Seadrill Limited (OSE: SDRL, NYSE: SDRL) released fourth quarter and preliminary annual results for 2011 this morning. Total quarterly operating revenues were over 1 billion U.S. Dollars and net operating income 436 million $. Due to the non-cash write-down charge on Archer shares announced couple days ago, fourth quarter EBIT is negative -65 million.
Full-year revenues were nearly 4.2 billion USD with net operating income and EBIT both close to 1.7 billion. Full-year diluted earnings per share were 3 USD (about 16.66 NOK). The Board of Directors suggest a quarterly dividend of 5% to $80 (~4.44 NOK) cents a share.
Main events during the quarter were contracts for ultra-deepwater rigs West Capricorn, West Leo and West Aquarius with aggregate revenue stream potential of 1.6 billion USD, jack-up rig contracts for West Ariel, West Callisto and West Prospero and a contract for semi-tender rig West Espeanza, which is under construction.
New filing of the Seabras subsidiary paperwork for listing the company on Brazil stock exchange BM&F BOVESPA is expected in March with anticipated listing in April 2012. Market demand for offshore drilling has strengthened further with ultra-deepwater rig daily rates in particular spiking fast. Seadrill expects those rates to top 600 000 USD within the next months.
The guidance fo operating results in Q1 2012 is for a slightly better result vs. Q4 2011. Margins during the year are expected to remain at similar levels compared to 2011 despite some cost pressures particularly in Angola and Brazil. Seadrill’s Board is confident of further growth and subsequent increasing cash dividend going forward. The stock has climbed slightly to trade around 232 NOK.
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