Highlights
·
Seadrill
Limited reports second quarter 2014 EBITDA* of US$641 million
·
The Seadrill
Group* on a consolidated basis reports record EBITDA of US$865
million
·
Seadrill
Limited reports second quarter 2014 net income of US$653 million
and earnings per share of $1.29
·
Seadrill
Limited maintains quarterly dividend at US$1 per share
·
Seadrill
Group on a consolidated basis maintains orderbacklog of
approximately US$20 billion
·
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
Partners completes US$1.1 billion add-on term loan B
·
North
Atlantic Drilling announces extensive Investment and Co-operation
Agreement with Rosneft to partner in the Russian market.
·
Seadrill
secures a contract with Total for employment of the West
Jupiter. The contract is for a firm period of 5 years and has
a total revenue potential for the primary contract term of
approximately US$1.1 billion inclusive of mobilization.
Subsequent events
·
Seadrill and
SapuraKencana's Joint Venture commenced operations of its first
pipe-laying support vessel for Petrobras. The contract is for
a period of five years with an extension option for an additional
five years. Total revenue potential for the firm contract period is
estimated at US$445 million.
·
Seadrill
receives a commitment for a US$1.35 billion credit facility to
refinance the credit facilities secured by the West Pegasus, West
Gemini, and West Orion.
·
Seadrill
completes voluntary exchange offer for US$650mm convertible
bond
·
Seadrill
sells an additional 28% interest in Seadrill Operating LP to
Seadrill Partners for approximately $373 million
·
North
Atlantic Drilling secures 5 contracts with Rosneft commencing in
Russian waters from 2015 through 2017 with a total revenue
potential for the primary contract term of US$4.1 billion.
·
Seadrill
secures a contract with ExxonMobil for employment of the West
Saturn. The contract is for a firm period of two years plus a
one year option and has a total revenue potential for the primary
contract term of approximately US$497 million, inclusive of
mobilization.
·
North
Atlantic Drilling enters into agreement to acquire a significant
portion of Rosneft's land drilling fleet in Russia. Rosneft
will receive a 30% ownership stake in NADL.
·
Seadrill
completes US$1.5 billion ECA facility to finance the West Saturn,
West Neptune, and West Jupiter.
* EBITDA is defined as earnings before interest,
depreciation and amortization equal to operating profit plus
depreciation and amortization.
* Seadrill Group defined as all companies
currently consolidated or formerly consolidated into Seadrill
Limited
Financial information
Second quarter 2014 results
Revenues for the second quarter of 2014 were
US$1,222 million compared to US$1,221 million in the first quarter
of 2014.
Operating profit for the quarter was US$476
million compared to US$890 million in the preceding
quarter. The decrease is primarily due to inclusion of the
gain on sale of the West Auriga sale of US$440 million in first
quarter results.
Net financial and other items for the quarter
showed a gain of US$71 million compared to a gain of US$2,239
million in the previous quarter. The gain is primarily related to
the sale of SapuraKencana shares and income received from Seadrill
Partners of US$59 million, partially offset by a loss from Archer
of US$5 million and a loss on derivative positions of US$95
million.
Income taxes for the second quarter were (US$106
million), a decrease of US$141 million from the previous
quarter. The overall tax benefit for the quarter is primarily
due to the release of a reserve following the resolution of
uncertain tax positions.
Net income for the quarter was US$653 million
representing basic and diluted earnings per share of $1.29 and
$1.24, respectively.
Balance sheet
As of June 30, 2014, total assets were
US$26,604 million, a decrease of US$887 million compared to the
previous quarter.
Total current assets decreased to US$3,185
million from US$4,031 million over the course of the quarter,
primarily driven by a decrease in cash and decrease in related
party receivables from Seadrill Partners resulting from the
refinancing of debt by Seadrill Partners.
Total non-current assets decreased to US$23,419
million from US$23,460 million primarily due to a decrease in
non-current related party receivables from Seadrill Partners
resulting from the refinancing of debt by Seadrill Partners offset
by overall increases in newbuildings and drilling units.
Total current liabilities decreased to US$4,103
million from US$4,394 million largely due to a decrease in short
term debt to related party as a result of settlement of balances
with Seadrill Partners and a reduction in other current
liabilities.
Long-term interest bearing debt decreased to
US$10,025 million from US$10,728 million over the course of the
quarter and total net interest bearing debt decreased to US$12,205
million from US$12,277 million. The decrease is primarily due
to the repayment of third party debt related to Seadrill Partners
rigs which was refinanced by Seadrill Partners and normal quarterly
installments.
Total equity increased to US$10,747 million from
US$10,673 million as of June 30, 2014, primarily driven by net
income for the quarter and offset by dividends paid.
Cash flow
As of June 30, 2014, cash and cash
equivalents were US$543 million, a decrease of US$369 million
compared to the previous quarter.
Net cash provided by operating activities for
the six month period ended June 30, 2014 was US$881 million
and net cash provided by investing activities for the same period
was US$1,100 million. Net cash used in financing
activities was US$2,165 million.
This information is subject of the disclosure
requirements pursuant to section 5-12 of the Norwegian Securities
Trading Act.
2nd Quarter 2014 Results
http://hugin.info/135817/R/1851370/646653.pdf Fleet Status Report
http://hugin.info/135817/R/1851370/646654.pdf
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