Transocean LTD (RIG), Noble Corporation (NE): Could Seadrill Ltd (SDRL) Earnings Growth Finally Slow?

But Seadrill’s future depends on its building out its fleet, and that’s exactly what the company has done. By forming its Seadrill Partners LLC (NYSE:SDLP) master limited partnership, Seadrill has given investors a dividend-favored way to invest in the company’s drillships, but it has also facilitated fleet management. In addition, Seadrill expects to keep adding fleet assets, with both ultra-deepwater rigs and jack-up assets among expected acquisitions in the coming years. With Transocean LTD (NYSE:RIG), Noble Corporation (NYSE:NE), and other competitors also building up their fleets, there’s a definite advantage to being first to the table, especially as long-term concerns may arise about the ability for the market to sustain $600,000 day-rates after newly built ultra-deepwater rigs come on line.

Seadrill has benefited from strong partnerships with international companies, helping it take advantage of the increasingly global demand for oil services. Petrobras awarded a major contract to Seadrill’s joint venture with Malaysia’s SapuraKencana in June, bolstering their already strong relationship. For its part, Seadrill should continue to reap rewards from its global scope.

In the Seadrill earnings report, be sure to watch for comments about whether management expects day-rates to fall as new capacity becomes available. For now, though, prospects look good for Seadrill Ltd (NYSE:SDRL)’s immediate future, and barring an unforeseen plunge in oil prices, earnings growth is likely to resume its upward trend.

The article Could Seadrill Earnings Growth Finally Slow? originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Seadrill. The Motley Fool owns shares of Seadrill and Transocean.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.