Norwegian oilfield service firm,
) reported better-than-expected first-quarter 2013 earnings.
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Earnings per share came in at 85 cents, which surpassed the Zacks
Consensus Estimate of 59 cents owing to better utilization of
rigs. However, the earnings per share figure fell below the
year-ago profit of 87 cents, primarily due to a significant
increase in operating cost.
The total operating revenue of $1,265.0 million was up 20.5% from
the first quarter of 2012 and was also ahead of our projection of
$1,111.0 million. The beat was due to better performances from
its Jack-up rigs and Tender rigs units.
This segment reported operating profit of $317.0 million in the
quarter, down slightly from the year-ago level of $318.0 million.
The unit registered operating profit of $145.0 million, up by a
substantial 116.4% from $67.0 million recorded in the first
quarter of 2012. Better utilization of the rigs aided the result.
The segment accounted operating profit of $90.0 million, up by
26.8% from the prior-year quarter's profit of $71.0 million. The
beat was due to lower depreciation and amortization expenses.
Seadrill recorded operating expenses of $774.0 million for this
quarter, up by 30.3% as compared to the year-ago quarter.
Seadrill declared first-quarter cash dividend of 88 cents,
representing an increase of 3.5% as compared to the dividend paid
in the previous quarter. The increased dividend will be paid on
Jun 20, 2013.
Capital Expenditure & Balance Sheet
During the quarter, Seadrill's capital expenditure was $2,654.0
As of Mar 31, 2013, Seadrill recorded cash and cash equivalents
of $328.0 million and long-term debt of $11,416.0 million
(including current portion). The debt-to-capitalization ratio was
Seadrill currently retains a Zacks Rank #3 (Hold), implying that
it is expected to perform in line with the broader U.S. equity
market over the next one to three months.
In the energy sector, firms that are expected to significantly
outperform the U.S. equity market over the next one to three
EPL Oil & Gas Inc.
EQT Midstream Partners LP
). All three firms currently carry a Zacks Rank #1 (Strong