Recent qtr a mixed bag.... Seadrill Shares Eye Low Pre-Bell After Swinging to Q2 Loss; Talks on Restructuring, Chapter 11 at Advanced Stage
MT Newswires
08:27 AM EDT, 08/24/2017 (MT Newswires) -- Seadrill (SDRL) shares were down nearly 23% in pre-market trade after the offshore drilling contractor reported a Q2 loss of $0.28 per share, down from a profit of $0.50 a year ago. Two analysts polled by Capital IQ had expected a profit of $0.01.
The company has been in talks with creditors for some time regarding its restructuring efforts and reached a deal earlier in the summer to extend the negotiating period until Sept. 12.
"Our primary objective at the moment is concluding final negotiations on our comprehensive restructuring plan, which is at an advanced stage and likely to be implemented via chapter 11 proceedings," CEO Anton Dibowitz said.
SDRL traded at $0.21 recently, a new low if it holds into regular trading. The current 52-week range is between $0.25 and $4.59.
On an underlying basis, the company broke even in the quarter. One analyst polled had expected a loss of $0.04.
Revenues meanwhile slumped to $577 million from $868 million, nevertheless topping the expectation from seven analysts polled for revenue of $527.9 million.
Cheers.