logo
Share SHARE
FONT-SIZE Plus   Neg

Seadrill Q1 Profit Plunges, But Hikes Dividend - Update

Bermuda-based offshore drilling contractor Seadrill Ltd. (SDRL) 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.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Facebook (FB) announced Thursday it has agreed to release advertisements purchased by Russians in an effort to influence last year's election to congressional investigators. Calling North Korean nuclear weapons and missile development a grave threat to global peace and security, President Donald Trump announced Thursday he has signed an executive order seeking to crack down on trade with the reclusive communist nation. Come weekends and the ride sharing company Lyft in association with the beer brand Budweiser will offer free travel for short distances. The program is aimed at discouraging drunk driving on holidays. The offer of 150,000 free trips will be available in 10 states, all through the year.
comments powered by Disqus
Follow RTT