What Wall Street Analysts Expect for Seadrill’s 2Q17 Earnings
Analysts estimate that Seadrill’s (SDRL) 2Q17 EBITDA could be $233 million compared to $291 million in 1Q17.
Wall Street analysts expect Seadrill’s (SDRL) revenues to be just over $540 million in 2Q17, a 5% fall from its 1Q17 revenues of $569 million and a fall of 37.8% year-over-year.
Seadrill (SDRL) plans to release its 2Q17 results on August 24. In 1Q17, Seadrill’s revenues totaled $569 million, nearly 14.6% lower than its 4Q16 revenues of $667 million.
On August 15, 2017, Transocean’s (RIG) target price was cut to $9 from $9.50 by Jefferies. It maintained a “hold” rating on the stock.
Atwood Oceanics has secured a one-well contract extension on its ultra-deepwater rig Atwood Achiever.
Seadrill Partners will resume its dividend payments. It declared a quarterly cash dividend of $0.10 per share for the first and second quarter.
Analysts expect Seadrill Partners’ EBITDA to fall 41% in 2Q17. Analysts estimate that its 2Q17 EBITDA will be $129 million—compared to $219 million in 1Q17.
Analysts estimate that Seadrill Partners’ 2Q17 revenue will be $231 million—a 29% fall from revenue of $327 million in 4Q16 and a 44.8% fall YoY.
Seadrill Partners (SDLP) stock closed at $3.15 on August 17, 2017. The stock rose 17.9% in one day, which brought its YTD (year-to-date) return to -25%.
In the week ended August 4, 2017, the BDTI Index fell from 640 to 619. Since the beginning of the year, the index has fallen ~43.5%.
None of the analysts revised their recommendations or target prices for Transocean (RIG) after its 2Q17 results.
In 2Q17, Transocean’s (RIG) cash flow from operations rose to $319 million from $184 million in the previous quarter.
In 2Q17, Transocean (RIG) successfully reduced its costs. Despite a fall in its revenue, Transocean’s drilling-to-revenue ratio rose to 47% in 2Q17.
As of July 25, 2017, Transocean (RIG) had a backlog of $10.2 billion—compared to $10.8 billion in April 2017.
Transocean’s (RIG) drilling revenue for 2Q17 was $705 million—down almost $33 million from the previous quarter’s drilling revenue of $738 million.
Transocean’s long-term view of the offshore drilling market, especially for the high-specification floaters, is positive.
Transocean’s (RIG) revenue exceeded analysts’ revenue estimates by 0.5% in the second quarter. However, it missed the earnings estimate.
On August 4, Barclays reduced the target price for Diamond Offshore to $14 from $21. On August 2, Evercore reduced the target price to $18 from $20.
Moody’s downgraded Diamond Offshore (DO) to Ba3 from Ba2. It also changed the outlook to “negative” from “stable.”
On May 30, 2017, Ensco (ESV) announced its plan to acquire Atwood Oceanics (ATW) in an all-stock transaction.