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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 | |
---|---|---|---|---|---|---|---|---|
0.45 | 0.89% | 51.04 | 51.29 | 50.40 | 50.48 | 490,451 | 22:28:32 |
As at
September 30, 2016 |
As at
December 31, 2015 |
|||
Shareholders' equity as previously reported
|
9,236
|
9,371
|
||
Derivative valuation adjustments
|
177
|
125
|
||
Other adjustments
|
(10
|
)
|
(43)
|
|
Shareholders' equity as restated
|
9,404
|
9,453
|
Number
99.1
|
Exhibit
:
Press release announcing financial results for the fourth quarter 2016 and Unaudited Interim Consolidated Financial Statements for the year ended December 31, 2016.
|
Dated: February 28, 2017
|
SEADRILL LIMITED
(Registrant)
By:
/s/ Georgina Sousa
Georgina Sousa
Secretary
|
●
|
Revenue of $667 million
|
●
|
Operating income of $118 million
|
●
|
EBITDA
1
of $354 million
|
●
|
99% economic utilization
2
|
●
|
Reported net income of $127 million and diluted net income per share of $0.26
|
●
|
Underlying net income
3
, excluding non-recurring items and non-cash mark to market movements on derivatives, was $111 million and earnings per share was $0.24
|
●
|
Cash and cash equivalents of $1.4 billion
|
●
|
Seadrill Limited order backlog of approximately $2.5 billion
|
Seadrill Limited
|
|||||||||||||
Figures in USD million, unless otherwise indicated
|
Q4 2016 As Reported
|
Q4 2015 As Reported
|
% change
|
Q4 2016 Underlying
3
|
Q4 2015 Underlying
3
|
% change
|
|||||||
Total Operating Revenue
|
667
|
959
|
(30
|
)%
|
667
|
959
|
(30
|
)%
|
|||||
EBITDA
1
|
354
|
513
|
(31
|
)%
|
354
|
513
|
(31
|
)%
|
|||||
Margin (%)
|
53
|
%
|
53
|
%
|
53
|
%
|
53
|
%
|
|||||
Operating income
|
118
|
223
|
(47
|
)%
|
131
|
316
|
(59
|
)%
|
|||||
Net Interest bearing debt
|
8,476
|
9,937
|
(15
|
)%
|
8,476
|
9,937
|
(15
|
)%
|
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 the 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.
|
As at
September 30, 2016 |
As at
December 31, 2015 |
|||
Shareholders' equity as previously reported
|
9,236
|
9,371
|
||
Derivative valuation adjustments
|
177
|
125
|
||
Other adjustments
|
(10
|
)
|
(43
|
)
|
Shareholders' equity as restated
|
9,404
|
9,453
|
Seadrill Limited
|
||||||||||||
Q4 2016 As Reported
|
Q3 2016 As Reported
|
% change
|
Q4 2016 Underlying
3
|
Q3 2016 Underlying
3
|
% change
|
|||||||
Revenue
|
667
|
743
|
(10
|
)%
|
667
|
743
|
(10
|
)%
|
||||
EBITDA
|
354
|
441
|
(20
|
)%
|
354
|
441
|
(20
|
)%
|
||||
Margin (%)
|
53
|
%
|
59
|
%
|
53
|
%
|
59
|
%
|
||||
Operating income
|
118
|
247
|
(52
|
)%
|
131
|
247
|
(47
|
)%
|
||||
Net Interest bearing debt
|
8,476
|
8,948
|
(5
|
)%
|
8,476
|
8,948
|
(5
|
)%
|
• |
The West Hercules, West Orion, West Phoenix, West Alpha, West Pegasus and Sevan Driller having a full quarter of idle time;
|
• |
The West Epsilon and West Vigilant becoming idle during the quarter; and
|
• |
The West Saturn earning a lower dayrate for the month of December.
|
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. On January 6, 2017 the delivery deferral period was further extended to June 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 has refunded $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 December 31
|
SDRL
|
SDLP
|
Seamex
|
Seadrill Group
|
Operating floaters
|
9
|
5
|
n/a
|
14
|
Operating floaters economic utilization
|
99%
|
93%
|
n/a
|
96%
|
Idle floaters
|
10
|
3
|
n/a
|
13
|
Operating jack-ups
|
12
|
n/a
|
5
|
17
|
Operating jack-up economic utilization
|
99%
|
n/a
|
92%
|
97%
|
Idle jack-ups
|
7
|
n/a
|
—
|
7
|
Operating tender rigs
|
n/a
|
2
|
n/a
|
2
|
Operating tender rigs economic utilization
|
n/a
|
99%
|
n/a
|
99%
|
Idle tender rigs
|
n/a
|
1
|
n/a
|
1
|
Total operating rigs
|
21
|
7
|
5
|
33
|
Total operating rigs economic utilization
|
99%
|
94%
|
92%
|
97%
|
Total idle rigs
|
17
|
4
|
—
|
21
|
Total rigs
|
38
|
11
|
5
|
54
|
• |
The jack-up AOD III received a three year contract extension from Saudi Aramco expiring in December 2019. The extension will add approximately $112.5 million in contract backlog.
|
• |
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 was a direct continuation of its contract with ExxonMobil in Nigeria. This resulted 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 are expected to recommence on April 1, 2017, and will extend to September 30, 2017, at a rate of $225,000 per day.
|
• |
We 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 elects to terminate for convenience would ensure that the Company's backlog remains materially intact. The West Jupiter is currently contracted with Total in Nigeria until December 2019.
|
• |
The West Phoenix was awarded a one well contract with Nexen Petroleum. The contract will run in direct continuation from its existing contract with Total and the total backlog is estimated to be $17 million.
|
• |
The West Elara was awarded a one well extension plus one option well from Statoil. The backlog for the firm well is estimated to be $10 million.
|
• |
The West Mischief received a contract termination notice from NDC and is expected to end operations in August 2017 as opposed to the original contracted December 2017 date. The total backlog impact is a $9 million decrease.
|
• |
West Cressida was awarded a two month extension of its existing contract with PTTEP Thailand at the original contract day rate of $64,500 per day. The contract now expires in April 2017.
|
• |
SeaMex, the Company's 50% owned JV, agreed a 29 month contract extension at the current contracted day rates for each of the five jack-up rigs contracted with Pemex in Mexico. Simultaneously SeaMex agreed to provide Pemex with a discount to contracted rates for 22 months effective November 2016. The net impact on contract backlog for SeaMex was an increase of $580 million.
|
• |
The West Saturn was awarded a one well contract with Ophir Cotê d'Ivoirein Cotê d'Ivoire. Commencement is expected in the second quarter of 2017. Total contract backlog is expected to be approximately $5.5 million based on an estimated contract duration of 35 days.
|
• |
West Saturn
|
• |
West Epsilon
|
• |
West Freedom
|
• |
AOD III
|
Per Wullf:
|
Chief Executive Officer and President
|
Mark Morris:
|
Chief Financial Officer
|
John Roche:
|
Vice President Investor Relations
|
(In $ million)
|
Q1 2017 Guidance
|
Q4 2016
|
Q3 2016
|
Q4 2015
|
||||
Operating income
|
50
|
118
|
247
|
223
|
||||
Depreciation and amortization
|
200
|
223
|
194
|
197
|
||||
Loss on disposal
|
—
|
—
|
—
|
93
|
||||
Loss on fixed asset impairment
|
—
|
13
|
—
|
—
|
||||
EBITDA
|
250
|
354
|
441
|
513
|
(In $ million)
|
Q4 2016
|
||
Net Income
|
127
|
||
Add back:
|
|||
Non-cash mark to market movements on derivatives
|
(16
|
)
|
|
Net income excluding non-recurring items and non-cash mark to market movement on derivatives
|
111
|
||
Attributable to NCI
|
(10
|
)
|
|
Attributable to parent
|
121
|
||
Underlying basic and diluted weighted average shares in issue (million)
|
504
|
||
Underlying basic and diluted EPS excluding non-recurring items and non-cash mark to market movement on derivatives ($ per share)
|
$
|
0.24
|
(In $ million)
|
Q4 2016
|
Q3 2016
|
Q4 2015
|
|||
Interest bearing debt
|
||||||
Current portion of long-term debt
|
3,195
|
3,136
|
1,489
|
|||
Long-term debt
|
6,319
|
6,728
|
9,054
|
|||
Long-term debt due to related parties
|
330
|
334
|
438
|
|||
Total interest bearing debt
|
9,844
|
10,198
|
10,981
|
|||
Cash and cash equivalents
|
1,368
|
1,250
|
1,044
|
|||
Net interest bearing debt
|
8,476
|
8,948
|
9,937
|
(In $ million)
|
Q4 2016 As reported
|
Exclusions
|
Q4 2016 Underlying
|
|||
Total operating revenue
