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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Seadrill Limited | NYSE:SDRL | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.33 | -0.68% | 48.22 | 49.08 | 47.70 | 48.67 | 739,132 | 00:15:10 |
SEADRILL LIMITED
|
||
(Registrant)
|
||
Dated: November 28, 2016
|
||
By:
|
/s/ Georgina Sousa
|
|
Georgina Sousa
|
||
Secretary
|
||
• |
Revenue of $743 million
|
• |
Operating income of $247 million
|
• |
EBITDA
1
of $441 million
|
• |
95% economic utilization
2
|
• |
Reported Net Loss of $656 million and diluted loss per share of $1.29, reflecting an $882 million non-cash impairment to investments primarily relating to Seadrill Partners.
|
• |
Underlying Net Income
3
, excluding non-recurring items and non-cash mark to market movements on derivatives,was $135 million and earnings per share was $0.28.
|
• |
Cash and cash equivalents of $1.3 billion
|
• |
Seadrill Limited orderbacklog of approximately $3.0 billion
|
|
Seadrill Limited
|
||||||||||||
Figures in USD million, unless otherwise indicated
|
Q3 2016 As Reported
|
Q3 2015 As Reported
|
% change
|
Q3 2016 Underlying
4
|
Q3 2015 Underlying
4
|
% change
|
|||||||
Total Operating Revenue
|
743
|
985
|
(25
|
)%
|
743
|
985
|
(25
|
)%
|
|||||
EBITDA
1
|
441
|
546
|
(19
|
)%
|
441
|
546
|
(19
|
)%
|
|||||
Margin (%)
|
59
|
%
|
55
|
%
|
59
|
%
|
55
|
%
|
|||||
Operating income/(loss)
|
247
|
(291
|
)
|
185
|
%
|
247
|
354
|
(30
|
)%
|
||||
Net Interest bearing debt
|
8,948
|
10,178
|
(12
|
)%
|
8,948
|
10,178
|
(12
|
)%
|
1 |
EBITDA is defined as 'Earnings Before Interest, Tax, Depreciation and Amortization' and has been calculated by taking operating income plus depreciation and amortization but excluding gains or losses on disposals and impairment charges against goodwill. Contingent consideration realized relates to Seadrill's ongoing residual interest in the West Vela and West Polaris customer contracts, and has been included within EBITDA. Additionally, in any given period the Company may have significant, unusual or non-recurring gains or losses which it may exclude from its Non GAAP earnings for that period. When applicable, these items would be fully disclosed and incorporated into the required reconciliations from US GAAP to Non GAAP measures. Refer to Appendix for the reconciliation of Operating Income to EBITDA, as Operating income is the most directly comparable US GAAP measure.
|
2 |
Economic utilization is calculated as total revenue, excluding bonuses, for the period as a proportion of the full operating dayrate multiplied by the number of days on contract in the period.
|
3 |
Underlying is defined as reported results, adjusted for certain non-recurring items and other exclusions as discussed in the Appendix. These numbers are reconciled to the US GAAP reported results for corresponding periods in the Appendix.
|
|
Seadrill Limited
|
|||||||||||
|
Q3 2016 As Reported
|
Q2 2016 As Reported
|
% change
|
Q3 2016 Underlying
5
|
Q2 2016 Underlying
5
|
% change
|
||||||
Revenue
|
743
|
868
|
(14
|
)%
|
743
|
868
|
(14
|
)%
|
||||
EBITDA
|
441
|
557
|
(21
|
)%
|
441
|
557
|
(21
|
)%
|
||||
Margin (%)
|
59
|
%
|
64
|
%
|
59
|
%
|
64
|
%
|
||||
Operating income
|
247
|
364
|
(32
|
)%
|
247
|
364
|
(32
|
)%
|
||||
Net Interest bearing debt
|
8,948
|
9,114
|
(2
|
)%
|
8,948
|
9,114
|
(2
|
)%
|
1. |
During October North Atlantic Drilling announced an amendment to the agreement for the West Rigel with Jurong Shipyard Pte Ltd ("Jurong"), which extends the delivery deferral period to January 6, 2017. The extension allows the parties to continue to explore commercial opportunities for the unit. In the event no employment is secured for the unit and no alternative transaction is completed, the Company and Jurong will form a Joint Asset Holding Company for joint ownership of the unit, to be owned 23% by the Company and 77% by Jurong.
|
2. |
During October Sevan Drilling Ltd ("the Company") and Cosco agreed to exercise the third six-month option to extend the deferral agreement to 15 April 2017. Cosco will refund $26.3 million, or 5% of the contract price, plus other associated costs during the Fourth Quarter of 2016. The final delivery installment has been amended to $499.7 million, representing 95% of the $526.0 million contract price.
|
As at September 30
|
SDRL
|
SDLP
|
Seamex
|
Seadrill Group
|
Operating floaters
|
9
|
6
|
0
|
15
|
Operating floaters economic utilization
|
94%
|
95%
|
-
|
94%
|
Idle floaters
|
10
|
2
|
0
|
12
|
|
||||
Operating jack-ups
|
12
|
0
|
5
|
17
|
Operating jack-up economic utilization
|
97%
|
-
|
99%
|
98%
|
Idle jack-ups
|
7
|
0
|
0
|
7
|
|
||||
Operating tender rigs
|
0
|
2
|
0
|
2
|
Operating tender rigs economic utilization
|
-
|
97%
|
-
|
97%
|
Idle tender rigs
|
0
|
1
|
0
|
1
|
|
||||
Total operating rigs
|
21
|
8
|
5
|
34
|
Total operating rigs economic utilization
|
95%
|
95%
|
99%
|
95%
|
Total idle rigs
|
17
|
3
|
0
|
20
|
Total rigs
|
38
|
11
|
5
|
54
|
• |
The jack-ups AOD I and AOD II received three year contract extensions from Saudi Aramco expiring in June 2019 and July 2019, respectively. The extensions are in direct continuation of the current contracts and have added approximately $225 million in contract backlog.
|
• |
The West Castor secured a new one-year contract with ENI in Mexico commencing in December 2016, resulting in a $40 million increase in backlog which includes the provision of onshore logistics services.
|
• |
The West Vigilant secured a 3 month contract under the existing agreement with Repsol in Malaysia commencing in August, resulting in a $10 million increase in backlog.
|
• |
The jack-up AOD III received an 83 day contract extension from Saudi Aramco expiring in December 2016, resulting in a $9 million increase in contract backlog.
|
• |
The West Ariel was moved to non-operating flotel mode and the dayrate was reduced to $120,000 per day from July 2016 through the remainder of its contract term, ending in February 2018, resulting in a $20 million reduction in backlog.
|
• |
The West Freedom backlog was reduced by $16 million resulting from a discounted rate in 2016 related to non-operating flotel period. The West Freedom also received an extension to June 30, 2017, which is included in the backlog reduction, Cardon IV expect to recommence operations at a rate of $225,000 per day in early 2017.
|
• |
The West Pegasus received a notice of termination from Pemex for the drilling contract effective August 16, 2016 resulting in a potential backlog reduction of $266 million. Seadrill has disputed the grounds for termination and is reviewing its legal options.
|
• |
The West Epsilon received notice of cancellation from Statoil effective mid-October 2016. The unit was previously contracted until the end of December 2016. In accordance with contractual terms, a lump sum payment of approximately $11 million is payable by Statoil.
|
• |
The West Phoenix was awarded a 90 day contract with Total in the UK, West of Shetland. The backlog for the contract is estimated at $17 million.
|
• |
The West Saturn was awarded a one well contract at $225,000 per day with ExxonMobil in Liberia. This is in direct continuation of its current contract with ExxonMobil in Nigeria, which was due to end on December 8, 2016. This results in an estimated total contract backlog increase of $9 million.
