Hamilton, Bermuda, November 30, 2011 - North Atlantic Drilling reports third quarter 2011 results:

 

*) EBITDA is defined as earnings before interest, depreciation and amortization equal to operating profit plus depreciation and amortization.

 

 

Consolidated revenues for the third quarter of 2011 amounted to US$242.9 million, up from US$ 233.0 million in the second quarter.

 

Operating profit for the quarter was US$107.6 million, down by US$5.1 million compared to the previous quarter.

 

Net financial items for the quarter amounted to a loss of US$56.6 million and included US$22.4 million in interest expenses, and a US$40.8 million loss on financial items, mainly related to interest rate swap agreements.

 

Income taxes for the third quarter were US$6.6 million.

 

Net income for the quarter was US$44.4 million and basic earnings per share US$0.045.

 

Cash dividend for the third quarter is increased to US$0.04 per share

The Chairman of the Board and Chief Executive Officer Alf C Thorkildsen says in a comment; "North Atlantic Drilling delivers another strong quarter with a record utilization and revenues and a very solid operating margin. The market uncertainty with a decline in long term interest rates had an adverse impact through the interest rate swaps and hence led to a reduction in earnings. Whilst our performance is strong, contract backlog is solid and the outlook for our business very favourable, we have taken decisive actions to protect shareholder value against increases in taxation. We have also decided to pursue a listing of our shares on one of the main stock exchanges in New York."

 

For further information, please see the third quarter 2011 report attached.