|
667
|
—
|
667
|
|||
EBITDA
|
354
|
—
|
354
|
|||
Margin (%)
|
53
|
%
|
53
|
%
|
||
Operating income
|
118
|
13
|
131
|
|||
Net interest bearing debt
|
8,476
|
—
|
8,476
|
(In $ million)
|
Q4 2015 As Reported
|
Exclusions
|
Q4 2015 Underlying
|
|||
Total operating revenue
|
959
|
—
|
959
|
|||
EBITDA
|
513
|
—
|
513
|
|||
Margin (%)
|
53
|
%
|
53
|
%
|
||
Operating income
|
223
|
93
|
316
|
|||
Net interest bearing debt
|
9,937
|
—
|
9,937
|
(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
|
Unaudited Consolidated Statements of Operations for the three and twelve months ended December 31, 2016 and 2015
|
2 | |
Unaudited Consolidated Statements of Comprehensive Income for the three and twelve months ended December 31, 2016 and 2015
|
3 | |
Unaudited Consolidated Balance Sheets as of December 31, 2016 and December 31, 2015
|
4 | |
Unaudited Consolidated Statements of Cash Flows for the twelve months ended December 31, 2016 and 2015
|
5 | |
Unaudited Consolidated Statements of Changes in Equity for the twelve months ended December 31, 2016 and 2015
|
7 | |
Notes to Unaudited Consolidated Financial Statements
|
8 |
(In $ millions)
|
Three Months Ended
December 31, |
Twelve Months Ended
December 31, |
||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||
(Restated)**
|
(Restated)**
|
|||||||||||
Operating revenues
|
||||||||||||
Contract revenues
|
576
|
853
|
2,850
|
3,957
|
||||||||
Reimbursable revenues
|
17
|
37
|
66
|
113
|
||||||||
Other revenues
|
*
|
74
|
69
|
253
|
265
|
|||||||
Total operating revenues
|
667
|
959
|
3,169
|
4,335
|
||||||||
Loss on disposals
|
*
|
—
|
(93
|
)
|
—
|
(63
|
)
|
|||||
Contingent consideration realized
|
*
|
6
|
19
|
21
|
47
|
|||||||
Operating expenses
|
||||||||||||
Vessel and rig operating expenses
|
*
|
234
|
369
|
1,015
|
1,611
|
|||||||
Reimbursable expenses
|
16
|
29
|
61
|
99
|
||||||||
Depreciation and amortization
|
223
|
197
|
810
|
779
|
||||||||
Loss on impairment of fixed assets and goodwill
|
13
|
—
|
13
|
563
|
||||||||
General and administrative expenses
|
*
|
69
|
67
|
234
|
248
|
|||||||
Total operating expenses
|
555
|
662
|
2,133
|
3,300
|
||||||||
Operating income
|
118
|
223
|
1,057
|
1,019
|
||||||||
Financial items and other income and expense
|
||||||||||||
Interest income
|
*
|
26
|
18
|
79
|
67
|
|||||||
Interest expense
|
*
|
(107
|
)
|
(98
|
)
|
(412
|
)
|
(415
|
)
|
|||
Loss on impairment of investments
|
—
|
(11
|
)
|
(895
|
)
|
(1,285
|
)
|
|||||
Share in results from associated companies (net of tax)
|
112
|
109
|
283
|
192
|
||||||||
(Loss)/gain on derivative financial instruments
|
*
|
(16
|
)
|
54
|
(74
|
)
|
(150
|
)
|
||||
Gain on debt extinguishment
|
—
|
—
|
47
|
8
|
||||||||
Foreign exchange gain
|
34
|
31
|
18
|
63
|
||||||||
Gain on sale of tender rig business
|
—
|
—
|
—
|
22
|
||||||||
Other financial items and other income, net
|
*
|
(30
|
)
|
17
|
(15
|
)
|
52
|
|||||
Total financial items and other income and (expense), net
|
19
|
120
|
(969
|
)
|
(1,446
|
)
|
||||||
Income/(loss) before income taxes
|
137
|
343
|
88
|
(427
|
)
|
|||||||
Income tax expense
|
(10
|
)
|
(71
|
)
|
(199
|
)
|
(208
|
)
|
||||
Net income/(loss)
|
127
|
272
|
(111
|
)
|
(635
|
)
|
||||||
Net (loss)/income attributable to the non-controlling interest
|
(6
|
)
|
(4
|
)
|
26
|
(1
|
)
|
|||||
Net income/(loss) attributable to the parent
|
133
|
276
|
(137
|
)
|
(634
|
)
|
||||||
Basic income/(loss) per share (US dollar)
|
0.26
|
0.56
|
(0.27
|
)
|
(1.29
|
)
|
||||||
Diluted income/(loss) per share (US dollar)
|
0.26
|
0.56
|
(0.27
|
)
|
(1.29
|
)
|
(In $ millions)
|
Three Months Ended
December 31, |
Twelve Months Ended
December 31, |
||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||
(Restated)*
|
(Restated)*
|
|||||||||||
Net income/(loss)
|
127
|
272
|
(111
|
)
|
(635
|
)
|
||||||
Other comprehensive income/(loss), net of tax:
|
||||||||||||
Change in unrealized gain/(loss) on marketable securities, net
|
17
|
(162
|
)
|
17
|
(460
|
)
|
||||||
Other than temporary impairment of marketable securities, reclassification to statement of operations
|
—
|
11
|
153
|
752
|
||||||||
Change in unrealized foreign exchange differences
|
—
|
(5
|
)
|
—
|
(15
|
)
|
||||||
Change in actuarial gain relating to pension
|
12
|
3
|
22
|
27
|
||||||||
Change in unrealized gain on interest rate swaps in VIEs and subsidiaries
|
1
|
2
|
1
|
—
|
||||||||
Share of other comprehensive income from associated companies
|
13
|
3
|
10
|
10
|
||||||||
Other comprehensive income/(loss):
|
43
|
(148
|
)
|
203
|
314
|
|||||||
Total comprehensive income/(loss) for the period
|
170
|
124
|
92
|
(321
|
)
|
|||||||
Comprehensive (loss)/income attributable to the non-controlling interest
|
(1
|
)
|
(2
|
)
|
34
|
7
|
||||||
Comprehensive income/(loss) attributable to the parent
|
171
|
126
|
58
|
(328
|
)
|
(In $ millions)
|
December 31,
2016 |
December 31,
2015 |
||||
(Restated)*
|
||||||
ASSETS
|
||||||
Current assets
|
||||||
Cash and cash equivalents
|
1,368
|
1,044
|
||||
Restricted cash
|
75
|
50
|
||||
Marketable securities
|
110
|
96
|
||||
Accounts receivables, net
|
462
|
718
|
||||
Amount due from related parties
|
376
|
639
|
||||
Other current assets
|
325
|
395
|
||||
Total current assets
|
2,716
|
2,942
|
||||
Non-current assets
|
||||||
Investment in associated companies
|
2,161
|
2,592
|
||||
Marketable securities
|
—
|
195
|
||||
Newbuildings
|
1,531
|
1,479
|
||||
Drilling units
|
14,276
|
14,930
|
||||
Restricted cash
|
—
|
198
|
||||
Deferred tax assets
|
12
|
81
|
||||
Equipment
|
41
|
46
|
||||
Amount due from related parties non-current
|
523
|
517
|
||||
Assets held for sale - non-current
|
128
|
128
|
||||
Other non-current assets
|
315
|
331
|
||||
Total non-current assets
|
18,987
|
20,497
|
||||
Total assets
|
21,703
|
23,439
|
||||
LIABILITIES AND EQUITY
|
||||||
Current liabilities
|
||||||
Current portion of long-term debt
|
3,195
|
1,489
|
||||
Trade accounts payable
|
93
|
141
|
||||
Short-term amounts due to related parties
|
83
|
152
|
||||
Other current liabilities
|
1,351
|
1,560
|
||||
Total current liabilities
|
4,722
|
3,342
|
||||
Non-current liabilities
|
||||||
Long-term debt
|
6,319
|
9,054
|
||||
Long-term debt due to related parties
|
330
|
438
|
||||
Deferred tax liabilities
|
112
|
136
|
||||
Other non-current liabilities
|
119
|
401
|
||||
Total non-current liabilities
|
6,880
|
10,029
|
||||
Equity
|
||||||
Common shares of par value US$2.00 per share: 800,000,000 shares authorized 504,444,280 outstanding at December 31, 2016 (December 31, 2015, 492,759,940)
|
1,008
|
985
|
||||
Additional paid in capital
|
3,306
|
3,275
|
||||
Contributed surplus
|
1,956
|
1,956
|
||||
Accumulated other comprehensive income/(loss)
|
53
|
(142
|
)
|
|||
Retained earnings
|
3,242
|
3,379
|
||||
Total shareholders' equity
|
9,565
|
9,453
|
||||
Non-controlling interest
|
536
|
615
|
||||
Total equity
|
10,101
|
10,068
|
||||
Total liabilities and equity
|
21,703
|
23,439
|
(In $ millions)
|
Twelve Months Ended
December 31, |
|||||
|
2016
|
2015
|
||||
|
(Restated)*
|
|||||
Cash Flows from Operating Activities
|
||||||
Net loss
|
(111
|
)
|
(635
|
)
|
||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||
Depreciation and amortization
|
810
|
779
|
||||
Amortization of deferred loan charges
|
45
|
39
|
||||
Amortization of unfavorable contracts
|
(65
|
)
|
(116
|
)
|
||
Gain on sale of tender rig business
|
—
|
(22
|
)
|
|||
Share of results from associated companies
|
(283
|
)
|
(192
|
)
|
||
Share-based compensation expense
|
8
|
7
|
||||
Gain on disposals and deconsolidations
|
—
|
63
|
||||
Contingent consideration realized
