A Look At Seadrill (SDRL) Valuation After Petrobras Extends West Polaris Contract

Simply Wall St.04-15

Seadrill (SDRL) is back in focus after announcing a 1,095 day contract extension for its West Polaris ultra deepwater drillship with Petrobras, adding about US$480 million to its contract backlog. See...

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See...</p>\n\n<a href=\"https://simplywall.st/stocks/us/energy/nyse-sdrl/seadrill/news/a-look-at-seadrill-sdrl-valuation-after-petrobras-extends-we\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>A Look At Seadrill (SDRL) Valuation After Petrobras Extends West Polaris Contract</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nA Look At Seadrill (SDRL) Valuation After Petrobras Extends West Polaris Contract\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-04-15 20:13 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/energy/nyse-sdrl/seadrill/news/a-look-at-seadrill-sdrl-valuation-after-petrobras-extends-we><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Seadrill (SDRL) is back in focus after announcing a 1,095 day contract extension for its West Polaris ultra deepwater drillship with Petrobras, adding about US$480 million to its contract backlog. See...</p>\n\n<a href=\"https://simplywall.st/stocks/us/energy/nyse-sdrl/seadrill/news/a-look-at-seadrill-sdrl-valuation-after-petrobras-extends-we\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4092","symbol_name":"石油与天然气钻井","start_time":0,"source_url":"https://simplywall.st/stocks/us/energy/nyse-sdrl/seadrill/news/a-look-at-seadrill-sdrl-valuation-after-petrobras-extends-we","article_id":"2627287091","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/1021000-choice2-main-header/1585186853911"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/energy/nyse-sdrl/seadrill/news/a-look-at-seadrill-sdrl-valuation-after-petrobras-extends-we","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2627287091","pubTimestamp":1776255189,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Seadrill (SDRL) is back in focus after announcing a 1,095 day contract extension for its West Polaris ultra deepwater drillship with Petrobras, adding about US$480 million to its contract backlog.\nSee our latest analysis for Seadrill.\nDespite a 4.6% decline in the 1 day share price and a 5.3% 7 day share price pullback to US$46.01, Seadrill still shows a 7.3% 30 day and 30.4% 90 day share price return, alongside a 1 year total shareholder return of about 1.4x.\nIf the Petrobras contract puts...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4092":"石油与天然气钻井","SDRL":"SeaDrill Ltd","BK4190":"消闲用品","PII":"北极星"},"translate_title":"巴西国家石油公司延长西北极星合同后Seadrill(SDRL)估值一览","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SDRL":1.5,"PII":1.5},"content_text":"Seadrill (SDRL) is back in focus after announcing a 1,095 day contract extension for its West Polaris ultra deepwater drillship with Petrobras, adding about US$480 million to its contract backlog. See our latest analysis for Seadrill. Despite a 4.6% decline in the 1 day share price and a 5.3% 7 day share price pullback to US$46.01, Seadrill still shows a 7.3% 30 day and 30.4% 90 day share price return, alongside a 1 year total shareholder return of about 1.4x. If the Petrobras contract puts offshore drilling on your radar, it could be worth scanning other energy related names with emerging themes such as 93 nuclear energy infrastructure stocks. With Seadrill shares pulling back in the short term but still sitting on strong recent gains, the key question is whether current earnings and contract visibility justify today’s US$46 price or if markets already reflect future growth. AdvertisementMost Popular Narrative: 39% Undervalued The most followed narrative sets Seadrill’s fair value at about $75.41 per share versus the last close at $46.01, framing the Petrobras extension within a much bigger backlog and earnings story.  The convergence of global energy security priorities and a shift by key customers from onshore to offshore, with projected deepwater spending growth well above recent levels, positions Seadrill to unlock record contract backlogs and sustained cash flow generation.  Read the complete narrative. Curious what earnings path has to play out for that fair value to stack up? The narrative leans on faster top line growth, wider margins, and a richer future profit multiple than the broader energy services group. The full story connects those assumptions directly to Seadrill’s contract wins and fleet profile. Result: Fair Value of $75.41 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this upbeat story still hinges on offshore oil demand holding up, as well as on Seadrill managing legal, leverage and aging fleet risks that could pressure margins and earnings. Find out about the key risks to this Seadrill narrative. Another Take From Market Pricing The narrative points to Seadrill trading well below fair value, yet the current P/S ratio of 2.1x is higher than the US Energy Services industry at 1.3x and above the 1.5x peer average. It is also sitting above a fair ratio of 1.1x. Is the market already baking in a lot of optimism here, or is it misreading the story? See what the numbers say about this price — find out in our valuation breakdown. NYSE:SDRL P/S Ratio as at Apr 2026Next Steps If this mix of optimism and caution feels familiar, treat it as your cue to check the numbers yourself. Move quickly while sentiment is fresh, then weigh those signals against the 2 key rewards. Looking for more investment ideas? If Seadrill has your attention, do not stop here. Use this momentum to scan other opportunities that fit your style before the crowd catches on.  Spot potential value opportunities early by reviewing companies filtered as 57 high quality undervalued stocks that may warrant a closer look on your watchlist. Prioritise resilience by checking out 74 resilient stocks with low risk scores that score well on risk factors and may suit a steadier approach to market exposure. Hunt for lesser known opportunities by scanning the screener containing 23 high quality undiscovered gems that combine stronger fundamentals with lower market attention today.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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