Bermuda: Seadrill Generates 3rd quarter 2010 EBITDA of US$560 million

Seadrill reports third quarter 2010 results:

Highlights

* Seadrill generates third quarter 2010 EBITDA of US$560 million

* Seadrill reports third quarter 2010 net income of US$358 million and earnings per share of US$0.85

* Two ultra-deepwater and one jack-up newbuilds commence operations

* Seadrill completes acquisition of Scorpion Offshore Limited

* Seadrill increases quarterly regular cash dividend to US$0.65 per share

Subsequent events

* Seadrill issues a US$350 million bond and a US$650 million convertible bond

* Seadrill orders six new units from yards: Two ultra-deepwater drillships for a total consideration of less than US$1,200 million and four jack-up rigs for a total consideration of US$790 million

* Seadrill completes the disposal of the 1984-built jack-up rig West Larissa for US$55 million

* Subsidiary Seawell completes listing on the Oslo Stock Exchange

Third quarter results

Seadrill today reported consolidated revenues for the third quarter 2010 of US$1,075 million up from to US$933 million for the second quarter 2010. Operating profit for the third quarter was US$431 million as compared to US$383 million in the second quarter. Operating profit from the Mobile Units increased to US$359 million from US$310 million in the second quarter. The improvement was mainly due to commencement of operations of West Orion in Brazil and the consolidation of the full quarter for the acquired Scorpion Offshore Ltd.

Operating profit from the Tender Rigs was US$58 million, an increase of US$3 million from the preceding quarter.

Operating profit from Well Services amounted to US$15 million, down from US$19 million the second quarter.

Net financial items for the quarter resulted in a loss of US$33 million as compared to zero impact in the previous quarter.

Income taxes were US$41 million resulting in a net income for the quarter of US$358 million.

Earnings per share for the third quarter were US$0.85.

Chief Executive Officer in Seadrill Management AS Alf C Thorkildsen says in a comment, “The third quarter results reflect a significant growth in earnings contribution from both the start-up of new rigs as well as significant contribution from the acquired Scorpion units, laying the foundation for yet another record EBITDA of US$560 million.”

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Source: Seadrill, November 30, 2010;