|
• |
Cardon IV exercised their option on the West Freedom to extend the non-operating flotel period by three months to March 31, 2017. Operations will recommence on April 1, 2017, and will extend to September 30, 2017, at a rate of $225,000 per day.
|
• |
We have agreed to reduce the total remaining contract value on the West Jupiter by $144 million. The duration of the contract remains unchanged. As part of the agreement, the contract has been amended such that the compensation due in the event Total elected to terminate for convenience would ensure that the Company's backlog remained materially intact. The West Jupiter is currently contracted with Total in Nigeria until December 2019.
|
• |
West Orion
|
• |
West Alpha
|
• |
West Hercules
|
• |
Sevan Driller
|
• |
West Phoenix
|
• |
West Pegasus
|
• |
West Epsilon
|
• |
West Jupiter
|
• |
AOD III
|
Per Wullf:
|
Chief Executive Officer and President
|
Mark Morris:
|
Chief Financial Officer
|
John Roche:
|
Vice President Investor Relations
|
(in $ million)
|
Q4 2016 Guidance
|
Q3 2016
|
Q2 2016
|
Q3 2015
|
||||||||||||
Operating Income/(loss)
|
146
|
247
|
364
|
(291
|
)
|
|||||||||||
Depreciation and amortization
|
194
|
194
|
193
|
192
|
||||||||||||
Gain on disposal
|
—
|
—
|
—
|
82
|
||||||||||||
Loss on Goodwill Impairment
|
—
|
—
|
—
|
563
|
||||||||||||
EBITDA
|
340
|
441
|
557
|
546
|
(in $ million)
|
Q3 2016
|
|||
Net loss
|
(656
|
)
|
||
Add back:
|
||||
Impairment of investments
|
882
|
|||
Non-cash mark to market movements on derivatives
|
(91
|
)
|
||
Net income excluding non-recurring items and non-cash mark to market movement on derivatives
|
135
|
|||
Attributable to NCI
|
(6
|
)
|
||
Attributable to parent
|
141
|
|||
Underlying basic and diluted weighted average shares in issue (million)
|
507
|
|||
Underlying basic and diluted EPS excluding non-recurring items and non-cash mark to market movement on derivatives ($ per share)
|
$
|
0.28
|
(in $ million)
|
Q3 2016
|
Q2 2016
|
Q3 2015
|
|||||||||
Interest bearing debt
|
||||||||||||
Current portion of long-term debt
|
3,136
|
2,347
|
1,645
|
|||||||||
Long-term debt
|
6,728
|
7,717
|
9,319
|
|||||||||
Long-term debt due to related parties
|
334
|
337
|
395
|
|||||||||
Total interest bearing debt
|
10,198
|
10,401
|
11,359
|
|||||||||
Cash and cash equivalents
|
1,250
|
1,287
|
1,181
|
|||||||||
Net interest bearing debt
|
8,948
|
9,114
|
10,178
|
(in $ million)
|
Q3 2016 As reported
|
Exclusions
|
Q3 2016 Underlying
|
|||||||||
Total Operating Revenue
|
743
|
—
|
743
|
|||||||||
EBITDA
|
441
|
—
|
441
|
|||||||||
Margin (%)
|
59
|
%
|
59
|
%
|
||||||||
Operating income
|
247
|
—
|
247
|
|||||||||
Net Interest bearing debt
|
8,948
|
—
|
8,948
|
(in $ million)
|
Q3 2015 As reported
|
Exclusions
|
Q3 2015 Underlying
|
|||||||||
Total Operating Revenue
|
985
|
—
|
985
|
|||||||||
EBITDA
|
546
|
—
|
546
|
|||||||||
Margin (%)
|
55
|
%
|
55
|
%
|
||||||||
Operating (loss)/income
|
(291
|
)
|
645
|
354
|
||||||||
Net Interest bearing debt
|
10,178
|
—
|
10,178
|
• |
Operating loss: exclusion of goodwill impairment of $563 million and loss on disposals $82 million.
|
(in $ million)
|
Q2 2016 As reported
|
Exclusions
|
Q2 2016 Underlying
|
|||||||||
Total Operating Revenue
|
868
|
—
|
868
|
|||||||||
EBITDA
|
557
|
—
|
557
|
|||||||||
Margin (%)
|
64
|
%
|
64
|
%
|
||||||||
Operating income
|
364
|
—
|
364
|
|||||||||
Net Debt
|
9,114
|
—
|
9,114
|
Unaudited Consolidated Statements of Operations for the three and nine months ended September 30, 2016 and 2015
|
F-2
|
Unaudited Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2016 and 2015
|
F-3
|
Unaudited Consolidated Balance Sheets as of September 30, 2016 and December 31, 2015
|
F-4
|
Unaudited Consolidated Statements of Cash Flows for the nine months ended September 30, 2016 and 2015
|
F-5
|
Unaudited Consolidated Statements of Changes in Equity for the nine months ended September 30, 2016 and 2015
|
F-7
|
Notes to Unaudited Consolidated Financial Statements
|
F-8
|
(In $ millions)
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Operating revenues
|
||||||||||||||||
Contract revenues
|
657
|
903
|
2,274
|
3,104
|
||||||||||||
Reimbursable revenues
|
15
|
28
|
49
|
76
|
||||||||||||
Other revenues
|
71
|
54
|
179
|
196
|
||||||||||||
Total operating revenues
|
743
|
985
|
2,502
|
3,376
|
||||||||||||
(Loss)/gain on disposals
|
* |
—
|
(82
|
)
|
—
|
30
|
||||||||||
Contingent consideration realized
|
* |
5
|
19
|
15
|
28
|
|||||||||||
Operating expenses
|
||||||||||||||||
Vessel and rig operating expenses
|
* |
243
|
374
|
781
|
1,242
|
|||||||||||
Reimbursable expenses
|
13
|
29
|
45
|
70
|
||||||||||||
Depreciation and amortization
|
194
|
192
|
587
|
582
|
||||||||||||
Loss on Goodwill impairment
|
—
|
563
|
—
|
563
|
||||||||||||
General and administrative expenses
|
* |
51
|
55
|
165
|
181
|
|||||||||||
Total operating expenses
|
501
|
1,213
|
1,578
|
2,638
|
||||||||||||
Operating income
|
247
|
(291
|
)
|
939
|
796
|
|||||||||||
Financial items and other income and expense
|
||||||||||||||||
Interest income
|
* |
17
|
15
|
53
|
49
|
|||||||||||
Interest expense
|
* |
(98
|
)
|
(105
|
)
|
(305
|
)
|
(317
|
)
|
|||||||
Loss on impairment of investments
|
(882
|
)
|
(1,274
|
)
|
(906
|
)
|
(1,274
|
)
|
||||||||
Share in results from associated companies (net of tax)
|
67
|
(39
|
)
|
164
|
71
|
|||||||||||
Gain/(loss) on derivative financial instruments
|
* |
53
|
(177
|
)
|
(94
|
)
|
(314
|
)
|
||||||||
Gain on debt extinguishment
|
—
|
8
|
47
|
8
|
||||||||||||
Foreign exchange (loss)/gain
|
(11
|
)
|
4
|
(16
|
)
|
32
|
||||||||||
Gain on sale of tender rig business
|
—
|
—
|
—
|
22
|
||||||||||||
Other financial items and other income, net
|
* |
—
|
(7
|
)
|
15
|
35
|
||||||||||
Total financial items and other (expense) and income, net
|
(854
|
)
|
(1,575
|
)
|
(1,042
|
)
|
(1,688
|
)
|
||||||||
Loss before income taxes
|
(607
|
)
|
(1,866
|
)
|
(103
|
)
|
(892
|
)
|
||||||||
Income tax expense
|
(49
|
)
|
(34
|
)
|
(189
|
)
|
(137
|
)
|
||||||||
Net loss
|
(656
|
)
|
(1,900
|
)
|
(292
|
)
|
(1,029
|
)
|
||||||||
Net income attributable to the non-controlling interest
|
1
|
(71
|
)
|
31
|
(6
|
)
|
||||||||||
Net loss attributable to the parent
|
(657
|
)
|
(1,829
|
)
|
(323
|
)
