SDLP - Seadrill Partners LLC Announces Fourth Quarter 2017 Results
February 22 2018 - 8:52AM
Highlights
- Operating revenue of $256.3 million.
- Operating income of $60.1 million.
- Net income of $33.1 million.
- Adjusted EBITDA of $137.9 million.
- Cash and cash equivalents of $848.6 million.
- Economic utilization of 95%.
- Order backlog of $1.5 billion and average
contract duration of 1.5 years as of February 22, 2018.
- The Company has received all required lender
consents for a waiver of the Term Loan B ("TLB") leverage covenant
until the maturity of the TLB in February 2021, subject to
customary closing conditions.
- A distribution has been declared with respect to
the fourth quarter ended December 31, 2017 of $0.10 per unit, in
line with the third quarter distribution. This cash distribution
will be paid on or about March 12, 2018 to all unitholders of
record as of the close of business on March 5, 2018.
Financial Results
Overview
Total operating revenues for the fourth quarter
were $256.3 million (3Q17: $276.8 million). The decrease was
primarily due to the West Sirius termination payments having
concluded in the third quarter, the West Capella commencing a new
contract at a lower dayrate, a full quarter of idle time for the
West Aquarius and slightly lower utilization of 95% for our rigs in
operation (3Q17: 98%).
Total operating expenses for the fourth quarter
were $200.8 million (3Q17: $193.0 million). The increase was
primarily due to the reclassification of debt issuance costs from
G&A to other financial items in the third quarter not being
repeated in the fourth quarter and higher favorable contract
amortization related to the West Polaris completing its contract
sooner than expected. These movements were partially offset
by lower costs for idle units.
Operating income was $60.1 million (3Q17: $148.5
million). The decrease was due to a smaller gain in the fourth
quarter related to the reduction of West Polaris contingent
liabilities than what was recognized in the third quarter and the
movements referred to above.
Net financial items resulted in an expense of
$27.6 million (3Q17: expense of $56.8 million). The decrease
was primarily due to a gain on the mark to market valuation of
derivatives of $12.8 million (3Q17: loss of $3.8 million) and lower
expenses in other financial items related to debt issuance costs
and reclassifications in the third quarter not being repeated in
the fourth quarter.
Income before tax was $32.5 million (3Q17: $91.7
million). Income tax for the fourth quarter was a credit of $0.6
million (3Q17: expense of $12.9 million). The tax credit in the
quarter was primarily due to lower provisions after filing certain
tax returns, partially offset by a write down of deferred tax
assets following changes in US tax legislation.
Net income attributable to Seadrill Partners LLC
Members was $26.5 million for the fourth quarter (3Q17: $46.3
million) and distributable cash flow was $25.0 million (3Q17:
$31.4 million).
Seadrill Partners 4Q 2017 Fleet
Status
Seadrill Partners 4Q 2017 Results
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq 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
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