$200 mln in short term maturities and at least another $300 mln for newbuild drillships will have to be financed in 2015. And no - SDRL just floated NADL, they won't do anything to help the company.
The shares look worthless here - they have to arrange around $500 mln in debt financing in FY15 - given market conditions they won't be able to get acceptable prices and will have to file for bankruptcy subsequently. Parent Seadrill won't save them as the entity is dealing with pretty similar problems.
The oil price needs to go up QUICK - but that won't happen. The Rosneft deal will be cancelled and they won't get debt financing for upcoming 2015 maturities and another newbuild drillship they have to take delivery on.
He can't and he won't. Look at Frontline which faces bankruptcy within a few months - he already made clear he won't save the company using own cash.
who cares about earnings if debt maturities can't be refinanced and payments for another newbuild drillship no one needs are due.
I am rarely wrong and correctly predicted another 10% drop this morning last Friday - better pay attention here
have fun. This will be below $1.50 at the end of the day and below $1 at the end of the week
the shares are most likely worthless given current and medium business conditions as the company will be unable to refinance FY15 debt maturities or raise money for the new drill ship. Bankruptcy is just a few weeks or months away.
so how should Mr. Market value the shares here with current FY15 estimates toast and FY16 most likely a giant disaster ? How should SLCA avoid cancellations and customer bankruptcies ? How will they be able to secure new business in the current environment ? How will they be able to continue their dividend ? As long as the oil price does not increase substantially the shares will continue to move down.
given the current business conditions there's simply no chance other than filing for bankruptcy or arranging a giant debt-for-equity swap. The debt needs to be eliminated before the company has a viable path forward. Shareholders will get eliminated or heavily diluted. No other way.
I don't think that an enterprise value of $3.5 bln is justified here given the outlook for the industry. I don't think there's any value in the equity here.
to finance a new drill ship in 2015. Given the current market conditions I doubt that they will be able to raise additional debt or refinance upcoming FY15 maturities at acceptable conditions. They will either need a cash injection from Seadrill (which won't take place given Seadrill's own dire condition) or declare bankruptcy pretty soon.
ouch - better read the official press release - the Kingsoft stake represents your 11.6% but actually Xiaomi and Temasek bought additional shares bringing the total stake closer to 20%
but would expect this to be down another 20% at the end of the day - shale exploration will be almost dead for years to come
down 10% as projected.
NADL is actually a recent spin-off from Seadrill and you can bet that Seadrill is pretty happy to have them off their books for now (at least in parts). It would be outright dumb for SDRL to waste cash on bringing the problem child back home.
today's weakness is most likely due to Statoil's decision to pospone the decision to invest $6 bln into the snorre field
why in the world should anyone want to own the shares here with the Rosneft deal pretty much gone, the dividend floor eliminated and the need for taking on additional debt in FY15 ???
without the Rosneft deal the company is more likely to end up in the hand of the bondholders pretty soon