Offshore drilling services company Seadrill Ltd. has made “significant progress” with its banks on the terms of a debt restructuring plan that will likely require filing for bankruptcy in the U.S. or U.K….
NEW YORK, NY / ACCESSWIRE / May 24, 2017 / The Dow Jones Industrial Average and the S&P 500 Index rose for the fourth consecutive session Tuesday after the White House released the details of its 2018 budget proposal. The Dow Jones gained 0.21 percent to close at 20,937.91, while the S&P 500 Index increased 0.18 percent to close at 2,398.42. President Trump’s budget called for an increase in infrastructure and military spending, along with cuts to healthcare and food assistance programs. “There were no large surprises. The market is pleased with that,” said Wade Balliet, Chief Investment Strategist at Bank of the West.
Seadrill’s shares spiked 12.40 percent to close at $0.589 a share on Tuesday. The stock traded between $0.52 and $0.66 on volume of 22.33 million shares traded. The company has a consensus “hold” rating from analysts, according to Reuters. There are currently 10 analysts covering the stock, two “buy” ratings, two “hold” ratings, 5 sell ratings and one “strong sell” rating. Seadrill is scheduled to release results for the first quarter of 2017 on Wednesday May 24th. On May 1st, the company announced that it has agreed to sell three jack-ups, West Triton, West Resolute and West Mischief, for a total consideration of $225 million. Shares of Seadrill have fallen approximately 82.69 percent year-to-date.
Atwood Oceanics’ shares jumped 1.95 percent to close at $8.90 a share on Tuesday. The stock traded between $8.56 and $9.00 on volume of 2.81 million shares traded. Analysts at Goldman Sachs have recently upgraded the company’s rating to “neutral” from “sell”. Shares of Atwood Oceanics have fallen approximately 32.22 percent year-to-date.
“We upgrade ATW to Neutral from Sell as we now have better visibility into re- contracting prospects for ATW’s four deepwater rigs. Additionally, we see ATW as an attractive M&A target for companies looking to high-grade their fleets close to the bottom of the offshore drilling cycle. ATW has a young rig fleet with average age <5years (vs. industry average of 14 years). Also, we see potential for any buyer to realize significant cost synergies from the acquisition as ATW’s G&A is currently running very high – 70% of 2018 EBITDA and 18% of normalized EBITDA,” wrote Goldman Sachs analysts’ Waqar Syed and Viswa Sandeep Sama.
Our Actionable Research on Seadrill Ltd. (NYSE: SDRL) and Atwood Oceanics, Inc. (NYSE: ATW) can be downloaded free of charge at Research Driven Investing.
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Hamilton, Bermuda, May 24, 2017 – The Board of Seadrill Limited (“Seadrill”) is pleased to announce the appointment of Anton Dibowitz as Chief Executive Officer with effect from 1st July 2017. Anton Dibowitz will succeed Per Wullf who will remain a Director of the company
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Anton Dibowitz, currently Chief Commercial Officer and Executive Vice President, will be appointed Chief Executive Officer, effective 1st July 2017 following a succession planning process that was implemented during 2016.
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Per Wullf will continue as CEO until the end of June. Mr. Wullf will continue as a Director of the company.
John Fredriksen, Chairman of the Board, said: “Anton has a strong industry track record and has taken roles of increasing responsibility during his 10 years at Seadrill, including the day to day business administration at Seadrill since 2016. We are confident that this succession plan provides Seadrill with the right combination of continuity and stability as the company works to complete its financial restructuring aimed at building a bridge to a recovery and achieving a sustainable capital structure.
With Per remaining as a Director, Seadrill will continue to benefit from his in-depth industry experience, fleet knowledge and strong relationships. I would personally like to thank Per for his outstanding contribution as CEO of Seadrill and look forward to continuing to work with him for the years to come.”
Anton Dibowitz, CEO designate, said:“I am deeply honoured that the Board has appointed me to succeed Per as Chief Executive Officer of Seadrill. We have a world class business with high quality people, a young and modern fleet and strong client relationships. There are short term challenges to overcome in Seadrill and the industry but I look forward to playing my part in returning Seadrill to growth, together with the great team we have working here.”
Per Wullf, CEO and President of Seadrill said:“I am immensely proud of my time at Seadrill, first as Chief Operating Officer and for the past four years as Chief Executive Officer. After 37 years in this fascinating industry, I want to reduce my day to day work commitments and spend more time at home in Denmark. As Seadrill is approaching key milestones for the company`s restructuring, the time is right to inform all stakeholders that I will not lead Seadrill in the company`s next era and hand over to Anton, who will make an excellent CEO. I would like to thank everyone at Seadrill for their support, passion and tenacity over the years and I look forward to our continued journey together.”
For further information, please contact:
Iain Cracknell, Director of Communications, +44 7765 221 812
BIOGRAPHY: Anton Dibowitz
Anton Dibowitz joined Seadrill in 2007, has led the Commercial function within Seadrill since 2010 and was appointed Executive Vice President in June 2016 with the responsibility for day-to-day business administration of the company.