|
(1,023
|
)
|
||||||||
Basic loss per share (US dollar)
|
(1.29
|
)
|
(3.70
|
)
|
(0.64
|
)
|
(2.07
|
)
|
||||||||
Diluted loss per share (US dollar)
|
(1.29
|
)
|
(3.70
|
)
|
(0.64
|
)
|
(2.07
|
)
|
(In $ millions)
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Net loss
|
(656
|
)
|
(1,900
|
)
|
(292
|
)
|
(1,029
|
)
|
||||||||
Other comprehensive income/(loss), net of tax:
|
||||||||||||||||
Change in unrealized gain/(loss) on marketable securities, net
|
(47
|
)
|
(178
|
)
|
(35
|
)
|
(298
|
)
|
||||||||
Other than temporary impairment of marketable securities, reclassification to statement of operations
|
153
|
741
|
164
|
741
|
||||||||||||
Change in unrealized foreign exchange differences
|
—
|
—
|
—
|
(10
|
)
|
|||||||||||
Change in actuarial gain relating to pension
|
4
|
3
|
10
|
24
|
||||||||||||
Change in unrealized loss on interest rate swaps in VIEs and subsidiaries
|
2
|
(2
|
)
|
—
|
(2
|
)
|
||||||||||
Share of other comprehensive loss from associated companies
|
7
|
7
|
(3
|
)
|
7
|
|||||||||||
Other comprehensive income:
|
119
|
571
|
136
|
462
|
||||||||||||
Total comprehensive loss for the period
|
(537
|
)
|
(1,329
|
)
|
(156
|
)
|
(567
|
)
|
||||||||
Comprehensive income/(loss) attributable to the non-controlling interest
|
4
|
(68
|
)
|
34
|
(1
|
)
|
||||||||||
Comprehensive loss attributable to the parent
|
(541
|
)
|
(1,261
|
)
|
(190
|
)
|
(566
|
)
|
(In $ millions)
|
September 30,
2016 |
December 31,
2015 |
||||||
ASSETS
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
1,250
|
1,044
|
||||||
Restricted cash
|
117
|
50
|
||||||
Marketable securities
|
93
|
96
|
||||||
Accounts receivables, net
|
630
|
718
|
||||||
Amount due from related parties
|
493
|
639
|
||||||
Other current assets
|
324
|
395
|
||||||
Total current assets
|
2,907
|
2,942
|
||||||
Non-current assets
|
||||||||
Investment in associated companies
|
2,014
|
2,590
|
||||||
Marketable securities
|
—
|
228
|
||||||
Newbuildings
|
1,518
|
1,479
|
||||||
Drilling units
|
14,488
|
14,930
|
||||||
Restricted cash
|
32
|
198
|
||||||
Deferred tax assets
|
73
|
81
|
||||||
Equipment
|
43
|
46
|
||||||
Amount due from related parties non-current
|
520
|
517
|
||||||
Assets held for sale - non-current
|
128
|
128
|
||||||
Other non-current assets
|
320
|
331
|
||||||
Total non-current assets
|
19,136
|
20,528
|
||||||
Total assets
|
22,043
|
23,470
|
||||||
LIABILITIES AND EQUITY
|
||||||||
Current liabilities
|
||||||||
Current portion of long-term debt
|
3,136
|
1,489
|
||||||
Trade accounts payable
|
122
|
141
|
||||||
Short-term amounts due to related parties
|
110
|
152
|
||||||
Other current liabilities
|
1,525
|
1,684
|
||||||
Total current liabilities
|
4,893
|
3,466
|
||||||
Non-current liabilities
|
||||||||
Long-term debt
|
6,728
|
9,054
|
||||||
Long-term debt due to related parties
|
334
|
438
|
||||||
Deferred tax liabilities
|
188
|
136
|
||||||
Other non-current liabilities
|
131
|
401
|
||||||
Total non-current liabilities
|
7,381
|
10,029
|
||||||
Equity
|
||||||||
Common shares of par value US$2.00 per share: 800,000,000 shares authorized 504,444,280 outstanding at September 30, 2016 (December 31, 2015, 492,759,940)
|
1,008
|
985
|
||||||
Additional paid in capital
|
3,298
|
3,275
|
||||||
Contributed surplus
|
1,956
|
1,956
|
||||||
Accumulated other comprehensive income/(loss)
|
13
|
(120
|
)
|
|||||
Retained earnings
|
2,961
|
3,275
|
||||||
Total shareholders' equity
|
9,236
|
9,371
|
||||||
Non-controlling interest
|
533
|
604
|
||||||
Total equity
|
9,769
|
9,975
|
||||||
Total liabilities and equity
|
22,043
|
23,470
|
(In $ millions)
|
Nine Months Ended
September 30, |
|||||||
2016
|
2015
|
|||||||
Cash Flows from Operating Activities
|
||||||||
Net loss
|
(292
|
)
|
(1,029
|
)
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
587
|
582
|
||||||
Amortization of deferred loan charges
|
36
|
30
|
||||||
Amortization of unfavorable contracts
|
(52
|
)
|
(95
|
)
|
||||
Gain on sale of tender rig business
|
—
|
(22
|
)
|
|||||
Share of results from associated companies
|
(164
|
)
|
(73
|
)
|
||||
Share-based compensation expense
|
6
|
5
|
||||||
Gain on disposals and deconsolidations
|
—
|
(30
|
)
|
|||||
Contingent consideration realized
|
(15
|
)
|
(28
|
)
|
||||
Unrealized loss related to derivative financial instruments
|
(17
|
)
|
133
|
|||||
Loss on Goodwill impairment
|
—
|
563
|
||||||
Loss on impairment of investments
|
906
|
1,274
|
||||||
Dividends received from associated companies
|
48
|
196
|
||||||
Deferred income tax
|
60
|
17
|
||||||
Unrealized foreign exchange loss/(gain) on long-term debt
|
35
|
(77
|
)
|
|||||
Payments for long-term maintenance
|
(75
|
)
|
(70
|
)
|
||||
Gain on debt extinguishment
|
(47
|
)
|
(8
|
)
|
||||
Other, net
|
(5
|
)
|
(7
|
)
|
||||
Changes in operating assets and liabilities, net of effect of acquisitions and disposals
|
||||||||
Trade accounts receivable
|
88
|
257
|
||||||
Trade accounts payable
|
(38
|
)
|
33
|
|||||
Prepaid expenses/accrued revenue
|
12
|
(26
|
)
|
|||||
Deferred revenue
|
(101
|
)
|
(60
|
)
|
||||
Related party receivables
|
(59
|
)
|
118
|
|||||
Related party payables
|
(24
|
)
|
(47
|
)
|
||||
Other assets
|
33
|
—
|
||||||
Other liabilities
|
(83
|
)
|
(146
|
)
|
||||
Net cash provided by operating activities
|
839
|
1,490
|
(In $ millions)
|
Nine Months Ended
September 30, |
|||||||
2016
|
2015
|
|||||||
Cash Flows from Investing Activities
|
||||||||
Additions to newbuildings
|
(39
|
)
|
(583
|
)
|
||||
Additions to drilling units and equipment
|
(66
|
)
|
(259
|
)
|
||||
Proceeds from contingent consideration
|
76
|
19
|
||||||
Refund of yard installments
|
26
|
—
|
||||||
Sale of business, net of cash disposed
|
—
|
1,183
|
||||||
Change in restricted cash
|
(62
|
)
|
(59
|
)
|
||||
Investment in associated companies
|
(16
|
)
|
(187
|
)
|
||||
Loans granted to related parties
|
(89
|
)
|
(380
|
)
|
||||
Payments received from loans granted to related parties
|
228
|
219
|
||||||
Proceeds from disposal of marketable securities
|
195
|
—
|
||||||
Net cash provided by/(used in) investing activities
|
253
|
(47
|
)
|
Cash Flows from Financing Activities
|
||||||||
Proceeds from debt and revolving lines of credit
|
—
|
1,316
|
||||||
