SDRL - Seadrill reports fourth quarter and preliminary 2012 results

2013-02-28 16:11:23 -

Seadrill Limited (SDRL) - Fourth quarter and preliminary 2012 results

* Seadrill generates fourth quarter 2012 EBITDA*()) of US$604 million
* Seadrill reports fourth quarter 2012 net income of US$50 million and
earnings per share of US$0.04
* Seadrill prepaid US$0.85 per share in dividend for the fourth quarter 2012
in December 2012.
* Seadrill Partners LLC listed its common units on the NYSE raising US$207
* Seadrill secured a five-year commitment with Husky for the newbuild ultra-
deepwater semi-submersible rig West Mira for operations offshore Canada,
with an estimated total revenue potential of US$1.2 billion
* Seadrill secured a two-year extension for the jack-up West Epsilon with a
total estimated revenue potential of US$215 million
* Seadrill added in total US$2.3 billion to the orderbacklog during the fourth
* Seadrill increases ownership in Asia Offshore Drilling to 66.16 percent

Subsequent events
* Seadrill announces the signing of the sale and purchase agreement for the
sale of 18 tender rigs to SapuraKencana Petroleum Bhd. for a total
enterprise value of US$2.9 billion
* Seadrill secures a two-year extension for the ultra-deepwater semi-
submersible rig West Leo with a total estimated revenue potential of US$430
* Seadrill completes the acquisition of the ultra-deepwater semi-submersible
rig Songa Eclipse for a total consideration of US$590 million
* Seadrill orders two jack-ups for a total estimated project price of US$230
million per rig, with deliveries in the first and second quarter 2015
* Seadrill takes delivery of the newbuild tender rig T15
* Seadrill participates in a private placement in Archer Limited, maintaining
its shareholding at 39.9 percent
* Seadrill participates in a private placement in Sevan Drilling ASA,
increasing the ownership from 28.5 to 30.31 percent

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

Condensed consolidated income statements
Fourth quarter and preliminary 2012 results

Consolidated revenues for the fourth quarter of 2012 amounted to US$1,215
million compared to US$1,092 million in the third quarter 2012.

Operating profit for the quarter was US$441 million compared to US$413 million
in the preceding quarter.

Net financial items for the quarter showed a loss of US$335 million compared to
a loss of US$158 million in the previous quarter, mainly related to recording an
impairment charge of US$221 million on our investment in Archer in the fourth
quarter 2012. In addition, we recorded a gain of US$17 million on forwards and
cross currency interest rate swap agreements during the quarter.

Income taxes for the fourth quarter were US$56 million, an increase of US$17
million in the previous quarter.

Net income for the quarter was US$50 million representing basic earnings per
share of US$0.04.

The Company reports operating revenues of US$4,478 million, operating income of
US$1,791 million and a net income of US$1,257 million for the year 2012. This
compares to operating revenues of US$4,192 million, operating income of US$1,774
million and a net income of US$1,482 million for the year 2011.

Balance sheet
As of December 31, 2012, total assets amounted to US$19,633 million, an increase
of US$154 million compared to September 30, 2012.

Total current assets increased from US$2,298 million to US$2,355 million over
the course of the quarter primarily related to an increase in accounts
receivable and marketable securities offset by a decrease in cash and cash

Total non-current assets increased from US$17,181 million to US$17,278 million
mainly due to payments for the yard installments for T-15 and West Mira.

Total current liabilities increased from US$2,896 million to US$3,561 million
largely due to an increase in current portion of long-term debt.

Long-term interest bearing debt decreased from US$9,296 million to US$8,695
million over the course of the quarter and net interest bearing debt increased
from $10,354 million to US$11,039 million.

Total equity decreased from US$6,567 million to US$6,077 million as of December
31, 2012. The decrease is mainly due to the paid dividend for the third quarter
and the accelerated payment for the fourth quarter, offset by net income and the
proceeds from the private placement in our subsidiary Seadrill Partners LLC in
October 2012.

Cash flow
As of December 31, 2012, cash and cash equivalents amounted to US$318 million,
which corresponds to a decrease of US$200 million compared to the previous
quarter. Net cash from operating activities for the period was US$1,590 million
whereas net cash used in investing activities for the same period amounted to
US$1,360 million, primarily related to additions to newbuilds. Net cash used for
financing activities was US$395 million mainly due to dividend payments and net
proceeds from debt.

Outstanding shares
As of December 31, 2012, the issued common shares in Seadrill Limited totaled
469,178,074 adjusted for our holding of 72,859 treasury shares. In addition, we
had stock options for 3.9 million shares outstanding under various share
incentive programs for management, out of which approximately 1.2 million have
vested and are exercisable.

For further information, please see the fourth quarter and preliminary 2012
report attached.

This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.

Fourth quarter and preliminary 2012 results:

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Source: Seadrill Limited via Thomson Reuters ONE

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