Investors shrug at Seadrill's quarterly shortfall
Shares barely budged even after the deepwater drilling company reported an earnings stumble. Here's why.
Shares of Seadrill were up 0.24% as of 1:30 p.m. ET Thursday. EBITDA (earnings before interest, taxes, depreciation and amortization) climbed just 5% for the quarter to $604 million. That missed analyst expectations, lowered in recent weeks on increased downtime for the company’s deepwater rigs, of $619 million in EBITDA.
Total downtime for the company’s fleet came to100 days in the fourth quarter. That resulted in a $60 million hit to revenue in the period. (The day rates that oil companies pay to hire Seadrill’s fleet have stabilized at $580,000 to $620,000, Seadrill reported.)
Mr. Jubak! I am not remarking on your artical; It sounds pretty factual. What amazes me is that deep water drilling can compete with
land surface drilling given the expected shale oil availability in the future. Of course shale drilling is expected to be expensive, but
water drillers ought to be cautious; maybe they know something that I don,t know. I hope your known alertness will warn us which to bow when when the information becomes public.
You're pretty much out-to-sea, Jim. The whole focus is on corruption. Drilling benefits Big Oil. What good is finding more oil, refined into gas, that is too expensive at the pump? Let us know when they start drilling for long-life batteries or some safe naturally occurring infinite supply alternative fuel.
Big Oil = Bush Scam. Bush sabotaged our economy and country.
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Investors are anxious to see if hiring can maintain its strong pace in the second half of the year.
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