Seadrill Strong Results Point to Rising Exploration Spending

Seadrill, the world’s largest offshore rig operator, sees a rosy future for its business in a period of high growth of exploration spending.

‘The combination of attractive shipyard prices and high market rates creates what we see as a unique investment environment. The investment opportunity is further improved by increased demand for higher specification units and by limited ordering from our major competitors,’ reads the note reporting the second quarter 2013 results.

The company invests in new rigs and drillships as it forecasts an increasing demand in northern Norway, Russia and Arctic regions. 

Seadrill reported its best operating results and net income ever ($ 1,750 million in the second quarter), with the EBITDA rising 5% to a better-than-expected record $665 million.

‘Oil and gas companies continue to demonstrate their preference for newer, more capable rigs,’ wrote Seadrill explaining its strong financial results.