I am looking at sdrl as an investment. I really like the outlook for this stock and divy. But how can they continue to pay more quarterly divy than what analyst predict earnings to be with this large amount of debt? THanks
SDRL is a cash cow. Various analysts recently debunked the myth about socalled "too much debt". SDRL IS leveraged intelligently by its leader John Fredriksen worth reportedly some $10 B with a Billion - his presence also ensures SDRL gets very favorable interest rates etc. on its bank koans. Also note SDRL has the most modern up to date drilling fleet on the planet. PS Highly recommend you get your broker enroll you in an automatic div reinvestment plan.
neyland -- never compare earnings to divi because earnings already has "depreciation" subtracted from it. So as long as there is a healthy difference between the cash flow and the divi you are normally safe. Read the books to get a better idea of what real cash they have to pay the divi.
Don't look for answers on this or any Yahoo board. Here, every long is so enamored of the div., the continuous crapping out of the stock price phases no one. Oil tomorrow will be below $84..And the market should tank 200-300 points.Plus, the stock goes ex-div 9/6 coinciding with tons of bad Euro zone banking news. You've been warned. You've got plenty of time to buy this stock or any stock..The market's a DISASTER .
If you go to the seadrill website, click investor relations, click presentations and select August 31 for CEO Alf Thorkildsen's presentation in Oslo, he addresses the dividend in light of the $7.8B contract backlog, and $12.2B revenue backlog and debt liquidation projections as sustainable.