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
Google is planning to significantly expand a carpool service on its navigational app Waze, according to a report in the Wall Street Journal. The move indicates the company is edging closer to a potential clash with ride-hailing service Uber Technologies Inc. Private equity firm Sycamore Partners has won the bankruptcy auction for the e-commerce business and intellectual property of U.S. women's apparel retailer The Limited with a bid of $26.8 million, Reuters reported, citing people familiar with the matter. A U.S. bankruptcy court judge must now approve the sale to Sycamore Partners. French telecommunications operator Orange SA reported Thursday higher net profit in its fiscal year 2016 mainly on income from discontinued operations. Operating income, meanwhile, declined, despite increased revenues. For fiscal 2017, the company projects higher adjusted EBITDA, a key earnings metric.
comments powered by Disqus
Follow RTT