Seadrill Partners LLC reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2018. For the quarter, the company reported total operating revenues of USD 418.1 million compared to USD 267.9 million a year ago. Operating income was USD 239.2 million compared to USD 81.6 million a year ago. Income before tax was USD 207.9 million compared to USD 24.3 million a year ago. Net income attributable to the company members was USD 127.7 million compared to USD 11.7 million a year ago. Adjusted EBITDA was USD 320.1 million, includes USD 204 million recognized in the second quarter from the West Leo. Excluding this, adjusted EBITDA would've been USD 116 million, an improvement of 20% reflecting the revenue improvements. The increase in total operating Revenue was primarily due to the West Leo litigation judgment, which was in its favor. The increase in operating income was primarily related to revenue recognized from the successful outcome of the West Leo litigation. Underlying operating income improved by approximately USD 17 million due mainly to the West Aquarius commencement. Excluding the impact of the litigation proceeds, underlying revenue improved by approximately USD 20 million primarily due to the West Aquarius commencing operations during the quarter and contractual dayrate increases on the West Vela, West Auriga and West Capricorn. These were partially offset by fewer operating days for the West Capella and the West Vencedor being off contract for a full quarter.

For the six months, the company reported total operating revenues of USD 612.4 million compared to USD 595.4 million a year ago. Operating income was USD 257.4 million compared to USD 255.0 million a year ago. Income before tax was USD 200.2 million compared to USD 151.6 million a year ago. Net income attributable to the company members was USD 124.5 million compared to USD 68.5 million a year ago. Net cash provided by operating activities was USD 134.2 million against USD 280.2 million a year ago. Additions to drilling units were USD 12.3 million against USD 24.0 million a year ago. Net debt was USD 2,487.5 million as on June 30, 2018. Net cash provided by operating activities was USD 134.2 million compared to USD 280.2 million a year ago. Net debt as at June 30, 2018 was USD 2,487.5 million.

The company provided earnings guidance for the third quarter ending September 30, 2018. For the quarter, the company expects adjusted EBITDA of USD 100.4 million, which is slightly lower than adjusted EBITDA for the second quarter, excluding the West Leo judgment of USD 116 million. This is due to the West Aquarius coming off contract, a full quarter of idle time for the West Capella and a planned SPS for the West Vela in the third quarter. The company expects operating income of USD 20.7 million and depreciation and amortization of USD 69.6 million.