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2015-08-27

North Atlantic Drilling Ltd.: NADL - North Atlantic Drilling Ltd. reports second quarter 2015 results

Highlights from the
second quarter

* North Atlantic Drilling generated second quarter 2015 EBITDA* of $119.3
million
* North Atlantic Drilling reports second quarter 2015 net income of $44.2
million and earnings per share of $0.17

Subsequent events

* North Atlantic Drilling secured a contract extension for the
semi-submersible rig West Phoenix with Total E&P UK Limited, commencing
mid-March 2016 and securing work for the unit through the end of August
2016. The total revenue potential for the contract extension is
approximately $62 million.

* EBITDA is defined as 'Earnings Before Interest, Tax, Depreciation and
Amortization' and has been calculated by taking operating profit plus
depreciation and amortization.
Financial highlights

Second quarter 2015 results

Consolidated revenues for the second quarter 2015 were $210.7 million compared
to $192.0 million for the first quarter. The primary reason for the increase
is the West Phoenix having significantly less downtime in Q2 compared to Q1,
due to BOP repairs.

Operating income for the second quarter was $64.5 million, an increase of
$27.6 million compared to the first quarter operating income of $36.9
million. The increase is primarily due to the West Phoenix as stated above,
combined with lower operating costs as the West Navigator is now off contract
and stacked.

Net financial items for the second quarter of 2015 amounted to a loss of $20.5
million. The loss included $25.1 million in interest expenses, gain on
financial derivatives of $8.8 million, and foreign exchange loss of $3.4
million mainly related to the NOK1,500 million bond loan. The first quarter
of 2015 incurred a net financial loss of $45.9 million, including interest
expenses of $24.6 million, loss on financial derivatives of $34.3 million,
and gain on foreign exchange of $14.4 million mainly related to the NOK1,500
million bond loan.

Income taxes for the second quarter was a $0.2 million benefit, compared to a
$2.3 million expense in the first quarter. The change was primarily due to a
net tax benefit recognized during the quarter in respect of
return-to-provision ("RTP") adjustments.

Net income for the second quarter was $44.2 million resulting in a basic
earnings per share of $0.17, compared to net loss of $11.3 million for the
first quarter.

The Company reports operating revenues of $402.7 million, operating income of
$101.4 million and a net income of $32.9 million for the six months ended
June 30, 2015. This compares to operating revenues of $616.3 million,
operating income of $176.0 million and a net income of $79.9 million for the
six months ended June 30, 2014.

Balance sheet as at June 30, 2015

As at June 30, 2015, total assets decreased to $3,484.8 million from $3,528.7
million compared to the previous quarter.

Total non-current assets decreased to $3,145.2 million from $3,187.6 million
compared to the previous quarter. The decrease was mainly due to depreciation
on drilling units.

Total current liabilities decreased to $491.6 million from $526.2 million
compared to the previous quarter. The decrease is largely due to the fall in
derivative mark to market liabilities. For further information please see
Note 18 to our consolidated financial statements.

Long-term interest bearing debt, including related party debt, decreased to
$2,347.7 million from $2,395.2 million during the quarter. Net interest
bearing debt decreased to $2,415.1 million from $2,457.9 million during the
quarter. During the second quarter the Company repaid net $42 million on the
$2 billion credit facility and repaid net $12 million on the $475 million
credit facility. As at June 30, 2015, the Company had undrawn amounts of $50
million available on its credit facilities.

Total equity decreased increased to $515.7 million from $458.5 million
compared to the previous quarter. The increase is primarily due to the net
income for the quarter, and by other comprehensive income related to
unrealized actuarial pension adjustments.

Cash flow

As at June 30, 2015, cash and cash equivalents decreased to $134.5 million
from $138.8 million compared to the previous quarter.

For the six-month period ending June 30, 2015, net cash provided by operating
activities was $197.8 million, net cash used in investing activities amounted
to $21.0 million, and net cash used in financing activities was $157.1
million.

Questions should be directed to North Atlantic Management AS represented by:

Scott McReaken: Chief Financial Officer

This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.

NADL Q2 2015 Report
http://hugin.info/155697/R/1947909/707438.pdf
NADL Q2 2015 Fleet status
http://hugin.info/155697/R/1947909/707436.pdf

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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: North Atlantic Drilling Ltd. via Globenewswire

HUG#1947909

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