|
(21
|
)
|
(47
|
)
|
||
Unrealized (gain) / loss related to derivative financial instruments
|
(67
|
)
|
(82
|
)
|
||
Loss on impairment of fixed assets and goodwill
|
13
|
563
|
||||
Loss on impairment of investments
|
895
|
1,285
|
||||
Dividends received from associated companies
|
55
|
253
|
||||
Net movements in tax
|
73
|
29
|
||||
Unrealized foreign exchange gain on long-term debt
|
(5
|
)
|
(95
|
)
|
||
Payments for long-term maintenance
|
(95
|
)
|
(106
|
)
|
||
Gain on debt extinguishment
|
(47
|
)
|
(8
|
)
|
||
Other, net
|
(2
|
)
|
(9
|
)
|
||
Changes in operating assets and liabilities, net of effect of acquisitions and disposals
|
||||||
Trade accounts receivable
|
256
|
267
|
||||
Trade accounts payable
|
(55
|
)
|
58
|
|||
Prepaid expenses/accrued revenue
|
15
|
(12
|
)
|
|||
Deferred revenue
|
(168
|
)
|
(95
|
)
|
||
Related party receivables
|
2
|
65
|
||||
Related party payables
|
(35
|
)
|
(64
|
)
|
||
Other assets
|
42
|
(22
|
)
|
|||
Other liabilities
|
(76
|
)
|
(115
|
)
|
||
Net cash provided by operating activities
|
1,184
|
1,788
|
(In $ millions)
|
Twelve Months Ended
December 31, |
|||||
|
2016
|
2015
|
||||
|
(Restated)*
|
|||||
Cash Flows from Investing Activities
|
||||||
Additions to newbuildings
|
(52
|
)
|
(613
|
)
|
||
Additions to drilling units and equipment
|
(84
|
)
|
(322
|
)
|
||
Proceeds from contingent consideration
|
95
|
27
|
||||
Refund of yard installments
|
53
|
29
|
||||
Sale of business, net of cash disposed
|
—
|
1,214
|
||||
Change in restricted cash
|
(26
|
)
|
(25
|
)
|
||
Investment in associated companies
|
(16
|
)
|
(210
|
)
|
||
Loans granted to related parties
|
(120
|
)
|
(523
|
)
|
||
Payments received from loans granted to related parties
|
283
|
233
|
||||
Proceeds from disposal of marketable securities
|
195
|
—
|
||||
Net cash provided by/(used in) investing activities
|
328
|
(190
|
)
|
Cash Flows from Financing Activities
|
||||||
Proceeds from debt and revolving lines of credit
|
—
|
1,516
|
||||
Repayments of debt and revolving lines of credit
|
(1,054
|
)
|
(2,999
|
)
|
||
Debt fees paid
|
(31
|
)
|
(16
|
)
|
||
Proceeds from debt to related party
|
—
|
143
|
||||
Repayments of debt to related party
|
(103
|
)
|
—
|
|||
Dividends paid to non-controlling interests
|
(7
|
)
|
(14
|
)
|
||
Purchase of treasury shares
|
(10
|
)
|
—
|
|||
Cash settlement of restricted stock units
|
(1
|
)
|
—
|
|||
Net cash used in financing activities
|
(1,206
|
)
|
(1,370
|
)
|
||
|
||||||
Effect of exchange rate changes on cash
|
18
|
(15
|
)
|
|||
|
||||||
Net increase in cash and cash equivalents
|
324
|
213
|
||||
Cash and cash equivalents at beginning of the period
|
1,044
|
831
|
||||
Cash and cash equivalents at the end of period
|
1,368
|
1,044
|
(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
|
10
|
—
|
—
|
—
|
10
|
—
|
10
|
|||||||||||||||||
Share based compensation charge
|
—
|
7
|
—
|
—
|
—
|
7
|
—
|
7
|
||||||||||||||||
Sale of non-controlling interests
|
—
|
—
|
—
|
—
|
—
|
—
|
(4
|
)
|
(4
|
)
|
||||||||||||||
Other comprehensive income
(Restated)*
|
—
|
—
|
—
|
306
|
—
|
306
|
8
|
314
|
||||||||||||||||
Distributions to non-controlling interests
|
—
|
—
|
—
|
—
|
—
|
—
|
(14
|
)
|
(14
|
)
|
||||||||||||||
Net loss
(Restated)*
|
—
|
—
|
—
|
—
|
(634
|
)
|
(634
|
)
|
(1
|
)
|
(635
|
)
|
||||||||||||
Balance at December 31, 2015 (Restated)*
|
985
|
3,275
|
1,956
|
(142
|
)
|
3,379
|
9,453
|
615
|
10,068
|
|||||||||||||||
Balance at December 31, 2015 (Restated)*
|
985
|
3,275
|
1,956
|
(142
|
)
|
3,379
|
9,453
|
615
|
10,068
|
|||||||||||||||
Sale and purchase of treasury shares
|
(8
|
)
|
(2
|
)
|
—
|
—
|
—
|
(10
|
)
|
—
|
(10
|
)
|
||||||||||||
Share-based compensation charge
|
—
|
7
|
—
|
—
|
—
|
7
|
—
|
7
|
||||||||||||||||
Cash settlement of vested restricted stock units
|
—
|
(1
|
)
|
—
|
—
|
—
|
(1
|
)
|
—
|
(1
|
)
|
|||||||||||||
Bond conversion
|
31
|
27
|
—
|
—
|
—
|
58
|
—
|
58
|
||||||||||||||||
Other comprehensive income
|
—
|
—
|
—
|
195
|
—
|
195
|
8
|
203
|
||||||||||||||||
Dividend to non-controlling interests in VIEs
|
—
|
—
|
—
|
—
|
—
|
—
|
(113
|
)
|
(113
|
)
|
||||||||||||||
Net (loss)/income
|
—
|
—
|
—
|
—
|
(137
|
)
|
(137
|
)
|
26
|
(111
|
)
|
|||||||||||||
Balance at December 31, 2016
|
1,008
|
3,306
|
1,956
|
53
|
3,242
|
9,565
|
536
|
10,101
|
• |
Floaters
: Services encompassing drilling, completion and maintenance of offshore exploration and production wells. The drilling contracts for this segment relate to semi-submersible rigs and drillships for harsh and benign environments in mid-, deep- and ultra-deep waters.
|
• |
Jack-up rigs
: Services encompassing drilling, completion and maintenance of offshore exploration and production wells. The drilling contracts for this segment relate to jack-up rigs for operations in harsh and benign environments.
|
• |
Other
: Primarily consists of rig management services.
|
(In $ millions)
|
Three Months Ended
December 31, |
Twelve Months Ended
December 31, |
||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||
Floaters
|
458
|
644
|
2,212
|
2,906
|
||||||||
Jack-up rigs
|
186
|
282
|
865
|
1,293
|
||||||||
Other
|
23
|
33
|
92
|
136
|
||||||||
Total operating revenue
|
667
|
959
|
3,169
|
4,335
|
(In $ millions)
|
Three Months Ended
December 31, |
Twelve Months Ended
December 31, |
||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||
Floaters
|
167
|
147
|
600
|
570
|
||||||||
Jack-up rigs
|
56
|
50
|
210
|
208
|
||||||||
Other
|
—
|
—
|
—
|
1
|
||||||||
Total
|
223
|
197
|
810
|
779
|
(In $ millions)
|
Three Months Ended
December 31, |
Twelve Months Ended
December 31, |
||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||
Restated
|
Restated
|
|||||||||||
Floaters
|
101
|
117
|
790
|
340
|
||||||||
Jack-up rigs
|
27
|
102
|
267
|
664
|
||||||||
Other
|
(10
|
)
|
4
|
—
|
15
|
|||||||
Operating income
|
118
|
223
|
1,057
|
1,019
|
||||||||
Unallocated items:
|
||||||||||||
Total financial items and other
|
19
|
120
|
(969
|
)
|
(1,446
|
)
|
||||||
Income taxes
|
(10
|
)
|
(71
|
)
|
(199
|
)
|
(208
|
)
|
||||
Net income
|
127
|
272
|
(111
|
)
|
(635
|
)
|
(In $ millions)
|
As at December 31, 2016
|
As at December 31, 2015
|
||||
Restated
|
||||||
Floaters
|
11,751
|
12,189
|
||||
Jack-up rigs
|
4,056
|
4,220
|
||||
Total Drilling units and Newbuildings
|
15,807
|
16,409
|
||||
Unallocated items:
|
||||||
Assets held for sale
|
128
|
128
|
||||
Investments in associated companies
|
2,161
|
2,592
|
||||
Marketable securities
|
110
|
291
|
||||
Cash and restricted cash
|
1,443
|
1,292
|
||||
Other assets
|
2,054
|
2,727
|
||||
Total assets
|
21,703
|
23,439
|
(In $ millions)
|
Twelve Months Ended
December 31, |
|||||
2016
|
2015
|
|||||
Floaters
|
192
|
950
|
||||
Jack-up rigs
|
35
|
95
|
||||
Total
|
227
|
1,045
|
(In $ millions)
|
Three Months Ended
December 31, |
Twelve Months Ended
December 31, |
||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||
Loss on disposals
|
||||||||||||
Loss on disposal of West Polaris to Seadrill Partners
|
—
|
—
|
—
|
(77
|
)
|
|||||||
Gain on SeaMex deconsolidation
|
—
|
(5
|
)
|
—
|
181
|
|||||||
West Mira cancellation
|
—
|
—
|
—
|
(80
|
)
|
|||||||
West Rigel impairment on held for sale
|
—
|
(82
|
)
|
—
|
(82
|
)
|
||||||
Eminence write offs
|
—
|
(5
|
)
|
—
|
(5
|
)
|
||||||
Other
|
—
|
(1
|
)
|
—
|
—
|
|||||||
Total loss on disposals
|
—
|
(93
|
)
|
—
|
(63
|
)
|
||||||
Contingent Consideration realized
|
||||||||||||
Polaris earn out realized
|
2
|
15
|
8
|
32
|
||||||||
Vela earn out realized
|
4
|
4
|
13
|
15
|
||||||||
Total contingent consideration recognized
|
6
|
19
|
21
|
47
|
