Seadrill: When Is The Next Upcycle Coming?
Richard Zeits • 92 Comments
Richard Zeits • 92 Comments
Seadrill At Imminent Risk Of Bankruptcy... Really?
Power Hedge • 98 Comments
Power Hedge • 98 Comments
Thu, May 26, 8:56 AM
- Seadrill (NYSE:SDRL) +5% premarket after its Q1 earnings report included plans to cut costs by $340M this year, with $305M considered sustainable savings and $35M deferred spending; SDRL previously had said it planned to cut costs by $260M.
- SDRL, whose Q1 revenues tumbled 28% Y/Y to $891M from $1.2B in the year-ago period, partly because of lower dayrates paid for some of its drilling rigs, says it had "record operational uptime" with 96% economic utilization.
- SDRL CEO Per Wullf thinks the rig market will rebalance eventually: "Within the next few years, we believe the continued scrapping of older rigs in combination with required exploration and development drilling will bring the market back to balance and subsequent improved day rates."
- Now read Seadrill: No upside, sorry
Thu, May 26, 6:02 AM
Wed, May 25, 5:30 PM
Wed, Mar. 9, 3:23 PM
- Ocean Rig UDW (ORIG -22.9%) plunges after missing Q4 earnings expectations and saying "prospects for the industry remain bleak” and “are likely to remain so at least until 2018.”
- ORIG says it is in discussions with lenders of its loan agreement related to the consequences of Ocean Rig Apollo termination, and that the situation could evolve into a "significant prepayment" of the loan.
- ORIG says its fleet operated at 99.5% utilization during Q4, and FY 2015 fleet operating efficiency was ~98.2%.
- Although ORIG’s comments were more bearish than the outlook described by other offshore drillers, the company’s earnings are hurting other names in the space: DRYS -19.6%, SDRL -16.4%, RIG -2.3%, NE -5.7%, ESV -3.9%, DO -1.4%, RDC -4.4%, ATW -3.3%.
Thu, Feb. 25, 3:59 PM
- Seadrill (SDRL +0.5%) holds on to gains after reporting better than expected Q4 earnings as it deepened cost cuts, announcing it won a new contract for one of its rigs in Angola, and saying it will announce a funding plan in H1 of this year to address its ~$10B debt.
- SDRL says its FY 2015 cost savings totaled $832M, exceeding an earlier target of ~$600M, and 2016 savings will amount to another $260M, compared to a previous goal of $200M.
- SDRL says its new two-year contract in Angola for its West Eclipse rig has a value of $285M, although it also reduces the backlog for another rig, the West Polaris, by $95M, resulting in a $190M net order-backlog effect; Seeking Alpha contributor Vladimir Zernov calls the contract a "disaster" from a "big picture point of view."
- Key to the refinancing plan will be the response of SDRL’s biggest shareholder, John Fredriksen’s Hemen Holding, which owns ~24% of the company; in the past, Fredriksen has put up his own cash when some peers have encountered financial problems.
- It is "positive for the company that a financing plan will be announced in H1, but the dilutive risk to the shares is huge in a credit event,” Carnegie analyst Johan Stroem says.
Thu, Feb. 25, 5:00 AM
Thu, Feb. 25, 4:28 AM
- AB InBev (NYSE:BUD) served up mixed results, hiking its dividend more than expected but warned of continued challenges in key emerging markets.
- Deutsche Telekom (OTCQX:DTEGY) raised its dividend (for the first time since 2007) on the back of better-than-expected Q4 results, thanks to strength in its U.S. business.
- Seadrill (NYSE:SDRL) soared after beating earnings estimates on cost cuts, while saying it would announce a refinancing plan to tackle its $10B debt in the first half of the year.
- Lloyds (NYSE:LYG) shares also jumped as it hiked its dividend, but more payment protection insurance charges dented its pre-tax profits.
Wed, Feb. 24, 5:30 PM
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Thu, Feb. 4, 11:48 AM
- Offshore drillers are on the move today as rising oil prices ease concerns about the difficult market that remains apparent in earnings releases from Noble Corp. (NE +1.1%), which reported last night, and Atwood Oceanics (ATW +17.2%), which reported earlier this week.
