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Seadrill Fails to Impress Ahead of Growth Cycle

http://www.fool.com/investing/general/2012/11/26/seadrill-fails-to-impress-ahead-of-growth-cycle.aspx

Travis Hoium
November 26, 2012

The offshore drilling market has definitely stabilized over the past year and now we're back to looking at small details like utilization rates instead of wondering about big issues like regulation and oil spills. Seadrill's (NYSE: SDRL  ) results released today are just another example of this and the market's reaction shows a more subdued response to earnings from shareholders.

The third quarter wasn't bad for Seadrill; it just wasn't outstanding. Revenue fell slightly from the second quarter to $1.09 billion, operating profit fell from $483 million to $413 million, and net income was $216 million, or $0.40 per share. Analysts had expected $1.11 billion in revenue and $0.68 in earnings per share, although this was affected by a loss of $158 million on financial items and a loss associated with ownership in Archer Limited.

A few weeks ago I highlighted that growth momentum was slowing in the deepwater space and results at Seadrill seems to keep that thesis alive. Noble