Repayments of debt and revolving lines of credit
|
(774
|
)
|
(2,387
|
)
|
||||
Debt fees paid
|
(26
|
)
|
(16
|
)
|
||||
Repayments of debt to related party
|
(76
|
)
|
—
|
|||||
Dividends paid to non-controlling interests
|
(7
|
)
|
(7
|
)
|
||||
Purchase of treasury shares
|
(10
|
)
|
—
|
|||||
Net cash used in financing activities
|
(893
|
)
|
(1,094
|
)
|
||||
Effect of exchange rate changes on cash
|
7
|
1
|
||||||
Net increase in cash and cash equivalents
|
206
|
350
|
||||||
Cash and cash equivalents at beginning of the period
|
1,044
|
831
|
||||||
Cash and cash equivalents at the end of period
|
1,250
|
1,181
|
(In $ millions)
|
Common shares
|
Additional paid-in capital
|
Contributed surplus
|
Accumulated
Other Comprehensive Loss |
Retained earnings
|
Total equity before NCI
|
NCI
|
Total
equity |
||||||||||||||||||||||||
Balance at December 31, 2014
|
985
|
3,258
|
1,956
|
(448
|
)
|
4,013
|
9,764
|
626
|
10,390
|
|||||||||||||||||||||||
Sale and purchase of treasury shares, net
|
—
|
10
|
—
|
—
|
—
|
10
|
—
|
10
|
||||||||||||||||||||||||
Share based compensation charge
|
—
|
5
|
—
|
—
|
—
|
5
|
—
|
5
|
||||||||||||||||||||||||
Sale of NCI
|
—
|
—
|
—
|
—
|
—
|
—
|
(4
|
)
|
(4
|
)
|
||||||||||||||||||||||
Other comprehensive (loss)/income
|
—
|
—
|
—
|
457
|
—
|
457
|
5
|
462
|
||||||||||||||||||||||||
Distributions to non-controlling interests
|
—
|
—
|
—
|
—
|
—
|
—
|
(7
|
)
|
(7
|
)
|
||||||||||||||||||||||
Net loss
|
—
|
—
|
—
|
—
|
(1,023
|
)
|
(1,023
|
)
|
(6
|
)
|
(1,029
|
)
|
||||||||||||||||||||
Balance at September 30, 2015
|
985
|
3,273
|
1,956
|
9
|
2,990
|
9,213
|
614
|
9,827
|
||||||||||||||||||||||||
Balance at December 31, 2015
|
985
|
3,275
|
1,956
|
(120
|
)
|
3,275
|
9,371
|
604
|
9,975
|
|||||||||||||||||||||||
Sale and purchase of treasury shares, net
|
(8
|
)
|
(2
|
)
|
—
|
—
|
—
|
(10
|
)
|
—
|
(10
|
)
|
||||||||||||||||||||
Share-based compensation charge
|
—
|
—
|
—
|
—
|
7
|
7
|
—
|
7
|
||||||||||||||||||||||||
Historical stock option reclassification
|
—
|
(2
|
)
|
—
|
—
|
2
|
—
|
—
|
—
|
|||||||||||||||||||||||
Bond conversion
|
31
|
27
|
—
|
—
|
—
|
58
|
—
|
58
|
||||||||||||||||||||||||
Other comprehensive income
|
—
|
—
|
—
|
133
|
—
|
133
|
3
|
136
|
||||||||||||||||||||||||
Dividend to Non-controlling interests in VIEs
|
—
|
—
|
—
|
—
|
—
|
—
|
(105
|
)
|
(105
|
)
|
||||||||||||||||||||||
Net (loss)/income
|
—
|
—
|
—
|
—
|
(323
|
)
|
(323
|
)
|
31
|
(292
|
)
|
|||||||||||||||||||||
Balance at September 30, 2016
|
1,008
|
3,298
|
1,956
|
13
|
2,961
|
9,236
|
533
|
9,769
|
(In $ millions)
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Floaters
|
528
|
647
|
1,754
|
2,262
|
||||||||||||
Jack-up rigs
|
199
|
306
|
679
|
1,011
|
||||||||||||
Other
|
16
|
32
|
69
|
103
|
||||||||||||
Total
|
743
|
985
|
2,502
|
3,376
|
(In $ millions)
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Floaters
|
143
|
140
|
433
|
423
|
||||||||||||
Jack-up rigs
|
51
|
51
|
154
|
158
|
||||||||||||
Other
|
—
|
1
|
—
|
1
|
||||||||||||
Total
|
194
|
192
|
587
|
582
|
(In $ millions)
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Floaters
|
182
|
(410
|
)
|
689
|
223
|
|||||||||||
Jack-up rigs
|
62
|
114
|
240
|
562
|
||||||||||||
Other
|
3
|
5
|
10
|
11
|
||||||||||||
Operating income
|
247
|
(291
|
)
|
939
|
796
|
|||||||||||
Unallocated items:
|
||||||||||||||||
Total financial items and other
|
(854
|
)
|
(1,575
|
)
|
(1,042
|
)
|
(1,688
|
)
|
||||||||
Income taxes
|
(49
|
)
|
(34
|
)
|
(189
|
)
|
(137
|
)
|
||||||||
Net Income
|
(656
|
)
|
(1,900
|
)
|
(292
|
)
|
(1,029
|
)
|
(In $ millions)
|
As of September 30, 2016
|
As of December 31, 2015
|
||||||
Floaters
|
11,904
|
12,189
|
||||||
Jack-up rigs
|
4,102
|
4,220
|
||||||
Total Drilling Units and Newbuildings
|
16,006
|
16,409
|
||||||
Unallocated items:
|
||||||||
Assets held for sale
|
128
|
128
|
||||||
Investments in associated companies
|
2,014
|
2,590
|
||||||
Marketable securities
|
93
|
324
|
||||||
Cash and restricted cash
|
1,399
|
1,292
|
||||||
Other assets
|
2,403
|
2,727
|
||||||
Total Assets
|
22,043
|
23,470
|
(In $ millions)
|
Nine Months Ended
September 30, |
|||||||
2016
|
2015
|
|||||||
Floaters
|
148
|
842
|
||||||
Jack-up rigs
|
30
|
79
|
||||||
Total
|
178
|
921
|
(In $ millions)
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
(Loss)/gain on disposals
|
||||||||||||||||
Loss on disposal of West Polaris to Seadrill Partners
|
—
|
(2
|
)
|
—
|
(77
|
)
|
||||||||||
Gain on SeaMex deconsolidation
|
—
|
—
|
—
|
186
|
||||||||||||
West Mira cancellation
|
—
|
(80
|
)
|
—
|
(80
|
)
|
||||||||||
Other
|
—
|
—
|
—
|
1
|
||||||||||||
Total (Loss)/gain on disposals
|
—
|
(82
|
)
|
—
|
30
|
|||||||||||
Contingent Consideration realized - $'m
|
||||||||||||||||
Polaris earn out realized
|
2
|
15
|
6
|
17
|
||||||||||||
Vela earn out realized
|
3
|
4
|
9
|
11
|
||||||||||||
Total Contingent Consideration recognized
|
5
|
19
|
15
|
28
|
(In $ millions) |
As at September 14, 2015
|
|||
West Mira book value
|
315
|
|||
Less: equipment redeployed
|
(48
|
)
|
||
Net book value disposed
|
267
|
|||
Less: Yard Installments recoverable
|
(170
|
)
|
||
Less: interest accrued on installment
|
(29
|
)
|
||
Provisions for onerous commitments
|
12
|
|||
Net Loss on disposal
|
80
|
(In $ millions) |
As at June 19, 2015
|
|||
Initial enterprise value
|
540
|
|||
Less: Debt assumed
|
(336
|
)
|
||
Initial purchase price
|
204
|
|||
Plus: Working capital adjustment
|
31
|
|||
Adjusted initial purchase price
|
235
|
|||
Cash
|
204
|
|||
Plus: Working capital receivable
|
31
|
|||
Fair value of purchase consideration recognized on disposal
|
235
|
|||
Less: net carrying value of assets and liabilities
|
(269
|
)
|
||
Less: allocated goodwill to subsidiaries
|
(41
|
)
|
||
Initial loss on disposal recognized for the six months ended June 30, 2015
|
(75
|
)
|
||
Measurement period adjustments *
|
(2
|
)
|
||
Loss on disposal recognized for the year ended December 31, 2015
|
(77
|
)
|
||
Contingent consideration realized since disposal
|
38
|
* |
During the second half of 2015, subsequent to the deconsolidation, certain immaterial measurement period adjustments were made to the values of the net assets as at the date of disposal, which increased the initial loss recognized by $2 million.
