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SeaDrill Limited – Best quarterly operating profit ever

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SeaDrill Limited (NYSE:SDRL). Last Market Price: 34.61, Change: +1.85, % Change: (5.65%). Shares trade in the range of 34.28 – 34.79 dollars. It has a market capitalization of 16.15B dollars, making it a Large Cap Stock and has 466.71M outstanding shares. The company has a beta of 2.03, indicating, the stock to be more volatile than the market. As per the most recent quarterly report, the net income per share (EPS) is 4.6; P/E of 7.52 indicating that the stock may be undervalued. It operates in Energy sector and belongs to Oil Well Services and Equipment industry. The company has a 52 week Price range (low – high) of $ 24.68 – 38.49. Average volumes of shares traded daily are 2,530,000. Volume traded in the last session was at 1,060,000, 0.42 times the average volume.

  • Reports Q3 (Sep)
    • EPS of $0.07
    • Revenues rose 3.4% year on year to $1.03 billion
  • Chief Executive Officer in Seadrill Management AS Alf C Thorkildsen says in a comment: At a point in time when there is turbulence in the financial markets we are very pleased to deliver one of our best quarterly operating profit ever reflecting solid performance and operation of our rig fleet. The market uncertainty has resulted in a significant drop in interest rate levels. This has adversely impacted our earnings in the quarter as we have booked an unrealized loss on interest rate swaps that we entered into in order to cap our interest expenses at attractive long-term levels. We have since our last reporting secured US$2.5 billion in new contracts bringing our order backlog to a record US$13.5 billion. This provides for a solid operating profit performance going forward. The outlook for our business continues to be strong and we have resolved to increase our cash dividend to US$0.76 per share for the quarter.

For Q2 (Jun ’11), It had a Net profit margin of 64.72%, an Operating margin of 43.22%. Other Key stats and ratios are : Return on average assets of 14.08%, Return on average equity of 38.77%. The organization has an employee strength of 6,650

Consensus Recommendation is a Outperform.


Estimate for sales for the Quarter Ending Dec-11 show a mean of 1,060.17 million dollars, an estimate high of 1,179.32 million dollars and an estimate low of 963.76 million dollars. A year ago the figures stood at 1,215.53 million dollars.

Estimate for sales for the Quarter Ending Mar-12 show a mean of 1,091.75 million dollars, an estimate high of 1,234.80 million dollars and an estimate low of 996.42 million dollars. A year ago the figures stood at 1,212.07 million dollars.

Estimate for EPS for the Quarter Ending Dec-11 show a mean of 0.77 dollars, an estimate high of 0.92 dollars and an estimate low of 0.70 dollars. A year ago the figures stood at 0.88 dollars.

Estimate for EPS for the Quarter Ending Mar-12 show a mean of 0.78 dollars, an estimate high of 0.92 dollars and an estimate low of 0.64 dollars. A year ago the figures stood at 0.95 dollars.

Sales for Quarter Ending Jun-11 was estimated at 1,006.82 million dollars, however the actual sales figure stood at 995.00 million dollars, 11.82 million dollars less than estimates.

Sales for Quarter Ending Mar-11 was estimated at 1,050.33 million dollars, however the actual sales figure stood at 1,110.00 million dollars, 59.67 million dollars more than estimates.

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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