SDRL - Seadrill reports second quarter 2011 results

Hamilton, Bermuda, August 25, 2011 - Seadrill reports second quarter 2011
results:
 
Highlights
 
  * Seadrill generates second quarter 2011 EBITDA*) of US$579 million
  * Seadrill reports second quarter 2011 net income of US$645 million and
    earnings per share of US$1.34
  * Seadrill distributes quarterly cash dividend of US$0.75 per share
  * Seadrill records a US$416 million gain on realization of the Pride
    International Inc. shareholding ("Pride")
  * Seadrill exercised its right to call and retire the US$750 million 2012
    convertible bond
  * Seadrill ordered a new ultra-deepwater drillship for an all-in cost of
    US$600 million
  * Seadrill ordered a new tender barge rig for a total consideration of US$115
    million and a new semi-tender rig for an all-in cost of US$200 million
  * Seadrill agreed to sell the jack-up rig West Juno for a total consideration
    of US$248.5 million
  * Seadrill agreed to sell the jack-up rig West Janus for a total consideration
    of US$73 million
 
Subsequent events
 
  * Seadrill acquired a 33.75 percent ownership stake in Asia Offshore Drilling
    Ltd through a private placement
  * Seadrill's majority owned subsidiary, North Atlantic Drilling Ltd, takes
    delivery of the harsh environment jack-up rig West Elara
  * Seadrill completed the divestment of the jack-up rig West Juno for US$248.5
    million in early July
  * Seadrill secures two three-year contracts for two jack-ups with a US$348
    million revenue potential
 
*) EBITDA is defined as earnings before interest, depreciation and amortization
equal to operating profit plus depreciation and amortization.
 
Second quarter 2011 results
Seadrill today reports consolidated revenues for the first quarter 2011 of
US$995 million compared to US$1,110 million for the first quarter 2011. The
reduction is due to de-consolidation of Archer Limited from end of February.
 
Operating profit for the first quarter was US$430 million in line with the
preceding quarter.
 
Operating profit from the Floaters was US$341 million as compared to an
operating profit of US$312 million in the first quarter 2011 due to improved
average economical utilization rate.
 
Operating profit from the Jack-up Rigs amounted to US$49 million as compared to
an operating profit of US$64 million in the first quarter 2011 as result of
lower average economic utilization rate.
 
Operating profit from the Tender Rigs was US$40 million, down from US$49 million
in the first quarter 2011 due to the retirement of the tender rig barge T8.
 
Net financial items for the quarter amounted to a gain of US$264 million
compared to a gain of US$441 million in the previous quarter. The second quarter
included a gain on realization of our Pride position of US$416 million whereas
the first quarter benefited from a US$477 million gain in connection with the
deconsolidation of Archer Limited formerly known as Seawell Limited. Loss on
derivative financial instruments was US$90 million compared to a US$41 million
gain in the first quarter.
 
Income taxes for the second quarter were US$50 million compared to US$48 million
in the first quarter.
 
Net income for the quarter was US$645 million and basic earnings per share of
US$1.35.
 
Chief Executive Officer in Seadrill Management AS Alf C Thorkildsen says in a
comment, "Our second quarter results reflect solid operation and performance for
our offshore drilling rigs. We are in particular satisfied with the improved
utilization rate for our floaters that was up from 94% to 97%. Based on a sound
outlook for our industry and our solid contract portfolio we continue to be
optimistic about our future earnings potential and have resolved to uphold a
cash dividend of US$0.75 per share for the quarter."
 
For further information, please see the second quarter 2011 report attached.
 
Analyst contact
Jim Dåtland
VP Investor Relations
Seadrill Management AS
+47 51 30 99 19
 
Media contact
Esa Ikäheimonen
Chief Financial Officer
Seadrill Management AS
+47 51 30 99 19
 
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
 
Second quarter 2011 report: 
http://hugin.info/135817/R/1541117/471370.pdf
 
Fleet status report 2Q 2011: 
http://hugin.info/135817/R/1541117/471372.pdf
 
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Source: Seadrill Limited via Thomson Reuters ONE
 
[HUG#1541117]