Seadrill Partners’ revenue
In 4Q17, Seadrill Partners’ (SDLP) total operating revenue fell to $256 million from $276 million in 3Q17. Its 4Q17 revenue was 27.4% lower than its 4Q16 revenue of $353 million. Seadrill Partners earns its revenue by operating semi-submersibles, drillships, tender rigs, and barges.
The quarterly decrease in SDLP’s revenue was mainly due to the termination payments concluding for its rig West Sirius in the third quarter. West Capella started a new contract at a lower day rate and a full quarter of idle time for the West Aquarius resulted in a slightly lower utilization of 95% in 4Q17 compared to 98% in 3Q17.
The company’s 1Q18 revenues will likely be lower than 4Q17 due to the following:
- a full quarter of idle time for two of its rigs—West Polaris and West Vencedor
- downtime on the rig West Auriga related to the planned classing survey
- decrease in revenue partially offset by West Aquarius commencing its contract in Canada with BP
Some offshore drilling companies (OIH) have already released their results for the quarter ended December 31, 2017. Here are some of those results:
- Diamond Offshore Drilling (DO): 4Q17 revenue of $338 million, a 6% fall from the previous quarter
- Noble Corporation (NE): 4Q17 revenue of $291 million, a 9.3% rise from the previous quarter
- Transocean (RIG): 4Q17 revenue of $604 million, a 14.8% fall from the previous quarter
In the next part of this series, we’ll look at Seadrill Partners’ backlog.