Seadrill Shares Drop On Weak Earnings, Suspension of Dividend

Seadrill SDRL reported a drop in its third-quarter net profit. Seadrill's quarterly net income declined to US$190 million, or US $0.31 per share, versus a year-ago net income of $315 million, or $0.60 per share. Net income attributable to the parent slipped to $149 million, versus $286 million. Analysts were expecting earnings of $0.67 per share. Its revenue rose to $1.29 billion from $1.28 billion, while operating income slipped to $461 million from $471 million. Analysts projected revenue of $1.23 billion. The company also announced its plans to suspend dividend payments and lowered its debt. The company paid a dividend of $0.95 per share a year ago. Seadrill's board authorized a buyback of up to 10% of outstanding shares. As of September 30, 2014, Seadrill's total assets were US$27,387 million, a rise of US$783 million versus the prior quarter. As of September 30, 2014, the company's cash and cash equivalents were US$638 million, a rise of US$95 million versus the earlier quarter. Seadrill shares dipped 11.73% to $18.28 in pre-market trading.