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Seadrill's CEO Discusses Q2 2012 Results - Earnings Call Transcript

That concludes the preliminary details. Now I will turn the call over to Alf. Please go ahead.

Alf Thorkildsen

Thank you, Ragnvald. Good morning and good afternoon to all of you and welcome to our second quarter 2012 conference call. I would like to start this presentation by going through the highlights in the second quarter. Thereafter I will proceed to discuss our view of the market outlook for each of our business segment before updating you on the contract status for our fleet, and I would end with some summarizing comments. Rune Magnus, our CFO will afterwards take you through our financial accounts and results in the first quarter which will also include comments to the results posted by North Atlantic Drilling to date. We will thereafter do a combined Q&A session for both the Seadrill and North Atlantic.

Highlights for the second quarter 2012. I am pleased to share with you another solid quarter with an EBITDA of some $634 million and net income of $554 million. The corresponding earnings per share was $1.12, positively impacted by an accounting gain of $169 million reported under all of our financial items related to the merger between SapuraCrest and Kencana Petroleum in Malaysia.

Our operational performance continues to be strong and our floaters achieved a marginally higher utilization of 95% compared to 94% in the preceding quarter. We have so far in the third quarter had approximately 90 days downtime in connection with equipment parts needed to be replaced on subsea BOPs. This issue has been addressed and resolved.

For our jack-ups that were in operation we achieved the economic utilization of 79% in the quarter. Our jack-up utilizations were adversely impacted by several rigs currently mobilizing and the mobilization has taken somewhat longer than anticipated. Our tender rigs continued to perform excellent with an economic utilization of 97% in the second quarter.

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