Hamilton, Bermuda, April 18, 2014 (GLOBE NEWSWIRE) -- Seadrill Limited ("Seadrill or the Company") announces that it has filed its annual report on Form 20-F for the year ended December 31, 2013 with the Securities and Exchange Commission in the U.S.
In its fourth quarter results, Seadrill announced the deconsolidation of Seadrill Partners from its consolidated financial statements following Seadrill Partners' first annual general meeting of common unitholders held on January 2, 2014, when the majority of the board members became electable by the common unitholders. As a result, from January 2, 2014, Seadrill Partners has been accounted for as an investment in an affiliate. The deconsolidation of Seadrill Partners is estimated to result in a one-off gain of $2.4 billion being recognized by the Company in the first quarter of 2014, which is predominantly driven by the difference between the historical book value of Seadrill Partners' net assets and the fair value of the Company's investments in Seadrill Partners recognized upon deconsolidation. The deconsolidation will significantly impact the future presentation of the Company's operating results and net income, including any gains and/or losses that may result from future dropdown transactions to Seadrill Partners. From an operational and managerial standpoint the relationship between Seadrill and Seadrill Partners is unchanged. Seadrill Partners continues to leverage off of Seadrill's operational and financial capabilities.
Please refer to note 37 of the filed Form 20-F for additional details on the accounting treatment of the deconsolidation.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Seadrill 2013 Form 20-F http://hugin.info/135817/R/1778414/607397.pdf
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