Or Corning GLW at 1.00 in 2000-01
It seems as if investors in offshore drillers Seadrill (NYSE:SDRL)and its subsidiary, North Atlantic Drilling (NYSE:NADL), have had nothing but bad news recently, including the cancellations of billion-dollar contracts. However, some recent good news for both offshore drillers should bring a glimmer of hope to long-term investors.
Creditors are willing to play ball
DNB ASA -- Norway's largest bank and a major lender to Seadrill -- recently allowed the company and other offshore drillers to defer loan installment payments due to the damage inflicted on the industry by the crashing price of oil.
According to DNB Executive Vice President Harald Serck-Hanssen, the bank -- which holds $2.1 billion in loans to offshore drillers -- understands the risk to the industry is high and is willing to work with drillers that operate the most advanced rigs.
That's because, according to Serck-Hanssen: "The biggest risk on the rig side isn't those (modern UDW) rigs, but the old, simple rigs that are about to be outdated with current security requirements."
DNB believes that even with the global glut of rigs, companies with modern ultra-deepwater, or UDW, rigs should be able to obtain average dayrates of at least $275,000. The bank says that level is necessary for drillers to pay operating expenses and interest payments.
Why this matters to you
DNB isn't the only bank willing to help Seadrill to get through this industry downturn. In fact, the company described its diverse group of creditors as "very supportive," which is great news for investors who are holding or considering buying Seadrill shares based on the industry's strong long-term potential.
After all, Seadrill's fast-growing fleet of state-of-the-art UDW rigs are of little use to investors if the company's enormous financial burden -- $4.8 billion in funding requirements through 2016 -- causes it to go bankrupt. However, if creditors recognize the value of Seadrill's fleet and have
Load a boat at 29.00 hold it 3-5 days and sell for 31.00 Only cost you 2-300,000 to make 5 million
Lets understand stock prices are controlled by GS and JPM I'm not selling with the dividend raised this quarter, Everyone scrambling to buy oil before spring increases.. You know this How long do you think 1.79 gas will be around.. The big boys short today knowing they get paid the dividend when they bought back this afternoon or afterhours . We are being played people.. This stock should be 17.00
The US has been shorting oil to get at the Russians and Iranians for over a year. Its not the governments
business to control oil. They decided to control the mortgage markets 5 years ago. What did we get. Everything major you buy from a refrigerator to a car has doubled in price and you are getting cheaper quality.
ERF is an absolute steal of the century.. In18 months oil will be back over 75.00 .. and ERF will be 13.00
For the next 2 years oil may stay in 40-50 range. But guess what guys. The oversupply will dwindle because we are not drilling. Rigs scraped and drydocked. This always hapens. But I will bet that 6.00 stock will be paying dividends again in 24 months.. Then whats it worth.. Buy all U can a put it away for 30 months. Then pay your kids college.. SDRL is a top 3 player
The directors and management paid themselves BOKO when ore went into the 100's
They continued not realizing ore may go back to 40.00 All this is the total responsibilty of
greed by the people running this mess.. Vote in a totally new board, cut costs and fat.
Get back to 40.00 ore prices and this will go back up..