Seadrill ‘Disappointed’ By Archer Slump
Bermuda-based Seadrill Ltd., the oil-rig operator whose largest owner is Norwegian-born shipping billionaire John Fredricksen, will take a $463 million non-cash impairment charge on its investment in Archer Ltd. for the fourth quarter of 2011.
Archer contributed $44 million to net income for the full year, reflecting “deconsolidation profits” and the impairment charge, Seadrill said in a statement.
The Hamilton-based rig company will release quarterly results on Wednesday [Feb. 29].
Archer shares have fallen 58 percent in 12 months, eroding the value of Seadrill’s 39.94 percent stake in the oilfield-services provider. The slump coincides with a push by Archer’s Chief Executive Officer Jorgen Rasmussen to make acquisitions, including Great White Energy Services Inc. last August.
“Seadrill is, as a major long-term owner, clearly disappointed in the recent developments in Archer,” the company said in today’s statement.
Seadrill expects management changes to drive a recovery in Archer’s share price, it said.
