Hamilton, Bermuda, February 22, 2017 - North Atlantic Drilling Ltd ("North Atlantic" or "the Company") announces it has rescheduled its fourth quarter and preliminary 2016 results and conference call to Tuesday, February 28, 2017 at 11:00am EST / 4:00pm GMT to provide additional time for the Company to complete its review of the accounting for the Company's interest rate and cross currency hedges.
The Company has determined that a restatement of its 2015 financial statements is required to correctly reflect US GAAP fair value accounting principles applied to the Company's interest rate and cross currency swap portfolio. The net impact of these non-cash adjustments to the Company's 2015 financial statements is expected to increase shareholders equity in the range of $30 to 50 million.
The net impact of these non-cash adjustments to the Company's 2016 financial statements up to and including the third quarter is expected to be an increase to shareholders equity in the range of $0 to 15 million.
These changes are not expected to have an impact on compliance with the Company's financial covenants for prior or current periods.
The Company has determined that there was a material weakness in the Company's internal controls over financial reporting relating to its accounting for these interest rate and cross currency hedges. These expected adjustments should be considered when reviewing previously reported financial results for the year ended December 31, 2015 and through the third quarter of 2016.
FORWARD LOOKING STATEMENTS
This news release includes forward looking statements. Such statements are generally not historical in nature, and specifically include statements about the Company's plans, strategies, business prospects, changes and trends in its business and the markets in which it operates. These statements are made based upon management's current plans, expectations, assumptions and beliefs concerning future events impacting the Company and therefore involve a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, which speak only as of the date of this news release. Consequently, no forward-looking statement can be guaranteed. When considering these forward-looking statements, you should keep in mind the risks described from time to time in the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 20-F (File No. 001-34667). The Company undertakes no obligation to update any forward looking statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for the Company to predict all of these factors. Further, the Company cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward looking statement.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
