We maintain our bullish stance on Seadrill (SDRL) based upon its quality of asset base, high dividend yield, attractive contract backlog, and continuous focus on growing fleets. It is highly attractive to dividend growth investors, with a dividend yield of 8.2 percent, in comparison to the industry average of 1.8 percent. The company's recent initiative to relocate its business operations from Norway would bring logistic efficiencies and enable the company to attain more potential customers.
The company's modern fleet is enjoying high demand in the market, after oil exploration companies increased their production with increasing oil prices. As the total rig counts in the Middle East and Africa have increased by 31% and 38% over the course of the last one year, we believe the company has the potential to capitalize on growing energy demand in the coming years.
Read more..
No comments:
Post a Comment