Seadrill Reports 2Q07 Earnings

Seadrill reports net income of US$42.0 million and earnings per share of US$0.11 for the second quarter of 2007.

Seadrill secures new harsh environment contracts for the semi-submersible West Alpha and the deepwater drillship West Navigator.

Seadrill secures new contracts for the semi-submersible West Aquarius and five-year contract for the ultra-deepwater drillship West Capella, both under construction.

Seadrill orders three new drilling units, including one new ultra deepwater semi-submersible rig and a deepwater semi-tender in Singapore and one new ultra deepwater drillship in Korea.

Seadrill secures new assignments for the jack-ups West Larissa and West Titania.

Seadrill is on track for delivery of the newbuild program.

Seadrill divests the 1981-built jack-up West Titania for US$146.5 million, with delivery in the fourth quarter.

Second quarter results

Seadrill today reported consolidated revenues for the second quarter 2007 of US$374.0 million compared to US$479.2 million for the first quarter 2007. (The first quarter revenues included a gain of US$ 123.3 million related to sales of two FPSO units). Revenues for the first half year were US$853.2 million.

Operating profit for the second quarter was US$76.9 million as compared to US$82.2 million in the first quarter (excluding gain on sales). Operating profit for the first half year was US$282.4 million.

Operating profit from the Mobile Units amounted to US$43.3 million as compared to an operating profit of US$51.8 million in the first quarter 2007 (excluding gain on sales). The decrease was mainly due to lower utilization of the benign environment jack-ups.

Operating profit from the Tender Rigs amounted to US$22.2 million as compared to US$22.6 million in the first quarter 2007.

Operating profit from Well Services amounted to US$11.4 million as compared to US$7.8 million in the first quarter 2007. The improvement reflects increased activity within the Wireline and Engineering segments.

Net financial items for the second quarter resulted in expenses of US$21.8 million, unchanged as compared to the first quarter.

Income before income taxes amounted to US$55.1 million.

Income taxes were US$11.2 million.

Net income for the quarter amounted to US$42.0 million.

Earnings per share were US$0.11 for the second quarter.