insane dividends

[wzebra33]

1-Seadrill boosts dividend, Q1 as expected

Fri May 27, 2011 3:27am EDT

* Q1 operating profit $430 mln vs $432 mln forecast

* Ups dividend to $0.75/shr in next four quarters


By Gwladys Fouche

OSLO, May 27 (Reuters) - Oslo-listed offshore driller Seadrill (SDRL.OL) said it would increase its dividend payments as it saw the booming drilling market increasing further and reported first-quarter earnings in line with expectations.

Seadrill, one of the world's largest deepwater drillers with 56 rigs, said the outlook for high-quality drilling units -- already a flourishing market -- had improved and that the company had "strong earnings visibility".

Quality oil rigs have become more in demand in the wake of the Deepwater Horizon rig accident last year that led to the worst oil spill in U.S. history. High oil prices have also boosted demand.

Shipping magnate John Fredriksen, who controls Seadrill, told Reuters that the outlook for Seadrill was "very good".

"It is going very well with Seadrill. We are very optimistic," Fredriksen said in an interview late on Thursday. "It's a very stable business." [ID:nWEA3485] [ID:nLDE74P2AB]

The firm posted first-quarter earnings before interest, taxes, depreciation and amortisation of $430 million, compared with $332 million in the same period last year, and roughly in line with the mean forecast of $432 million in a Reuters poll of analysts.