HAMILTON, Bermuda--(BUSINESS WIRE)--May 11, 2026--
Seadrill Limited ("Seadrill" or the "Company") $(SDRL)$ today announced its first quarter 2026 results.
Highlights
-- Secured multiple contract awards across the U.S. Gulf, Brazil and
Angola, adding over $860 million to Contract Backlog(1) since the
February fleet status report. Contract Backlog now stands at $3.1
billion.
-- West Capella and West Jupiter projects completed ahead of schedule and
on budget.
-- Reported a net loss of $7 million and Adjusted EBITDA(2) of $97
million.
-- Increased full year 2026 Total operating revenues and Adjusted
EBITDA(3) guidance ranges as follows: Total operating revenues range
increased to $1.43 - $1.48 billion (previously $1.40 - $1.45 billion),
excluding $50 million of reimbursable revenues, Adjusted EBITDA range
increased to $370 - $420 million (previously $350 - $400 million).
Capital Expenditure and Long-Term Maintenance range maintained at $200 -
$240 million.
Financial Highlights
Figures in USD
million, unless
otherwise Three months ended March 31, Three months ended December
indicated 2026 31, 2025
---------------------------- -----------------------------
Total operating
revenues 358 362
Contract revenues 277 273
Net loss (7) (10)
Adjusted EBITDA 97 88
Adjusted EBITDA
margin excluding
Reimbursables(2) 27.9% 25.4%
Diluted loss per
share ($) (0.11) (0.16)
"Seadrill delivered a solid quarter financially and operationally, including the completion of two major projects ahead of schedule and on budget. These achievements, together with recent commercial success, enhance visibility toward higher earnings and Free Cash Flow(4) in the second half of 2026 and into 2027," said President and CEO Samir Ali. "Increasing demand for deepwater rigs is supported by multiple customers across multiple regions, and with a renewed global focus on energy security, we see growing tailwinds into 2027 to drive positive dayrate momentum."
Financial and Operational Results
First quarter 2026 Total operating revenues decreased to $358 million, compared to $362 million in the prior quarter. The decrease was largely attributable to fewer operating days and lower reimbursable revenues, partially offset by increases in fleet-wide Economic utilization(5) and average contractual dayrates. First quarter 2026 Total operating expenses decreased by $10 million to $334 million, compared to $344 million in the prior quarter, primarily driven by the capitalization of expenses related to the West Jupiter's first quarter contract preparations.
Net loss for the first quarter was $7 million. Adjusted EBITDA was $97 million, compared to $88 million in the prior quarter.
Balance Sheet and Cash Flow
At quarter-end, Seadrill had gross principal debt of $625 million and $329 million in cash, cash equivalents and restricted cash, for a net debt position of $296 million. The use of cash during the first quarter of 2026 included $51 million for capital additions and long-term maintenance, and was impacted by payments for contract preparation activities for West Jupiter and West Capella as well as timing of working capital. Both rigs successfully commenced operations late in the first quarter of 2026, with mobilization revenue relating to West Jupiter and West Capella due to be collected in the second quarter of 2026.
Commercial Activity and Contract Backlog
-- West Polaris was awarded a three-year contract extension with Petrobras in Brazil, commencing in January 2028 and adding approximately $480 million to Contract Backlog. -- West Neptune and West Vela both secured work in the U.S. Gulf with LLOG, a subsidiary of Harbour Energy, adding $260 million to Contract Backlog. West Neptune was awarded a 365 day contract extension, with operations scheduled to commence in October 2026, and West Vela was awarded a program with a duration of 270 days, with an expected commencement in September 2026. -- Sonangol Quenguela secured a contract extension with TotalEnergies in Angola. The additional term is for an estimated 480 days, committing the rig into July 2028. -- West Carina extended its current contract in Brazil into June 2026.
As of May 11, 2026, Seadrill's Contract Backlog was approximately $3.1 billion. The Company has provided an updated fleet status report on the Investor Relations section of its website, www.seadrill.com.
Conference Call Information
The Company will host a conference call to discuss its results on Monday, May 11, 2026 at 08:00 CT / 15:00 CET. Interested participants may join the call by dialing +1 (800) 715-9871 (Conference ID: 2874047) at least 15 minutes prior to the scheduled start time. The Company will webcast the call live on the Investor Relations section of its website, where a replay will be available afterwards.
(1) Contract Backlog includes all firm contracts at the contractual operating dayrate multiplied by the number of days remaining in the firm contract period. It includes management contract revenues and leasing revenues from bareboat charter arrangements and excludes revenues for mobilization, demobilization, contract preparation, and other incentive provisions and backlog relating to non-consolidated entities. (2) These are non-GAAP measures. For a definition and a reconciliation to the most comparable GAAP measure, see Appendices. (3) Due to the forward-looking nature of Adjusted EBITDA, management cannot reliably predict certain of the necessary components of the most directly comparable forward-looking GAAP measure, net income. Accordingly, the Company is unable to present a quantitative reconciliation of such forward-looking non-GAAP financial measure to the most directly comparable forward-looking GAAP financial measure without unreasonable effort. The unavailable information could have a significant effect on the Company's full year 2026 GAAP financial results. (4) Free Cash Flow is a non-GAAP measure, calculated as Net cash (used in)/provided by operating activities less Additions to drilling units and equipment. (5) Economic utilization is defined as dayrate revenue earned during the period, excluding bonuses, divided by the contractual operating dayrate, multiplied by the number of days on contract in the period. If a drilling unit earns its full operating dayrate throughout a reporting period, its economic utilization would be 100%. However, there are many situations that give rise to a dayrate being earned that is less than the contractual operating rate, such as planned downtime for maintenance. In such situations, economic utilization reduces below 100%.
