In This Article:
Seadrill Limited SDRL, a U.S.-based offshore drilling contractor, has concluded the sale of its jack-up rig, West Prospero. The company received cash proceeds of $45 million following the sale. SDRL stated that the West Prospero drilling rig has been non-operational for eight years.
The company considered the West Prospero jack-up rig as a non-core asset. The divestment of West Prospero aligns with the company’s broader objective to withdraw from the benign jack-up market and optimize its rig fleet. The monetization of non-core assets also enables the firm to improve its financial position.
The West Prospero jack-up rig was constructed in the KFELS yard in Singapore in 2007. The rig has a maximum drilling capacity of 40,000 feet and can operate in water depths of up to 400 feet. Seadrill mentioned that the rig was previously used for offshore operations in Northeast Africa and Southeast Asia.
At the end of the third quarter of 2024, Seadrill had four cold-stacked jack-up rigs, including West Prospero. As of November 2024, its total backlog was $2.3 billion.
SDRL’s Zacks Rank and Key Picks
SDRL currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector areTechnipFMC plc FTI, Oceaneering International OII and Nine Energy Service NINE. TechnipFMC currently sports a Zacks Rank #1 (Strong Buy), while Oceaneering International and Nine Energy Service carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. The company’s total backlog witnessed a high of $14.7 million in the third quarter of 2024, indicating an 11.1% increase from the previous year’s level. This growing backlog ensures strong revenue growth for FTI.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading offshore equipment and technology solutions provider to the energy industry. Its proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.
Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. The company operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the need for NINE’s services is anticipated to increase, which should position the company for growth in the long run.