July 26, 2016 - 1:35 AM EDT
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SDLP - Seadrill Partners LLC Announces Reduction to Quarterly Cash Distributions

London, United Kingdom, July 26, 2016 - Seadrill Partners LLC (NYSE: SDLP) ("Seadrill Partners" or the "Company") announced today that it will reduce the quarterly distribution to its common unitholders to $0.10 per unit, down from the current quarterly level of $0.25 per unit.

The decision to reduce the distribution level reflects the increase in the extended standby rate period for the West Capricorn and the termination of the drilling contract for the West Capella.  Although available units are being bid on a number of opportunities and extension conversations continue, the Company believes this is a prudent move that will improve its liquidity position.

Despite some contract cancellations for which termination payments are being received, the Company still has an average contact term of 2.7 years, total contract backlog of $3.4 billion and 64% of its rigs on contract until 2018.  The Company continues to achieve high operational uptime on its operating units and has strong contract terms with creditworthy customers.

Seadrill Partners believes it remains well positioned for the recovery with one of the world's most technologically advanced fleets, the benefits of scale and a proven operational track record and continues to seek new contracting opportunities.

The second quarter cash distribution will be paid on or about August 12, 2016 to all common unitholders of record as of the close of business on August 5, 2016.

FORWARD LOOKING STATEMENTS

This news release includes forward looking statements. Such statements are generally not historical in nature, and specifically include statements about the Company's plans, strategies, business prospects, changes and trends in its business and the markets in which it operates. In particular, statements regarding projected changes in the Company's cash distributions, liquidity, amount of the Company's estimated maintenance and replacement capital expenditures, the Company's anticipated growth strategies and its ability to re-contract its drilling rigs are considered forward looking statements. These statements are made based upon management's current plans, expectations, assumptions and beliefs concerning future events impacting the Company and therefore involve a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied in the forward looking statements, which speak only as of the date of this news release. Important factors that could cause actual results to differ materially from those in the forward looking statements include, but are not limited to the performance of the drilling rigs in the Company's fleet; delay in payment or disputes with customers; fluctuations in the international price of oil; changes in governmental regulations that affect the Company or the operations of the Company's fleet; increased competition in the offshore drilling industry; hire rates and factors affecting supply and demand for drilling rigs; the financial condition of the Company's existing or future customers; and general economic, political and business conditions globally. Consequently, no forward looking statement can be guaranteed. When considering these forward looking statements, you should keep in mind the risks described from time to time in the Company's filings with the SEC, including its Annual Report on Form 20-F (File No. 001-35704).

The Company undertakes no obligation to update any forward looking statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for us to predict all of these factors. Further, the Company cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward looking statement.




This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Seadrill Partners LLC via Globenewswire

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Source: Thomson Reuters ONE (July 26, 2016 - 1:35 AM EDT)

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