Delivery, Operations of Newbuilds Buoy Seadrill's '08 Revenues
Seadrill has reported preliminary consolidated revenues for 2008 of US $2,186 million as compared to revenues of US $1,676 million in the 2007 accounts. The increase in revenues mainly reflects that several newbuilds were delivered and started operations during 2008. In addition, a number of units commenced new contracts at higher dayrates as well as the Well Services division increased its overall activities through existing contracts and acquisitions completed in 2008.
- Seadrill generates EBITDA*) of US$226 million for the fourth quarter 2008.
- Seadrill reports net loss of US$739 million and loss per share of US$1.86 for the fourth quarter 2008.
- Seadrill takes delivery of three deepwater newbuilds (one drillship and two semi-submersible units).
- Seadrill signs three and five year contracts for the semi-tenders West Pelaut and West Vencedor, respectively.
- Seadrill takes US$615 million in write downs related to the ownership holdings in Pride, Scorpion and SapuraCrest.
- Seadrill books mark-to-market losses on interest rate swaps of approximately US$160 million.
- Seadrill has taken delivery of seven out of eight deepwater units scheduled for delivery in 2008.
- Seadrill has since October received more than US$2 billion from various financing facilities and thereby secured a fully funded Company when entering into 2009.
Operating profit for the full year amounted to US $649 million as compared to US $489 million in the 2007 accounts. Net financial expenses were US $748 million. The year resulted in a net loss of US$197 million as compared to a net income of US $502 million in the 2007 accounts.
Fourth Quarter 2008 Results
Consolidated revenues for the fourth quarter 2008 amounted to US $579 million as compared to US $566 million for the preceding quarter. Operating profit for the fourth quarter was US $153 million as compared to US $174 million in the third quarter.
Operating profit from the Mobile units amounted to US $98 million as compared to an operating profit of US $126 million in the third quarter. The decrease was mainly a consequence of three jackups being idle in the latter part of the quarter. The commencement of operations for the ultra-deepwater newbuilds West Hercules and West Polaris partly offset this reduction.
Operating profit from the Tender rigs amounted to US $41 million as compared to US $34 million in the third quarter. The increase was mainly due to escalations of dayrates for some units as well as a full quarter operation for the tender T4 after a mandatory yard-stay early third quarter.
Operating profit from Well services amounted to US $14 million, unchanged compared to the preceding quarter.
Net financial items for the fourth quarter resulted in a net expense of US $847 million as compared to an expense of US $71 million in the third quarter. This includes an impairment charge related to financial assets amounting to US $615 million and refers to the shares and forwards in Pride International, Scorpion Offshore and SapuraCrest. All of these shares and forward contracts have been written down to the market value as of December 31, 2008.
Income loss before income taxes amounted to US $693 million.
Income taxes were US $19 million.
Net loss for the quarter amounted to US $739 million.
- Randy Stilley Comes on Board of Paragon Offshore (Feb 04)
- Ensco Completes Pride Acquisition (May 31)
- Pride, Ensco Enter MOU in Merger Lawsuit (May 20)
Company: SapuraCrest more info
- Cargotec Clinches Order for 20 Winches (Apr 10)
- Seadrill Studying Brazilian Expansion Plans (Dec 14)
- Clough to Sell Offshore Marine Business (Aug 08)
Company: Seadrill Ltd more info
- Seadrill's Debt Overhaul Faces Creditor Scrutiny (Oct 02)
- Seadrill Files for Bankruptcy in Bid to Shrink Debt Burden (Sep 13)
- Seadrill Warns Again Of Chapter 11 As Extends $14B Debt Talks (Jul 26)
Company: Scorpion Offshore more info
- Seadrill's Mandatory Offer to Purchase All Scorpion Shares (Jul 15)
- Seadrill Increases Ownership in Scorpion Offshore (May 31)
- UPDATE: Ensco Ends Partial Offer for Scorpion Offshore (May 28)