Seadrill CEO: Seadrill is looking to acquire assets and engage in M&A.

Seadrill, an offshore drilling contractor, is looking to merge with other companies or buy more assets.

John Fredriksen, a Norwegian billionaire, lost control of his company, which was once the largest drilling company in the world by market capital, to creditors after two debt restructurings.

Seadrill, a New York-listed company that is now leaner and smaller, wants to purchase distressed assets or players who have "distressed" balance sheets. CEO Simon Johnson said this at an investor conference held in Norway.

He said, "We won't do anything crazy. We have proven our discipline." The amount of cash on the balance sheet that the company has, which "some consider inefficient", gives the company both a defensive cushion and a basis for offense, he said.

Johnson said, "We haven't yet seen the end of (the offshore drilling industry)."

After the oil market crashes of 2014 and 2020, debt restructurings led to a consolidation wave in the industry, leaving fewer players, with fewer drilling rigs. Since 2021, drilling rates have more than doubled.

Keelan Adamson, President and Chief Operation Officer of Transocean, a competitor to Seadrill Transocean at the conference said: "We think there's room for a big consolidation. Especially since our customers are consolidating as well."

Johnson said that Seadrill was agnostic about whether or not it would be the winner in a merger, as long as the price was good.

"We're looking to add two units (drilling units) to grow to twenty-five units... We are also willing to be a junior partner if we receive a premium for our assets.

Johnson refused to confirm that the company had been involved in merger negotiations when asked by.

According to LSEG, the top three investors are investment funds Bybrook Capital LLP Canyon Capital Advisors LLC, and Elliott Management Corporation. (Reporting and editing by Jan Harvey; Nerijus Adomiaitis)

(source: Reuters)