|
(In $ millions)
|
As at March 10, 2015
|
|||
FAIR VALUE OF CONSIDERATION RECEIVED
|
||||
Net cash consideration received
|
749
|
|||
Seller's credit recognized
|
250
|
|||
Direct repayment of debt by the JV on behalf of Seadrill
|
150
|
|||
Consideration receivable in respect of
West Titania
|
162
|
|||
Other related party balances payable
|
(71
|
)
|
||
Cash paid to acquire 50% interest in the JV
|
(163
|
)
|
||
Fair value of consideration received
|
1,077
|
|||
FAIR VALUE OF RETAINED 50% INVESTMENT IN SEAMEX LIMITED
|
163
|
|||
CARRYING VALUE OF NET ASSETS
|
||||
Current assets
|
||||
Cash and cash equivalents
|
40
|
|||
Deferred tax assets - short term
|
8
|
|||
Other current assets
|
20
|
|||
Total current assets
|
68
|
|||
Non-current assets
|
||||
Drilling units
|
969
|
|||
Deferred tax asset - long term
|
4
|
|||
Other non-current assets
|
86
|
|||
Goodwill
|
49
|
|||
Total non-current assets
|
1,108
|
|||
Total assets
|
1,176
|
|||
LIABILITIES
|
||||
Current liabilities
|
||||
Trade accounts payable
|
(1
|
)
|
||
Other current liabilities
|
(61
|
)
|
||
Total current liabilities
|
(62
|
)
|
||
Non-current liabilities
|
||||
Other non-current liabilities
|
(60
|
)
|
||
Total non-current liabilities
|
(60
|
)
|
||
Total liabilities
|
(122
|
)
|
||
Carrying value of net assets
|
1,054
|
|||
Initial gain on disposal recognized for the six months ended June 30, 2015
|
186
|
|||
Measurement period adjustments *
|
(5
|
)
|
||
Gain on disposal recognized for the year ended December 31, 2015
|
181
|
* |
During the second half of 2015, subsequent to the deconsolidation, certain immaterial measurement period adjustments were made to the values of the net assets as at the date of deconsolidation, which reduced the initial gain recognized by $5 million.
|
(In $ millions)
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Net loss attributable to the parent
|
(657
|
)
|
(1,829
|
)
|
(323
|
)
|
(1,023
|
)
|
||||||||
Less: Allocation to participating securities
|
5
|
4
|
2
|
2
|
||||||||||||
Net loss available to shareholders
|
(652
|
)
|
(1,825
|
)
|
(321
|
)
|
(1,021
|
)
|
||||||||
Effect of dilution
|
—
|
—
|
—
|
—
|
||||||||||||
Diluted net loss available to shareholders
|
(652
|
)
|
(1,825
|
)
|
(321
|
)
|
(1,021
|
)
|
(In millions)
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Basic earnings per share:
|
||||||||||||||||
Weighted average number of common shares outstanding
|
507
|
493
|
500
|
493
|
||||||||||||
Diluted earnings per share:
|
||||||||||||||||
Weighted average number of common shares outstanding
|
507
|
493
|
500
|
493
|
||||||||||||
Effect of dilutive share options
|
—
|
—
|
—
|
—
|
||||||||||||
Effect of dilutive convertible bonds
|
—
|
—
|
—
|
—
|
||||||||||||
Weighted average number of common shares outstanding adjusted for the effects of dilution
|
507
|
493
|
500
|
493
|
||||||||||||
Basic loss per share (US dollar)
|
(1.29
|
)
|
(3.70
|
)
|
(0.64
|
)
|
(2.07
|
)
|
||||||||
Diluted loss per share (US dollar)
|
(1.29
|
)
|
(3.70
|
)
|
(0.64
|
)
|
(2.07
|
)
|
As at September 30, 2016
|
||||||||||||
(In $ millions)
|
Amortized cost
|
Cumulative unrealized fair value gains/(losses)
|
Carrying value
|
|||||||||
SapuraKencana
|
—
|
—
|
—
|
|||||||||
Seadrill Partners - Common Units
|
93
|
—
|
93
|
|||||||||
Total
|
93
|
—
|
93
|
As at December 31, 2015
|
||||||||||||
(In $ millions)
|
Amortized cost
|
Cumulative unrealized fair value gains/(losses)
|
Carrying value
|
|||||||||
SapuraKencana
|
206
|
22
|
228
|
|||||||||
Seadrill Partners - Common Units
|
247
|
(151
|
)
|
96
|
||||||||
Total
|
453
|
(129
|
)
|
324
|
Nine Months Ended September 30, 2016
|
||||||||||||||||||||||||||||
(In $ millions)
|
Gross realized gains
|
Gross realized losses
|
Gross Unrealized gains
|
Gross Unrealized losses
|
Gross proceeds from disposals
|
Recognition and purchases
|
Gain/(loss) reclassified into income
|
|||||||||||||||||||||
SapuraKencana
|
—
|
—
|
—
|
(33
|
)
|
195
|
—
|
(11
|
)
|
|||||||||||||||||||
Seadrill Partners - Common Units
|
—
|
—
|
—
|
(2
|
)
|
—
|
—
|
(153
|
)
|
|||||||||||||||||||
Total
|
—
|
—
|
—
|
(35
|
)
|
195
|
—
|
(164
|
)
|
Nine Months Ended September 30, 2015
|
||||||||||||||||||||||||||||
(In $ millions)
|
Gross realized gains
|
Gross realized losses
|
Gross Unrealized gains
|
Gross Unrealized losses
|
Gross proceeds from disposals
|
Recognition and purchases
|
Gain/(loss) reclassified into income
|
|||||||||||||||||||||
SapuraKencana
|
—
|
—
|
—
|
(119
|
)
|
—
|
—
|
(167
|
)
|
|||||||||||||||||||
Seadrill Partners - Common Units
|
—
|
—
|
—
|
(179
|
)
|
—
|
—
|
(574
|
)
|
|||||||||||||||||||
Total
|
—
|
—
|
—
|
(298
|
)
|
—
|
—
|
(741
|
)
|
(In $ millions)
|
September 30,
2016 |
December 31,
2015 |
||||||
Seabras Sapura Participacoes
|
39
|
29
|
||||||
Seabras Sapura Holdco
|
190
|
158
|
||||||
Itaunas Drilling
|
—
|
3
|
||||||
Camburi Drilling
|
—
|
6
|
||||||
Sahy Drilling
|
—
|
4
|
||||||
Seadrill Partners - Total direct ownership interests
|
1,443
|
1,767
|
||||||
Seadrill Partners - Subordinated Units
|
142
|
293
|
||||||
Seadrill Partners - Seadrill member interest and IDRs*
|
64
|
137
|
||||||
SeaMex Ltd
|
136
|
193
|
||||||
Total
|
2,014
|
2,590
|
(In $ millions)
|
Nine months ended September 30, 2016
|
|||
Impairments of Investment in Associated Companies
|
||||
Seadrill Partners - Total direct ownership investments
|
400
|
|||
Seadrill Partners - Subordinated units
|
180
|
|||
Seadrill Partners - Seadrill member interest and IDRs
|
73
|
|||
SeaMex
|
76
|
|||
Sete Brasil Participacoes SA
