In its third-quarterearnings release the Oslo-listed rig operator said top executives from SeadrillManagement have already accepted an offer to move from Stavanger to London inearly 2013 in a bid to curtail costs.
“This relocation isexpected to reap cost benefits over time,” it told investors Monday. “However,in the short-term, general and administrative cost will increase related toone-off costs during the management transition process.”
Seadrill’s board said themove will mark a key step in preserving its “dynamic organisation” and will “ensurethat the increased size of the company does not harm the entrepreneurial spiritand direct decision making process through which the company was built”.
“One of the main targetsof the relocation is to limit the size of the corporate organisation andinstead continue to build and strengthen the operational excellence in theregional offices,” it added. “We very much believe in building regionalcompetence centers close to the operating activities.”
While the company saw netincome rise to $216m in the three months to 30 September 2012 from $58m in thecomparable quarter a year prior, the board admitted it wasn’t satisfied with anoperational result that one New York analyst described as “lousy”.
According to Greg Lewisof Credit Suisse, the third quarter miss was driven by higher than expecteddowntime for some of its floaters and losses at its affiliate Archer, of which itowns a 39.9% stake.
When Seadrill first proposedrelocation back in October it also identified Dubai, Singapore and Houston aspotential candidates.
In addition to Rio deJaneiro the cities are home to 400 employees, it noted at the time.
