Seadrill Partners to slash dividend. Cites low rig rates, looming debt maturities

Seadrill Partners, an affiliate of offshore driller Seadrill, will reduce the quarterly distribution to its common unitholders from 10 cents per unit to 1 cent per unit.

West Vencedor / Image by Seadrill Partners

“The move reflects the slower than anticipated recovery in dayrates and the company’s desire to preserve liquidity ahead of debt maturities in the second half of 2020 and first quarter of 2021,” Seadrill partners said.

The fourth quarter cash distribution will be paid on February 14, 2019, to all unitholders of record as of the close of business on February 7, 2019, the company said.

The piece of news comes a week after the company announced it had secured a six-well contract with three option wells for the West Vencedor semi-submersible self-erecting tender assisted drilling rig offshore Cote d’Ivoire.

Backlog for the firm portion of the contract is expected to be approximately $20 million with the start expected in Q3 2019 and running through Q2 2020.

Also worth noting, Seadrill Partners earlier this month said its CEO Mark Morris would step down from his position at the end of June.

Mark Morris, said, “It has been a privilege to have led the Company over these last three and a half years, but now I am looking to seek new and different challenges.

See below Seadrill Partners’ latest fleet status report and dayrates. The fleet report has not been updated yet to include the latest contract for the West Vencedor.

Offshore Energy Today Staff

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