Seadrill's quarterly results miss Street estimates=Sell on the news!!!!
Seadrill's quarterly results miss Street estimates
By Saabira Chaudhuri
Seadrill Ltd.'s (SDRL, SDRL.OS) third-quarter profit surged as the offshore-drilling contractor recorded stronger revenue and narrowed its loss from financial items.
However, results missed Wall Street estimates.
Seadrill, which provides drilling and well services, focuses on the deepwater segment. Earlier this month, the Norwegian oilfield-services company agreed to buy the ultradeepwater semisubmersible rig Songa Eclipse from Songa Offshore SE (SONG.OS) for $590 million, giving Seadrill increased exposure to the ultradeepwater market.
In August, Seadrill had said it expected third-quarter earnings to receive a boost from ultradeepwater semisubmersible rigs West Leo and West Capricorn that started in the second quarter, partially offsetting 90 days of downtime on deepwater rigs relating to an equipment failure that has since been resolved.
Seadrill reported a profit of $216 million, or 40 cents a share, versus the $58 million, or 7 cents a share, it reported a year earlier. Revenue rose 6.1% to $1.09 billion. Analysts polled by Thomson Reuters most recently forecast earnings of 68 cents a share on revenue of $1.11 billion.
Seadrill noted that it recorded a loss of $158 million from net financial items in the most recent period, versus a loss of $372 million from such items in the year-earlier quarter.
Seadrill also again increased its per-share cash dividend, this time by a penny to 85 cents.
Shares sank 1.8% to $38.77 in recent premarket trading. The stock has risen 27% in the past year.