SDRL - Seadrill Limited Announces Fourth Quarter 2014 Results
(Thomson Reuters ONE) -
February 26, 2015 - Seadrill Limited ("Seadrill" or "the Company"), announces
its fourth quarter results for the three months ended December 31, 2014.
Commenting today, Per Wullf, CEO and President of Seadrill Management Ltd.,
said: "Together with the rest of the industry, we are facing challenging times.
Seadrill operates in a market that is, and will continue to be cyclical. We have
taken prudent and positive action during 2014, and will continue to do so in
2015, to position ourselves to have the flexibility, from an operational and
financial perspective, to manage through this downturn. I personally thank all
employees, offshore and onshore, for their efforts in driving performance and
efficiencies in this difficult environment.
We are optimistic that the drilling industry will benefit from the rebalancing
that is occurring as older rigs are retired, and believe that this will
ultimately result in a more healthy industry in the long run. We have built
Seadrill's business with an eye towards generating returns through the cycle and
we believe that we are well positioned to take advantage of this downturn and
come out stronger."
Financial Highlights
· The Seadrill Group* on a combined basis reports EBITDA of US$897
million, a year over year increase of 17%
· Seadrill Limited reports fourth quarter 2014 EBITDA* of US$672 million
· Seadrill Limited reports fourth quarter 2014 net income of US$150
million and earnings per share of US$0.32
· Seadrill Group on a combined basis reports orderbacklog of
approximately US$17.2 billion
· Seadrill Limited sells the ultra-deepwater drillship West Vela to
Seadrill Partners for US$900 million on a 100% basis. Seadrill Limited sold a
51% stake in the unit.
· Seadrill receives commitments for a US$750 million credit facility for
SeaMex to refinance the West Oberon, West Intrepid, West Defender, West
Courageous, and West Titania.
· Seadrill receives commitments for a US$950 million credit facility for
the financing of the West Carina and West Eclipse.
· Seadrill exercises a purchase option for the West Polaris, a 6th
generation Ultra-Deepwater drillship, from Ship Finance International Ltd. The
purchase option price is US$456 million and total consideration payable to Ship
Finance is US$111 million after accounting for existing debt on the unit.
* EBITDA is defined as earnings before interest, depreciation and amortization
equal to operating profit plus depreciation and amortization and after adjusting
for non-cash loss on impairment and gains on disposals and deconsolidations.
* Seadrill Group is defined as all companies currently consolidated into
Seadrill Limited plus Seadrill Partners. The results and measures presented for
the Seadrill Group are designed to aid comparability with periods prior to the
deconsolidation of Seadrill Partners on January 2, 2014.
* Seadrill Group combined EBITDA is defined as EBITDA for Seadrill Limited plus
EBITDA for Seadrill Partners.
Operational Highlights
· Seadrill achieves 94% economic utilization* for its floater fleet and
98% for its Jack-up fleet for the fourth quarter 2014.
· Seadrill secures executed contract awards with Petrobras for the Libra
Field for the West Tellus and West Carina. The contracts are for a firm period
of three years each and have a total revenue potential including mobilization of
US$1.1 billion.
· Seadrill secures a 145 day contract extension with Total for the semi-
submersible unit West Eclipse. The total revenue potential for the extension is
approximately US$65 million.
· Seadrill secures a new contract for the jack-up unit West Leda. The
total revenue potential for the new contract is approximately US$16 million.
· Seadrill secures a new contract for the jack-up unit West Telesto.
This is in direct continuation from the previous contract in Australia and is
for one well. The total revenue potential for the new contract is US$4 million.
· Seadrill secures a new contract for the jack-up unit West Mischief.
The total revenue potential for the new contract is approximately US$112
million.
Subsequent Events
· North Atlantic Drilling receives approval from its Norwegian
Bondholders to amend the Bond Agreement for its NOK1.5 billion Norwegian Bond
maturing in 2018. Under the terms of the agreement, Seadrill will provide a
guarantee for the Bond Issue in exchange for some amendments to the Bond
Issuer's covenant package, namely replacing the Issuer's current financial
covenants with Seadrill financial covenants.
· North Atlantic Drilling receives approval from lending group to amend
the loan agreement for its US$2 billion credit facility. Under the terms of the
agreement, Seadrill will provide a guarantee for the credit facility in exchange
for some amendments to the Borrower's covenant package, namely replacing the
Borrower's current financial covenants with Seadrill financial covenants.
· North Atlantic Drilling receives approval from Ship Finance
International Ltd. to amend its US$600 million sale leaseback facility. Under
the terms of the agreement, Seadrill will provide a guarantee for the facility
in exchange for some amendments to the Borrower's covenant package, namely
replacing the Borrower's current financial covenants with Seadrill financial
covenants.
· Seadrill and Petrobras unable to finalize extensions for the West
Taurus and West Eminence.
· Seadrill receives notification of early termination from Talisman for
the West Vigilant and removes US$81 million from contract backlog. Seadrill and
Talisman continue to work on a commercial solution for the unit.
· Rune Magnus Lundetræ will step down as Chief Financial Officer of
Seadrill Management Limited with effect from 30 June 2015 at which time he will
leave the Seadrill Group. Mr Lundetræ has been with the Seadrill Group for over
seven years the last 3 of which have been as Chief Financial Officer of Seadrill
Management Limited. The Board wishes to thank Mr Lundetrae for his contribution
to the development of the Seadrill Group and wishes him well in his future
activities.
