Consultancy Firm: Seadrill's Fleet Value Declines

Consultancy Firm: Seadrill's Fleet Value Declines
The total value of Seadrill's fleet has dropped by more than $3 billion since January 2014, according to the latest data from maritime consultancy firm VesselsValue.

The total value of Seadrill’s fleet has dropped by more than $3 billion since January 2014, according to the latest data from maritime consultancy firm VesselsValue.

Worth more than $10 billion three years ago, the total value of Seadrill’s fleet has dropped to $7.01 billion, accurate at March 2, VesselsValue Associate Director Claudia Norrgren told Rigzone.

Seadrill has 31 live mobile offshore drilling units (MODU), which are valued at $3.611 billion, in addition to 12 newbuild MODUs currently on order, which hold a market value of $3.396 billion, Norrgren said.

“This is not what they paid originally at the yard, but what they are worth today if they were to sell the paper contracts,” Norrgren explained.

Seadrill, battling with $14 billion in debt and liabilities, revealed Feb. 28 that it may have to file for Chapter 11 bankruptcy protection if it fails to reach a restructuring agreement with its lenders.

The company said it would be challenging to find a "fully consensual agreement" before an April 30 deadline. Seadrill is said to have been in discussions with more than 40 banks, as well as bondholders, to reach a deal.

Seadrill's shares have fallen 92 percent in the past three years.

A graduate in journalism from Cardiff University, Andreas has eight years of experience as a business journalist. Email Andreas at andreas.exarheas@rigzone.com

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Alex | Mar. 2, 2017
I think it is very sad for the Oil and Gas Industry as a whole when largish companies are considering bankruptcy. If a company as large as SeaDrill goes under what is the prospect for all other contractors? The downturn has had a dramatic effect on almost everybody who,either worked in the Industry and got made redundant OR, who is still employed but living in a very unstable market place. I try and follow oil prices on a regular basis and I see the market price fluctuates a fair bit BUT if you notice its hovering around the mid 50s for now and to be honest I think thats where it will stay for the time being! OPEC, IRAN and the Middle East are still producing and although there may have been a small cut back the world is basically flooded with crude, for the meantime anyhow so I cannot see a hike in prices


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