OSLO (Bloomberg) ? SeaDrill Ltd., an oil-drilling company set up by shipping billionaire John Fredriksen, posted a profit in the first quarter as strong demand lifted rig rates and it gained more vessels through acquisitions.

Net income at the Bermuda-based company, which was established in May last year, was $69.5 million, or 24 cents a share, compared with a loss of $3.8 million, or 2 cents a share, in the fourth quarter of last year. Operating revenue rose to $160.8 million from $21.7 million.

"The current market conditions remain strong and provide for good opportunities to enter into term contracts at attractive day rates," SeaDrill said. The company earlier this year bought Smedvig ASA, Norway's largest rig owner, to expand its fleet.

SeaDrill shares traded at 96 kroner in Oslo yesterday, valuing the driller at 34.9 billion kroner ($5.7 billion).