Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Norwegian oilfield service firm Seadrill Limited (SDRL - Snapshot Report) announced that it has entered into a contract with China-based Dalian Shipbuilding Industry Offshore Co. Ltd. (DSIC Offshore), for building two high specification jackup drilling rigs.  

The contract – valued at $230 million – comprises project management, drilling and handling tools, spares, capitalized interest and operation preparations. Deliveries of the two units are expected by the fourth quarter of 2015 and first quarter of 2016, respectively.  

Seadrill added that the two units will be of F&G JU2000E design. The jackup drilling rigs will be capable of working at water depths of roughly 400 feet and drill at water depths of 30,000 feet.

Including this contract, Seadrill now has eight jackups under construction at DSIC Offshore, of which two are expected to be delivered in 2013, five in 2015 and one in 2016.  

Management at Seadrill said that these two orders will increase its jackup rig count to 29. Management believes that demand for this class of assets is likely to grow in the coming years, both in terms of increased day rates and durations.

Back in March, Seadrill entered into a contract with DSIC Offshore for the construction of two high specification jackup drilling rigs valued at $230 million.

Last month, Seadrill reported better-than-expected first-quarter 2013 earnings. Earnings per share came in at 85 cents, which surpassed the Zacks Consensus Estimate of 59 cents owing to better utilization of rigs.

Seadrill shares currently retain a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.

Meanwhile, there are other firms in the energy sector that are expected to outperform the U.S. equity market over the next one to three months. These include Zacks Ranked #1 (Strong Buy) Newpark Resources Inc. (NR - Snapshot Report), Oiltanking Partners L.P. (OILT - Snapshot Report) and InterOil Corporation (IOC - Snapshot Report).
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
BITAUTO HOLD BITA 34.95 +13.58%
E HOUSECHINA EJ 10.88 +8.10%
ANI PHARMACE ANIP 23.13 +6.98%
CANADIAN SOL CSIQ 26.62 +5.76%
KNIGHTSBRIDG VLCCF 12.41 +4.99%