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HOME > Analysis >Story Stocks >Seadrill shares rise 2%...
Story Stocks® Archive
Last Update: 27-Aug-12 09:21 ET
Seadrill shares rise 2% following better than expected earnings
Seadrill Ltd (SDRL $41.76 +0.63) reported second quarter earnings of $1.12 per share, $0.33 better than the consensus of $0.79, while revenues rose 12.8% year/year to $1.12 billion versus the $1.11 billion consensus. Additionally, co increases the ordinary quarterly cash dividend by $0.02 to $0.84. Co's third quarter 2012 earnings is expected to be favorably impacted by a full quarter of operation for the ultra-deepwater semi-submersible rigs West Leo and West Capricorn. We have so far in the third quarter suffered 90 days of downtime on our deepwater rigs. A significant portion of this downtime was related to failure of Original Equipment Manufacturer parts on subsea BOP's. This issue has been resolved. With the current strong prevailing market for offshore drilling units co expects newbuilding programme to significantly enhance both our future earnings and dividend capacity. Co currently has 18 newbuilds under construction at a total all-in cost of $6.9 bln with deliveries between 2012-2015 with the majority of deliveries in 2013 and 2014. Approximately $1.6 billion of the project costs have already been paid. Based on the committed new buildings and the developments in the market the Board is increasingly confident that our target of a $4 bln EBITDA can be reached when the new units are in operation.
Seadrill Ltd (SDRL $41.76 +0.63) reported second quarter earnings of $1.12 per share, $0.33 better than the consensus of $0.79, while revenues rose
 
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