Norwegian oilfield service firm
) announced that it has entered into a contract with China-based
Dalian Shipbuilding Industry Offshore Co. Ltd. (DSIC Offshore),
for building two high specification jackup drilling rigs.
INTEROIL CORP (IOC): Free Stock Analysis
NEWPARK RESOUR (NR): Free Stock Analysis
OILTANKING PTNR (OILT): Free Stock Analysis
SEADRILL LTD (SDRL): Free Stock Analysis
To read this article on Zacks.com click here.
The contract - valued at $230 million - comprises project
management, drilling and handling tools, spares, capitalized
interest and operation preparations. Deliveries of the two units
are expected by the fourth quarter of 2015 and first quarter of
Seadrill added that the two units will be of F&G JU2000E
design. The jackup drilling rigs will be capable of working at
water depths of roughly 400 feet and drill at water depths of
Including this contract, Seadrill now has eight jackups under
construction at DSIC Offshore, of which two are expected to be
delivered in 2013, five in 2015 and one in 2016.
Management at Seadrill said that these two orders will increase
its jackup rig count to 29. Management believes that demand for
this class of assets is likely to grow in the coming years, both
in terms of increased day rates and durations.
Back in March, Seadrill entered into a contract with DSIC
Offshore for the construction of two high specification jackup
drilling rigs valued at $230 million.
Last month, Seadrill reported better-than-expected first-quarter
2013 earnings. Earnings per share came in at 85 cents, which
surpassed the Zacks Consensus Estimate of 59 cents owing to
better utilization of rigs.
Seadrill shares currently retain 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.
Meanwhile, there are other firms in the energy sector that are
expected to outperform the U.S. equity market over the next one
to three months. These include Zacks Ranked #1 (Strong Buy)
Newpark Resources Inc.
Oiltanking Partners L.P.