(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
|
40
|
* |
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
December 31, |
Twelve Months Ended
December 31, |
||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||
Restated
|
Restated
|
|||||||||||
Net income/(loss) attributable to the parent
|
133
|
276
|
(137
|
)
|
(634
|
)
|
||||||
Less: Allocation to participating securities
|
(1
|
)
|
(1
|
)
|
—
|
—
|
||||||
Net loss available to shareholders
|
132
|
275
|
(137
|
)
|
(634
|
)
|
||||||
Effect of dilution
|
—
|
—
|
—
|
—
|
||||||||
Diluted net loss available to shareholders
|
132
|
275
|
(137
|
)
|
(634
|
)
|
(In millions)
|
Three Months Ended
December 31, |
Twelve Months Ended
December 31, |
||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||
Restated
|
Restated
|
|||||||||||
Basic earnings per share:
|
||||||||||||
Weighted average number of common shares outstanding
|
504
|
493
|
501
|
493
|
||||||||
Diluted earnings per share:
|
||||||||||||
Weighted average number of common shares outstanding
|
504
|
493
|
501
|
493
|
||||||||
Effect of dilutive share options
|
—
|
—
|
—
|
—
|
||||||||
Effect of dilutive convertible bonds
|
—
|
—
|
—
|
—
|
||||||||
Weighted average number of common shares outstanding adjusted for the effects of dilution
|
504
|
493
|
501
|
493
|
||||||||
Basic income/(loss) per share (US dollar)
|
0.26
|
0.56
|
(0.27
|
)
|
(1.29
|
)
|
||||||
Diluted income/(loss) per share (US dollar)
|
0.26
|
0.56
|
(0.27
|
)
|
(1.29
|
)
|
As at December 31, 2016
|
|||||
(In $ millions)
|
Amortized cost
|
Cumulative unrealized fair value gains/(losses)
|
Carrying value
|
||
SapuraKencana
|
—
|
—
|
—
|
||
Seadrill Partners - Common units
|
93
|
17
|
110
|
||
Total marketable securities
|
93
|
17
|
110
|
As at December 31, 2015
|
|||||
Restated
|
|||||
(In $ millions)
|
Amortized cost
|
Cumulative unrealized fair value gains/(losses)
|
Carrying value
|
||
SapuraKencana
|
195
|
—
|
195
|
||
Seadrill Partners - Common units
|
247
|
(151)
|
96
|
||
Total marketable securities
|
442
|
(151)
|
291
|
Twelve Months Ended December 31, 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
|
—
|
—
|
—
|
—
|
195
|
—
|
—
|
||||||
Seadrill Partners - Common units
|
—
|
—
|
17
|
—
|
—
|
—
|
(153)
|
||||||
Total change
|
—
|
—
|
17
|
—
|
195
|
—
|
(153)
|
Twelve Months Ended December 31, 2015
|
|||||||||||||
Restated
|
|||||||||||||
(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
|
—
|
—
|
—
|
(130)
|
—
|
—
|
(178)
|
||||||
Seadrill Partners - Common units
|
—
|
—
|
—
|
(330)
|
—
|
—
|
(574)
|
||||||
Total change
|
—
|
—
|
—
|
(460)
|
—
|
—
|
(752)
|
(In $ millions)
|
As at December 31, 2016
|
As at December 31, 2015
|
|||
Restated
|
|||||
Seabras Sapura Participacoes
|
47
|
29
|
|||
Seabras Sapura Holdco
|
227
|
158
|
|||
Itaunas Drilling
|
—
|
3
|
|||
Camburi Drilling
|
—
|
6
|
|||
Sahy Drilling
|
—
|
4
|
|||
Seadrill Partners - Total direct ownership interests
|
1,530
|
1,769
|
|||
Seadrill Partners - Subordinated units
|
157
|
293
|
|||
Seadrill Partners - Seadrill member interest and IDRs*
|
64
|
137
|
|||
SeaMex Ltd
|
136
|
193
|
|||
Total investment in associated companies
|
2,161
|
2,592
|
(In $ millions)
|
Twelve Months Ended
December 31, 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
|
|
Itaunas Drilling, Camburi Drilling, and Sahy Drilling
|
13
|
|
Total impairment of investment in associated companies
|
742
|
|
Impairments of marketable securities (refer to Note 7)
|
||
Seadrill Partners - Common units
|
153
|
|
Total impairment of marketable securities investments (reclassification from OCI)
|
153
|
|
Total impairment of investments
|
895
|
(In $ millions)
|
As at December 31, 2016
|
As at December 31, 2015
|
||||
Opening balance
|
1,479
|
2,030
|
||||
Additions (1)
|
52
|
661
|
||||
Transfers to drilling units (2)
|
—
|
(725
|
)
|
|||
Reclassification to non-current assets (3)
|
—
|
(199
|
)
|
|||
Disposals (3)
|
—
|
(78
|
)
|
|||
Reclassification to assets held for sale (4)
|
—
|
(210
|
)
|
|||
Closing balance
|
1,531
|
1,479
|
(1) |
Additions of $52 million in the year to December 31, 2016 is predominantly due to capitalized interest.
|
(2) |
Transfers to drilling units represents the capitalization of the
West Carina
on delivery
|
(3) |
On September 14, 2015, the Company cancelled the construction contract for the
West Mira
with Hyundai Samho Heavy Industries Co Ltd. Please refer to Note 4 "Loss on disposals and contingent consideration" for more details
.
|
(4) |
On December 2, 2015, the
West Rigel
was classified as an asset held for sale. As at the transfer date the
West Rigel
held assets at its book value of $210 million. Please refer to Note 20 "Assets held for sale" to the consolidated financial statements, included herein, for more details
.
|
(In $ millions) |
As at December 31, 2016
|
As at December 31, 2015
|
||||
Cost
|
17,766
|
17,606
|
||||
Accumulated depreciation
|
(3,477
|
)
|
(2,676
|
)
|
||
Impairment
|
(13
|
)
|
—
|
|||
Net book value
|
14,276
|
14,930
|
(In $ millions)
|
Year ended December 31,
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)
|
As at December 31, 2016
|
As at December 31, 2015
|
||||
Credit facilities:
|
||||||
$2,000 facility (North Atlantic Drilling)
|
1,033
|
1,200
|
||||
$400 facility
|
190
|
240
|
||||
$440 facility
|
190
|
224
|
||||
$1,450 facility
|
353
|
393
|
||||
$360 facility (Asia Offshore Drilling)
|
237
|
273
|
||||
$300 facility
|
162
|
186
|
||||
$1,750 facility (Sevan Drilling)
|
945
|
1,085
|
||||
$450 facility
|
278
|
344
|
||||
$1,500 facility
|
1,219
|
1,344
|
||||
$1,350 facility
|
1,046
|
1,181
|
||||
$950 facility
|
622
|
688
|
||||
$450 facility (2015)
|
175
|
215
|
||||
Total credit facilities
|
6,450
|
7,373
|
||||
|
||||||
Loans contained within VIEs:
|
||||||
$375 facility
|
279
|
256
|
||||
$390 facility
|
248
|
221
|
||||
$475 facility
|
356
|
354
|
||||
Total Loans contained within VIEs
|
883
|
831
|
||||
|
||||||
Unsecured bonds:
|
||||||
NOK 1,800m bond
|
210
|
203
|
||||
$ 1bn bond
|
843
|
948
|
||||
$ 500m bond
|
479
|
479
|
||||
NOK 1,500m bond (NADL)
|
165
|
161
|
||||
$ 600m bond (NADL)
|
413
|
413
|
||||
SEK 1,500 bond
|
165
|
177
|
||||
Total unsecured bonds
|
2,275
|
2,381
|
||||
|
||||||
Other credit facilities with corresponding restricted cash deposits
|
—
|
76
|
||||
Total debt principal
|
9,608
|
10,661
|
||||
Less: current portion of debt principal
|
(3,230
|
)
|
(1,526
|
)
|
||
Long-term portion of debt principal
|
6,378
|
9,135
|
Outstanding debt as at December 31, 2016
|
|||||||
(In $ millions)
|
Principal outstanding
|
Less: Debt Issuance Costs
|
Total Debt
|
||||
Current portion of long-term debt
|
3,230
|
(35
|
)
|
3,195
|
|||
Long-term debt
|
6,378
|
(59
|
)
|
6,319
|
|||
Total
|
9,608
|
(94
|
)
|
9,514
|
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 December 31,
|
||
2017
|
3,230
|
||
2018
|
2,480
|
||
2019
|
2,893
|
||
2020
|
1,005
|
||
Total debt principal
|
9,608
|
• |
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.
|
◦ |
$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 $190 million is classified as a short term debt facility in the consolidated balance sheet as at December 31, 2016.
|
◦ |
$2 billion Senior Secured Credit Facility
: The maturity of the $2 billion senior secured credit facility of our majority-owned subsidiary North Atlantic Drilling Limited (NADL) has been extended from April 15, 2017 to June 30, 2017. The outstanding balance on the credit facility of $1,033 million is classified as a short term debt facility in the consolidated balance sheet as at December 31, 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.
