OSLO (Bloomberg) Bermuda-based Seadrill Ltd., owner of the second-largest fleet of deepwater rigs, climbed to a record in Oslo trading after chief executive officer Alf Thorkildsen said rig rates are poised to gain.

Seadrill rose as much as 5.3 percent to 200.2 kroner, the highest since the stock started trading in May 2005, and was at 199.4 kroner as of 2.02pm local time. The shares have rebounded 72 percent from this year’s low on July 1, valuing the company at 82 billion kroner ($13 billion).

Thorkildsen said yesterday he expects day rates for rigs to improve, led by demand for newer vessels, as oil companies increasingly explore in technically demanding areas amid stricter safety regulations following the Macondo well disaster. Seadrill raised its dividend to $0.65 a share from $0.61 in the prior quarter, and said the fourth quarter indicated “good growth” and “solid profitability.”

Offshore exploration from West Africa to Brazil is generating demand for rigs after oil prices more than doubled since the end of 2008 and the financial crisis eased. Oil companies are “queuing up to submit requests” to resume drilling in the Gulf of Mexico after the moratorium was lifted by President Barack Obama a month ago, according to the International Energy Agency.

Seadrill last month ordered two ultra deep-water drillships, which can reach 12,000 feet, at $600 million each for delivery starting in 2013. It has options for two more. The company also ordered four jack-up rigs for $780 million since October, with options for six more, and bought a high specification jack-up from Petrojack IV Pte. Ltd. yesterday.

“The company’s strategic focus on technically superior assets should add value long-term given the attractive financial terms on their newbuilds and continued operator preference for higher-spec rigs,” Credit Suisse Group AG analysts Arun Jayaram, Tao Ly and Eduardo Royes said in a report. They raised the target price on the stock to 181 kroner from 150 kroner.

“The trend right now is to favour the type of rigs Seadrill has,” Carnegie ASA analyst Atle Hauge, who has an “outperform” rating on the stock, said by phone.

Citigroup Inc. yesterday reiterated its “buy” recommendation on the stock and raised its target price to 265 kroner from 200 kroner.

Morgan Stanley raised its target to $40. The stock closed at $13.09 in New York yesterday.

“Seadrill’s defensive features and upside opportunities continue to make it an appealing income and growth stock, in our view,” Citigroup’s Kenan Najafov said in a report.