November 27, 2012
In this video, Motley Fool energy analyst Joel South tells us a bit about Seadrill's (NYSE: SDRL ) third-quarter earnings. The company's EPS did miss the mark, and as a result, the company's share price took a slight hit. However, Joel addresses the rig movements and planned downtime, which caused the weaker-than-expected quarter and looks at current utilization rates suggesting that Seadrill is back on the right track.
In addition, Seadrill once again grew its backlog in the third quarter, with total contracts now reaching $21.3 billion. The backlog will help boost EBITDA margins, which should go a long way toward securing the company's industry-leading dividend yield moving forward.
If you're an energy investor looking for exciting opportunities, then you should definitely look into Seadrill. To learn more about the strengths and weaknesses of this company, as well as what to expect from Seadrill going forward, be sure to check out this brand-new premium report put together by one of our top Stock Advisor analysts. Click here to get started.