SDLP - Seadrill Partners LLC Announces First Quarter 2017 Results
May 24 2017 - 8:39AM
Highlights
- Operating revenue of $327.5 million.
- Operating income of $173.4 million.
- Net income of $106.9 million.
- Adjusted EBITDA of $261.3 million.
- Cash and cash equivalents of $862.4 million.
- Economic utilization of 99%.
- Order backlog of $2.1 billion and average
contract duration of 1.5 years as of May 24, 2017
Financial Results
Overview
Total operating revenues for the
first quarter were $327.5 million (4Q16: $353.3 million). The
decrease was primarily driven by a full quarter of idle time
for the West Leo, partially offset by higher uptime on rigs in
operation.
Total operating expenses for the
first quarter were $175.4 million (4Q16: $188.5 million). The
decrease was due to a full quarter of idle time for the West Leo
and lower G&A expenses reflecting the continued benefits of
cost control and saving initiatives implemented during 2016.
Operating income was $173.4
million (4Q16: $164.8 million). Lower revenues for the quarter were
offset by a fair value gain related to the revaluation of
contingent consideration on the West Polaris and lower operating
costs and G&A expenses.
Net financial items resulted in an
expense of $46.1 million (4Q16: income of $34.2 million). The main
movement related to a loss on the mark-to-market valuation of
derivatives of $6.2 million (4Q16: gain of $74.3 million).
Income before tax was $127.3
million (4Q16: $199.0 million). Income tax for the first
quarter was $20.4 million (4Q16: credit of $8.5 million).
Net income attributable to
Seadrill Partners LLC Members was $56.8 million for the first
quarter (4Q16: $101.9 million) and distributable cash flow was
$68.9 million (4Q16: $60.3 million).
The Company deferred its first
quarter 2017 distribution decision until an agreement is reached
with its lending banks to insulate itself from potential events of
default by Seadrill Limited should Seadrill Limited require the use
of in court processes, such as schemes of arrangement or chapter 11
proceedings, to implement its restructuring.
Discussions with our lending banks
are well advanced and we are targeting execution of an agreement
during June 2017, prior to the implementation of the broader
Seadrill Limited restructuring.
Assuming we reach an agreement, a
determination will be made regarding the distribution to our
Members. Based on our current cash position and free cash flow, we
aim to maintain our current distribution level once an agreement is
reached with our lending banks.
Seadrill Partners 1Q 2017 Fleet
Status
Seadrill Partners 1Q 2017 Results
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Seadrill Partners LLC via Globenewswire
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