SDLP - Seadrill Partners LLC Announces Reduction to Quarterly Cash Distributions
July 26 2016 - 1:35AM
London, United Kingdom, July 26,
2016 - Seadrill Partners LLC (NYSE: SDLP) ("Seadrill
Partners" or the "Company") announced today that it will reduce the
quarterly distribution to its common unitholders to $0.10 per unit,
down from the current quarterly level of $0.25 per unit.
The decision to reduce the distribution level
reflects the increase in the extended standby rate period for the
West Capricorn and the termination of the
drilling contract for the West Capella.
Although available units are being bid on a number of opportunities
and extension conversations continue, the Company believes this is
a prudent move that will improve its liquidity position.
Despite some contract cancellations for which
termination payments are being received, the Company still has an
average contact term of 2.7 years, total contract backlog of $3.4
billion and 64% of its rigs on contract until 2018. The
Company continues to achieve high operational uptime on its
operating units and has strong contract terms with creditworthy
customers.
Seadrill Partners believes it remains well
positioned for the recovery with one of the world's most
technologically advanced fleets, the benefits of scale and a proven
operational track record and continues to seek new contracting
opportunities.
The second quarter cash distribution will be paid
on or about August 12, 2016 to all common unitholders of record as
of the close of business on August 5, 2016.
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#2030592
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