SDLP - Seadrill Partners LLC Announces First Quarter 2016 Results
May 26 2016 - 7:31AM
Highlights
-
Operating revenue of $444.0 million
-
Adjusted EBITDA of $305.4 million
-
Cash and cash equivalents of $401.2
million
-
Distribution per unit of $0.25 with a coverage
ratio of 5.27x
-
Economic utilization2 of 99%.
-
Order backlog of $3.6 billion and average
contract duration of 2.2 years as of May 25th.
Financial Results
Overview
Total operating revenues for the first quarter
were $444.0 million, compared to $467.2 million in the fourth
quarter of 2015. The decrease is primarily related to the dayrate
reduction on the West Polaris and a decrease in performance related
bonuses achieved relative to the fourth quarter, partially offset
by a full quarter of operations for the West Vencedor. The West
Polaris dayrate reduction from $653,000 to $490,000 has no impact
on Adjusted EBITDA or backlog since Seadrill Partners acquired the
unit based on a $450,000 dayrate and pays anything above this rate,
net of commissions, to Seadrill Limited in the form of deferred
consideration.
Total operating expenses for the first quarter
were $220.5 million, compared to $229.1 million in the previous
quarter. The decrease is primarily due to efficiencies achieved in
vessel and rig operating expenses and a reduction in overhead
costs.
Operating income was lower for the quarter at
$223.5 million ($238.1 million in Q4 2015) due to lower revenue,
partially offset by reduced costs.
Financial and other items resulted in an expense
of $112.7 million for the first quarter compared to an expense of
$43.7 million in the fourth quarter primarily due to a loss on
mark-to-market valuation of derivatives of $69.7 million compared
to a gain of $19.2 million in the fourth quarter. This loss
is related to our interest rate hedge book and was due to a
decrease in interest rates in the period. The non-cash element of
this expense was $57.5 million in the period.
Income before tax was $110.8 million for the first
quarter compared to $194.4 million in the fourth quarter.
Income taxes for the first quarter were $37.6
million compared to $4.8 million in the fourth quarter. The
increase is primarily due to tax law changes and additional
provisions for uncertain tax positions. Cash tax paid in the
quarter was $15.6 million compared to $14.7 million in the fourth
quarter.
Net income attributable to Seadrill Partners LLC
Members was $36.1 million for the first quarter compared to $96.2
million for the previous quarter.
Distributable cash flow was $99.2 million for
Seadrill Partners' first quarter as compared to $98.9 million for
the fourth quarter giving a coverage ratio of 5.27x for the first
quarter.
Distribution declared for the period was $0.25 per
unit, equivalent to an annual distribution of $1.00.
Seadrill Partners 1Q 2016
Results
Seadrill Partners 1Q 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
HUG#2015830
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