|
As at December 31, 2016
|
As at 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 the Company
|
(4,318,740
|
)
|
(9
|
)
|
(318,740
|
)
|
(1
|
)
|
||||
Outstanding common shares in issue
|
504,444,280
|
1,008
|
492,759,940
|
985
|
(In $ millions)
|
As at December 31, 2016
|
As at December 31, 2015
|
||||
Restated
|
||||||
Unrealized gain / (loss) on marketable securities
|
17
|
(151
|
)
|
|||
Unrealized gain on foreign exchange
|
36
|
36
|
||||
Actuarial loss relating to pension
|
(23
|
)
|
(38
|
)
|
||
Share in unrealized gains from associated companies
|
23
|
11
|
||||
Accumulated other comprehensive income/(loss)
|
53
|
(142
|
)
|
Variable interest entity
|
Outstanding principal as at
|
Receive rate
|
Pay rates
|
Length of contracts
|
||||
December 31, 2016
|
||||||||
(In $ millions)
|
||||||||
SFL Linus Limited
(West Linus) |
176
|
1 - 3 month LIBOR
|
1.77 - 2.01%
|
Dec 2013 - Dec 2018
|
(In $ millions)
|
Three Months Ended
December 31, |
Twelve Months Ended
December 31, |
||||||||||
(Losses)/gains recognized in the consolidated statement of operations relating to derivative financial instruments
|
2016
|
2015
|
2016
|
2015
|
||||||||
Restated
|
Restated
|
|||||||||||
Interest rate swap agreements not qualified as hedge accounting
|
43
|
48
|
(48
|
)
|
(104
|
)
|
||||||
Cross currency interest rate swaps not qualified as hedge accounting
|
(60
|
)
|
14
|
(20
|
)
|
(7
|
)
|
|||||
Foreign currency forwards not qualified as hedge accounting
|
1
|
1
|
—
|
(9
|
)
|
|||||||
TRS agreements
|
—
|
(9
|
)
|
(6
|
)
|
(27
|
)
|
|||||
Other
|
—
|
—
|
—
|
(3
|
)
|
|||||||
(Loss)/gain on derivative financial instruments
|
(16
|
)
|
54
|
(74
|
)
|
(150
|
)
|
As at December 31, 2016
|
As at December 31, 2015
|
|||||||||||
(In $ millions)
|
Fair
value
|
Carrying
value
|
Fair
value
|
Carrying
value
|
||||||||
Assets
|
||||||||||||
Cash and cash equivalents
|
1,368
|
1,368
|
1,044
|
1,044
|
||||||||
Restricted cash
|
75
|
75
|
248
|
248
|
||||||||
Related party loans receivable - short term
|
174
|
174
|
371
|
371
|
||||||||
Related party loans receivable - long term
|
487
|
487
|
464
|
464
|
||||||||
Liabilities
|
||||||||||||
Long-term floating rate debt (including the current portion)
|
6,542
|
7,333
|
8,204
|
8,204
|
||||||||
Current portion of fixed rate CIRR loans
|
—
|
—
|
33
|
33
|
||||||||
Long term portion of fixed rate CIRR loans
|
—
|
—
|
43
|
43
|
||||||||
Fixed interest bonds - short term
|
432
|
843
|
—
|
—
|
||||||||
Fixed interest bonds - long term
|
334
|
892
|
944
|
1,840
|
||||||||
Floating interest bonds - long term
|
223
|
540
|
283
|
541
|
||||||||
Related party fixed rate debt - long term
|
242
|
415
|
415
|
415
|
Fair value measurements
as at the reporting date using
|
||||||||||||
Total fair value
|
Quoted prices in active
markets for identical assets
|
Significant other
observable inputs
|
Significant
unobservable inputs
|
|||||||||
(In $ millions)
|
As at December 31, 2016
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||
Assets:
|
||||||||||||
Marketable securities
|
110
|
110
|
—
|
—
|
||||||||
Interest rate swap contracts – short term receivable
|
4
|
—
|
4
|
—
|
||||||||
Total assets measured at fair value on a recurring basis
|
114
|
110
|
4
|
—
|
||||||||
Liabilities:
|
||||||||||||
Interest rate swap contracts – short term payable
|
41
|
—
|
41
|
—
|
||||||||
Interest rate swap contracts – long term payable
|
1
|
—
|
1
|
—
|
||||||||
Cross currency swap contracts – short term payable
|
194
|
—
|
194
|
—
|
||||||||
Total liabilities measured at fair value on a recurring basis
|
236
|
—
|
236
|
—
|
Fair value measurements
as at the reporting date using |
||||||||||||
Total fair value
|
Quoted prices in active
markets for identical assets
|
Significant other
observable inputs
|
Significant
unobservable inputs
|
|||||||||
(In $ millions)
|
As at December 31, 2015
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||
Restated
|
||||||||||||
Assets:
|
||||||||||||
Marketable securities
|
291
|
291
|
—
|
—
|
||||||||
Interest rate swap contracts – short term receivable
|
2
|
—
|
2
|
—
|
||||||||
Total assets measured at fair value on a recurring basis
|
293
|
291
|
2
|
—
|
||||||||
Liabilities:
|
||||||||||||
Interest rate swap contracts – short term payable
|
98
|
—
|
98
|
—
|
||||||||
Interest rate swap contracts – long term payable
|
2
|
—
|
2
|
—
|
||||||||
Cross currency swap contracts – short term payable
|
193
|
—
|
193
|
—
|
||||||||
Other derivative instruments – short term payable
|
9
|
—
|
9
|
—
|
||||||||
Total liabilities measured at fair value on a recurring basis
|
302
|
—
|
302
|
—
|
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
|
As at December 31, 2016
|
As at 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
|
365
|
360
|
483
|
394
|
394
|
530
|
||||||||||||
Other assets
|
6
|
6
|
—
|
6
|
7
|
—
|
||||||||||||
Total assets of the VIEs
|
371
|
366
|
483
|
400
|
401
|
530
|
||||||||||||
Short-term interest bearing debt
|
23
|
28
|
51
|
23
|
28
|
51
|
||||||||||||
Long-term interest bearing debt
|
226
|
251
|
305
|
198
|
229
|
302
|
||||||||||||
Other liabilities
|
3
|
1
|
2
|
3
|
1
|
2
|
||||||||||||
Short-term debt due to related parties
|
—
|
—
|
—
|
—
|
—
|
23
|
||||||||||||
Long-term debt due to related parties
|
119
|
86
|
125
|
137
|
125
|
125
|
||||||||||||
Total liabilities of the VIEs
|
371
|
366
|
483
|
361
|
383
|
503
|
||||||||||||
Equity of the VIEs
|
—
|
—
|
—
|
39
|
18
|
27
|
||||||||||||
Book value of units in the Company's consolidated financial statements
|
409
|
537
|
537
|
434
|
571
|
559
|
(In US$ millions)
|
Three Months Ended
December 31, |
Twelve Months Ended
December 31, |
||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||
Management fees charged to Seadrill Partners - Other revenues (a) and (b)
|
20
|
32
|
65
|
75
|
||||||||
Rig operating expenses charged to Seadrill Partners - Other revenues (c)
|
6
|
16
|
25
|
29
|
||||||||
Contingent consideration realized (k)
|
6
|
19
|
21
|
47
|
||||||||
Insurance premiums charged to Seadrill Partners (d)
|
3
|
5
|
16
|
20
|
||||||||
Rig operating costs charged by Seadrill Partners (e)
|
(4
|
)
|
(3
|
)
|
(11
|
)
|
(13
|
)
|
||||
Bareboat charter arrangements (f)
|
3
|
1
|
10
|
(2
|
)
|
|||||||
Interest expenses charged to Seadrill Partners (g)
|
2
|
4
|
12
|
16
|
||||||||
Related party inventory purchases
|
—
|
—
|
(1
|
)
|
—
|
|||||||
Interest recognized on deferred consideration receivable (k)
|
1
|
2
|
5
|
8
|
||||||||
Derivatives recharged to Seadrill Partners (h)
|
(6
|
)
|
(5
|
)
|
1
|
10
|
||||||
Net related party income from Seadrill Partners
|
31
|
71
|
143
|
190
|
(In $ millions)
|
As at December 31, 2016
|
As at December 31, 2015
|
||||
Rig financing and loan agreements (i)
|
160
|
197
|
||||
$109.5 million Vendor financing loan (j)
|
—
|
110
|
||||
Deferred consideration receivable (k)
|
61
|
96
|
||||
Other receivables (l)
|
186
|
355
|
||||
Other payables (l)
|
(77
|
)
|
(179
|
)
|
• |
Guarantees in favor of customers, which guarantee the performance of the Seadrill Partners drilling units, totaled $185 million as at December 31, 2016 (December 31, 2015: $370 million);
|
• |
Guarantees in favor of banks provided on behalf of Seadrill Partners totaled $621 million as at December 31, 2016 and correspond to the outstanding credit facilities relating to the
West Polaris
and
West Vela
(December 31, 2015: $698 million); and
|
• |
Guarantees in favor of suppliers provided on behalf of Seadrill Partners, relating to customs guarantees totaled $0.4 million as at December 31, 2016 (December 31, 2015: Guarantees in Nigeria and Myanmar $86 million).
|
(In $ millions)
|
As at December 31, 2016
|
As at December 31, 2015
|
||||
Seller's credit
|
250
|
250
|
||||
Funding
|
45
|
45
|
||||
Other receivables
|
53
|
34
|
||||
Other payables
|
(2
|
)
|
—
|
• |
Ship Finance International Limited ("Ship Finance");
|
• |
Metrogas Holdings Inc. ("Metrogas");
|
• |
Frontline Management (Bermuda) Limited ("Frontline"); and
|
• |
Seatankers Management Norway AS ("Seatankers").
