Crude oil futures fell to a five-year low of $63.72 a barrel in overnight trading Sunday, according to Market Watch, though WTI crude oil prices were gaining 2% to $67.49 a barrel Monday morning. Brent crude oil futures were gaining 1.6% to $71.26 a barrel in morning trading.
Seadrill announced early last week that it will suspend its dividend due to "the significant deterioration in the broader offshore drilling and financing markets" in the third quarter. Before suspending the dividend, the offshore driller paid a dividend of 95 cents a share for a year.
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TheStreet Ratings team rates SEADRILL LTD as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate SEADRILL LTD (SDRL) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and weak operating cash flow."