Seadrill Reports Q3 EPS $0.07 May Not Compare vs $0.75 Est; Revenues $1.03B vs $1.05B Est

Second quarter 2011 results Consolidated revenues for the third quarter of 2011 amounted to US$1,029 million as compared to US$995 million in the second quarter. Operating profit for the quarter was US$480 million, up from an operating profit of US$430 million in the preceding quarter. The improvement is related to an increase in the number of units in operation and sale of the jack-up rig West Juno. Operating profit from the Floaters was US$349 million up from US$341 million in the second quarter 2011 due to the newbuild ultra-deepwater rig West Pegasus commencing operations in the Mexican Gulf. Operating profit from the Jack-up Rigs amounted to US$71 million as compared to an operating profit of US$49 million in the second quarter 2011. The increase in contribution was related to gain on sale of the jack-up rig West Juno. Operating profit from the Tender Rigs was US$60 million, up from US$40 million in the second quarter 2011. The improvement was due to higher utilization for the tender rigs as well as the second quarter being adversely impacted by the retirement of the tender barge T8. Net financial items for the quarter showed a loss of US$372 million compared to a gain of US$264 million in the previous quarter. The adverse contribution is mainly related to a loss of US$330 million on derivative financial instruments for the quarter whereas the second quarter had a gain of US$416 million on realization of holdings in the former offshore drilling company Pride International Inc offset by a loss on derivative financial instruments of US$90 million.