Don't Worry About Seadrill's Q3 Miss

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.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2129621, ~/Articles/ArticleHandler.aspx, 7/23/2014 9:59:04 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement