Seadrill Reports Q2 Results

Seadrill on Thursday reported consolidated revenues for the second quarter 2009 of US$816 million compared to US$696 million for the first quarter 2009.

Operating profit for the second quarter was US$339 million as compared to US$259 million in the previous quarter.

The second quarter operating profit for Mobile Units amounted to US$267 million as compared to an operating profit of US$195 million in the first quarter 2009. The increase was mainly due to a full quarter in operations for the four newbuilds that started operations in the first quarter, as well as improved utilization overall.

The second quarter operating profit for Tender Rigs amounted to US$56 million, which was an increase of US$5 million compared to the preceding quarter. The improvement was due to higher average dayrate.

Operating profit from Well Services amounted to US$15 million as compared to US$13 million in the first quarter 2009.

Net financial items resulted in a gain of US$67 million compared to US$15 million in the preceding quarter. The increase is primarily related to mark-to-market valuation of interest swap agreements and forward currency contracts, which amounted to a gain of approximately US$77 million.

Income taxes were US$42 million resulting in net income for the quarter of US$364 million. Earnings per share for the second quarter were US$0.85.

Chief Executive Officer in Seadrill Management AS Alf C Thorkildsen said, "We are pleased to report the best ever quarterly result in the Company's history. This achievement is based on strong operational performance within all divisions and significant growth in the contribution from our deepwater newbuilds. In an uncertain economical environment this strong performance provides an important foundation for continued growth of our Company."