SDLP - Deferral of First Quarter Distribution Decision
London, United Kingdom, April 28, 2017 - Seadrill Partners LLC ("SDLP" or "the Company") announces that it has deferred its first quarter 2017 distribution decision until an agreement is reached with its lending banks to insulate itself from potential events of default by Seadrill Limited should Seadrill Limited require the use of in court processes, such as schemes of arrangement or chapter 11 proceedings, to implement its restructuring.
Discussions with our lending banks are well advanced and we expect to reach an agreement by the end of May, prior to the implementation of the broader Seadrill Limited restructuring.
Assuming we reach an agreement, a determination will be made regarding the distribution. Based on our current cash position and free cash flow, we aim to maintain our current distribution level once an agreement is reached.
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; the Company's ability to insulate itself from certain potential events of default at Seadrill Limited and a broader Seadrill Limited restructuring; and general economic, political and business conditions globally. Consequently, no forward looking statement can be guaranteed. When considering these forward looking statements, you should also 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.