million

Subsequent events

  • Seadrill orders two ultra-deepwater harsh environment semi-submersible rigs, at Jurong and Hyundai, for a total consideration of US$1.3 billion. As part of these construction agreements, the Company has received options for further units
  • Seadrill orders a ultra-deepwater drillship at Samsung for an estimated total cost of US$600 million with delivery in the second quarter 2014. The Company has also received a fixed price option for one additional unit
  • Seadrill secures a three-year contract with revenue potential of US$710 million for the ultra-deepwater semi-submersible rig West Leo
  • Seadrill secures a five-year contract for the tender rig T18 with a US$235 million revenue potential
  • Seadrill continues to monitor Master Limited Partnership ("MLP") opportunities

*) EBITDA is defined as earnings before interest, depreciation and amortization equal to operating profit plus depreciation and amortization.

Condensed consolidated income statements
First quarter 2012 results
Consolidated revenues for the first quarter of 2012 amounted to US$1,050 million as compared to US$1,059 million in the fourth quarter 2011.

Operating profit for the quarter was US$456 million compared to US$436 million in the preceding quarter.

Net financial items for the quarter showed a gain of US$24 million compared to a loss of US$501 million in the previous quarter. The previous quarter included a US$463 million impairment charge on our 39.9 percent ownership in Archer. While this quarter includes a gain of US$91 million on derivative financial instruments compared to a gain of US$33 million in the previous quarter. US$63 million of the gain is related to the sale of our holdings in Ensco plc. The rest is related to unrealized gains on currency forward contracts, total return swap arrangements and interest rate swaps.

Income taxes for the first quarter were US$41 million unchanged from the fourth quarter.

Net income for the quarter was US$439 million or basic earnings per share of US$0.89.


Chief Executive Officer in Seadrill Management AS Alf C Thorkildsen says in a comment, "We are pleased to report another solid quarter for Seadrill reflecting a strong underlying operational performance.

"Furthermore, the outlook and fundamentals for the oil and gas industry remain strong. Encouraging exploration successes in established as well as frontier basins are leading to an increasing backlog of appraisal and development drilling projects. These strong fundamentals support the expectation of continued strength in all sectors of the contract drilling industry for the foreseeable future. As a consequence we have ordered six newbuilds in the last three months and the Company now has 18 drilling units under construction. We remain bullish on the outlook for drilling services, in particular related to the demand for high-specification equipment."

For further information, please see the first quarter 2012 report attached.


Analyst contact
Rune Magnus Lundetræ
Chief Financial Officer
Seadrill Management AS
+47 51 30 99 19    

Media contact
Alf Thorkildsen
Chief Executive 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.

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