Stock Update (NYSE:SDRL): Seadrill Ltd Announces Agreement with DSME Shipyard
Seadrill Ltd (NYSE:SDRL) announces that an agreement with DSME shipyard has been reached to defer the delivery of two ultra-deepwater drillships, the West Aquila and West Libra, until the second quarter of 2018 and first quarter of 2019 respectively.
Under the terms of the original construction contracts, the units were to be delivered by the end of the second quarter of 2016 and the total final yard instalment for both units of over $800 million was due at that time. This agreement significantly improves the Company’s near term liquidity position by deferring these capex commitments to 2018 and 2019 with no further payments to the yard until that time.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act. (Original Source)
Shares of Seadrill closed yesterday at $2.52. SDRL has a 1-year high of $15.44 and a 1-year low of $2.36. The stock’s 50-day moving average is $4.01 and its 200-day moving average is $6.70.
On the ratings front, Seadrill has been the subject of a number of recent research reports. In a report issued on January 12, Goldman Sachs analyst Geydar Mamedov maintained a Sell rating on SDRL. Separately, on November 25, Canaccord Genuity’s Alex Brooks reiterated a Sell rating on the stock .
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Geydar Mamedov and Alex Brooks have a total average return of 4.2% and 51.7% respectively. Mamedov has a success rate of 66.7% and is ranked #1865 out of 3607 analysts, while Brooks has a success rate of 100.0% and is ranked #61.
Seadrill Ltd provides drilling & well services to the offshore industry. It has a fleet of drilling units that is outfitted to operate in shallow water, mid-water and deepwater areas, in benign & harsh environments.