|
13
|
|||
Total impairment of investment in associated companies
|
742
|
|||
Impairments of marketable securities (refer to Note 7)
|
||||
Seadrill Partners - Common Units
|
153
|
|||
SapuraKencana
|
11
|
|||
Total Impairment of marketable securities investments (reclassification from OCI)
|
164
|
|||
Total impairment of investments
|
906
|
(In $ millions)
|
Nine months ended September 30, 2016
|
Year ended December 31,
2015 |
||||||
Opening balance
|
1,479
|
2,030
|
||||||
Additions
|
39
|
661
|
||||||
Transfers to drilling units
|
—
|
(725
|
)
|
|||||
Reclassification to non-current assets*
|
—
|
(199
|
)
|
|||||
Disposals*
|
—
|
(78
|
)
|
|||||
Reclassification to assets held for sale**
|
—
|
(210
|
)
|
|||||
Closing balance
|
1,518
|
1,479
|
(In $ millions) |
September 30,
2016 |
December 31,
2015 |
||||||
Cost
|
17,745
|
17,606
|
||||||
Accumulated depreciation
|
(3,257
|
)
|
(2,676
|
)
|
||||
Net book value
|
14,488
|
14,930
|
(In $ millions)
|
Nine months ended September 30, 2016
|
Year ended December 31,
2015 |
||||||
Opening balance
|
||||||||
Goodwill
|
795
|
836
|
||||||
Accumulated impairment losses
|
(795
|
)
|
(232
|
)
|
||||
Total opening goodwill
|
—
|
604
|
||||||
Disposals and deconsolidations (see note 4)
|
—
|
(41
|
)
|
|||||
Impairment of goodwill
|
—
|
(563
|
)
|
|||||
Closing balance
|
||||||||
Goodwill
|
795
|
795
|
||||||
Accumulated impairment losses
|
(795
|
)
|
(795
|
)
|
||||
Total closing goodwill
|
—
|
—
|
(In $ millions)
|
September 30,
2016 |
December 31,
2015 |
||||||
Credit facilities:
|
||||||||
$2,000 facility (North Atlantic Drilling)
|
1,075
|
1,200
|
||||||
$400 facility
|
210
|
240
|
||||||
$440 facility
|
207
|
224
|
||||||
$1,450 facility
|
363
|
393
|
||||||
$360 facility (Asia Offshore Drilling)
|
246
|
273
|
||||||
$300 facility
|
168
|
186
|
||||||
$1,750 facility (Sevan Drilling)
|
980
|
1,085
|
||||||
$450 facility
|
291
|
344
|
||||||
$1,500 facility
|
1,250
|
1,344
|
||||||
$1,350 facility
|
1,080
|
1,181
|
||||||
$950 facility
|
639
|
688
|
||||||
$450 facility (2015)
|
185
|
215
|
||||||
Total credit facilities
|
6,694
|
7,373
|
||||||
Loans contained within VIEs:
|
||||||||
$375 facility
|
286
|
256
|
||||||
$390 facility
|
254
|
221
|
||||||
$475 facility
|
368
|
354
|
||||||
Total Loans contained within VIEs
|
908
|
831
|
||||||
Unsecured bonds:
|
||||||||
Unsecured bonds
|
2,310
|
2,381
|
||||||
Total unsecured bonds
|
2,310
|
2,381
|
||||||
Other credit facilities with corresponding restricted cash deposits
|
55
|
76
|
||||||
Total debt principal
|
9,967
|
10,661
|
||||||
Less: current portion of debt principal
|
(3,176
|
)
|
(1,526
|
)
|
||||
Long-term portion of debt principal
|
6,791
|
9,135
|
Outstanding debt as at September 30, 2016
|
||||||||||||
(In $ millions)
|
Principal outstanding
|
Less: Debt Issuance Costs
|
Total Debt
|
|||||||||
Current portion of long-term debt
|
3,176
|
(40
|
)
|
3,136
|
||||||||
Long-term debt
|
6,791
|
(63
|
)
|
6,728
|
||||||||
Total
|
9,967
|
(103
|
)
|
9,864
|
Outstanding debt as at December 31, 2015
|
||||||||||||
(In $ millions)
|
Principal outstanding
|
Less: Debt Issuance Costs
|
Total Debt
|
|||||||||
Current portion of long-term debt
|
1,526
|
(37
|
)
|
1,489
|
||||||||
Long-term debt
|
9,135
|
(81
|
)
|
9,054
|
||||||||
Total
|
10,661
|
(118
|
)
|
10,543
|
(In $ millions)
|
Year ended September 30,
|
|||
2017
|
3,176
|
|||
2018
|
2,371
|
|||
2019
|
3,382
|
|||
2020
|
1,038
|
|||
Total debt principal
|
9,967
|
• |
Extensions:
|
◦ |
$450 million Senior Secured Credit Facility
: The maturity of the $450 million senior secured credit facility, relating to the
West Eminence
rig, has been extended from June 20, 2016 to December 31, 2016. The outstanding balance on the credit facility of $291 million is classified as a short term debt facility in the consolidated Balance Sheet as at September 30, 2016.
|
◦ |
$400 million Senior Secured Credit Facility
: The maturity of the $400 million senior secured credit facility, relating to jack-up rigs
West Cressida
,
West Callisto
,
West Leda
and
West Triton,
has been extended from December 8, 2016 to May 31, 2017. The outstanding balance on the credit facility of $210 million is classified as a short term debt facility in the consolidated Balance Sheet as at September 30, 2016.
|
◦ |
$2 billion Senior Secured Credit Facility
: The maturity of the $2 billion senior secured credit facility of our majority-owned subsidiary NADL has been extended from April 15, 2017 to June 30, 2017. The outstanding balance on the credit facility of $1,075 million is classified as a short term debt facility in the consolidated Balance Sheet as at September 30, 2016.
|
• |
Key amendments and waivers:
|
◦ |
Equity ratio
: The Company is required to maintain a total equity to total assets ratio of at least 30.0%. Prior to the amendment, both total equity and total assets were adjusted for the difference between book and market values of drilling units, as determined by independent broker valuations. The amendment removes the need for the market value adjustment from the calculation of the equity ratio until June 30, 2017.
|
• |
Leverage ratio
: The Company is required to maintain a ratio of net debt to EBITDA. Prior to the amendment the leverage ratio had to be no greater than 6.0:1, falling to 5.5:1 from October 1, 2016, and falling again to 4.5:1 from January 1, 2017. The amendment retains the ratio at 6.0:1 until December 31, 2016, and then increases to 6.5:1 between January 1, 2017 and June 30, 2017.
