Highlights
- Operating revenue of $327.5 million.
- Operating income of $173.4 million.
- Net income of $106.9 million.
- Adjusted EBITDA of $261.3 million.
- Cash and cash equivalents of $862.4 million.
- Economic utilization of 99%.
- Order backlog of $2.1 billion and average contract duration of 1.5 years as of May 24, 2017
Financial Results Overview
Total operating revenues for the first quarter were $327.5 million (4Q16: $353.3 million). The decrease was primarily driven by a full quarter of idle time for the West Leo, partially offset by higher uptime on rigs in operation.
Total operating expenses for the first quarter were $175.4 million (4Q16: $188.5 million). The decrease was due to a full quarter of idle time for the West Leo and lower G&A expenses reflecting the continued benefits of cost control and saving initiatives implemented during 2016.
Operating income was $173.4 million (4Q16: $164.8 million). Lower revenues for the quarter were offset by a fair value gain related to the revaluation of contingent consideration on the West Polaris and lower operating costs and G&A expenses.
Net financial items resulted in an expense of $46.1 million (4Q16: income of $34.2 million). The main movement related to a loss on the mark-to-market valuation of derivatives of $6.2 million (4Q16: gain of $74.3 million).
Income before tax was $127.3 million (4Q16: $199.0 million). Income tax for the first quarter was $20.4 million (4Q16: credit of $8.5 million).
Net income attributable to Seadrill Partners LLC Members was $56.8 million for the first quarter (4Q16: $101.9 million) and distributable cash flow was $68.9 million (4Q16: $60.3 million).
The Company deferred its first quarter 2017 distribution decision until an agreement is reached with its lending banks to insulate itself from potential events of default by Seadrill Limited should Seadrill Limited require the use of in court processes, such as schemes of arrangement or chapter 11 proceedings, to implement its restructuring.
Discussions with our lending banks are well advanced and we are targeting execution of an agreement during June 2017, prior to the implementation of the broader Seadrill Limited restructuring.
Assuming we reach an agreement, a determination will be made regarding the distribution to our Members. Based on our current cash position and free cash flow, we aim to maintain our current distribution level once an agreement is reached with our lending banks.
Seadrill Partners 1Q 2017 Fleet Status (http://hugin.info/155503/R/2107574/800392.pdf)
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
