SDLP - Seadrill Partners LLC Fourth Quarter 2014 Cash Distribution
January 27 2015 - 7:03AM
London, United Kingdom, January
27, 2015 - Seadrill Partners LLC (NYSE: SDLP) ("Seadrill
Partners" or the "Company") announced today that its board of
directors has declared a quarterly cash distribution with respect
to the quarter ended December 31, 2014 of $0.5675 per unit, which
represents an increase of $0.015 per unit, or approximately 3% from
the third quarter of 2014.
This cash distribution will be paid on or about
February 13, 2015 to all unitholders of record as of the close of
business on February 6, 2015.
In November, 2014, in connection with the
Company's announcement of the acquisition of the West Vela, the
Company stated that management intended to recommend to the board a
quarterly distribution increase of between $0.035 and $0.040 per
unit, but that any such increase would be conditioned upon, among
other things, approval by the Company's board and the absence of
any material adverse developments or potentially attractive
opportunities that would make such an increase inadvisable. Since
November, the Company's market outlook has deteriorated. Seadrill
Partners' rigs all have long term contracts none of which expire
before 2017, with the exception of the West Vencedor which expires
in March 2015. Contract discussions for the West Vencedor have not
progressed at the desired pace and management is no longer
confident that an agreement on an extension can be
reached. Seadrill Partners is exploring all alternative
employment opportunities for the West Vencedor.
Today's distribution increase of $0.015 is
reflective of the commercial discussions for the West Vencedor and
the general deterioration in the offshore drilling market.
The Company will continue to evaluate
acquisitions, distributions and distribution coverage to manage
through near term industry challenges in the offshore drilling
industry. While Seadrill Partners' strategy is to grow
distributions via accretive acquisitions these acquisitions will
also be evaluated with the goals of building distribution coverage
and mitigating contract rollover risk.
FORWARD LOOKING
STATEMENTS
This news release includes forward looking
statements. Such statements are generally not historical in nature,
and specifically include statements about the Company's plans,
strategies, business prospects, changes and trends in its business
and the markets in which it operates. In particular, statements
regarding projected changes in the Company's cash distributions,
the Company's anticipated growth strategies and its ability to
re-contract its drilling rigs are considered forward looking
statements. These statements are made based upon management's
current plans, expectations, assumptions and beliefs concerning
future events impacting the Company and therefore involve a number
of risks, uncertainties and assumptions that could cause actual
results to differ materially from those expressed or implied in the
forward looking statements, which speak only as of the date of this
news release. Important factors that could cause actual results to
differ materially from those in the forward looking statements
include, but are not limited to the performance of the drilling
rigs in the Company's fleet; delay in payment or disputes with
customers; fluctuations in the international price of oil; changes
in governmental regulations that affect the Company or the
operations of the Company's fleet; increased competition in the
offshore drilling industry; hire rates and factors affecting supply
and demand for drilling rigs; the financial condition of the
Company's existing or future customers; and general economic,
political and business conditions globally. Consequently, no
forward looking statement can be guaranteed. When considering these
forward looking statements, you should keep in mind the risks
described from time to time in the Company's filings with the SEC,
including its Annual Report on Form 20-F (File No. 001-35704).
The Company undertakes no obligation to update any forward looking
statements to reflect events or circumstances after the date on
which such statement is made or to reflect the occurrence of
unanticipated events. New factors emerge from time to time, and it
is not possible for us to predict all of these factors. Further,
the Company cannot assess the impact of each such factor on its
business or the extent to which any factor, or combination of
factors, may cause actual results to be materially different from
those contained in any forward looking statement.
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
HUG#1889819
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