|
• |
Minimum-value-clauses
: The Company's secured bank credit facilities contain loan-to-value clauses, or minimum-value-clauses ("MVC"), which could require the Company to prepay a portion of the outstanding borrowings should the value of the drilling units securing borrowings under each of such agreements decrease below required levels. This covenant has been suspended until June 30, 2017.
|
• |
Minimum Liquidity
: The Company has previously been required to maintain a minimum of $150 million of liquidity. This has been reset to $250 million.
|
• |
Additional undertakings:
|
◦ |
Further process
: The Company has agreed certain undertakings on a temporary basis while further discussions with its lenders under its senior secured credit facilities remain ongoing. This includes agreements in respect of progress milestones towards the agreement of, and implementation plan in respect of, a comprehensive financing package.
|
◦ |
Restrictive undertakings
: The Company has agreed to additional near-term restrictive undertakings applicable during this process, including limitations in respect of:
|
▪ |
dividends, share capital repurchases and new total return swaps;
|
▪ |
incurrence of certain indebtedness;
|
▪ |
investments in, extensions of credit to or the provision of financial support for non-wholly owned subsidiaries;
|
▪ |
investments in, extensions of credit to or the provision of financial support for joint ventures or associated entities;
|
▪ |
acquisitions;
|
▪ |
dispositions;
|
▪ |
prepayment, repayment or repurchase of any debt obligations;
|
▪ |
granting security; and
|
▪ |
payments in respect of newbuild drilling units,
|
• |
Other changes and provisions:
|
◦ |
Undrawn availability
: The Company has agreed to refrain from borrowing any undrawn commitments under its senior secured credit facilities.
|
◦ |
Fees
: The Company has agreed to pay certain fees to its lenders in consideration of these extensions and amendments.
|
September 30, 2016
|
December 31, 2015
|
|||||||||||||||
All shares are common shares of $2.00 par value each
|
Shares
|
$ million
|
Shares
|
$ million
|
||||||||||||
Authorized share capital
|
800,000,000
|
1,600
|
800,000,000
|
1,600
|
||||||||||||
Issued and fully paid share capital
|
508,763,020
|
1,017
|
493,078,680
|
986
|
||||||||||||
Treasury shares held by Company
|
(4,318,740
|
)
|
(9
|
)
|
(318,740
|
)
|
(1
|
)
|
||||||||
Outstanding common shares in issue
|
504,444,280
|
1,008
|
492,759,940
|
985
|
(In $ millions)
|
September 30,
2016 |
December 31,
2015 |
||||||
Unrealized loss on marketable securities
|
—
|
(129
|
)
|
|||||
Unrealized gain on foreign exchange
|
36
|
36
|
||||||
Actuarial loss relating to pension
|
(31
|
)
|
(38
|
)
|
||||
Share in unrealized gains from associated companies
|
8
|
11
|
||||||
Accumulated other comprehensive income
|
13
|
(120
|
)
|
Variable interest entity
|
Outstanding principal as at
|
Receive rate
|
Pay rates
|
Length of contracts
|
||||
September 30, 2016
|
||||||||
(In $ millions)
|
||||||||
SFL Linus Limited (West Linus)
|
182
|
1 - 3 month LIBOR
|
1.77 - 2.01%
|
Dec 2013 - Dec 2018
|
(In $ millions)
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||||||||||
(Losses)/gains recognized in statement of operations relating to derivative financial instruments
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
Interest rate swap agreements not qualified as hedge accounting
|
32
|
(107
|
)
|
(118
|
)
|
(187
|
)
|
|||||||||
Cross currency interest rate swaps not qualified as hedge accounting
|
24
|
(49
|
)
|
31
|
(96
|
)
|
||||||||||
Foreign currency forwards not qualified as hedge accounting
|
—
|
(5
|
)
|
(1
|
)
|
(10
|
)
|
|||||||||
Total Return Swap Agreements
|
(3
|
)
|
(15
|
)
|
(6
|
)
|
(18
|
)
|
||||||||
Other
|
—
|
(1
|
)
|
—
|
(3
|
)
|
||||||||||
Gain/(loss) on derivative financial instruments
|
53
|
(177
|
)
|
(94
|
)
|
(314
|
)
|
September 30, 2016
|
December 31, 2015
|
|||||||||||||||
(In $ millions)
|
Fair
value
|
Carrying
value
|
Fair
value
|
Carrying
value
|
||||||||||||
Assets
|
||||||||||||||||
Cash and cash equivalents
|
1,250
|
1,250
|
1,044
|
1,044
|
||||||||||||
Restricted cash
|
149
|
149
|
248
|
248
|
||||||||||||
Related party loans receivable - short term
|
192
|
192
|
371
|
371
|
||||||||||||
Related party loans receivable - long term
|
481
|
481
|
464
|
464
|
||||||||||||
Liabilities
|
||||||||||||||||
Current portion of floating rate debt
|
2,310
|
2,310
|
1,493
|
1,493
|
||||||||||||
Long-term portion of floating rate debt
|
5,292
|
5,292
|
6,711
|
6,711
|
||||||||||||
Current portion of fixed rate CIRR loans
|
23
|
23
|
33
|
33
|
||||||||||||
Long term portion of fixed rate CIRR loans
|
32
|
32
|
43
|
43
|
||||||||||||
Fixed interest bonds - short term
|
350
|
843
|
—
|
—
|
||||||||||||
Fixed interest bonds - long term
|
225
|
892
|
944
|
1,840
|
||||||||||||
Floating interest bonds - long term
|
185
|
575
|
283
|
541
|
||||||||||||
Related party fixed rate debt - long term
|
415
|
415
|
415
|
415
|
Fair value measurements
at reporting date using
|
||||||||||||||||
Total
Fair value
|
Quoted Prices in Active Markets for Identical Assets
|
Significant Other Observable Inputs
|
Significant Unobservable Inputs
|
|||||||||||||
(In $ millions)
|
September 30,
2016 |
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
Assets:
|
||||||||||||||||
Marketable securities
|
93
|
93
|
—
|
—
|
||||||||||||
Other derivative instruments – short term receivable
|
—
|
—
|
—
|
—
|
||||||||||||
Total assets
|
93
|
93
|
—
|
—
|
||||||||||||
Liabilities:
|
||||||||||||||||
Interest rate swap contracts – short term payable
|
160
|
—
|
160
|
—
|
||||||||||||
Interest rate swap contracts – long term payable
|
3
|
—
|
3
|
—
|
||||||||||||
Cross currency swap contracts – short term payable
|
245
|
—
|
245
|
—
|
||||||||||||
Total liabilities
|
408
|
—
|
408
|
—
|
Fair value measurements
at reporting date using
|
||||||||||||||||
Total
Fair value
|
Quoted Prices in Active Markets for Identical Assets
|
Significant Other Observable Inputs
|
Significant Unobservable Inputs
|
|||||||||||||
(In $ millions)
|
December 31, 2015
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||
Assets:
|
||||||||||||||||
Marketable securities
|
324
|
324
|
—
|
—
|
||||||||||||
Interest rate swap contracts – short term receivable
|
2
|
—
|
2
|
—
|
||||||||||||
Total assets
|
326
|
324
|
2
|
—
|
||||||||||||
Liabilities:
|
