Highlights from the fourth quarter
- North Atlantic Drilling generates fourth quarter 2014 EBITDA*) of US$135.3 million
- North Atlantic Drilling reports fourth quarter 2014 net loss of US$474.7 million and earnings per share of US$(1.99)
- North Atlantic Drilling reports a non-cash charge to its goodwill of US$480.6 million
Subsequent events
- North Atlantic Drilling receives approval from its Norwegian Bondholders to amend the Bond Agreement for its NOK1.5 billion Norwegian Bond maturing in 2018. Under the terms of the agreement, Seadrill Limited will provide a guarantee for the Bond Issue in exchange for some amendments to the Bond Issuer's covenant package, namely replacing the Issuer's current financial covenants with Seadrill Limited financial covenants.
- North Atlantic Drilling receives approval from lending group to amend the loan agreement for its US$2 billion credit facility. Under the terms of the agreement, Seadrill Limited will provide a guarantee for the credit facility in exchange for some amendments to the Borrower's covenant package, namely replacing the Borrower's current financial covenants with Seadrill Limited financial covenants.
- North Atlantic Drilling receives approval from Ship Finance International Ltd. to amend its US$600 million sale leaseback facility. Under the terms of the agreement, Seadrill Limited will provide a guarantee for the facility in exchange for some amendments to the Borrower's covenant package, namely replacing the Borrower's current financial covenants with Seadrill Limited financial covenants.
*) EBITDA is defined as earnings before interest, depreciation and amortization equal to operating profit before any impairment charges, and plus depreciation and amortization.
Condensed consolidated income statements
Fourth quarter and preliminary 2014 results
Consolidated revenues for the fourth quarter 2014 were US$291.2 million compared to US$356.2 million for the third quarter 2014.
Operating loss for the fourth quarter was US$403.2 million, a decrease of US$514.1 million compared to the third quarter operating profit of US$110.9 million. In the fourth quarter the Company recognized a non-cash charge to its goodwill of US$480.6 million. For further information please see Note 10 to our consolidated financial statements.
Net financial items for the fourth quarter of 2014 amounted to a loss of US$60.2 million. The loss included US$25.8 million in interest expense and US$59.5 million related to financial derivatives, partly offset by foreign exchange gains of US$25.8 million mainly related to the NOK1,500 million bond loan, compared to the third quarter 2014 loss of US$23.4 million, comprised of interest expense of US$26.8 million and US$12.7 million loss related to financial derivatives partly offset by foreign exchange gains of US$16.8 million mainly related to the NOK1,500 million bond loan.
Income taxes for the fourth quarter were US$11.3 million.
Net loss for the fourth quarter was US$474.7 million, and basic earnings per share were US$(1.99).
The Company reports operating revenues of US$1,263.7 million, operating loss of US$116.4 million and a net loss of US$320.5 million for the twelve months ended December 31, 2014. This compares to operating revenues of US$1,324.3 million, operating income of US$360.6 million and a net income of US$235.6 million for the twelve months ended December 31, 2013.
The full report for the fourth quarter can be downloaded from www.nadlcorp.com | Investor relations | Financial reports
Questions should be directed to North Atlantic Management AS represented by:
Ragnvald Kavli: Chief Financial Officer
Tore Byberg: VP Commercial Finance
Management will address highlights from the fourth quarter 2014 results in a conference call to be held at 11:00 a.m. EST / 5:00 p.m. CET on Thursday February 26, 2015. The details for the conference call are available on the Company's website www.nadlcorp.com.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
