SDRL Stock Soars 16% on Multiple Contract Extensions in Middle East

SDRL stock

Over the course of 2019, SDRL stock has had a bit of a rollercoaster ride, but it is finishing the year strongly. The stock is down by as much as 70% this year, but in December, it managed to climb by as much as 250%. On December 30, Seadrill Ltd (NYSE:SDRL) made another major announcement that could have a positive effect on its stock going into the new year.

Key Development

Late Monday, the company announced that it has managed to secure an extension of its current contracts in the Middle East. The company managed to get three-year contracts with regards to AOD II and AOD III jackup drilling rigs.

The values of the contracts are expected to be between $98 million and $101 million. It goes without saying that this is a significant development for Seadrill, which has been trying to turn its business around for much of the year. Additionally, investors will also be watching closely if these new contracts push SDRL stock up further over the coming days.

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The company has finished 2019 strongly after having struggled for much of the year, and many investors will be hoping that it can start 2020 in the same vein.

At the time of writing, SDRL stock is up 16% at $2.75.

December has been an impressive month for Seadrill, and that has naturally been reflected in the performance of its stock. Earlier this month, it emerged that the company managed to win a new contract with regards to rig work from Var Energi, the Norwegian oil company.

Seadrill is going to start work on the contract in the second quarter of 2021, and the contract is expected to run until the third quarter of 2023. The total value of the contract is around $302 million, and it is hardly a surprise that the developments have been welcomed with optimism by the market. SDRL stock could be worth tracking over the coming weeks.

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