Seadrill paints gloomy drilling market outlook, -4.9% premarket

|About: Seadrill Limited (SDRL)|By:, SA News Editor

Seadrill (SDRL) -4.9% premarket after posting a rise in Q4 earnings but warning of possible market challenges this year as some projects face delays.

Oil companies currently have limited opportunities to fund exploration activities, thanks to relatively high dividend payouts and increasing development costs to bring new production on stream, SDRL says, thus "2014 and 2015 may show slower growth in activity levels than earlier anticipated."

SDRL had been adding ultradeep drilling vessels in recent years, but now says it will focus on its existing fleet until it sees oil companies raise spending.