[Dow Jones] Societe Generale downgrades Seadrill to hold from buy. Seadrill’s business model “looks exhausted,” the brokerage says. SG is disappointed with Seadrill’s 4Q results and hence also “significantly downgrades” its Ebitda estimates. SG’s 2012 Ebitda forecast falls to $2.579B from $2.854B, 2013 to $3.310B from $3.547B and 2014 to $3.918B from $4.070B. Its 2015 estimate rises to 4.314B from $4.151B. SG says 2015 Ebitda will be helped by new ultra deepwater units ordered February 27. Apart from the recent UDW, “We do not see how the company can finance new projects,” as increased dividends and UDW investments decrease equity ratio, says SG. NOK226.00 target price. Shares are 0.7% lower at NOK221.10.
- Kjetil Malkenes Hovland, Dow Jones & Company