Seadrill Q2 Profit Beats Views, Shares Surge

Shares of

gained 4 percent in pre-market trading after the company reported better-than-expected earnings for the second quarter. The Hamilton, Bermuda-based company posted a quarterly net profit of $379 million, or $0.77 per share, versus a year-ago profit of $605 million, or $1.24 per share. Its revenue slipped to $1.1 billion from $1.2 billion. However, analysts were expecting earnings of $0.63 per share on revenue of $1.17 billion. The average estimate among 13 Estimize users was for earnings of $0.64 per share and revenue of $1.21 billion. Its earnings before interest, taxes, depreciation and amortization gained 1.6 percent to $651 million from $641 million. As of June 30, 2015, the company had $918 million in cash and cash equivalents, a rise of $15 million versus the prior quarter. Per Wullf, CEO and President of Seadrill Management Ltd., said, "We continued to deliver safe and efficient operations during the second quarter. We are realizing the benefits of the cost management program we initiated in 2014 and we are now targeting an increased level of cost savings for 2015." Seadrill shares gained 4 percent to $6.76 in pre-market trading.