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SeaDrill Limited

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SeaDrill Limited has one of the youngest drilling fleets among all the offshore drilling contractors, which is capable of operating in challenging environments. Notably, more than 70% of the company’s floater rigs are under contract through 2016 that is expected to provide SeaDrill with a steady flow of income despite the volatile commodity pricing environment. Additionally, economic utilization of the company’s fleet has been high over the past few quarters. We also appreciate the company’s constant endeavors to lower operating cost, especially in an unfavorable business scenario. Nevertheless, we expect SeaDrill shares to remain soft until oil prices bounce back, which keeps us on the sidelines.