Norwegian listed oil rig owner and operator Seadrill is expected by analysts to report a major increase in its first quarter operating profits when it releases the numbers later on Tuesday - due to newbuild rigs coming onstream - with predictions averaging out at $230m for the period.

If achieved, that would represent a more than doubling from operating profit of $110m posted for first quarter last year.

Seadrill said, looking ahead in February, that the market for offshore drilling units would be strong in the longer term, in particular for the ultra deepwater segment.

"More reserves have to be discovered to meet future energy demand," the company said.

"This is a serious challenge and in order to bridge the gap mroe drilling will be needed.

Arrival of newbuild rigs

"The huge finds made offshore Brazil is the confirmation that the discoveries that will make a difference to reserve replacment rates to a large extent are made in deep and ultra-deep waters."

This was providing an encouraging martch with Seadrill's investments and its rig fleet, the group added.

Seadrill shares have seen a near doubling in price since March from levels below NOK 50 to current levels of below NOK 90.

Seadrill says a conference call on the results will be held at 6pm Norwegian time and a webcast can be accessed via the company's website.

In January Seadrill took delivery of semi-submersible West Aquarius and within days the newbuild headed for its maiden drilling assignment operating for ExxonMobil offshore Indonesia with operations scheduled to start mid-Febuary.

The West Acquarius was the seventh deepwater unit delivered to Seadrill within the last 10 months.

Also in January, Seadrill said ultra deepwater semi rig West Phoenix had started operations for Total at the Victoria field in the Norwegian Sea. West Phoenix has a three year gig with Total Norge for operations in the North Atlantic region.

Seadrill said at the time that West Phoenix was the company's fourth newbuild unit to begin operations in the last six months.

And in early March Seadrill took delivery of new deepawater semi drilling rig West Eminence from the Samsung shipyard in South Korea.

That unit left Korean waters bound for its first drilling assignment in Brazil where it is chartered to Brazilian oil group Petrobras under a six years contract for operations in the Santos Basin nearly 350 km offshore Rio de Janeiro.