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SDRL - Seadrill Announces First Quarter 2014 Results

Stocks in this article: SDRL

HAMILTON, Bermuda, May 28, 2014 (GLOBE NEWSWIRE) -- Highlights

  • From the effect of January 2, 2014, the financial results of Seadrill Partners LLC has been deconsolidated from the financial results of Seadrill. All figures presented in this report reflect deconsolidation unless otherwise stated.  Please refer to note 4 for a more detailed description.
  • Seadrill reports first quarter 2014 EBITDA* of US$624 million excluding the gain on sale for the West Auriga
  • Seadrill reports pro forma consolidated EBITDA of US$788 million
  • Seadrill reports first quarter 2014 net income of US$3,094 million and earnings per share of $6.54
  • Seadrill increases the ordinary quarterly cash dividend by 2 cents to US$1.00 per share
  • Orderbacklog of US$18.8 billion on a consolidated basis
  • North Atlantic Drilling completes private placement of US$600 million unsecured bond issue maturing 2019
  • North Atlantic Drilling completes its initial public offering of 13,513,514 common shares and began trading on January 29, 2014 on the New York Stock Exchange under the symbol "NADL".
  • Seadrill Partners completes US$1.8 billion Term Loan B and US$100 million senior secured revolving loan
  • Seadrill completes placement of SEK 1.5 billion unsecured bond issue
  • Seadrill executes contracts for four Jack-up units with Pemex in Mexico and establishes SeaMex, a 50/50 Joint Venture with Fintech Advisory Inc.
  • Seadrill sells part of the ultra-deepwater drillship West Auriga to Seadrill Partners for US$1.24 billion, financed with a US$416 million equity offering and related party loans

Subsequent events

  • Seadrill secures contracts for the jack-up units West Tucana, West Telesto, West Ariel, and West Prospero and extends contract for the West Mischief.  The total revenue potential for the new contracts is approximately US$433 million.
  • Seadrill sells 230 million shares of SapuraKencana raising approximately US$300 million in proceeds.  Seadrill continues to own approximately 490 million shares, representing an approximate 8% ownership stake in SapuraKencana.
  • North Atlantic Drilling announces extensive Investment and Co-operation Agreement with Rosneft to partner in the Russian market. 

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

Financial information

First quarter 2014 results Revenues for the first quarter of 2014 were US$1,221 million compared to $1,469 million in the fourth quarter of 2014.  The decrease is primarily due to the deconsolidation of the Seadrill Partners and downtime on the West Alpha, West Phoenix, West Pegasus, and West Polaris.  Offsetting these items was the inclusion of the West Auriga, West Tellus, West Vela, West Castor, and West Telesto for a full quarter.  On a consolidated basis revenues for the first quarter were US$1,436 million.

Operating profit for the quarter was US$890 million compared to US$568 million in the preceding quarter. The increase is primarily a result of the gain on sale for the West Auriga and new rigs entering service.  On a consolidated basis operating profit for the quarter was US$574 million.

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