NEW YORK (TheStreet) -- Seadrill (SDRL) shares closed trading up 0.17% to $11.93 on Tuesday after the offshore oil drilling contractor exercised its purchase option for an ultradeepwater drill ship from Ship Finance (SFL) .
The Norway-based company bought the West Polaris vessel for $456 million with the purchase being executed through a Seadrill purchase of shares in Ship Finance's subsidiary SFL West Polaris Limited.
The stock was also helped by climbing oil prices as light, sweet crude for February delivery on Tuesday rose 51 cents to $54.12 a barrel on the New York Mercantile Exchange after dipping below $53 in overnight trading yesterday.
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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."