Seadrill Posts Larger-Than-Expected 4Q Loss But Gives Upbeat Market Outlook
February 26 2019 - 2:40AM
Dow Jones News
By Dominic Chopping
Seadrill Ltd. (SDRL) posted a bigger-than-expected
fourth-quarter net loss on Tuesday, but said that the offshore
drilling market is continuing to improve with more tendering and
better contracts.
Seadrill, which operates a fleet of 35 drilling rigs and manages
a further 18, reported a net loss of $362 million in the three
months to Dec. 31 compared with an expected net loss of $207
million in a FactSet-provided forecast.
Revenue came in at $292 million compared with a forecast of $262
million, while adjusted earnings before interest, tax, depreciation
and amortization totaled $73 million.
Seadrill expects adjusted Ebitda for the first quarter of 2019
will be lower than the fourth quarter, at around $60 million.
"The offshore drilling market continues to show signs of
improvement with increased tendering activity and better contract
economics," Chief Executive Anton Dibowitz said. "We expect more
activity in 2019 to lead to a tighter supply-demand balance and
improved pricing in 2020 as the recovery progresses."
The company said its backlog as of Feb. 26 stood at around $2
billion, having gained $89 million since November.
Write to Dominic Chopping at dominic.chopping@wsj.com;
@domchopping @WSJNordics
(END) Dow Jones Newswires
February 26, 2019 02:25 ET (07:25 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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