SDRL - Seadrill reports fourth quarter and preliminary 2009 results

Highlights * Seadrill generates fourth quarter 2009 EBITDA of US$486 million * Seadrill reports fourth quarter 2009 net income of US$401 million and earnings per share of US$0.95 * Seadrill books US$58 million gain on disposal of jack-up rig West Atlas * Seadrill is awarded new contracts amounting to US$90 million for tender rig and jack-up rigs * Seadrill is awarded US$345 million two-year contract for the ultra-deepwater drillship West Gemini under construction * Seadrill declares US$0.55 per share in cash dividend Preliminary results 2009 Seadrill today reports preliminary consolidated revenues for 2009 of US$3,254 million as compared to revenues of US$2,106 million in the 2008 accounts. The increase in revenues mainly reflects delivery of several newbuilds during 2009, as well as a higher average dayrate for the rig fleet. Operating profit for the full year amounted to US$1,372 million as compared to US$649 million in the 2008 accounts. Net financial items amounted to an income of US$101 million. The year resulted in a net income of US$1,353 million as compared to a loss of US$123 million in the 2008 accounts. Fourth quarter 2009 results Consolidated revenues for the fourth quarter 2009 amounted to US$879 million as compared to US$863 million for the preceding quarter. Operating profit for the fourth quarter was US$382 million as compared to US$394 million in the third quarter. Operating profit from the Mobile units amounted to US$338 million as compared to US$342 million in the third quarter. The decrease was mainly due to lower utilization related to some equipment downtime as well as yard-stays and associated repair and maintenance work, partly offset by a gain on the disposal of the jack-up West Atlas. Operating profit from the Tender rigs amounted to US$29 million as compared to US$37 million in the third quarter. Operating profit from Well services amounted to US$15 million, unchanged compared to the preceding quarter. Net financial items for the fourth quarter resulted in a net income of US$20 million as compared to an expense of US$1 million in the third quarter. Income before income taxes amounted to US$401 million. Income taxes were US$0.1 million, due to change in estimates from prior periods. Net income for the quarter amounted to US$401 million, equivalent to earnings per share of US$0.95. Chief Executive Officer in Seadrill Management AS Alf C Thorkildsen says in a comment, "The fourth quarter marked a solid closing of the financial year 2009 that saw strong growth in EBITDA and earnings for our Company. 2009 was a year in which we expanded our operations into new geographical regions and commenced operations with a number of new deepwater assets. In response to our solid operations, strong contract backlog and favorable market outlook, we are pleased to announce an increase in our quarterly dividend." For further information, please see the Fourth quarter and preliminary 2009 report attached. Analyst contact Jim Dåtland VP Investor Relations Seadrill Management AS +47 51 30 99 19 Media contact Trond Brandsrud Chief Financial Officer Seadrill Management AS +47 51 30 99 19 Seadrill Limited Hamilton, Bermuda February 25, 2010 This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act) [HUG#1388759] Fourth quarter and preliminary 2009 results: