Re: SapuraKencana moves to next level
Given the increase in ownership by sdrl, there will, hopefully, be some nice dividends kicking in a couple of years down the road for Seadrill: note the following:
Although the group's gearing will rise, Shahril says that's momentarily and will rapidly climb down after 2 years. “Any acquisition will have borrowings and the borrowings will be depleted over time as we payback. We are comfortable with the gearing and its in line with the growth companies in this sector anyway. ”
Shahril says allocating more cash for dividends as cashflow improves will be balanced by the needs of the business versus reward for shareholders.
“Once the debt levels goes down in 2 years, then we will start increasing our dividend payments,” he says, adding that the value of the company to shareholders will be either captured in dividends or in the value of the shares.
I do think it interesting that the potential increase in value for Seadrill hasn't (yet) been noted by the markets. I guess they still don't 'get' Seadrill even though it has so much more potential than Transocean, Noble or the other off-shore drillers(IMO)