We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Seadrill Signs 3-Year Rig Extension for AOD III Jackup
Read MoreHide Full Article
Hamilton, Bermuda-based offshore drilling firm, SeaDrill Limited (SDRL - Free Report) recently reported that it has entered into a three-year agreement extension with Saudi Aramco for the AOD III jackup rig at a rate of $102,740 per day. The contract will now expire in Dec 2019.
The extension of this agreement is expected to add approximately $112.5 million in contract backlog. Also, this follows the three-year contracts extensions of two sister rigs AOD I and AOD II that are set to expire in Jun 2019 and Jul 2019, respectively. The three units have been working for Saudi Aramco since 2013. The ownership of these rigs lie with Asia Offshore Drilling – a partnership venture between Seadrill and Mermaid Maritime – that own 66.24% and 33.76% equity interest, respectively.
Headquartered in London, SeaDrill is one of the leading offshore drilling contractors in the world. The company owns or has partial ownership interests in 68 mobile offshore drilling rigs comprising jackups, semi-submersibles, drillships, tender rigs and semi-tender rig.
Year to date, the Zacks categorized Oil and Gas Drilling industry has registered an impressive growth of 20.57%. However, shares of SeaDrill have underperformed the industry by registering growth of only 4.14%.
Despite a difficult operating backdrop, SeaDrill has managed to beat estimates in three of the last four quarters. The offshore rig company's performance has been supported by sustained cost cuts and impressive utilization. Nevertheless, SeaDrill shares are expected to remain soft until oil prices rebound sufficiently, as deepwater/ultra-deepwater drilling – with its associated risks and steep costs – require a far higher oil price than the prevailing levels.
As a result, SeaDrill currently carries a Zacks Rank #3 (Hold), which implies that the stock will perform in line with the broader U.S. equity market over the next one to three months.
In the last four quarters, Braskem posted an average positive earnings surprise of 105.5%.
Suncor, on the other hand, delivered an average positive earnings surprise of 40.55% in the last four quarters.
In the last four quarters, McDermott posted an average positive earnings surprise of 250.00%.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Seadrill Signs 3-Year Rig Extension for AOD III Jackup
Hamilton, Bermuda-based offshore drilling firm, SeaDrill Limited (SDRL - Free Report) recently reported that it has entered into a three-year agreement extension with Saudi Aramco for the AOD III jackup rig at a rate of $102,740 per day. The contract will now expire in Dec 2019.
The extension of this agreement is expected to add approximately $112.5 million in contract backlog. Also, this follows the three-year contracts extensions of two sister rigs AOD I and AOD II that are set to expire in Jun 2019 and Jul 2019, respectively. The three units have been working for Saudi Aramco since 2013. The ownership of these rigs lie with Asia Offshore Drilling – a partnership venture between Seadrill and Mermaid Maritime – that own 66.24% and 33.76% equity interest, respectively.
Headquartered in London, SeaDrill is one of the leading offshore drilling contractors in the world. The company owns or has partial ownership interests in 68 mobile offshore drilling rigs comprising jackups, semi-submersibles, drillships, tender rigs and semi-tender rig.
Year to date, the Zacks categorized Oil and Gas Drilling industry has registered an impressive growth of 20.57%. However, shares of SeaDrill have underperformed the industry by registering growth of only 4.14%.
Despite a difficult operating backdrop, SeaDrill has managed to beat estimates in three of the last four quarters. The offshore rig company's performance has been supported by sustained cost cuts and impressive utilization. Nevertheless, SeaDrill shares are expected to remain soft until oil prices rebound sufficiently, as deepwater/ultra-deepwater drilling – with its associated risks and steep costs – require a far higher oil price than the prevailing levels.
As a result, SeaDrill currently carries a Zacks Rank #3 (Hold), which implies that the stock will perform in line with the broader U.S. equity market over the next one to three months.
Some better-ranked players from the broader energy sector include Braskem S.A. (BAK - Free Report) , Suncor Energy (SU - Free Report) and McDermott International Inc. . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the last four quarters, Braskem posted an average positive earnings surprise of 105.5%.
Suncor, on the other hand, delivered an average positive earnings surprise of 40.55% in the last four quarters.
In the last four quarters, McDermott posted an average positive earnings surprise of 250.00%.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>