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SeaDrill Limited Message Board

  • billyngem billyngem Dec 30, 2010 8:04 AM Flag

    i want to buy sdrl

    I am concerned why they are lagging the others in valuation. It seems to me this one is undervalued. Can anybody shed some light on why that is?

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    • Rumored at Tradewinds. Wonder if JF is planning a tasty spin off for SDRL holders of the JU segment?

      "Seadrill has ordered up to six new jack-up offshore drilling rigs in Singapore in a deal potentially worth $1bn."

      Deal comprises firm orders for two turnkey jack-up rigs worth $384m in total plus option for another four identical rigs.

      SembCorp Marine, Jurong Shipyard’s parent, said delivery of the first two rigs would take place in late 2012 and early 2013 respectively.

      The rigs will be built based on the Friede & Goldman JU2000E design and are suitable for operations world-wide, including the southern North Sea.

      They will be capable of operating in waters of 400 feet and drill to depths of 30,000 feet, SembCorp Marine said.

      The jack-ups with be the sixth and seventh rig orders Seadrill has placed at Jurong, of which two are under construction in the yard.

      “These rigs will further strengthen Seadrill’s status as a leading operator of modern, high quality premium drilling rigs,” said chief executive Alf C Thorkildsen.

      “These orders will position us for additional growth in an increasingly important market segment that can provide further opportunities and earnings growth for Seadrill.”

      Oslo and US-listed Seadrill recently raised $350m from a five-year unsecured bond issue, which matures in October 2015.

      The company is also set to pick-up around $55m following the sale last week of its jack-up drilling rig West Larissa (built 1984).

      Seadrill’s current jack-up fleet totals 17 rigs all but three of which were delivered in 2007 or later, according to a recent report by Barclays Capital.

      All are independent-leg cantilevered rigs, and all have water depth capabilities of 300ft or greater, the UK investment bank said.

      Currently Seadrill’s jack-up fleet is fully utilized and 63% of the fleet is contracted into 2011. The average day-rate for the contracted fleet is $168,000.

      Seadrill’s acquisition of Scorpion Offshore in late July more than doubled its high-spec jack-up fleet.

      Seadrill now has the eighth largest jack-up fleet globally and has the third most jack-ups with a water depth capability of at least 350ft.

      SembCorp Marine’s PPL Shipyard recently won orders for two jack-up rigs worth $190m each from US drilling company Atwood Oceanics.

      The deal included options for a possible three more identical rigs which, if exercised could take the value of the order to close to $1bn.

      By Dale Wainwright in Singapore

    • I don't know where you went to do your due diligence, but here is where you should have started.



      Fleets can't make money when they are stacked up.

    • So the PPS just about doubles in 6 months and you wonder why it is taking a breather?

      Sometimes the simplest explanations are the most likely. Consolidation.

      It may continue to trade sideways for awhile or it might pull back some more. In either case, your paid 5.6% to wait.

      My advice. Figure out what you would be willnig to pay and put in an order and wait for it to get there.

    • The Good, the Bad and the Ugly....great movie, great scene, great advice.


    • Well if this is any help, I bought again @ 34 a few weeks ago. I felt it was a good price and wanted in before the Div date. I could have got it cheaper but, thats trading. I'm in the camp that this is atleast a 40 dollar stock in 2011. I only have 500 shares and I'm want to double that position.

    • In the movie the Good, the bad, and the ugly; there was a scene where Togo (The Ugly) was in a bathtube taking a bubble bath when a cowboy came in to shoot him. The cowboy looked at Togo and said something for a few minutes at which time Togo pull up his gun he had in the tube with him and shot and killed the cowboy. Then Togo look at the cowboy laying on the floor and said "If you're going to shoot, shoot don't talk.. All I can say to you is "IF YOU WANT TO BUY (PER SUBJECT LINE) BUY, DON'T TALK.

    • I rest my case. <eom>

    • I'll sell my 1600s for 42 bucks per share if that helps ya

    • wait till it gets to the valuation you "think" it should be and then buy it. This way you have no concerns.

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