SeaDrill Q2 Profit Surges - Quick Facts

(RTTNews) - SeaDrill Limited (SDRL) reported that its second-quarter net income attributable to the parent jumped to $1.727 billion from last year's $526 million, with earnings per share improving to $3.53 from $1.09 in the previous year. Gain on sale of tender rigs for the latest-quarter was $1.256 billion.

Total operating revenues for the quarter grew to $1.268 billion from $1.122 billion in the prior year quarter.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.61 per share and revenues of $1.15 billion for the quarter. Analysts' estimates typically exclude special items.

The company said it is entering a period of high growth during the second half of 2013 and through 2016. The operating results for third-quarter will be somewhat impacted by the sale of the tender rig business.

The company expects the second half results to show a significant increase in operating profit based on a total of eight new rigs commencing operation. The Board expects the company, assuming current market rates, to reach a fully consolidated annualized EBITDA of $4.5 billion in 2016.

The company stated that it feels there is a unique opportunity to continue its high growth trajectory with a strong and increasing dividend which is funded with strong existing cash flow and supported by a well over 50% increase in operating results between 2013 and 2016.

The firm noted that its board has in connection with the disclosure of the second quarter results evaluated the current dividend level and prospects and has resolved to increase the regular quarterly dividend by 3 cents to $0.91.

The Board believes that the new dividend is sustainable long-term and can be further increased as EBITDA is expected to grow significantly over the next eight quarters. The ex dividend date has been set to September 5, 2013, record date is September 9, 2013 and payment date is on or about September 20, 2013.