Highlights

  • Operating revenue of $353.3 million.
  • Operating income of $164.8 million.
  • Net income of $207.5 million.
  • Adjusted EBITDA of $210.4 million.
  • Cash and cash equivalents of $767.6 million.
  • Distribution per unit of $0.10 with a coverage ratio of 8.01x.
  • Economic utilization of 94%.
  • Order backlog of $2.2 billion and average contract duration of 1.8 years as of February 28, 2017.

Financial Results Overview

Total operating revenues for the fourth quarter were $353.3 million (3Q16: $384.5 million). The decrease in revenue was driven by a lower dayrate and idle time on the West Leo due to a force majeure claim and subsequent contract cancellation, downtime on the West Auriga due to an unplanned BOP pull and a full quarter of idle time on the West Vencedor. These were partially offset by higher uptime on the West Vela and West Polaris.

Our fourth quarter guidance had assumed the West Leo to be operating for the full quarter. Following the commencement of litigation proceedings, only revenues related to the force majeure rate have been recognized, which is 80% of contract dayrate for approximately two months during the quarter.

Total operating expenses for the fourth quarter were $188.5 million (3Q16: $180.5 million). The increase is primarily due higher G&A expense reflecting severance costs and IT costs.

Operating income was $164.8 million (3Q16: $204.0 million) reflecting lower revenues for the quarter and higher G&A expenses.

Income from net financial items was $34.2 million (3Q16: expense of $37.3 million). The main movement relates to a gain on the mark-to-market valuation of derivatives of $74.3 million (3Q16: gain of $5.7 million).

Income before tax was $199.0 million (3Q16: $166.7 million).  Income tax for the fourth quarter was a credit of $8.5 million (3Q16: expense of $13.9 million). The tax credit in the quarter was primarily due to a reduction in uncertain tax positions.

Net income attributable to Seadrill Partners LLC Members was $101.9 million for the fourth quarter (3Q16: $83.2 million).

Distributable cash flow was $60.3 million (3Q16: $105.2 million)giving a coverage ratio of 8.01x for the fourth quarter (3Q16: 13.98x).

The distribution declared for the quarter was $0.10 per common unit, equivalent to an annual distribution of $0.40.

 
 
 
Seadrill Partners 4Q Fleet Status
Seadrill Partners 4Q 2016 Results


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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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