SDLP - Seadrill Partners LLC Announces Plan to Reduce Quarterly Cash Distributions
December 18 2015 - 1:30AM
London, United Kingdom, December
18, 2015 - Seadrill Partners LLC (NYSE: SDLP) ("Seadrill
Partners" or the "Company") announced today that following the
completion of its annual budgeting and forecast cycle it has
approved a plan to reduce the quarterly distribution to $0.25 per
unit to its common unitholders, down from the current quarterly
level of $0.5675. The revised distribution level will take
effect in February 2016 upon payment of the fourth quarter 2015
distribution.
The decision to reduce the distribution reflects
the continuing challenges in the offshore drilling market.
The revised distribution level will provide significant flexibility
to manage our medium term obligations and reduce leverage.
This move is expected increase liquidity by over
$250 million per year, including the reduction in distributions to
non-controlling interests, and the Company expects to continue to
set aside cash reserves for maintenance and replacement capex of
approximately $200 million per year.
The Company's underlying business remains strong
with long term contracts, efficient operations and creditworthy
customers. While the market remains challenging, the Company
believes its modern fleet is well positioned for a recovery and we
continue to seek new contracting opportunities.
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,
liquidity, amount of the Company's estimated maintenance and
replacement capital expenditures, 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#1974666
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