UPDATE 1-Seadrill sells/leases back rigs, sets dividend
(Adds details, shares)
OSLO, Sept 16 (Reuters) - Norway's offshore services group Seadrill (SDRL.OL) said it agreed to sell two rigs to Ship Finance International (SFL.N) for $1.7 billion and lease them back, gaining cash for its rig building programme and a new dividend.
The ultra-deepwater semi-submersible rigs West Hercules and West Taurus were leased back for 15 years.
Shares in Seadrill were down 0.4 percent to 124.50 crowns at 0728 GMT on Tuesday, but it was the best performing stock in Oslo's blue-chip .OBX index which was down 3.7 percent.
Seadrill said the up-front cash from the sale, adjusted for remaining instalments in its rig building programme, was expected to be $1 billion.
"This lease arrangement, in combination with future cashflow generation, secured necessary financing of the entire newbuild programme," Bermuda-registered Seadrill Ltd said in a statement.
Seadrill, part of shipping tycoon John Fredriksen's group, announced it would distribute an extraordinary dividend of $0.30 per share. Seadrill shares will trade ex-dividend on Sept. 22, 2008.
"The lease structure, with its repurchase options and free cash flow provides flexibility for future increases in dividend distribution without limiting further growth," it added.
Seadrill has this year now completed sale and leaseback deals for three of its deepwater units. The remaining newbuild programme includes 15 units, of which eight are deepwater rigs available for similar structures, it said.
"If Seadrill were able to apply similar arrangements for all the remaining eight deepwater units, the company could release cash in excess of $5 billion," Seadrill said.
"This is however dependent on availability of debt financing sources and relevant covenant structures. In addition, the Company is considering similar or alternative financing structures for other ongoing newbuilds as well as for some of the existing rigs," it added. (Reporting by Wojciech Moskwa; editing by Rory Channing)
