Seadrill Ltd Intrinsic Value Calculation – Seadrill: Now Is The Time To Buy With Major Contract Awards And Share Repurchases

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Seadrill Ltd ($NYSE:SDRL). (NYSE: SDRL) is an offshore drilling contractor engaged in the drilling, completion and maintenance of offshore oil and gas wells. It is one of the world’s largest providers of offshore drilling services, operating in the deepwater, harsh environment, conventional semisubmersible and jack-up markets. Now is an opportune time to invest in Seadrill given the recent major contract awards and the company embarking on a material share repurchase program.

Seadrill has just been awarded a 4-year contract by Pemex worth $1 billion to supply two ultra-deepwater drillships to Mexico’s state-owned oil company and has also secured a multi-billion dollar contract with BP for shallow water drilling. Furthermore, with the contract awards, Seadrill has ample reason to expect to continue its growth in the future. Investors seeking exposure to the offshore drilling industry should consider investing in Seadrill at this time.

Market Price

Seadrill Ltd, the offshore drilling specialist, has seen mixed fortunes in recent times, particularly on Thursday when its stock opened at $47.1 and closed at $46.5, down by 0.2% from previous closing price of 46.6. Despite the minor dip, investors may want to consider investing in the company as it has been successful in securing major contract awards and has been repurchasing shares. It also recently announced a five-year contract extension with Canada-based Enbridge Inc for two of its semi-submersible rigs. The company’s stock may have experienced a slight dip on Thursday, but this could present investors with a great opportunity to acquire shares at a discounted rate. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Seadrill Ltd. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Seadrill Ltd. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Seadrill Ltd. More…

Key Ratios Snapshot

Some of the financial key ratios for Seadrill Ltd are shown below. More…

Analysis – Seadrill Ltd Intrinsic Value Calculation

We at GoodWhale have conducted an in-depth analysis of SEADRILL LTD‘s financials and have concluded that the fair value of their share is around $36.7. Our proprietary Valuation Line was used to arrive at this figure. Currently, SEADRILL LTD’s stock is trading at $46.5, which means it is overvalued by 26.5%. We suggest investors exercise caution before taking any investment decisions based on these findings. More…

Peers

They have managed to remain competitive through their implementation of the latest technology and innovations, working alongside their competitors Diamond Offshore Drilling Inc, Noble Corp PLC, and Awilco Drilling PLC. Together, these companies have become the pre-eminent players in the offshore drilling industry.

– Diamond Offshore Drilling Inc ($NYSE:DO)

Diamond Offshore Drilling Inc is an offshore drilling contractor for the oil and gas industry. The company provides services to customers around the world, with a focus on deepwater drilling. As of 2023, Diamond Offshore Drilling Inc has a market capitalization of 1.19 billion. Its Return on Equity (ROE) stands at -5.75%, indicating that the company is underperforming in terms of generating returns for its shareholders. This negative return may be a result of the recent downturn in oil prices, which has affected the entire oil and gas industry. Despite this, Diamond Offshore Drilling is still a major player in the offshore drilling industry, and is expected to benefit from a recovery in oil prices.

– Noble Corp PLC ($NYSE:NE)

Noble Corporation PLC is a global offshore drilling contractor that provides contract drilling services to oil and gas companies. As of 2023, the company has a market cap of 5.19B USD. The market cap is the total value of all its outstanding shares of stock. This makes Noble Corporation one of the largest companies in the offshore drilling industry. The company has a strong presence in multiple regions, such as Africa, Asia, Europe, and the Middle East. It also owns one of the most advanced fleets of offshore drilling rigs available in the market. The company provides services to some of the world’s largest oil and gas companies, and continuously works to strengthen its position in the market.

– Awilco Drilling PLC ($BER:0AI1)

Awilco Drilling PLC is an offshore drilling and contracting company focused on drilling and completing oil and gas wells throughout the world. The company has a market capitalization of 15.01M as of 2023, a measure of the total value of its outstanding shares. Its Return on Equity (ROE) is -2683.9%, a measure of profitability that indicates how efficient the company utilizes its invested funds. Awilco Drilling PLC is a well-established company in the oil and gas industry with a long history of success.

Summary

Seadrill Ltd is a leading offshore drilling contractor providing services to the oil and gas industry. The company has experienced strong growth in recent years, driven by major contract awards and share repurchase activity. Investing in Seadrill can be a lucrative option for those looking for exposure to the energy sector. Seadrill is well-positioned to benefit from continued global demand for deepwater and ultra-deepwater drilling services. The company’s fleet of rigs is among the most modern and technologically advanced in the industry, and its strong balance sheet provides a good foundation for future growth.

Additionally, Seadrill’s current dividend yield is attractive, making it an attractive income-generating investment. Finally, Seadrill’s stock has exhibited a consistent upward trend over the past few years, indicating a positive outlook for the company.