SSDLP - Seadrill Partners LLC Announces Third Quarter 2016 Results

GlobeNewswire
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Highlights

  • Operating revenue of $384.5 million.

  • Operating income of $204.0 million.

  • Net income of $152.8 million.

  • Adjusted EBITDA of $313.1 million.

  • Cash and cash equivalents of $744.6 million.

  • Distribution per unit of $0.10 with a coverage ratio of 13.98x.

  • Economic utilization of 95%.

  • Order backlog of $2.9 billion and average contract duration of 2.0 years as of November 22.

Financial Results Overview

Total operating revenues for the third quarter were $384.5 million (Q2: $418.5 million). The 8.1% decrease is primarily related to the early termination of the West Capella, the West Capricorn operating on standby rate for a full quarter, the conclusion of the West Vencedor contract and downtime on the West Vela and West Polaris.

Total operating expenses for the third quarter were $180.5 million (Q2: $192.6 million). The 6.3% decrease is primarily due to reduced operating costs on the West Capella, West Capricorn and West Vencedor while the rigs are idle and efficiencies achieved on operating expenses for vessels in operation.

Operating income was $204.0 million (Q2: $225.9 million). Lower revenues were partially offset by reduced operating costs.

Financial and other items resulted in an expense of $37.3 million for the third quarter (Q2: expense of $70.1 million). The decline in the expense is primarily due to a gain on mark-to-market valuation of derivatives of $5.7 million (Q2: loss of $28.3 million). The cash element was an expense of $12.0 million in the period.

Income before tax was $166.7 million for the third quarter (Q2: $155.8 million). Income taxes for the third quarter were $13.9 million (Q2: $43.6 million). The decrease is primarily due to the impact of tax law changes and provisions taken in the prior period. Cash tax paid in the quarter was $12.5 million compared to $12.1 million in the second quarter.

Net income attributable to Seadrill Partners LLC Members was $83.2 million for the third quarter (Q2: $59.8 million).

Distributable cash flow was $105.2 million for Seadrill Partners` third quarter (Q2:98.8 million) giving a coverage ratio of 13.98x for the third quarter.

Distribution declared for the period was $0.10 per unit, equivalent to an annual distribution of $0.40.

Seadrill Partners 3Q Results
Seadrill Partners 3Q 2016 Fleet Status


This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX 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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