Seadrill reports $9.84 billion of total debt at end of second quarter

By Lisa Kerner

Charlotte, N.C., Aug. 27 - Seadrill Ltd. had long-term debt of about $8.38 billion at June 30, compared with about $8.57 billion at the end of 2011. Total debt at the end of the second quarter was $9.84 billion.

At quarter's end, Seadrill had cash and cash equivalents of $276 million, compared with $483 million at Dec. 31.

The company reported 2012 second-quarter and first-half earnings results on Monday.

In May, Seadrill sold its 50% holding in SapuraKencana for proceeds of $200 million.

In July, the company refinanced the remaining $312 million of a credit facility with a new, "heavily oversubscribed" $900 million facility. The new facility will increase liquidity by about $588 million of cash, according to a Seadrill news release.

The company said it is in "advanced discussions" with export credit agencies in Norway, China and Korea, as well as commercial banks, with respect to its capital commitments related to Seadrill's new-build program through 2013. Seadrill is in receipt of an indicative term sheet for up to $850 million.

Seadrill's board is "very confident" that the remaining yard installments of $4.6 billion can be financed in the secured and unsecured debt market without raising additional equity, the news release said.

Financial highlights

Also in the second quarter, Seadrill's board of directors resolved to increase the regular quarterly dividend by two cents to $0.84.

New contracts with a total revenue potential of $7.6 billion boosted Seadrill's order backlog to a record $20.3 billion.

Seadrill reported second-quarter 2012 net income of $554 million and earnings per share of $1.12.

Consolidated revenues for the second quarter of 2012 totaled $1.12 billion, up from $1.05 billion in the first quarter of 2012.

Operating profit rose slightly for the quarter to $483 million from $456 million in the preceding quarter.

Seadrill is an Oslo-based oil and gas driller.

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