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SeaDrill (SDRL) Posts Higher than Expected Q3 Earnings

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SeaDrill Limited (SDRL - Free Report) , based in London, is one of the leading offshore drilling contractors in the world. The company’s fleet is one of the youngest and most advanced when compared to that of major contractors engaged in offshore drilling.

Today, the company’s fleet can be broadly classified into three distinct groups based on drilling capabilities: floaters (semi-submersibles and drillships), jackup rigs and tender rigs. The floaters and jackup rigs accounted for 67% and 29.8%, respectively, of its total revenue in 2015. The remaining revenues came from other activities.

Currently, SeaDrill has a Zacks Rank #3 (Hold) but that could change following its third quarter 2016 earnings report which has just released.  

We have highlighted some of the key details from the just-released announcement below:

Earnings: Earnings per share (excluding one-time items) came in at 28 cents, which beat the Zacks Consensus Estimate of 20 cents.

Revenue: Revenue beats expectations. Revenue of $743 million was above the Zacks Consensus Estimate of $700 million.

Segmental Analysis

Floaters: This segment reported revenues of $528 million compared with $647 million in the year-ago quarter. Net operating income was $182 million as compared to the prior-year quarter figure of loss of $410 million.  

Jack-up Rigs: The segment registered revenues of $199 million as against $306 million in the prior-year quarter. Net operating income plummeted from the third-quarter 2015 figure of $114 million to $62 million.

Other:Revenues of $16 million were lower than $32 million reported in the prior-year quarter. Operating profit of $3 million also decreased from the prior-year profit of $5 million.

Check back later for our full write up on this SeaDrill earnings report later!

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