||||||||||||||||
Interest rate swap contracts – short term payable
|
124
|
—
|
124
|
—
|
||||||||||||
Interest rate swap contracts – long term payable
|
2
|
—
|
2
|
—
|
||||||||||||
Cross currency swap contracts – short term payable
|
291
|
—
|
291
|
—
|
||||||||||||
Other derivative instruments – short term payable
|
9
|
—
|
9
|
—
|
||||||||||||
Total liabilities
|
426
|
—
|
426
|
—
|
Unit
|
Effective
from
|
Sale value
(In $ millions)
|
First
repurchase option (In $ millions) |
Month of first
repurchase
option
|
Last
repurchase option
(In $ millions)
|
Month of last
repurchase
Option *
|
|||||||||
West Taurus
|
Nov 2008
|
850
|
418
|
Feb 2015
|
149
|
Nov 2023
|
|||||||||
West Hercules
|
Oct 2008
|
850
|
580
|
Aug 2011
|
135
|
Aug 2023
|
|||||||||
West Linus*
|
June 2013
|
600
|
370
|
June 2018
|
170
|
June 2028
|
(In $ thousands)
|
||||||||||||||||||||||||
Unit
|
2016
|
2017
|
2018
|
2019
|
2020
|
2021
|
||||||||||||||||||
West Taurus
|
165
|
158
|
158
|
144
|
143
|
136
|
||||||||||||||||||
West Hercules
|
179
|
170
|
166
|
143
|
141
|
135
|
||||||||||||||||||
West Linus
|
222
|
222
|
222
|
173
|
140
|
140
|
September 30, 2016
|
December 31, 2015
|
|||||||||||||||||||||||
(In $ millions) |
SFL
Deepwater Limited |
SFL
Hercules Limited |
SFL
Linus Limited |
SFL
Deepwater Limited |
SFL
Hercules Limited |
SFL
Linus Limited |
||||||||||||||||||
Name of unit
|
West Taurus
|
West Hercules
|
West Linus
|
West Taurus
|
West Hercules
|
West Linus
|
||||||||||||||||||
Investment in finance lease
|
372
|
369
|
495
|
394
|
394
|
530
|
||||||||||||||||||
Other assets
|
6
|
6
|
—
|
6
|
7
|
—
|
||||||||||||||||||
Total assets
|
378
|
375
|
495
|
400
|
401
|
530
|
||||||||||||||||||
Short-term interest bearing debt
|
23
|
28
|
51
|
23
|
28
|
51
|
||||||||||||||||||
Long-term interest bearing debt
|
231
|
258
|
317
|
198
|
229
|
302
|
||||||||||||||||||
Other liabilities
|
3
|
1
|
3
|
3
|
1
|
2
|
||||||||||||||||||
Short-term debt due to related parties
|
—
|
—
|
—
|
—
|
—
|
23
|
||||||||||||||||||
Long-term debt due to related parties
|
121
|
88
|
124
|
137
|
125
|
125
|
||||||||||||||||||
Total liabilities
|
378
|
375
|
495
|
361
|
383
|
503
|
||||||||||||||||||
Equity
|
—
|
—
|
—
|
39
|
18
|
27
|
||||||||||||||||||
Book value of units in the Company's consolidated accounts
|
419
|
546
|
543
|
434
|
571
|
559
|
(In US$ millions)
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Management fees charged to Seadrill Partners - Other revenues (a) and (b)
|
12
|
18
|
45
|
43
|
||||||||||||
Rig operating expenses charged to Seadrill Partners - Other revenues (c)
|
6
|
2
|
19
|
14
|
||||||||||||
Contingent consideration realized (k)
|
5
|
19
|
15
|
28
|
||||||||||||
Insurance premiums charged to Seadrill Partners (d)
|
4
|
5
|
13
|
16
|
||||||||||||
Rig operating costs charged by Seadrill Partners (e)
|
(2
|
)
|
(3
|
)
|
(7
|
)
|
(10
|
)
|
||||||||
Bareboat charter arrangements (f)
|
2
|
2
|
7
|
(3
|
)
|
|||||||||||
Interest expenses charged to Seadrill Partners (g)
|
2
|
4
|
9
|
12
|
||||||||||||
Interest recognized on deferred consideration receivable (k)
|
1
|
1
|
4
|
6
|
||||||||||||
Derivatives recharged to Seadrill Partners (h)
|
(4
|
)
|
8
|
7
|
15
|
|||||||||||
Other financial items (other than interest and derivatives)
|
—
|
—
|
—
|
—
|
||||||||||||
Net related party income from Seadrill Partners
|
26
|
56
|
112
|
121
|
(In $ millions)
|
September 30,
2016 |
December 31,
2015 |
||||||
Rig financing and loan agreements (i)
|
174
|
197
|
||||||
$109.5 million Vendor financing loan (j)
|
—
|
110
|
||||||
Deferred consideration receivable (k)
|
73
|
96
|
||||||
Other receivables (l)
|
299
|
355
|
||||||
Other payables (l)
|
(107
|
)
|
(179
|
)
|
• |
Guarantees in favor of customers, which guarantee the performance of the Seadrill Partners drilling units, totaled $280 million as at September 30, 2016 (December 31, 2015: $370 million).
|
• |
Guarantees in favor of banks provided on behalf of Seadrill Partners totaled $640 million as at September 30, 2016 and correspond to the outstanding credit facilities relating to the
West Polaris
and
West Vela
(December 31, 2015: $698 million).
|
• |
Guarantees in favor of suppliers provided on behalf of Seadrill Partners, relating to custom guarantees in Nigeria, totaled $2 million as at September 30, 2016 (December 31, 2015: $86 million).
|
(In $ millions)
|
September 30,
2016 |
December 31,
2015 |
||||||
Seller's credit
|
250
|
250
|
||||||
Funding
|
45
|
45
|
||||||
Other receivables
|
48
|
34
|
||||||
Other payables
|
(3
|
)
|
—
|
• |
Ship Finance International Limited ("Ship Finance");
|
• |
Metrogas Holdings Inc. ("Metrogas");
|
• |
Frontline Management (Bermuda) Limited ("Frontline"); and
|
• |
Seatankers Management Norway AS ("Seatankers").
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
West Hercules
|
14
|
14
|
43
|
41
|
||||||||||||
West Taurus
|
13
|
13
|
38
|
45
|
||||||||||||
West Linus
|
19
|
20
|
61
|
60
|
||||||||||||
Total
|
46
|
47
|
142
|
146
|
(In $ millions)
|
||||
2017
|
2,361
|
|||
2018
|
1,191
|
|||
2019
|
527
|
|||
Total
|
4,079
|
Nine months ended
|
||||||||
(In $ millions) |
September 30, 2016
|
September 30, 2015
|
||||||
Non-cash investing activities
|
||||||||
Disposal of subsidiaries - existing bank loan repaid (1)
|
—
|
150
|
||||||
Non-cash financing activities
|
||||||||
Repayment of bank loan through disposal of subsidiaries (1)
|
—
|
(150
|
)
|
|||||
Repayment relating to Sevan Drilling share forward contracts and other derivatives (2)
|
—
|
(136
|
)
|
|||||
Repayment relating to SapuraKencana financing agreements (3)
|
(160
|
)
|
(93
|
)
|
||||
Proceeds from long-term loans (4)
|
150
|
—
|
||||||
Long term loans netted-down with related party balances (4)
|
(150
|
)
|
—
|
|||||
Conversion of bonds into shares, decrease in long term debt (5)
|
(105
|
)
|
||||||
Conversion of bonds into shares, net increase in equity (5)
|
58
|
|||||||
Dividend to non-controlling interests in VIEs (6)
|
(105
|
)
|
(In millions of US$)
|
Nine months ended
September 30, 2016
|
Year ended
December 31, 2015
|
||||||
Opening balance at the beginning of the period
|
128
|
—
|
||||||
West Rigel newbuild investment, classified as held for sale
|
—
|
210
|
||||||
Loss on disposal
|
—
|
(82
|
)
|
|||||
Non-current assets held for sale
|
128
|
128
|
1 Year Seadrill Chart |
1 Month Seadrill Chart |
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