Seadrill shares hit rock bottom ahead of Chapter 11
- Business & Finance
Offshore driller Seadrill saw its share prices touch an all time low following the release of the company’s second quarter report.
The shares fell below NOK 2,00 on Thursday morning, with some trades made at below 1,79 NOK a share, a giant drop from the 2013 heydays when the share was at an all time high at 297,3 Norwegian crowns.
The company, working for months to reach a deal with creditors over its reported $14 billion debt, on Thursday reported a net loss for the quarter of $158 million, down from a net profit of $267 million in the second quarter of 2017.
Seadrill’s total operating revenue was $577 million down from $868 million in the corresponding quarter of 2016.
Commenting today, Anton Dibowitz, CEO and President of Seadrill Management Ltd., said: “Our primary objective at the moment is concluding final negotiations on our comprehensive restructuring plan, which is at an advanced stage and likely to be implemented via Chapter 11 proceedings on or before 12th September 2017.”
Seadrill said it was likely that the restructuring plan would involve the raising of approximately $1 billion of new capital, an approximately five year extension of its bank facilities and a deferral of amortizations and will require a substantial impairment or conversion of our bonds, as well as impairment and losses for other stakeholders, including shipyards.
The offshore driller said it was in advanced discussions with certain third party and related party investors, an ad hoc group of its bondholders and its secured lenders on the terms of a comprehensive recapitalization, which remains subject to further negotiation, final due diligence, final documentation and requisite approvals.
Dibowitz added: “Our business execution remains unaffected by these efforts as demonstrated by continued delivery of excellent safety and fleet uptime. Although the market continues to be challenging, continued operational execution and strong customer relationships has enabled us to re-contract a number of units during the quarter. With a young versatile fleet and upon completion of our restructuring, we will be well placed to capitalize when the market recovers.”
Offshore Energy Today Staff