Yes, the Dividend is Sustainable for Coming YEARS!
The driller, controlled by billionaire John Fredriksen, raised the first-quarter dividend by 2 cents to $1 from the previous quarter, beating a Bloomberg estimate for an unchanged payout. Hamilton, Bermuda-based Seadrill expects earnings before interest, tax, depreciation and amortization “to show meaningful improvement” in the second quarter and increase further for the rest of the year as utilization rates rise, it said in a statement.
“Based on expected solid operational performance for the rest of the year and the commencement of additional drilling units, the board is pleased to see that Seadrill is on track to achieve ebitda of $10 million per day,” the company said. “The board is highly confident that the dividend is sustainable in the coming years.”