Seadrill Ltd., the offshore driller controlled by billionaire John Fredriksen, reported its first quarterly loss since 2011 as a collapse in oil prices reduced demand for its rigs.
The net loss of $1.83 billion came after the Hamilton, Bermuda-based company booked $1.8 billion in non-cash impairment charges to investments and goodwill, it said in a statement. Earnings before interest, taxes, depreciation and amortization fell 14 percent to $546 million from a year earlier, beating the $506 million average estimate in a Bloomberg survey of 21 analysts.
Seadrill rose as much as 6.5 percent in Oslo, the most since Nov. 16, and the shares closed 2.9 percent higher at 55 kroner, bringing losses over the past 12 months to 61 percent.
Seadrill and other offshore-rig owners such as Transocean Ltd. and Ensco Plc are suffering as oil companies cut investments after crude prices fell to about $45 a barrel from a high of $115 in June 2014. Demand is weakening at the same time as the market faces a glut of new vessels, prompting drillers to cut dividends, defer newbuild deliveries and renegotiate contracts to weather the downturn.
The company said $1.1 billion of the impairment charge was related to its ownership in Seadrill Partners LLC and $563 million came after a test on goodwill.FINRA arbitration is a dispute resolution process offered by the Financial Industry Regulatory Authority (FINRA) to resolve conflicts between investors, brokerage firms, and individual brokers. Unlike traditional court litigation, arbitration is typically faster and less formal. In this process, an impartial arbitrator or a panel of arbitrators listens to both parties’ arguments and evidence before making a binding decision. This method is often chosen for its efficiency and lower costs, making it an attractive option for investors seeking resolution without the complexities of a court trial. The arbitration process is governed by specific rules and procedures, ensuring a fair and equitable hearing. While the decision is final and generally cannot be appealed, parties can still settle the dispute before the arbitration concludes. FINRA arbitration serves as a crucial mechanism in maintaining market integrity and protecting investors’ rights.