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[dDT]

SDRL Seadrill -10% on dividend suspension, plunging Q3 profits

Seadrill (NYSE:SDRL) -9.9% premarket after announcing it will suspend dividend payments as Q3 profits were slashed nearly in half from the year-ago quarter.
SDRL says it will pay no dividend after paying $0.95/share a year earlier because of "the significant deterioration in the broader offshore drilling and financing markets" over the past quarter; SDRL says it has the ability to sustain the dividend based on its existing order backlog, but the near-term offshore market was becoming increasingly challenging.
SDRL expects the dividend pause to strengthen its capital position by $2B/year, which would be used to strengthen the balance sheet and invest in value-creating opportunities; the board authorizes a share buyback program of up to 10% of outstanding shares over the coming 12 months.