Seadrill Reports First Quarter 2011 Results
Bermuda-based oil and gas exploration company Seadrill today [May 27] reports consolidated revenues for the first quarter 2011 of $1,110 million compared to $1,169 million for the fourth quarter 2010.
Operating profit for the first quarter was $430 million, down from $479 million in the fourth quarter 2010, which included $26 million in gain on sale of the jack-up rig West Larissa.
The results for the first quarter were also impacted by lower contribution from floaters, tender rigs and well services, following the deconsolidation of Archer/Seawell.
Operating profit from the floaters was $312 million as compared to an operating profit of $322 million in the fourth quarter 2010.
Operating profit from the jack-up rigs amounted to $64 million as compared to an operating profit of $40 million in the fourth quarter, adjusted for the $26 million gain on sale of West Larissa in the same quarter 2010.
Operating profit from the tender rigs was $49 million, down from $75 million in the fourth quarter 2010. The decrease was due to certain non-recurring revenues being recorded in the fourth quarter and the West Menang being idle in the first quarter.
Operating profit from Well Services was $5 million, down from $18 million in the preceding quarter, as Well Services was deconsolidated from the Seadrill accounts in February.
Net financial items for the first quarter amounted to a gain of $441 million as compared to a loss of $176 million in the previous quarter. The improvement is mainly related to a gain of $477 million recognisd in connection with the deconsolidation of well services that triggered an adjustment of the book value of our holding to reflect the market value of the underlying shares.
Income before income taxes amounted to $871 million, while income taxes were $48 million.
Net income for the quarter amounted to $823 million and earnings per share were $1.84 for the first quarter.
CEO of Seadrill Management AS Alf C Thorkildsen says in a comment, “We are pleased to report another solid quarter for Seadrill reflecting a strong underlying operational performance.
“Furthermore, over the last three months Seadrill has secured new contracts for approximately $1.2 billion. These contracts demonstrate the continued strength of the market for quality drilling units.
“In response to our solid operations, strong contract backlog and favorable market outlook, we are pleased to announce a quarterly cash dividend of $0.75.”