- NE reported below consensus Q4 earnings, but Evercore ISI's James West says the company continues to perform well operationally, with YTD unpaid fleet operational downtime edging up slightly to 5% from 4.6% in Q3.
- NE also announced plans to retire two rigs, the drillship Noble Discoverer and jackup Noble Charles Copeland, bringing its total rig attrition to four floaters and one jackup during the oil downturn.
- Jefferies says ATW has the most challenged balance sheet over the longer-term among its mid-cap coverage, but it is encouraged by ATW’s prospects to better position itself for the near-term with a covenant amendment, and maintains its Buy rating with a $9 price target (Q4 earnings).
- Related peers: RIG +3.6%, DO +3.8%, ESV +5.2%, RDC +4.3%, SDRL +2.5%.
Nov. 25, 2015, 1:46 PM
- Seadrill (NYSE:SDRL) is off 1.2% today, a reversal from yesterday's 2.4% gain even after the stock missed earnings expectations in Q3 and swung to a loss.
- Evercore saw "slightly positive implications" in the firm's report, but Credit Suisse is reiterating an Underperform rating.
- Analyst Gregory Lewis reduced EPS estimates for 2015 to $1.20 from $1.40, and for 2016 to $2.15 from $2.30 "to account for updated downtime and utilization assumptions."
- Though Seadrill pointed to "challenging" market conditions through 2016, it sees some recovery the year after. But Lewis thinks customer rig spending would need to increase 30% from 2016 estimates just to get back to 2015 levels.
- Lewis has a $5 price target on Seadrill; shares closed yesterday at $6.48 and are trading currently at $6.40.
Nov. 24, 2015, 8:25 AM
- Seadrill (NYSE:SDRL) +0.3% premarket after reporting an unadjusted Q3 loss of $1.83B, or $3.70/share, mainly due to $1.8B in impairments on its stakes in Seadrill Partners (NYSE:SDLP) and on the goodwill on its fleet of floating drilling rigs.
- EBITDA fell 14% Y/Y to $546M but came in ahead of the analyst consensus estimate of $506M; SDRL expects Q4 EBITDA to drop by $30M, partly due to increased idle time on some rigs.
- SDRL says it expects to cut costs by $600M this year from a previous target of $500M, and that it expects further cuts of $200M in 2016.
- During Q3, SDRL says it deferred or cancelled the delivery of some of its 14 rigs under construction.
- "Market conditions are likely to remain challenging through 2016 and the coming quarters will provide insight into the 2017 environment," CEO Per Wullf says.
Nov. 24, 2015, 6:23 AM
- Seadrill (NYSE:SDRL): Q3 EPS of $0.21 misses by $0.24.
- Revenue of $985M (-12.1% Y/Y) misses by $35M.
Aug. 27, 2015, 7:43 AM
- Seadrill (NYSE:SDRL) +4.9% premarket after reporting better than expected Q2 earnings and nearly in-line revenues.
- Expecting market conditions to remain challenging through 2016, SDRL says it plans to reduce or postpone spending to save $500M this year after reducing costs by $250M in 2014.
- SDRL says it is delaying the delivery of two drillships under construction at Korea’s Samsung Heavy Industries until the end of Q1 2017, and is deferring delivery of eight jack-up drilling rigs into 2016 and 2017.
- SDRL's Q2 EBITDA rose 1.6% Y/Y to $651M, but the company expects Q3 EBITDA to fall $160M on the quarter, partly due to more idle time for its rigs.
Aug. 27, 2015, 6:07 AM
- Seadrill (NYSE:SDRL): Q2 EPS of $0.77 beats by $0.14.
- Revenue of $1.15B (-8.0% Y/Y) misses by $30M.
Aug. 26, 2015, 5:30 PM
Seadrill Ltd. is an offshore drilling contractor providing offshore drilling services to the oil and gas industry. Its primary business is the ownership and operation of drillships, semi-submersible rigs, jack-up rigs, tender rigs for operations in shallow, mid, deep, and ultra deep-water areas,... More
Sector: Basic Materials
Industry: Oil & Gas Drilling & Exploration
Country: United States
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