Seadrill Limited (SDRL) saw its loss narrow to $657 million, or $1.29 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $1,829 million, or $3.70 a share. Revenue during the quarter dropped 24.57 percent to $743 million from $985 million in the previous year period. Operating margin for the quarter period stood at positive 33.24 percent as compared to a negative 29.54 percent for the previous year period.
Operating income for the quarter was $247 million, compared with an operating loss of $291 million in the previous year period.
Commenting today, Per Wullf, chief executive officer and president of Seadrill Management Ltd., said "The offshore drilling market continues to be challenging however we are seeing an improvement in the level of bidding activity. Most of the new work is for short term contracts at or near cash flow breakeven levels, and 2017 is expected to remain challenging. However, we expect the market to gradually improve as costs have been reset across the value chain and more drilling activity will be needed to avoid accelerated production declines."
Operating cash flow drops significantly
Seadrill Limited has generated cash of $839 million from operating activities during the nine month period, down 43.69 percent or $651 million, when compared with the last year period. Cash flow from investing activities was $253 million for the nine month period as against cash outgo of $47 million in the last year period.
The company has spent $893 million cash to carry out financing activities during the nine month period as against cash outgo of $1,094 million in the last year period.
Cash and cash equivalents stood at $1,250 million as on Sep. 30, 2016, up 5.84 percent or $69 million from $1,181 million on Sep. 30, 2015.
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