Seadrill Ltd Intrinsic Value Calculator – Seadrill Secures $1.1B in Brazil Drillship Contracts

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Seadrill Ltd ($NYSE:SDRL) is a leading international offshore deepwater drilling contractor, providing services to the oil and gas industry worldwide. The company operates a large fleet of modern and capable drillships, semi-submersibles, jack-ups and tender rigs. Recently, Seadrill has signed two contracts in Brazil worth an estimated total of $1.1 billion for drillships. The contracts are a major boost for Seadrill, as they will add significant value to the company’s existing deepwater fleet. As part of the deal, Seadrill will also provide an analysis and optimization service to Petrobras, allowing them to optimize the efficiency of their operations.

The contracts are a further testament to Seadrill’s commitment to providing high quality drilling services to its clients and to helping meet the global demand for energy. The company will utilize its fleet and expertise to help Petrobras reach its goals as it continues to explore for oil in Brazil’s deep waters. It is no surprise that Seadrill has been chosen for these contracts, as its reputation as a leading offshore driller precedes it.

Market Price

On Tuesday, Seadrill Ltd experienced a 2.9% increase in stock price, from prior closing price of 46.7, to open and close at $47.4 and $48.0 respectively. This rise in price can be associated with the news that the company had secured contracts for two drillships for operations in Brazil, worth a total of $1.1 billion. The contracts were awarded by Repsol Sinopec Brasil, and will involve the company providing services to two new build drillships.

The partnership will last for five years, and is expected to generate substantial revenue for the company. This news is a great sign of optimism for Seadrill, and is likely one of the key factors driving the increase in stock price. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

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Analysis – Seadrill Ltd Intrinsic Value Calculator

At GoodWhale, we have performed a thorough analysis of SEADRILL LTD‘s fundamentals, and have determined that the fair value of its share is $36.0. This value was calculated using our proprietary Valuation Line, which takes into account various metrics such as financial performance, industry trends, and market conditions. Right now, SEADRILL LTD’s share is trading at $48.0, which implies that it is currently overvalued by 33.2%. As a result, we believe that investors should exercise caution when considering this stock for purchase. 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 global offshore drilling company based in Norway. It provides services in floating, jack-up, and drillship drilling, as well as marine support services. Recently, Seadrill has announced two new contracts in Brazil totaling around $1.1 billion.

This is a big win for the company as it will provide a steady revenue stream and help them maintain their position as one of the world’s leading offshore drillers. Analysts expect this news to have a positive effect on the company’s stock price, and investors looking to buy into a play on the offshore drilling market may want to consider Seadrill as part of their portfolio.