Rig giant Seadrill posted a net quarterly loss due to a higher impairment charge on its Archer affiliate, but still reported higher operating profit and revenues.
The John Fredriksen-owned driller suffered a $335 million loss for the three months to December, compared to a loss of $158 million hit in the previous quarter and $501 million a year earlier.
The loss was primarily due to a $221 million impairment charge related to its its 66.16% shareholding of oilfield services outfit Archer. Seadrill lost $53.3 million on the investment in the previous quarter.
"The board in Seadrill is not satisfied with Archer’s operational performance," Seadrill said in a statement. "We are, however, pleased that an agreement has been reached with Archer’s lending banks and expects to see improvements in Archer’s operating results during the next quarters."
Outside of the Archer loss and other items, including derivatives and foreign currency exchanges, Seadrill reported net income for the quarter $50 million. That compared to a loss of $106 million a year earlier.
Revenue for the fourth quarter came in at $1.2 billion compared to $1.06 billion a year earlier.
Operating profit was $441 million compared to $436 million in the 2011 period.
Seadrill also reported operating revenues of $4.5 billion, operating income of $1.8 billion and a net income of $1.3 billion for the full year 2012. That compares to operating revenues of $4.2 billion, operating income of $1.8 billion and net income of $1.5 billion 2011.
The Oslo- and New York-listed company also announced seven-month contract extensions for the jack-ups West Prospero and the West Ariel with Vietsovpetro in Vietnam at $151,000 per day and a one-year extention for the jack-ups West Courageous with Hess in Malaysia at $150,000 per day.
This stock is a dog....with oil prices at these levels and still cannot make money, imagine if oil really tanks, I tell you, I am in pins and needles with this company and just about had it with their mediocre perfomance. What's next? a cut in the dividen?