SeaDrill (SDRL) Q2 Earnings Beat, Revenues Miss Estimates
Zacks Investment Research | Aug 25, 2016 07:30AM ET
Offshore contract driller, SeaDrill Limited (NYSE:SDRL) , reported strong second-quarter 2016 earnings owing to a decrease in operating expenses. The company, however, registered poor quarterly revenues due to underperformances by Jack-up Rigs and Floaters.
Earnings per share – excluding one-time items − came in at 59 cents, which beat the Zacks Consensus Estimate of 41 cents. The bottom line, however, decreased significantly from the year-ago adjusted figure of 77 cents per share.
Total operating revenue of $868 million was down 24.3% from $1,147 million in second-quarter 2015. The top line also lagged the Zacks Consensus Estimate of $890 million.
Segmental Analysis
Floaters: This segment reported revenues of $610 million compared with $786 million in the year-ago quarter. Net operating income of $270 million was higher than the prior-year quarter figure of $257 million.
Jack-up Rigs: The segment registered revenues of $234 million as against $328 million in the prior-year quarter. Net operating income plummeted from the second-quarter 2015 figure of $123 million to $92 million.
Other: Revenues of $24 million were lower than $33 million reported in the prior-year quarter. Operating profit of $2 million also decreased from the prior-year profit of $4 million.
Backlog
As of Aug 24, 2016, total order backlog of SeaDrill was $3.6 billion.
Expenses
SeaDrill incurred operating expenses of $509 million in the reported quarter. This reflects a significant decline from the year-ago quarter figure of $694 million.
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