SDRL - Operational update fourth quarter 2012 released 1/31/13
Hamilton, Bermuda, January 31, 2013 - In the third quarter financial report Seadrill estimated the downtime for the deepwater rigs in operation to be 41 days for the fourth quarter. After closing the quarter revised estimates show downtime has increasing to approximately 100, days, mainly due to BOP issues on several of the Company's rigs.
In line with what the Company communicated in the third quarter financial report, general and administrative costs have increased due to the management transition process to London, as well as expenses related to the development of one specific IT project. During the transition process the general and administrative costs will be US$10-20 million higher than what has been historically reported, but is expected to be reduced after the transition process has been finalized in the second half of 2013.
The first quarter 2013 results will also be impacted by the West Hercules taking longer than anticipated to be ready for its next assignment. The rig commenced its new contract with Statoil on January 31, 2013.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
BOP? Why speak in riddles? According to Google , BOP, has several meanings.
Methinks Blow Out Preventor applies here.
And as long as West Hercules is mentioned [as having started operating a few days ago],
why not mention its day rate + the potential profit under the contract it is operating now?
Capital is cheap and rig revenues are increasing as new UDW rigs
are in increasing demand.
Deep water drilling services is a capital intensive business for all firms
involved. Greater leverage leads to greater marginal revenues and order
If the balance sheet scares you, maybe you should move out of the
sector as an investor.........
Here we go again. Another not quite understanding the meaning of debt at SDRL. It means profit opportunities, growth opportunities, dividend paying opportunities. I say, pile on the debt [within reason] = pile on the profits!
It is called business. It's not easy. I think they are doing pretty well managing in today's drilling market. Day rates increasing yoy, no accidents like RIG. I am a long time owner of sdrl. It has appreciated nicely and pays great dividends. If you don't like it, vote with your feet.