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
Netflix offers a bunch of popular movies, Netflix originals, new TV shows, and documentaries in the month of December 2016, including the second season of the hit sitcom 'Fuller House' and 2016 blockbuster 'Captain America: Civil War', as all are getting ready for the holidays. SpaceX, the space transport company of Tech entrepreneur Elon Musk, is likely to launch its first Falcon 9 rocket since September's launchpad explosion on December 16. SpaceX's satellite launch customer Iridium Communications Inc. announced Thursday that its next-generation global satellite constellation, Iridium NEXT, will be launched on SpaceX's Falcon 9 rocket. Bank holding company Wells Fargo & Co., amid struggles to re-establish itself after the fake-account scandal, on Thursday said it has separated the roles of the Chairman and Chief Executive Officer formally, by amending the company's By-Laws. The amendment is also for the Chairman and Vice Chairman of the Board to be independent directors. The amendments were effective immediately.
comments powered by Disqus
Follow RTT