Seadrill Ltd SDRL
Q1 2013 Earnings Call Transcript

Transcript Call Date 05/28/2013

Operator: Good day and welcome to the Q1 2013 Seadrill Limited Earnings Conference Call. Today's conference is being recoded.

At this time, I'd like to turn the conference over to Mr. (indiscernible), Director of Investor Relations. Please go ahead, sir.

Unidentified Company Speaker - IR: Thanks Sarah. Thank you all, and welcome to Seadrill's first quarter 2013 earnings conference call. Please note that this conference call also includes comments on the first quarter 2013, and accounts for, our majority-owned subsidiary North Atlantic Drilling. Quarterly reports and other supporting materials are available on and

Together with me on this call, I have our Chief Executive Officer, Mr. Fredrik Halvorsen; our CFO and Senior Vice President, Mr. Rune Magnus Lundetrae; Robert Hingley-Wilson, our Senior Vice President and Chief Accounting Officer; and also with me Mr. Alf Ragnar, the CEO of NADL.

But before I give the microphone over to Fredrick, I would like to remind everyone that during the course of this call, we may make certain forward-looking statements regarding matters related to our business and Company that are not based on historical facts. Please note that such statements in addition to other information discussed here within the Safe Harbor provisions provided by the Federal Securities Regulations. For further and more detailed description of other risks associated with our Company and industry, please see our most recent Annual Report on Form 20-F and other filings with the SEC.

If we all turn to Page 2, I trust we all have read the disclaimer. With that I would like to turn over the microphone to Fredrik.

Fredrik Halvorsen - CEO and President: Good morning and good afternoon to all of you and thank you for joining us on the call today. I will start by going through the highlights for the first quarter. Thereafter we will go through the market outlook for the business and the contract backlog. I will then go through our dividend policy before ending on some summary comments. I will then hand the call over to Rune Magnus to take you through the financials for both Seadrill and North Atlantic in some more detail. Then in the usual fashion we will finish on a combined Q&A session for both companies.

So let me start with some highlights. I am very pleased to share a record quarter of US$652 million in operational EBITDA. Now in addition, we executed the sale of the West Janus, which gave a solid gain of US$61 million bringing the overall EBITDA for the quarter to US$713 million, the net income for the quarter was US$440 million corresponding to an earnings per share of US$0.87. The quarter was marked by a significant improvement in utilization for our Floaters. The economic utilization for the quarter came in at 92%, which is up from 86% in the previous quarter. As discussed in our last conference call, the first half of the quarter in Q1 was affected by the change out of the connector bolts in our subsea well control equipment.

I'm happy to say that we were able to take care of these issues, both on cost and on time, and since then, we've seen a sequential pickup in utilization month-over-month.

Read our Earnings Call Transcript disclaimer.
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