MPA) and business administration (MBA). Mr. Dibowitz is a US citizen and resides in London, England with his wife and two daughters. <br> This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act. <br>" data-reactid="24">Mr. Dibowitz has 20 years` experience in the drilling industry. Prior to Seadrill, Mr Dibowitz held positions within tax, process reengineering and marketing at Transocean and Ernst & Young LLP. He is a certified public accountant and a graduate of the University of Texas at Austin where he holds Masters degrees in professional accounting (MPA) and business administration (MBA). Mr. Dibowitz is a US citizen and resides in London, England with his wife and two daughters. This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Seadrill Limited via GlobeNewswire HUG#2107305
Seadrill Limited is well positioned in the current market, thanks in part to its highly skilled workforce, the company’s CEO, Per Wullf, says.
Seadrill Limited is well positioned in the current market, thanks in part to its highly skilled workforce, the company’s CEO Per Wullf, said in a company statement.
“Tendering activity continues to increase, especially in the North Sea, South-East Asia and Middle-East segments. While competition remains fierce for available work we are well positioned with our scale, young modern fleet and highly skilled workforce,” Wulff said in a Seadrill release.
Seadrill reported revenues of $569 million in its first quarter results, along with an operating income of $83 million and EBITDA of $291 million.
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Seadrill’s 1Q17 Results: What Can Investors Expect? PART 5 OF 5
By Sue Goodridge | May 22, 2017 6:34 am EDT
Analysts’ recommendations for Seadrill
So far in this series, we looked at what Wall Street analysts expect for Seadrill’s revenue and EBITDA (earnings before interest, tax, depreciation, and amortization). Now, let’s look at what analysts recommend for Seadrill stock.
According to Reuters, ten analysts cover Seadrill (SDRL). Out of these analysts, only two recommended a “buy” and two recommended a “hold” for the stock. Five analysts recommended a “sell” and analyst recommended a “strong sell” for Seadrill. The consensus rating on the stock is 3.5, which indicates a “hold” recommendation.
As Seadrill’s fundamentals deteriorated, many analysts dropped the company from their coverage. At the beginning of 2017, 15 analysts were covering Seadrill. Three analysts were bullish on the stock and gave “buy” recommendations. The scenario changed over the past year.
The number of analysts covering Seadrill gradually decreased. Seadrill hasn’t seen any upgrades or downgrades since 2Q16. In 1Q16, Morgan Stanley, Merrill Lynch, and J.P. Morgan downgraded Seadrill.
Recommendations for other offshore drillers (OIH):
Transocean (RIG) – 37 analysts cover the stock. One analyst recommended a “strong buy” and six recommended a “buy.” Sixteen analysts suggested a “hold,” while the others gave a “sell” or “strong sell” recommendation.
Atwood Oceanics (ATW) – Out of 30 analysts covering the stock, one analyst suggested a “strong buy” and three suggested a “buy.” Eighteen analysts recommended a “hold,” and the others gave “sell” or “strong sell” recommendations.
Noble (NE) – Out of 37 analysts covering the stock, three analysts gave “strong buy” recommendations and ten analysts gave “buy” recommendations. Fifteen analysts recommended a “hold” and the others recommended a “sell” or “strong sell.”
ENSCO (ESV) – Out of 35 analysts covering ENSCO, 19 analysts recommended a “hold.”
Hold) in the Oil and Gas - Drilling industry that ranks in the Bottom 35% of our Zacks Industry Rank. Over the last 60 days, no analyst has increased the earnings estimates for the current quarter, while one analyst has dropped its estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from a loss of 4 cents per share to a loss of 5 cents in that period.<br><br>Given the way analysts feel about SeaDrill Limited right now, this huge implied volatility could mean there’s a trade developing. Often times, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.<br><br><strong>Looking to Trade Options?</strong><br><br>Each week, our very own Dave Bartosiak gives his top options trades. Check out his recent live analysis and options trade for the TSLA earnings report completely free. See it here: Bartosiak: Trading Tesla's (TSLA) Earnings with Options or check out the embedded video below for more details:<br><br><br> " data-reactid="11">Investors in SeaDrill Limited SDRL need to pay close attention to the stock based on moves in the options market lately. That is because the June 16th, 2017 $5 Call had some of the highest implied volatility of all equity options today
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for SeaDrill Limited shares, but what is the fundamental picture for the company? Currently, SeaDrill Limited is a Zacks Rank #3 (Hold) in the Oil and Gas – Drilling industry that ranks in the Bottom 35% of our Zacks Industry Rank. Over the last 60 days, no analyst has increased the earnings estimates for the current quarter, while one analyst has dropped its estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from a loss of 4 cents per share to a loss of 5 cents in that period.
Given the way analysts feel about SeaDrill Limited right now, this huge implied volatility could mean there’s a trade developing. Often times, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Each week, our very own Dave Bartosiak gives his top options trades. Check out his recent live analysis and options trade for the TSLA earnings report completely free. See it here: Bartosiak: Trading Tesla’s (TSLA) Earnings with Options or check out the embedded video below for more details:
SDRL) Stock Analysis Report >></a><br> <br><a href="https://www.zacks.com/stock/news/261511/options-traders-expect-huge-moves-in-seadrill-limited-sdrl-stock?cid=CS-YAHOO-FT-261511" rel="nofollow noopener" target="_blank">To read this article on Zacks.com click here.</a><br> <br><a href="https://www.zacks.com/" rel="nofollow noopener" target="_blank">Zacks Investment Research</a>" data-reactid="14">Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report