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Seadrill seals $319M in jack-up deals

Seadrill (SDRL +1.4%) says it secured new contracts for jack-up units West Tucana, West Telesto, West Ariel and West Prospero, and a contract for the West Mischief is extended by four months; the total revenue potential for the four new contracts and one extension is ~$319M.

The West Tucana will be headed to offshore Angola for work with Chevron's (CVX) wholly owned operating unit in the country; total revenue potential for the 24-month primary contract term is ~$168M.

SDRL now has 92% of its jack-up capacity contracted for 2014 and 64% for 2015, with total order backlog for the jack-up fleet at $4.4B.

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Comments (12)
  • Budavar
    , contributor
    Comments (1398) | Send Message
    SDRL has a lot going for it = see above =
    Most admirable IMO, is the joint venture in Mexico, with exciting potential.


    Sadly, its "Admiral's" virtually manic obsession with the 100% pay out ratio creates a yield which under many circumstances signal/red flag a JUNK status =
    translation =
    A sure way to frighten/caution many institutional + other sophisticated investors.


    Particularly those who remember not many years ago the same Admiral had a virtually manic obsession with his lead op called FRONTLINE's pay out ratio.
    That resulted first in a cut, then the elimination of the cash dividend. Listed on the NYSE, it wallows somewhere below $10 when last checked.


    Billions lost by investors = but our admiral remained an admirable(?) billionaire = pun intended.
    2 Apr 2014, 12:51 PM Reply Like
  • Debutant
    , contributor
    Comments (2656) | Send Message
    Flabbergasted to see the words "junk...admiral....manic obsession" about my company on this eminent forum!
    2 Apr 2014, 01:00 PM Reply Like
  • 8961811
    , contributor
    Comments (12) | Send Message
    You still continue to harp on the Frontline ordeal Budavar...


    Shipping with low cost ships, that practically anybody can build, running on short contracts.




    Very expensive rigs, that only a handful of companies can produce, running on 3-5-7 year contracts, producing the most important commodity in the world, which is in high demand.


    Yes, high pay out ratio. But, when the new rigs are out, they are increasing their income by 40-60%, which will enable them to pay their investors handsomly the next 10-20 years!
    2 Apr 2014, 01:02 PM Reply Like
  • The Rebel
    , contributor
    Comments (1795) | Send Message


    Sadly, your unending screeds about SDRL continue unabated. I find it hard to believe that you are still a shareholder. Why don't you just cash it in for some RIG?
    2 Apr 2014, 01:34 PM Reply Like
  • ComputerBlue
    , contributor
    Comments (1058) | Send Message
    Yes, RIG is a good choice for Budavar. Although they've made mistakes too, such as forgetting to update their equipment when interest rates are at rock bottom levels. I dont know how one can invest in a company, yet have such disbelief about their methods of operating it.
    2 Apr 2014, 01:55 PM Reply Like
  • Debutant
    , contributor
    Comments (2656) | Send Message
    RMS Titanic might be a better match! Pure history and nostalgie.
    2 Apr 2014, 05:03 PM Reply Like
  • tankerat
    , contributor
    Comments (574) | Send Message
    The "imminent Seadrill dividend cut" was revealed to be the delusional fantasy it always was...invented by analysts and bloggers who don't closely follow the company...followed by the appearance of Tor Olav Troim on the last conference call to "clear up the misunderstanding" ..which he did as he announced the dividend increase to .98 per quarter..said that amount is the base or floor for several years and then announced the formation of a "special dividend fund" partly funded by 20% of the proceeds from dropdowns to SDLP.


    The contracts announced today were good contracts for jack ups and soon we will see final signing for contracts for the drillships West Saturn and West and see.


    The naming ceremony for West Saturn is happening about now in South Korea...I know at least 2 people in attendance and look forward to their reports...
    2 Apr 2014, 02:21 PM Reply Like
  • ComputerBlue
    , contributor
    Comments (1058) | Send Message
    Thanks for the insight tankerat. Much appreciated as always.
    2 Apr 2014, 02:29 PM Reply Like
  • saratogahawk
    , contributor
    Comments (2539) | Send Message
    A friend of mine is in South Korea right now as well. I haven't heard yet about the ceremony.
    2 Apr 2014, 02:54 PM Reply Like
  • bgold1955
    , contributor
    Comments (2321) | Send Message
    SDRL & ESV have been flat for 3 years. Growth for both (16-20% yoy) are healthy & dividend rates are incredible. What's going on? Outta favor sector?
    2 Apr 2014, 03:32 PM Reply Like
  • long_on_oil
    , contributor
    Comments (1304) | Send Message
    How does the new rates compare to the old? I added up the old rates and came up with $302 million so the new rates must be higher. That is just simple math and I am not sure of the contract periods so my figure is probably off.
    2 Apr 2014, 05:16 PM Reply Like
  • Chip Oat
    , contributor
    Comments (61) | Send Message
    Jack-up deal not big enough to move the needle. SDRL has other pluses and minuses. Don't hang your hat on this one admittedly positive trio of deals; EPS and FCF impact is negligible.
    13 Apr 2014, 12:11 PM Reply Like
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