Fredriksen flips drillship to net $204m in cash

Fredriksen flips drillship to net $204m in cash

Hamilton: John Fredriksen has made some extra cash for his firm Seadrill Limited by selling the West Polaris drillship to Seadrill Operating, a subsidiary of Fredriksen spin-off, Seadrill Partners. The 2008-built Samsung Heavy built drillship has a charter at a daily rate of $653,000 with ExxonMobil in Angola through to March 2018.

The sale is for $204m in cash and $336m of debt outstanding under the existing facility financing the West Polaris. Seadrill Operating will fund the balance of the purchase price with a seller’s credit of $50m due in 2021 that carries an interest rate of 6.5% per annum.

Under the terms of the acquisition agreement, Seadrill will receive any dayrate in excess of $450,000 per day, adjusted for daily utilisation, for the remainder of the ExxonMobil contract, giving Seadrill an estimated $60m in cash per year through the remainder of the ExxonMobil contract.

Additionally, following the conclusion of the current contract, Seadrill will continue to have a degree of exposure to future dayrates by sharing revenues above $450,000 per day with Seadrill Partners, again without the associated operating expense.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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  1. Fredriksen flips drillship to net $204m in cash | Matisse & Co
    June 17, 2015 at 3:26 pm

    […] John Fredriksen has made some extra cash for his firm Seadrill Limited by selling the West Polaris drillship to Seadrill Operating, a subsidiary of Fredriksen spin-off, Seadrill Partners. The 2008-built Samsung Heavy built drillship has a charter at a daily rate of $653,000 with ExxonMobil in Angola through to March 2018. […]