Monday, 20 May 2024


Seadrill sells rigs and boosts buyback program By

Terra Balcanica Announces Share Consolidation Effective Date By

HAMILTON, Bermuda – Seadrill Limited (NYSE & OSE: SDRL), an offshore drilling contractor, has entered into a definitive agreement to sell three jack-up rigs and its 50% stake in a Qatar-based joint venture to Gulf Drilling International (GDI) for $338 million. The sale includes the West Castor, West Telesto, and West Tucana rigs, collectively known as the Qatar Jack-Up Fleet.

The transaction is contingent upon regulatory approvals, including the Qatar Financial Centre Authority and the shareholders of GDI’s parent company. The deal is expected to close early in the third quarter of 2024.

Simon Johnson, President and CEO of Seadrill, stated that this move aligns with the company’s strategy to focus on its core deepwater operations. He expressed confidence in the deepwater market and Seadrill’s competitive position, which the sale will further strengthen.

Concurrently with the rig sale announcement, Seadrill’s Board of Directors has expanded the company’s share repurchase authorization by an additional $500 million over a two-year period, following the completion of the current program. Unlike previous repurchase plans, Seadrill may opt for a non-discretionary approach to the new authorization, which can be modified, suspended, or discontinued at any time. The company is not obligated to execute any share repurchases.

Repurchases may occur through various methods, including open market purchases, privately negotiated transactions, block trades, and tender offers. The timing, pricing, and quantity of repurchases will be at Seadrill’s discretion, influenced by market conditions, financial position, capital requirements, and other strategic considerations.

InvestingPro Insights

As Seadrill Limited (NYSE & OSE: SDRL) embarks on a strategic shift towards deepwater operations with the sale of its Qatar Jack-Up Fleet, the company’s financial metrics reflect a noteworthy performance. With a market capitalization adjusted to $3.6 billion and a Price/Earnings (P/E) ratio of 12.15, Seadrill shows a solid valuation in its sector. The adjusted P/E ratio for the last twelve months as of Q1 2024 further strengthens this perspective, standing at 10.81, indicating potential for continued investor interest.

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Investors looking at growth prospects will find Seadrill’s recent revenue growth figures compelling. The company has reported a significant year-over-year revenue growth of…

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