August 20, 2019 / 5:37 AM / a month ago

UPDATE 1-Seadrill Q2 core profit beats company's own forecast

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OSLO, Aug 20 (Reuters) - Seadrill's core earnings for the second quarter exceeded the company's own guidance, and are set to rise in the third, the Oslo and New York-listed oil drilling rig operator said on Tuesday.

The company, controlled by Norwegian-born billionaire John Fredriksen, reported $69 million in quarterly adjusted earnings before interest, tax, depreciation and amortisation (EBITDA), beating the $55 million forecast it made in May.

"From a market perspective we continue to see increased tendering activity and a favorable shift in contract terms," Chief Executive Anton Dibowitz said in a statement.

Seadrill's third-quarter adjusted EBITDA will likely hit $70-75 million, it predicted.

The company, which owns 35 drilling rigs and operates a further 20, had an order backlog of $1.9 billion at the end of the quarter, down from $2.0 billion at the end of March.

Seadrill emerged from U.S. Chapter 11 bankruptcy proceedings in July 2018 after agreeing with creditors to raise fresh capital, convert unsecured bonds to equity and push forward maturities of $5.7 billion bank loans.

Operations are still loss-making when depreciation and amortisation costs are included. In the second quarter, the operating loss stood at $73 million, smaller than the company's guidance of $93 million, and in the third quarter the loss will likely be between $70-75 million. (Reporting by Terje Solsvik, editing by Gwladys Fouche)

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