Offshore driller Seadrill reported a drop in income and revenue for the second quarter of 2016.

The Oslo-listed company’s revenue fell to $868 million, a drop of around 24 percent when compared to the second quarter of 2015, when the company’s revenue was around $1.15 billion.

Revenue was hit by down primarily due to the West Castor and West Prospero rig contracts ending and dayrate reductions on a number of units, Seadrill said.

Net income was $276 million, down from $423 million achieved in the second quarter of last year.

Per Wullf, CEO and President of Seadrill Management Ltd., said: “There continues to be a significant supply overhang and the market conditions remain challenging, however, there is some volume returning to the spot market, although primarily for short-term work.”

Seadrill said that although scrapping and stacking activity is addressing some of the overhang, it is still unclear as to the timeframe over which rates will improve materially. A better indication of demand in 2017 may emerge from the release of annual budgets later in the year, the company added.

The driller doesn’t expect its financials will improve in the third quarter, as eight of its drilling rigs are coming off contract, plus three will have a lower dayrate

Source: www.offshoreenergytoday.com