Seadrill Reports Second Quarter 2006 Results


HAMILTON, Bermuda, Aug. 31, 2006 (PRIMEZONE) --



 Highlights

Seadrill reports a net income of USD 33.3 million and earnings per share of USD 0.07 for the second quarter 2006

Seadrill completed a USD 210 million sale and leaseback transaction for the newbuilt jack-up West Ceres (Seadrill 3)

Seadrill orders a new tender barge rig, T11, from Malaysia Marine & Heavy Engineering

Seadrill maintains ownership position in Eastern Drilling ASA by acquiring 5.3 million shares in share emission at NOK 90 per share

Seadrill secured new contracts for the jack-up rigs West Epsilon and West Larissa as well as the tender rig under construction West Berani

Second Quarter Results

Seadrill today reported consolidated revenues for the second quarter 2006 of USD 275.6 million compared to USD 233.8 million for the pro forma first quarter 2006. Revenues for the first half year were USD 467.2 million.

Operating profit for the second quarter was USD 59.1 million as compared to pro forma figures of USD 27.5 million in the first quarter. Operating profit for the first half year was USD 82.9 million.

Operating profit from the Mobile units (including jack-ups and FPSOs) amounted to USD 35.8 million as compared to an operating profit of USD 10.2 million in the pro forma first quarter accounts. The increase was mainly due to higher utilization for West Ceres (Seadrill 3), West Titania (Seadrill 7), West Navigator as well as higher dayrates for West Alpha.

Operating profit from the Tender rigs amounted to USD 13.9 million as compared to USD 11.8 million in the pro forma first quarter accounts. The improvement was mainly due increased dayrates for some of the units.

Operating profit from Well services amounted to USD 9.4 million as compared to USD 5.4 million in the pro forma first quarter accounts. The improvement reflects increased activity within the Well services division.

Net financial items for the second quarter incurred a loss of USD 17.7 million as compared to an income of USD 63.2 million in the pro forma first quarter. The result reflects decreased interest expenses due to capitalization of interest expenses related to the newbuilding program. In addition, the first quarter results was impacted by the gain from the sale of the holdings in Ocean Rig ASA.

Income before income taxes amounted to USD 41.4 million.

Income taxes were USD 8.1 million.

Net income for the quarter amounted to USD 33.3 million.

Earnings per share were USD 0.07 for the second quarter.

For further information, please see the second quarter 2006 report attached.

SeaDrill Limited Hamilton, Bermuda August 31, 2006: http://hugin.info/135817/R/1072797/183628.pdf



            

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