|
Three Months Ended
December 31, |
Twelve Months Ended
December 31, |
|||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||
West Hercules
|
9
|
14
|
52
|
55
|
||||||||
West Taurus
|
19
|
12
|
57
|
57
|
||||||||
West Linus
|
21
|
21
|
82
|
81
|
||||||||
Total
|
49
|
47
|
191
|
193
|
(In $ millions)
|
As at December 31,
2016 |
|
2017
|
2,180
|
|
2018
|
1,398
|
|
2019
|
520
|
|
Total purchase commitments
|
4,098
|
Twelve months ended
|
|||||
(In $ millions) |
December 31, 2016
|
December 31, 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, increase in equity (5)
|
58
|
—
|
|||
Dividend to non-controlling interests in VIEs (6)
|
(113
|
)
|
(In millions of US$)
|
Twelve Months
Ended
December 31, 2016
|
Twelve Months
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
|
(In $ millions)
|
As previously reported
|
Derivative valuation adjustments
|
Other adjustments
|
As Restated
|
||||
Operating revenues
|
||||||||
Contract revenues
|
2,274
|
—
|
—
|
2,274
|
||||
Reimbursable revenues
|
49
|
—
|
—
|
49
|
||||
Other revenues
|
179
|
—
|
—
|
179
|
||||
Total operating revenues
|
2,502
|
—
|
—
|
2,502
|
||||
Contingent consideration realized
|
15
|
—
|
—
|
15
|
||||
Operating expenses
|
||||||||
Vessel and rig operating expenses
|
781
|
—
|
—
|
781
|
||||
Reimbursable expenses
|
45
|
—
|
—
|
45
|
||||
Depreciation and amortization
|
587
|
—
|
—
|
587
|
||||
General and administrative expenses
|
165
|
—
|
—
|
165
|
||||
Total operating expenses
|
1,578
|
—
|
—
|
1,578
|
||||
Operating income
|
939
|
—
|
—
|
939
|
||||
Financial items and other income and expense
|
||||||||
Interest income
|
53
|
—
|
—
|
53
|
||||
Interest expense
|
(305
|
)
|
—
|
—
|
(305
|
)
|
||
Loss on impairment of investments
|
(906
|
)
|
—
|
11
|
(895
|
)
|
||
Share in results from associated companies (net of tax)
|
164
|
7
|
—
|
171
|
||||
(Loss)/gain on derivative financial instruments
|
(94
|
)
|
36
|
—
|
(58
|
)
|
||
Gain on debt extinguishment
|
47
|
—
|
—
|
47
|
||||
Foreign exchange loss
|
(16
|
)
|
—
|
—
|
(16
|
)
|
||
Other financial items and other income, net
|
15
|
—
|
—
|
15
|
||||
Total financial items and other income and expense, net
|
(1,042
|
)
|
43
|
11
|
(988
|
)
|
||
(Loss)/income before income taxes
|
(103
|
)
|
43
|
11
|
(49
|
)
|
||
Income tax expense
|
(189
|
)
|
—
|
—
|
(189
|
)
|
||
Net (loss)/income
|
(292
|
)
|
43
|
11
|
(238
|
)
|
||
Net income attributable to the non-controlling interest
|
31
|
1
|
—
|
32
|
||||
Net (loss)/income attributable to the parent
|
(323
|
)
|
42
|
11
|
(270
|
)
|
||
Basic (loss)/income per share (US dollar)
|
(0.64
|
)
|
0.07
|
0.02
|
(0.54
|
)
|
||
Diluted (loss)/income per share (US dollar)
|
(0.64
|
)
|
0.07
|
0.02
|
(0.54
|
)
|
(In $ millions)
|
As previously reported
|
Derivative valuation adjustments
|
Other adjustments
|
As Restated
|
||||
Net (loss)/income
|
(292
|
)
|
43
|
11
|
(238
|
)
|
||
Other comprehensive income/ (loss), net of tax:
|
||||||||
Change in unrealized (loss)/ gain on marketable securities, net
|
(35
|
)
|
—
|
35
|
—
|
|||
Other than temporary impairment of marketable securities, reclassification to statement of operations
|
164
|
—
|
(11
|
)
|
153
|
|||
Change in actuarial gain relating to pension
|
10
|
—
|
—
|
10
|
||||
Share of other comprehensive income from associated companies
|
(3
|
)
|
—
|
—
|
(3
|
)
|
||
Other comprehensive income/loss
|
136
|
—
|
24
|
160
|
||||
Total comprehensive (loss)/income for the period
|
(156
|
)
|
43
|
35
|
(78
|
)
|
||
Comprehensive income attributable to the non-controlling interest
|
34
|
1
|
—
|
35
|
||||
Comprehensive (loss)/income attributable to the parent
|
(190
|
)
|
42
|
35
|
(113
|
)
|
(In $ millions)
|
As previously reported
|
Derivative valuation adjustments
|
Other adjustments
|
As Restated
|
||||
ASSETS
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
1,250
|
—
|
—
|
1,250
|
||||
Restricted cash
|
117
|
—
|
—
|
117
|
||||
Marketable securities
|
93
|
—
|
—
|
93
|
||||
Accounts receivables, net
|
630
|
—
|
—
|
630
|
||||
Amount due from related party
|
493
|
—
|
—
|
493
|
||||
Other current assets
|
324
|
—
|
—
|
324
|
||||
Total current assets
|
2,907
|
—
|
—
|
2,907
|
||||
Non-current assets
|
||||||||
Investment in associated companies
|
2,014
|
18
|
(10
|
)
|
2,022
|
|||
Newbuildings
|
1,518
|
—
|
—
|
1,518
|
||||
Drilling units
|
14,488
|
—
|
—
|
14,488
|
||||
Restricted cash
|
32
|
—
|
—
|
32
|
||||
Deferred tax assets
|
73
|
—
|
—
|
73
|
||||
Equipment
|
43
|
—
|
—
|
43
|
||||
Amount due from related parties non-current
|
520
|
—
|
—
|
520
|
||||
Assets held for sale - non-current
|
128
|
—
|
—
|
128
|
||||
Other non-current assets
|
320
|
—
|
—
|
320
|
||||
Total non-current assets
|
19,136
|
18
|
(10
|
)
|
19,144
|
|||
Total assets
|
22,043
|
18
|
(10
|
)
|
22,051
|
|||
LIABILITIES AND EQUITY
|
||||||||
Current liabilities
|
||||||||
Current portion of long-term debt
|
3,136
|
—
|
—
|
3,136
|
||||
Trade accounts payable
|
122
|
—
|
—
|
122
|
||||
Short-term debt to related parties
|
110
|
—
|
—
|
110
|
||||
Other current liabilities
|
1,525
|
(160
|
)
|
—
|
1,365
|
|||
Total current liabilities
|
4,893
|
(160
|
)
|
—
|
4,733
|
|||
Non-current liabilities
|
||||||||
Long-term debt
|
6,728
|
—
|
—
|
6,728
|
||||
Long-term debt due to related parties
|
334
|
—
|
—
|
334
|
||||
Deferred tax liabilities
|
188
|
—
|
—
|
188
|
||||
Other non-current liabilities
|
131
|
—
|
—
|
131
|
||||
Total non-current liabilities
|
7,381
|
—
|
—
|
7,381
|
||||
Equity
|
||||||||
Common shares of par value US$2.00 per share: 800,000,000 shares authorized 504,444,280 outstanding at December 31, 2016 (December 31, 2015: 492,759,940)
|
1,008
|
—
|
—
|
1,008
|
||||
Additional paid in capital
|
3,298
|
—
|
—
|
3,298
|
||||
Contributed surplus
|
1,956
|
—
|
—
|
1,956
|
||||
Accumulated other comprehensive income/(loss)
|
13
|
—
|
(11
|
)
|
2
|
|||
Retained earnings
|
2,961
|
177
|
1
|
3,139
|
||||
Total shareholders' equity
|
9,236
|
177
|
(10
|
)
|
9,403
|
|||
Non-controlling interest
|
533
|
1
|
—
|
534
|
||||
Total equity
|
9,769
|
178
|
(10
|
)
|
9,937
|
|||
Total liabilities and equity
|
22,043
|
18
|
(10
|
)
|
22,051
|
(In $ millions)
|
As previously reported
|
Derivative valuation adjustments
|
Other adjustments
|
As Restated
|
||||
Cash Flows from Operating Activities
|
||||||||
Net (loss)/income
|
(292
|
)
|
43
|
11
|
(238
|
)
|
||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
587
|
—
|
—
|
587
|
||||
Amortization of deferred loan charges
|
36
|
—
|
—
|
36
|
||||
Amortization of unfavorable contracts
|
(52
|
)
|
—
|
—
|
(52
|
)
|
||
Share of results from associated companies
|
(164
|
)
|
(7
|
)
|
—
|
(171
|
)
|
|
Share-based compensation expense
|
6
|
—
|
—
|
6
|
||||
Contingent consideration recognized
|
(15
|
)
|
—
|
—
|
(15
|
)
|
||
Unrealized (gain)/loss related to derivative financial instruments
|
(17
|
)
|
(36
|
)
|
—
|
(53
|
)
|
|
Loss on impairment of investments
|
906
|
—
|
(11
|
)
|
895
|
|||
Dividends received from associated company
|
48
|
—
|
—
|
48
|
||||
Deferred income tax
|
60
|
—
|
—
|
60
|
||||
Unrealized foreign exchange loss/(gain) on long-term debt
|
35
|
—
|
—
|
35
|
||||
Payments for long-term maintenance
|
(75
|
)
|
—
|
—
|
(75
|
)
|
||
Gain on debt extinguishment
|
(47
|
)
|
—
|
—
|
(47
|
)
|
||
Other, net
|
(5
|
)
|
—
|
—
|
(5
|
)
|
||
