Topic: How To Invest

Hi Pat: I would appreciate your opinion on SeaDrill Ltd. Regards.

Article Excerpt

SeaDrill Ltd., $33.87, symbol SDRL on Nasdaq (Shares outstanding: 364.6 million; Market cap: $12.3 billion; www.seadrill.com), is a leading offshore drilling company. SeaDrill has a fleet of 54 drilling rigs that can operate in shallow to very deep water. The company operates in 15 countries on four continents. In the three months ended September 30, 2010, SeaDrill’s revenue rose 24.5%, to $1.1 billion from $863 million a year earlier. Earnings rose 3.8%, to $357.5 million, or $0.85 a share, from $344.4 million, or $0.82 a share. The company’s debt is very high, at $9.5 billion, or 77.2% of its market cap, although it does hold cash of $1.1 billion, or $3.02 a share. The Norway-based company started up in 2005. As a result, it has the modern drilling rigs that are in the highest demand. As a result, SeaDrill’s utilization rates are high, in the 95% to 97% range. Like most deepwater drillers, SeaDrill’s shares fell following last April’s explosion and sinking…