Seadrill Chairman John Fredriksen, the oil rig firm’s top shareholder, is stepping down with immediate effect, the company said on Thursday, as it holds discussions with lenders about restructuring its massive debts, Reuters reported. The 75-year-old billionaire investor, who said his support for the company remained unchanged, will be replaced by Glen Ole Roedland, who has worked in shipping, oil, gas and other industries, Seadrill said. The company, which is listed in Oslo and New York, only emerged from U.S.
Seadrill Ltd. plunged to the lowest since it emerged from bankruptcy less than year ago after Carnegie Investment Bank AB recommended selling the shares and slashed the price target by 88% amid mounting recovery concerns, Bloomberg News reported. The offshore rig market recovery is “not happening fast enough” for Seadrill, Carnegie said in a note to clients on Monday. The investment bank cut its recommendation from a buy and lowered the target price to 25 kroner from 210 kroner.
Seadrill’s core earnings for the fourth quarter exceeded the company’s own guidance, boosted by lower costs and one-off items, while the market outlook for drilling rigs was improving, the Oslo and New York-listed firm said on Tuesday. The company, controlled by Norwegian-born billionaire John Fredriksen, reported $73 million in quarterly adjusted earnings before interest, tax, depreciation and amortisation (EBITDA), more than double the $35 million forecast it made in November, Reuters reported.