- Operating revenue of $467.2 million
- Adjusted EBITDA of $308.8 million
- Cash and cash equivalents of $319.0 million
- Distribution per unit of $0.25 with a coverage ratio of 5.26x
- Economic utilization of 99%
- Orderbacklog of $4.3 billion and average contract duration of 2.5 years as of February 24th
Financial Results Overview
Total operating revenues for the fourth quarter were $467.2 million, compared to $456.5 million in the third quarter of 2015. The increase in revenues is primarily related to the dayrate increase on the West Aquarius which started in October and performance related bonuses achieved, partially offset by the dayrate reduction on the T-15 and T-16 and a decrease in reimbursable revenues.
Total operating expenses for the fourth quarter were $229.1 million, compared to $247.1 million in the previous quarter. The decrease is primarily due to lower stacking costs for the West Sirius which are currently running at approximately $10k per day and lower reimbursable expenses. General and administrative expenses increased from 10.6 million to $16.2 million reflecting redundancy costs and implementation costs of other cost savings measures.
The net result of the above is that operating income for the quarter was $238.1 million compared to $209.4 million in the preceding quarter.
Financial and other items comprised an expense of $43.7 million for the fourth quarter compared to an expense of $125.4 million in the third quarter primarily due to a non-cash gain on mark-to-market valuation of derivatives of $31.9 million, as compared to a loss of $56.1 million in the third quarter.
Net income before tax was $194.4 million for the fourth quarter compared to $84.0 million in the third quarter.
Income taxes for the fourth quarter were $4.8 million compared to $48.6 million in the third quarter. The decrease is primarily due to the recognition of a deferred tax liability in the preceding quarter related to a change in Nigerian tax law.
Net income attributable to Seadrill Partners LLC Members was $96.2 million for the fourth quarter compared to $21.5 million for the previous quarter.
Distributable cash flow was $98.9 million for Seadrill Partners` fourth quarter as compared to $85.4 million for the third quartergiving a coverage ratio of 5.26x for the fourth quarter.
Distribution declared for the period was $0.25 per unit, equivalent to an annual distribution of $1.00.
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Source: Seadrill Partners LLC via GlobeNewswire