Changes in operating assets and liabilities, net of effect of acquisitions and disposals
|
||||||||
Trade accounts receivable
|
88
|
—
|
—
|
88
|
||||
Trade accounts payable
|
(38
|
)
|
—
|
—
|
(38
|
)
|
||
Prepaid expenses/accrued revenue
|
12
|
—
|
—
|
12
|
||||
Deferred revenue
|
(101
|
)
|
—
|
—
|
(101
|
)
|
||
Related party receivables
|
(59
|
)
|
—
|
—
|
(59
|
)
|
||
Related party payables
|
(24
|
)
|
—
|
—
|
(24
|
)
|
||
Other assets
|
33
|
—
|
—
|
33
|
||||
Other liabilities
|
(83
|
)
|
—
|
—
|
(83
|
)
|
||
Net cash provided by operating activities
|
839
|
—
|
—
|
839
|
||||
Net cash provided by investing activities
|
253
|
—
|
—
|
253
|
||||
Net cash used in financing activities
|
(893
|
)
|
—
|
—
|
(893
|
)
|
||
Effect of exchange rate changes on cash
|
7
|
—
|
—
|
7
|
||||
Net increase in cash and cash equivalents
|
206
|
—
|
—
|
206
|
||||
Cash and cash equivalents at beginning of the period
|
1,044
|
—
|
—
|
1,044
|
||||
Cash and cash equivalents at the end of period
|
1,250
|
—
|
—
|
1,250
|
(In $ millions)
|
As previously filed on Form 20-F
|
Derivative valuation adjustments
|
Other adjustments
|
As Restated
|
||||
Operating revenues
|
||||||||
Contract revenues
|
3,957
|
—
|
—
|
3,957
|
||||
Reimbursable revenues
|
113
|
—
|
—
|
113
|
||||
Other revenues
|
265
|
—
|
—
|
265
|
||||
Total operating revenues
|
4,335
|
—
|
—
|
4,335
|
||||
Loss on disposals
|
(63
|
)
|
—
|
—
|
(63
|
)
|
||
Contingent consideration realized
|
47
|
—
|
—
|
47
|
||||
Operating expenses
|
||||||||
Vessel and rig operating expenses
|
1,611
|
—
|
—
|
1,611
|
||||
Reimbursable expenses
|
99
|
—
|
—
|
99
|
||||
Depreciation and amortization
|
779
|
—
|
—
|
779
|
||||
Loss on impairment of fixed assets and goodwill
|
563
|
—
|
—
|
563
|
||||
General and administrative expenses
|
248
|
—
|
—
|
248
|
||||
Total operating expenses
|
3,300
|
—
|
—
|
3,300
|
||||
Operating income
|
1,019
|
—
|
—
|
1,019
|
||||
Financial items and other income and expense
|
||||||||
Interest income
|
67
|
—
|
—
|
67
|
||||
Interest expense
|
(415
|
)
|
—
|
—
|
(415
|
)
|
||
Loss on impairment of investments
|
(1,274
|
)
|
—
|
(11
|
)
|
(1,285
|
)
|
|
Share in results from associated companies (net of tax)
|
190
|
12
|
(10
|
)
|
192
|
|||
(Loss)/ gain on derivative financial instruments
|
(274
|
)
|
124
|
—
|
(150
|
)
|
||
Gain on debt extinguishment
|
8
|
—
|
—
|
8
|
||||
Foreign exchange gain
|
63
|
—
|
—
|
63
|
||||
Gain on sale of tender rig business
|
22
|
—
|
—
|
22
|
||||
Other financial items and other income, net
|
52
|
—
|
—
|
52
|
||||
Total financial items and other income and (expense), net
|
(1,561
|
)
|
136
|
(21
|
)
|
(1,446
|
)
|
|
(Loss)/income before income taxes
|
(542
|
)
|
136
|
(21
|
)
|
(427
|
)
|
|
Income tax expense
|
(208
|
)
|
—
|
—
|
(208
|
)
|
||
Net (loss)/income
|
(750
|
)
|
136
|
(21
|
)
|
(635
|
)
|
|
Net (loss)/income attributable to the non-controlling interest
|
(12
|
)
|
11
|
—
|
(1
|
)
|
||
Net (loss)/income attributable to the parent
|
(738
|
)
|
125
|
(21
|
)
|
(634
|
)
|
|
Basic (loss)/income per share (US dollar)
|
(1.49
|
)
|
0.24
|
(0.04
|
)
|
(1.29
|
)
|
|
Diluted (loss)/income per share (US dollar)
|
(1.49
|
)
|
0.24
|
(0.04
|
)
|
(1.29
|
)
|
(In $ millions)
|
As previously filed on Form 20-F
|
Derivative valuation adjustments
|
Other adjustments
|
As Restated
|
||||
Net (loss)/income
|
(750
|
)
|
136
|
(21
|
)
|
(635
|
)
|
|
Other comprehensive income/(loss), net of tax:
|
||||||||
Change in unrealized loss on marketable securities, net
|
(427
|
)
|
—
|
(33
|
)
|
(460
|
)
|
|
Other than temporary impairment of marketable securities, reclassification to statement of operations
|
741
|
—
|
11
|
752
|
||||
Change in unrealized foreign exchange differences
|
(15
|
)
|
—
|
—
|
(15
|
)
|
||
Change in actuarial gain relating to pension
|
27
|
—
|
—
|
27
|
||||
Share of other comprehensive income from associated companies
|
10
|
—
|
—
|
10
|
||||
Other comprehensive income/(loss)
|
336
|
—
|
(22
|
)
|
314
|
|||
Total comprehensive (loss)/income for the period
|
(414
|
)
|
136
|
(43
|
)
|
(321
|
)
|
|
Comprehensive (loss)/income attributable to the non-controlling interest
|
(4
|
)
|
11
|
—
|
7
|
|||
Comprehensive (loss)/income attributable to the parent
|
(410
|
)
|
125
|
(43
|
)
|
(328
|
)
|
(In $ millions)
|
As previously filed on Form 20-F
|
Derivative valuation adjustments
|
Other adjustments
|
As Restated
|
||||
ASSETS
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
1,044
|
—
|
—
|
1,044
|
||||
Restricted cash
|
50
|
—
|
—
|
50
|
||||
Marketable securities
|
96
|
—
|
—
|
96
|
||||
Accounts receivables, net
|
718
|
—
|
—
|
718
|
||||
Amount due from related parties
|
639
|
—
|
—
|
639
|
||||
Other current assets
|
395
|
—
|
—
|
395
|
||||
Total current assets
|
2,942
|
—
|
—
|
2,942
|
||||
Non-current assets
|
||||||||
Investment in associated companies
|
2,590
|
12
|
(10
|
)
|
2,592
|
|||
Marketable securities
|
228
|
—
|
(33
|
)
|
195
|
|||
Newbuildings
|
1,479
|
—
|
—
|
1,479
|
||||
Drilling units
|
14,930
|
—
|
—
|
14,930
|
||||
Restricted cash
|
198
|
—
|
—
|
198
|
||||
Deferred tax assets
|
81
|
—
|
—
|
81
|
||||
Equipment
|
46
|
—
|
—
|
46
|
||||
Amount due from related parties non-current
|
517
|
—
|
—
|
517
|
||||
Assets held for sale - non-current
|
128
|
—
|
—
|
128
|
||||
Other non-current assets
|
331
|
—
|
—
|
331
|
||||
Total non-current assets
|
20,528
|
12
|
(43
|
)
|
20,497
|
|||
Total assets
|
23,470
|
12
|
(43
|
)
|
23,439
|
|||
LIABILITIES AND EQUITY
|
||||||||
Current liabilities
|
||||||||
Current portion of long-term debt
|
1,489
|
—
|
—
|
1,489
|
||||
Trade accounts payable
|
141
|
—
|
—
|
141
|
||||
Short-term debt to related parties
|
152
|
—
|
—
|
152
|
||||
Other current liabilities
|
1,684
|
(124
|
)
|
—
|
1,560
|
|||
Total current liabilities
|
3,466
|
(124
|
)
|
—
|
3,342
|
|||
Non-current liabilities
|
||||||||
Long-term debt
|
9,054
|
—
|
—
|
9,054
|
||||
Long-term debt due to related parties
|
438
|
—
|
—
|
438
|
||||
Deferred tax liabilities
|
136
|
—
|
—
|
136
|
||||
Other non-current liabilities
|
401
|
—
|
—
|
401
|
||||
Total non-current liabilities
|
10,029
|
—
|
—
|
10,029
|
||||
Equity
|
||||||||
Common shares of par value US$2.00 per share: 800,000,000 shares authorized 492,759,940 outstanding at December 31, 2015
|
985
|
—
|
—
|
985
|
||||
Additional paid in capital
|
3,275
|
—
|
—
|
3,275
|
||||
Contributed surplus
|
1,956
|
—
|
—
|
1,956
|
||||
Accumulated other comprehensive (loss)/income
|
(120
|
)
|
—
|
(22
|
)
|
(142
|
)
|
|
Retained earnings
|
3,275
|
125
|
(21
|
)
|
3,379
|
|||
Total shareholders' equity
|
9,371
|
125
|
(43
|
)
|
9,453
|
|||
Non-controlling interest
|
604
|
11
|
—
|
615
|
||||
Total equity
|
9,975
|
136
|
(43
|
)
|
10,068
|
|||
Total liabilities and equity
|
23,470
|
12
|
(43
|
)
|
23,439
|
(In $ millions)
|
As previously reported
|
Derivative valuation adjustments
|
Other adjustments
|
As Restated
|
||||
Cash Flows from Operating Activities
|
||||||||
Net (loss)/income
|
(750
|
)
|
136
|
(21
|
)
|
(635
|
)
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
779
|
—
|
—
|
779
|
||||
Amortization of deferred loan charges
|
39
|
—
|
—
|
39
|
||||
Amortization of unfavorable contracts
|
(116
|
)
|
—
|
—
|
(116
|
)
|
||
Gain on sale of tender rig business
|
(22
|
)
|
—
|
—
|
(22
|
)
|
||
Share of results from associated companies
|
