Offshore drilling firm Seadrill rose the most in more than seven years as investors covered short bets after the company’s main owner, billionaire John Fredriksen, freed up $510 million in cash, fueling speculation of a bailout.
Seadrill Ltd. is accepting lower and lower rates for its offshore drilling rigs to survive the worst slump since the 1980s as it deploys a plan to address the heaviest debt-load in the industry.
Seadrill has reported revenue of $959million in its fourth quarter results for 2015.
When the price of a 10-pound (4.5-kilogram) Atlantic salmon jumped above the cost of a barrel of crude last month, nobody in the oil industry was celebrating.
Seadrill Ltd., the offshore driller battered by the collapse in crude prices, is approaching a “debt wall” that may force it to sell new shares and renegotiate terms with bond investors and banks by the end of the year, according to Nordea Bank AB.
Seadrill said had has reached an agreement with the DSME shipyard to defer the delivery of two ultra-deepwater drillships.
Seadrill have secured one year contract extensions for a pair of rigs with Chevron Thailand Exploration and Production. The company said the deal means both contracts will now end in July and August of 2019.
Seadrill has appointed a new director to is board.
Seadrill's chief executive Per Wullf said the firm was preparing for another challenging year.
Seadrill has moved to distance itself from the Petrobas corruption scandal which has embroiled Sevan, in which it has a controlling stake.
Seadrill has canceled a contract for the construction of the sixth generation West Mira semisubmersible drilling unit. The company had ordered the unit during the second quarter of 2012 and the delivery date put forward in the construction contract had been for December last year.
Seadrill has delayed delivery on 10 of its new-build projects as it saw profits fall as more of its fleet lay idle due to declining oil and gas activity.
North Atlantic Drilling's chief financial officer Ragnvald Kavli, is to step down later this month.
Offshore drilling company Seadrill Limited is to sell its West Polaris drillship to a subsidiary within the next week. Seadrill Operating, which is 58% owned by Seadrill Limited, will acquire all of its owner's shares of Seadrill Polaris, the entity which owns the the drillship.
Seadrill has posted better than expected first-quarter profits as cost cuts help during the oil price decline. The offshore driller, which is controlled by billionaire John Fredriksen, posted a net income of $427 million. Chief executive Per Wullf said: “Seadrill continues to be focused on operational excellence and financial flexibility in order to manage through this downturn and thrive when the market recovers.
Seadrill has taken ownership of an ultra deepwater drillship in a $456million deal with Ship Finance. The West Polaris was acquired by Ship Finance in 2008 and chartered to Seadrill with purchase options commencing in 2012.
A director with rig company Seadrill has stepped down from his position on the board. Carl Erik Steen resigned from the board with immediate effect, and a successor has been chosen to take his place.