Wednesday, November 30, 2011

Investopedia: Seadrill - The Driller For Mad Dogs And Englishmen

Investors in stocks like Transocean (NYSE:RIG) or Diamond Offshore (NYSE:DO) might not be feeling the love yet, but the offshore drilling market is actually starting to get better. With a very modern fleet, aggressive leverage and a healthy dollop of devil-may-care operating philosophy, Seadrill (NYSE:SDRL) is ready for that turn. The question for investors, though, is whether they can handle the risk and valuation that comes with arguably the most aggressive player in a highly cyclical sector.

A Ho-Hum Third Quarter  
The markets are still expecting the offshore drilling market to be more of a 2012 event, so Seadrill's third quarter earnings are not likely to be examined quite so closely. Revenue was okay, falling 4% from last year and rising 3% from the second quarter. Rates were not all that incredible this quarter, but utilization was quite good and the company is bringing more of its rigs under contract.

Click this link for the full piece:
http://stocks.investopedia.com/stock-analysis/2011/Seadrill--The-Driller-For-Mad-Dogs-And-Englishmen--SDRL-RIG-DO-HERO-PKD-PBR-ESV-FRO1130.aspx

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