(190
|
)
|
(12
|
)
|
10
|
(192
|
)
|
|
Share-based compensation expense
|
7
|
—
|
—
|
7
|
||||
Loss on disposals and deconsolidations
|
63
|
—
|
—
|
63
|
||||
Contingent consideration recognized
|
(47
|
)
|
—
|
—
|
(47
|
)
|
||
Unrealized loss/(gain) related to derivative financial instruments
|
42
|
(124
|
)
|
—
|
(82
|
)
|
||
Loss on impairment of investments
|
1,274
|
—
|
11
|
1,285
|
||||
Dividends received from associated company
|
253
|
—
|
—
|
253
|
||||
Dividends received from associated companies
|
253
|
—
|
—
|
253
|
||||
Loss on impairment of fixed assets and goodwill
|
563
|
—
|
—
|
563
|
||||
Deferred income tax
|
29
|
—
|
—
|
29
|
||||
Unrealized foreign exchange loss/(gain) on long-term debt
|
(95
|
)
|
—
|
—
|
(95
|
)
|
||
Payments for long-term maintenance
|
(106
|
)
|
—
|
—
|
(106
|
)
|
||
Gain on debt extinguishment
|
(8
|
)
|
—
|
—
|
(8
|
)
|
||
Other, net
|
(9
|
)
|
—
|
—
|
(9
|
)
|
||
Changes in operating assets and liabilities, net of effect of acquisitions and disposals
|
—
|
|||||||
Trade accounts receivable
|
267
|
—
|
—
|
267
|
||||
Trade accounts payable
|
58
|
—
|
—
|
58
|
||||
Prepaid expenses/accrued revenue
|
(12
|
)
|
—
|
—
|
(12
|
)
|
||
Deferred revenue
|
(95
|
)
|
—
|
—
|
(95
|
)
|
||
Related party receivables
|
65
|
—
|
—
|
65
|
||||
Related party payables
|
(64
|
)
|
—
|
—
|
(64
|
)
|
||
Other assets
|
(22
|
)
|
—
|
—
|
(22
|
)
|
||
Other liabilities
|
(115
|
)
|
—
|
—
|
(115
|
)
|
||
Net cash provided by operating activities
|
1,788
|
—
|
—
|
1,788
|
||||
Net cash used in investing activities
|
(190
|
)
|
—
|
—
|
(190
|
)
|
||
Net cash used in financing activities
|
(1,370
|
)
|
—
|
—
|
(1,370
|
)
|
||
Effect of exchange rate changes on cash
|
(15
|
)
|
—
|
—
|
(15
|
)
|
||
Net increase in cash and cash equivalents
|
213
|
—
|
—
|
213
|
||||
Cash and cash equivalents at beginning of the period
|
831
|
—
|
—
|
831
|
||||
Cash and cash equivalents at the end of period
|
1,044
|
—
|
—
|
1,044
|
(In $ millions)
|
As previously filed on Form 20-F
|
Derivative valuation adjustments
|
Other adjustments
|
As Restated
|
||||
Operating revenues
|
||||||||
Contract revenues
|
853
|
—
|
—
|
853
|
||||
Reimbursable revenues
|
37
|
—
|
—
|
37
|
||||
Other revenues
|
69
|
—
|
—
|
69
|
||||
Total operating revenues
|
959
|
—
|
—
|
959
|
||||
Loss on disposals
|
(93
|
)
|
—
|
—
|
(93
|
)
|
||
Contingent consideration realized
|
19
|
—
|
—
|
19
|
||||
Operating expenses
|
||||||||
Vessel and rig operating expenses
|
369
|
—
|
—
|
369
|
||||
Reimbursable expenses
|
29
|
—
|
—
|
29
|
||||
Depreciation and amortization
|
197
|
—
|
—
|
197
|
||||
General and administrative expenses
|
67
|
—
|
—
|
67
|
||||
Total operating expenses
|
662
|
—
|
—
|
662
|
||||
Operating income
|
223
|
—
|
—
|
223
|
||||
Financial items and other income and expense
|
||||||||
Interest income
|
18
|
—
|
—
|
18
|
||||
Interest expense
|
(98
|
)
|
—
|
—
|
(98
|
)
|
||
Loss on impairment of investments
|
—
|
—
|
(11
|
)
|
(11
|
)
|
||
Share in results from associated companies (net of tax)
|
119
|
—
|
(10
|
)
|
109
|
|||
Gain on derivative financial instruments
|
40
|
14
|
—
|
54
|
||||
Foreign exchange gain
|
31
|
—
|
—
|
31
|
||||
Other financial items and other income, net
|
17
|
—
|
—
|
17
|
||||
Total financial items and other income and (expense),net
|
127
|
14
|
(21
|
)
|
120
|
|||
Income/(loss) before income taxes
|
350
|
14
|
(21
|
)
|
343
|
|||
Income tax expense
|
(71
|
)
|
—
|
—
|
(71
|
)
|
||
Net income/(loss)
|
279
|
14
|
(21
|
)
|
272
|
|||
|
||||||||
Net (loss)/income attributable to the non-controlling interest
|
(6
|
)
|
2
|
—
|
(4
|
)
|
||
Net income/(loss) attributable to the parent
|
285
|
12
|
(21
|
)
|
276
|
|||
Basic income/(loss) per share (US dollar)
|
0.58
|
0.02
|
(0.04
|
)
|
0.56
|
|||
Diluted income/(loss) per share (US dollar)
|
0.58
|
0.02
|
(0.04
|
)
|
0.56
|
(In $ millions)
|
As previously reported
|
Derivative valuation adjustments
|
Other adjustments
|
As Restated
|
||||
Net income/(loss)
|
279
|
14
|
(21
|
)
|
272
|
|||
Other comprehensive income/ (loss), net of tax:
|
||||||||
Change in unrealized loss on marketable securities, net
|
(129
|
)
|
—
|
(33
|
)
|
(162
|
)
|
|
Other than temporary impairment of marketable securities, reclassification to statement of operations
|
—
|
—
|
11
|
11
|
||||
Change in unrealized foreign exchange differences
|
(5
|
)
|
—
|
—
|
(5
|
)
|
||
Change in actuarial gain relating to pension
|
3
|
—
|
—
|
3
|
||||
Change in unrealized gain on interest rate swaps in VIEs
|
2
|
—
|
—
|
2
|
||||
Share of other comprehensive income from associated companies
|
3
|
—
|
—
|
3
|
||||
Other comprehensive loss
|
(126
|
)
|
—
|
(22
|
)
|
(148
|
)
|
|
Total comprehensive income/(loss) for the period
|
153
|
14
|
(43
|
)
|
124
|
|||
Comprehensive (loss)/income attributable to the non-controlling interest
|
(4
|
)
|
2
|
—
|
(2
|
)
|
||
Comprehensive income/(loss) attributable to the parent
|
157
|
12
|
(43
|
)
|
126
|
(In $ millions)
|
As previously reported
|
Derivative valuation adjustments
|
Other adjustments
|
As Restated
|
||||
Cash Flows from Operating Activities
|
||||||||
Net income/(loss)
|
279
|
14
|
(21
|
)
|
272
|
|||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
197
|
—
|
—
|
197
|
||||
Amortization of deferred loan charges
|
8
|
—
|
—
|
8
|
||||
Amortization of unfavorable contracts
|
(21
|
)
|
—
|
—
|
(21
|
)
|
||
Amortization of mobilization receivables due from related parties
|
(2
|
)
|
—
|
—
|
(2
|
)
|
||
Share of result from associated companies
|
(118
|
)
|
—
|
10
|
(108
|
)
|
||
Share based compensation expenses
|
2
|
—
|
—
|
2
|
||||
Gain on disposals and deconsolidations
|
94
|
—
|
—
|
94
|
||||
Unrealized (gain)/loss on derivative financial instruments
|
(91
|
)
|
(14
|
)
|
—
|
(105
|
)
|
|
Loss on impairment of investments
|
—
|
—
|
11
|
11
|
||||
Dividend received from associated companies
|
56
|
—
|
—
|
56
|
||||
Deferred income tax
|
12
|
—
|
—
|
12
|
||||
Unrealized foreign exchange gain on long term debt
|
(18
|
)
|
—
|
—
|
(18
|
)
|
||
Payments for long-term maintenance
|
(36
|
)
|
—
|
—
|
(36
|
)
|
||
Earn out of contingent consideration
|
(19
|
)
|
—
|
—
|
(19
|
)
|
||
Other, net
|
(1
|
)
|
—
|
—
|
(1
|
)
|
||
Changes in operating assets and liabilities, net of effect of acquisitions and disposals
|
||||||||
Trade accounts receivable
|
10
|
—
|
—
|
10
|
||||
Trade accounts payables
|
26
|
—
|
—
|
26
|
||||
Prepaid expenses/accrued revenue
|
14
|
—
|
—
|
14
|
||||
Deferred revenue
|
(35
|
)
|
—
|
(35
|
)
|
|||
Related party receivables
|
(19
|
)
|
—
|
—
|
(19
|
)
|
||
Related party payables
|
(18
|
)
|
—
|
—
|
(18
|
)
|
||
Other assets
|
(21
|
)
|
—
|
—
|
(21
|
)
|
||
Other liabilities
|
29
|
—
|
—
|
29
|
||||
Net cash from operating activities
|
328
|
—
|
—
|
328
|
||||
Net cash used in investing activities
|
(174
|
)
|
—
|
—
|
(174
|
)
|
||
Net used in financing activities
|
(275
|
)
|
—
|
—
|
(275
|
)
|
||
Effect of exchange rate changes on cash
|
(15
|
)
|
—
|
—
|
(15
|
)
|
||
Net increase in cash and cash equivalents
|
(136
|
)
|
—
|
—
|
(136
|
)
|
||
Cash and cash equivalents at beginning of the period
|
1,180
|
—
|
—
|
1,180
|
||||
Cash and cash equivalents at the end of period
|
1,044
|
—
|
—
|
1,044
|
1 Year Seadrill Chart |
1 Month Seadrill Chart |
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