Seadrill tagged with Sell rating at Nordea

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

Seadrill (SDRL -1%) is downgraded to Sell from Hold at Nordea despite the offshore driller’s solid earnings earlier this week.

SDRL was slightly more positive on the ultra-deepwater market than in its Q4 presentation, but the lack of contract leads for 2013-built West Tellus in 2014 is a clear sign of how quiet the market is, Nordea says, expecting the market to remain weak in the next few years due to the large number of uncontracted newbuilds and plenty of units coming off contract.

With limited earnings visibility beyond 2015 and likely worsened data points from the market, Nordea sees sustainability of the dividend as uncertain for the next few months.

SDLP -1.1%.