‘We’ll be generating a wall of cash’: Seadrill CEO eyes dividend return with rig dayrates tipped to pass $500,000

Seadrill expects drilling rig rates to exceed $500,000 per day sometime soon as market conditions support its view it will be able to resume shareholder returns and place a few more demands on oil and gas company clients.

The Norwegian deep-water drilling contractor is currently unable to pay dividends due to the terms of its loans but, with the outlook for the market being so strong, chief executive Simon Johnson said that returning capital to shareholders and focusing on free cash flow is a major focus for Seadrill’s management.