OSLO, Aug. 25, 2020
OSLO, Aug. 25, 2020 /PRNewswire/ --
Financial Results Overview
Total operating revenues for 1H20 were $314.0 million (2H19: $367.8 million). The decrease was primarily due to idle time on the West Capricorn and T-15, completion of the West Aquarius contract, an early termination fee for the West Vencedor during 2H19 not being repeated and fewer days in operation for the West Polaris. These were partially offset by improved uptime and more operating days for the West Capella.
Total operating expenses for 1H20 were $314.7 million (2H19: $357.1 million). The decrease was primarily due to fewer operating days across the fleet, partially offset by higher costs on the West Capella due to more days in operation.
As a result of the deteriorating market due to COVID-19 and oil price declines, the Company recognized a non-cash impairment of $922.9 million in respect of certain idle drilling units.
Operating loss was $923.6 million (2H19: income of $10.7 million). The decrease was primarily due to the non-cash impairment recognized in the period.
Net financial items resulted in an expense of $119.4 million (2H19: expense of $120.7 million). There were offsetting movements related to interest income, interest expense and foreign currency exchange losses. Losses related to derivative financial instruments include a realized loss of $9.6 million and an unrealized mark to market gain of $3.8 million, inclusive of credit risk adjustments.
Loss before taxes was $1.0 billion (2H19: loss of $110.0 million).
Income tax expense was $23.7 million (2H19: credit of $12.9 million) reflecting taxes payable and provisions taken for the expected tax expense for the year. The Company is subject to taxes while reporting a net operating loss in the quarter as losses in one jurisdiction cannot be offset against net income in another.
Net loss was $1.1 billion (2H19: net loss of $97.1 million). Seadrill Partners LLC Members had an attributable net loss for the quarter of $590.8 million (2H19: net loss of $52.8 million).
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The following files are available for download:
SDLP - Fleet Status - 1H-20
Seadrill Partners 1H20
SOURCE Seadrill Partners