HAMILTON, Bermuda - Seadrill Limited (NYSE: OL:SDRL), a global deepwater drilling contractor with a market capitalization of $2.35 billion, has announced the completion of its sale of the jack-up rig West Prospero for a total of $45 million in cash. The transaction is part of the company's strategy to exit the benign jack-up market and focus on its core business operations.
The West Prospero rig, which has been out of operation since 2016, represents a non-core asset for Seadrill. The sale is in line with the company's ongoing efforts to optimize its fleet and improve its financial position, which already shows strength with a conservative debt-to-equity ratio of 0.21 and EBITDA of $440 million. Simon Johnson, President and Chief Executive Officer of Seadrill, stated that the sale successfully executed the company's strategy to divest from the benign jack-up market. According to InvestingPro analysis, the company appears undervalued at current market prices.
Seadrill, known for its modern fleet and advanced technologies, provides drilling services to the oil and gas industry, aiming to unlock resources safely, efficiently, and responsibly. The company caters to national, integrated, and independent oil companies, leveraging its experienced crews to set a standard in deepwater drilling. InvestingPro data shows the company maintains a strong financial health score of GOOD, with annual revenue of $1.47 billion.
The oil and gas industry, which Seadrill operates within, is subject to various market conditions, including fluctuations in oil prices, supply and demand dynamics, and the effects of new or reactivated rigs on the market. These factors, along with broader economic and regulatory considerations, can impact the business prospects and financial performance of companies like Seadrill. Trading at a price-to-book ratio of 0.82, the company offers potential value opportunities according to InvestingPro's comprehensive analysis, which includes over 30 key financial metrics and exclusive ProTips.
Investors are advised to consider the various risks and uncertainties associated with the industry, as outlined in Seadrill's Annual Report on Form 20-F for the year ended December 31, 2023. The company cautions that forward-looking statements made in press releases are subject to risks that could cause actual results to differ materially from those projected.
This news article is based on a press release statement from Seadrill Limited. The information provided here represents a factual account of the company's recent asset sale without speculation or promotional commentary.
In other recent news, Seadrill Limited has secured a $498 million contract with Petrobras for its ultra-deepwater drillship, West Tellus, set to commence in the first quarter of 2026. This contract is expected to contribute significantly to Seadrill's order backlog, adding to its current annual revenue of $1.47 billion. Notably, Seadrill has also reported robust financial results for the third quarter of 2024, exceeding EBITDA expectations with an adjusted figure of $93 million and raising its full-year EBITDA projection by 13% to a midpoint of $385 million. The company continued its share repurchase program, returning $692 million to shareholders since September 2023. Seadrill plans to optimize operations in 2025, maintaining strong contract coverage. Significant progress on Brazil projects with the West Auriga and West Polaris (NYSE:PII) rigs set to begin contracts underscores Seadrill's confidence in the long-term viability of the offshore sector. These are among the recent developments for Seadrill.
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