Financial information
Fourth quarter 2014 results
Revenues for the fourth quarter of 2014 were US$1,261 million compared to
US$1,293 million in the third quarter of 2014.
Operating profit for the quarter was US$452 million compared to US$461 million
in the preceding quarter. The decrease was primarily due to downtime on the West
Phoenix and West Venture, removal of the West Vela following the sale to
Seadrill Partners and loss on impairment of goodwill, offset by commencement of
operations on the West Saturn, West Jupiter, and West Neptune and gain on
disposals.
Net financial and other items for the quarter showed a loss of US$251 million
compared to a loss of US$232 million in the previous quarter. The loss was
primarily related to interest expense and losses on the mark to market of
derivative financial instruments, offset by interest income and foreign exchange
gains.
Income taxes for the fourth quarter were US$51 million, an increase of US$12
million from the previous quarter. The increase was primarily due to an
increase in provisions for uncertain tax positions.
Net income for the quarter was US$150 million representing basic and diluted
earnings per share of $0.32. Net income was negatively impacted by a non-cash
impairment of goodwill of US$232 million relating to the Jack-up segment.
* Economic utilization is calculated as total revenue for the period as a
proportion of the full operating dayrate multiplied by the number of days in the
period, excluding bonuses.
Balance sheet
As of December 31, 2014, total assets were US$26,506 million, a decrease of
US$881 million compared to the previous quarter.
Total current assets decreased to US$3,415 million from US$3,422 million over
the course of the quarter, primarily driven by a decrease in the value of
marketable securities, offset by an increase in cash and accounts receivable.
Total non-current assets decreased to US$23,091 million from US$23,965 million
primarily due to the sale of the West Vela to Seadrill Partners, a decrease in
the value of marketable securities, and impairment of Goodwill, offset by an
increase in investments in associated companies.
Total current liabilities increased to US$4,574 million from US$3,609 million
primarily due an increase in the current portion of long term debt and
unrealized losses on derivatives, offset by normal quarterly debt instalments.
Long-term external interest bearing debt decreased to US$10,311 million from
US$11,422 million over the course of the quarter and total net interest bearing
debt decreased to US$11,755 million from US$12,735 million. The decrease was
primarily due to the derecognition of the West Vela facility following the sale
to Seadrill Partners, decrease in related party debt as a result of the West
Polaris acquisition, and increase of cash balance.
Total equity decreased to US$10,390 million from US$10,944 million as of
December 31, 2014, primarily driven by losses related to unrealized mark to
market loss on marketable securities, offset by net income for the quarter.
Cash flow
As of December 31, 2014, cash and cash equivalents were US$831 million, an
increase of US$193 million compared to the previous quarter.
Net cash provided by operating activities for the twelve month period ended
December 31, 2014 was US$1,574 million and net cash provided by investing
activities for the same period was US$66 million. Net cash used in financing
activities was US$1,521 million.
Forward-Looking Statements
This news release includes forward looking statements. Such statements are
generally not historical in nature, and specifically include statements about
the Company's plans, strategies, business prospects, changes and trends in its
business and the markets in which it operates. These statements are made based
upon management's current plans, expectations, assumptions and beliefs
concerning future events impacting the Company and therefore involve a number of
risks, uncertainties and assumptions that could cause actual results to differ
materially from those expressed or implied in the forward-looking statements,
which speak only as of the date of this news release. Important factors that
could cause actual results to differ materially from those in the forward-
looking statements include, but are not limited to offshore drilling market
conditions including supply and demand, day rates, customer drilling programs
and effects of new rigs on the market, contract awards and rig mobilizations,
contract backlog, dry-docking and other costs of maintenance of the drilling
rigs in the Company's fleet, the cost and timing of shipyard and other capital
projects, the performance of the drilling rigs in the Company's fleet, delay in
payment or disputes with customers, our ability to successfully employ our
drilling units, procure or have access to financing, ability to comply with loan
covenants, liquidity and adequacy of cash flow from operations, fluctuations in
the international price of oil, international financial market conditions
changes in governmental regulations that affect the Company or the operations of
the Company's fleet, increased competition in the offshore drilling industry,
and general economic, political and business conditions globally. Consequently,
no forward-looking statement can be guaranteed. When considering these forward-
looking statements, you should keep in mind the risks described from time to
time in the Company's filings with the SEC, including its Annual Report on Form
20-F.
The Company undertakes no obligation to update any forward looking statements to
reflect events or circumstances after the date on which such statement is made
or to reflect the occurrence of unanticipated events. New factors emerge from
time to time, and it is not possible for us to predict all of these factors.
Further, the Company cannot assess the impact of each such factors on its
business or the extent to which any factor, or combination of factors, may cause
actual results to be materially different from those contained in any forward
looking statement.
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
Seadrill Limited 4Q 2014 Fleet status:
http://hugin.info/135817/R/1897544/673503.pdf
Seadrill 4Q 2014:
http://hugin.info/135817/R/1897544/673499.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Seadrill Limited via GlobeNewswire
[HUG#1897544]
Unternehmensinformation / Kurzprofil:
Datum: 26.02.2015 - 08:28 Uhr
Sprache: Deutsch
News-ID 374415
Anzahl Zeichen: 14974
contact information:
Town:
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Kategorie:
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