SDLP - Seadrill Partners LLC Announces Second Quarter 2018 Results
August 21 2018 - 06:48AM
Highlights
- Operating revenue of $418.1 million.
- Operating income of $239.2 million.
- Net income of $217.2 million.
- Adjusted EBITDA of $320.1 million.
- Cash and cash equivalents of $805.9 million.
- Economic utilization of 96%. Excluding
downtime for planned maintenance, utilization was 98%.
- Order backlog of $1.2 billion as of August 21,
2018.
- 10 cent per common unit distribution for the
second quarter of 2018.
Financial Results
Overview
Total operating revenues for the second quarter
were $418.1 million (1Q18: $194.3 million). The increase was
primarily due to the West Leo litigation judgment, which was in our
favor. We received approximately $250 million in litigation
proceeds in July which will not be appealed, of which approximately
$204 million was recognized as revenue in the second quarter.
Excluding the impact of the litigation proceeds,
underlying revenue improved by approximately $20 million primarily
due to the West Aquarius commencing operations during the quarter
and contractual dayrate increases on the West Vela, West Auriga and
West Capricorn. These were partially offset by fewer
operating days for the West Capella and the West Vencedor being off
contract for a full quarter.
Total operating expenses for the second quarter
were $178.9 million (1Q18: $176.1 million), reflecting small
quarterly variations in costs.
Operating income was $239.2 million (1Q18: $18.2
million). The increase was primarily related to revenue recognized
from the successful outcome of the West Leo litigation.
Underlying operating income improved by approximately $17 million
due mainly to the West Aquarius commencement referred to
above.
Net financial items resulted in an expense of
$31.3 million (1Q18: expense of $25.9 million). The increase
in the expense was primarily due to the higher interest rate on our
Term Loan B ("TLB") agreed to as part of the amendments completed
in February 2018 and a lower gain on the mark to market valuation
of derivatives of $10.8 million (1Q18: gain of $29.0
million). This was partially offset by $24 million of
interest income recognized as part of the West Leo judgment and
advisory fees related to the amendments on our TLB incurred in the
first quarter not being repeated in the second quarter.
Income before tax was $207.9 million (1Q18: loss
of $7.7 million). Income tax for the second quarter was a credit of
$9.3 million (1Q18: expense of $8.6 million). The tax credit in the
quarter was primarily due to changes in uncertain tax positions
after reassessing several provisions taken.
Net income was $217.2 million (1Q18: net loss of
$16.3 million). Seadrill Partners LLC Members had net income
for the quarter of $127.7 million (1Q18: net loss of $3.2
million).
Distributable cash flow for the second
quarter was $133.0 million and our 10 cent per common unit
distribution has been maintained.
Seadrill Partners 2Q 2018
Results
Seadrill Partners 2Q 2018 Fleet Status
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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