(Updates with additional detail, outlook)
OSLO (Thomson Financial) - Seadrill Ltd posted first-quarter profits ahead of expectations, boosted by soaring demand for its offshore drilling rigs, and promised that the coming quarters will 'show strong earnings growth' and a 'high dividend payout'.
For the first quarter, Norway's Seadrill posted pretax profits of $272.1 million, up from $184 million last time, and ahead of the $245 million consensus forecast of analysts polled by TDN Finans.
Analysts had already predicted a strong quarterly performance from Seadrill, which is benefiting from booming demand from oil majors keen to cash in on record crude prices.
'Recent fixtures in the market continue to confirm the strength in the market for mobile offshore drilling units, in particular for deepwater rigs,' the firm said.
Seadrill, controlled by shipping tycoon John Fredriksen, has been investing heavily in new drilling units, and a tight supplier market has caused some analysts to fear expensive delays.
However the firm once again said its newbuild programme remains on track.
'The delivery schedule is seven newbuilds in 2008 and four newbuilds in 2010,' it said.
Seadrill also announced a dividend of $0.60 per share, and said that going forward, it expects its results to 'show strong earnings growth and high dividend payout'.
'The company has ... secured the most modern high-quality drilling fleet in the world with an average age almost 20 years younger than any of our large competitors,' it said.
'The board feels that a strong base has been created to give Seadrill shareholders a solid long-term return reflected by a combination of share price performance and dividend.'
Elsewhere, Seadrill said Kjell Jacobsen has resigned as chief executive due to 'private reasons', and that chief operating officer Alf Thorkildsen will take over from the start of June. alastair.reed@thomsonreuters.com ar/rw/ar/rw COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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