Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Seadrill Q1 Profit Plunges, But Hikes Dividend - Update

RELATED NEWS
Trade SDRL now with 

Bermuda-based offshore drilling contractor Seadrill Ltd. (SDRL: Quote) reported Monday a sharp decline in first-quarter profit, reflecting lower revenues and a one-time gain in the prior year. The company also increased its quarterly dividend and announced a one-off dividend.

Further, Seadrill said it expects good growth in operational cashflow for the second quarter and for the rest of the year. The company anticipates second-quarter earnings to be favorably impacted by ultradeepwater semi-submersible rigs West Leo and West Capricorn, commencing operations in April and June, respectively.

The board has decided to increase regular quarterly dividend by $0.02 to $0.82 per share. In addition, Seadrill will pay a one-off dividend of $0.15 per share related to an equal cash distribution from its investment in SapuraCrest. The total dividend of $0.97, to share holders of record on May 24, 2012, is payable on June 7.

In the first quarter, net income attributable to the parent plunged to $416 million or $0.87 per share from $879 million or $1.83 per share in the previous year.

On average, 11 analysts polled by Thomson Reuters expected earnings per share of $0.71 for the quarter. Analysts' estimates typically exclude one-time items.

In the prior-year quarter, the company recorded a gain on loss of control in subsidiary totaling $540 million.

Total operating revenues for the quarter declined to $1.05 billion from $1.11 billion in the same quarter last year, but were slightly above analysts estimate of $1.03 billion.

The company said in 2012, it has entered into new contracts with a revenue potential of $1.9 billion, bringing the total order backlog to $13.8 billion.

SDRL is currently trading at $35.72, down $0.90 or 2.46 percent, on a volume of 508 thousand shares on the NYSE.

Register
To receive FREE breaking news email alerts for Seadrill and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Policymakers of Reserve Bank of Australia decided to maintain its record low interest rate once again as they continue to assess that the most prudent course is a period of stability in interest rates. The monetary policy board retained the cash rate at 2.50 percent. The rate has been at the current level since August 2013. A ban on athletes using stamina-boosting gases - xenon and argon - came into effect on Monday. The World Anti-Doping Agency (WADA) said Hypoxia-Inducible Factor (HIF) activators Xenon and Argon have been added to the 2014 List of Prohibited Substances and Methods List following the required three-month notice period and UNESCO's communication to all States Parties. A recommendation to revise the British manufacturing growth eased further in August to its lowest level in 14 months as output and demand increased at slower rates, survey results from Markit Economics showed Monday. The Markit/CIPS Purchasing Managers' Index dropped to 52.5 from a revised 54.8 in July. Economists had expected the score to fall to 55.1 from July's original figure of 55.4.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.