About Seadrill
Seadrill is setting the standard in deepwater oil and gas drilling. With its modern fleet, experienced crews, and advanced technologies, Seadrill safely, efficiently, and responsibly unlocks oil and gas resources for national, integrated, and independent oil companies. For further information, visit www.seadrill.com.
Forward-Looking Statements
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this news release, including, without limitation, those regarding the Company's outlook and guidance, plans, strategies, business prospects, contract awards, financial performance, operations, litigation, rig activity and changes and trends in its business and the markets in which it operates, are forward-looking statements. These forward-looking statements can often, but not necessarily, be identified by the use of forward-looking terminology, including the terms "assumes", "projects", "forecasts", "estimates", "expects", "anticipates", "believes", "plans", "intends", "may", "might", "will", "would", "can", "could", "should" or, in each case, their negative, or other variations or comparable terminology. These statements are based on management's current plans, expectations, assumptions and beliefs concerning future events impacting the Company and therefore involve a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: those described under Part I, Item 1A, "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, filed with the United States ("U.S.") Securities and Exchange Commission (the "SEC") on February 26, 2026, offshore drilling market conditions including supply and demand, dayrates, customer drilling programs and effects of new or reactivated rigs on the market, contract awards and rig mobilizations, contract backlog, dry-docking and other costs of maintenance, special periodic surveys, upgrades and regulatory work for the drilling units in the Company's fleet, the performance of the drilling units in the Company's fleet, delay in payment or disputes with customers, the Company's ability to successfully employ its drilling units, procure or have access to financing, ability to comply with loan covenants, fluctuations in the international price of oil, international financial market conditions, U.S. trade policy and tariffs and worldwide reactions thereto, inflation, changes in governmental regulations that affect the Company or the operations of
the Company's fleet, increased competition in the offshore drilling industry, the review of competition authorities, the impact of global economic conditions and global health threats, pandemics and epidemics, our ability to maintain relationships with suppliers, customers, employees and other third parties, our ability to maintain adequate financing to support our business plans, our ability to successfully complete and realize the intended benefits of any mergers, acquisitions and divestitures, and the impact of other strategic transactions, our liquidity and the adequacy of cash flows to satisfy our obligations, future activity under and in respect of the Company's share repurchase program, our ability to satisfy (or timely cure any noncompliance with) the continued listing requirements of the New York Stock Exchange, the cancellation of drilling contracts currently included in reported contract backlog, losses on impairment of long-lived fixed assets, shipyard, construction and other delays, the results of meetings of our shareholders, political and other uncertainties, including those related to the conflicts in Ukraine and the Middle East (including the current conflict in Iran), and any related sanctions, the effect and results of litigation, regulatory matters, settlements, audits, assessments and contingencies, including any litigation related to acquisitions or dispositions, the concentration of our revenues in certain geographical jurisdictions, limitations on insurance coverage, our ability to attract and retain skilled personnel on commercially reasonable terms, the level of expected capital expenditures, our expected financing of such capital expenditures and the timing and cost of completion of capital projects, fluctuations in interest rates or exchange rates and currency devaluations relating to foreign or U.S. monetary policy, tax matters, changes in tax laws, treaties and regulations, tax assessments and liabilities for tax issues, legal and regulatory matters in the jurisdictions in which we operate, customs and environmental matters, the potential impacts on our business resulting from decarbonization and emissions legislation and regulations, the impact on our business from climate change generally, the occurrence of cybersecurity incidents, attacks or other breaches to our information technology systems, including our rig operating systems, and other important factors described from time to time in the reports filed or furnished by us with the SEC.
The foregoing risks and uncertainties are inherently subject to significant business, economic, competitive, regulatory and other risks and uncertainties, many of which are difficult to predict and beyond our control. In many cases, we cannot predict the risks and uncertainties that could cause our actual results to differ materially from those indicated by the forward-looking statements. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. All subsequent written and oral forward-looking statements attributable to us or to any person(s) acting on our behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement. We expressly disclaim any obligations or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in our expectations or beliefs with regard to the statement or any change in events, conditions or circumstances on which any forward-looking statement is based, except as required by securities laws.
Investors should note that we announce material financial information in SEC filings, press releases and public conference calls. Based on guidance from the SEC, we may use the Investors section of our website (www.seadrill.com) to communicate with investors, and we intend to post presentations and fleet status reports there, among other things. It is possible that the financial and other information posted there could be deemed to be material information. The information on our website is not part of, and is not incorporated into, this news release. Furthermore, references to our website URLs are intended to be inactive textual references only.
SEADRILL LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended March 31,
----------------------------------
(In $ millions, except per share
data) 2026 2025
----------------- ---------------
Operating revenues
Contract revenues 277 248
Reimbursable revenues (1) 10 15
Management contract revenues (1) 63 61
Leasing revenues (1) 8 8
Other revenues -- 3
------------ --- -----------
Total operating revenues 358 335
------------ --- -----------
Operating expenses
Vessel and rig operating expenses (181) (179)
Reimbursable expenses (10) (15)
Depreciation and amortization (71) (55)
Management contract expenses (46) (45)
Selling, general and
administrative expenses (25) (23)
Merger and integration related
expenses (1) --
------------ -----------
Total operating expenses (334) (317)
------------ -----------
Operating profit 24 18
Financial and other non-operating
items
Interest income 2 4
Interest expense (15) (15)
Equity in earnings of equity
method investments (net of tax) 4 8
Other financial and non-operating
items 1 (14)
------------ --- -----------
Total financial and other
non-operating items, net (8) (17)
------------ -----------
Profit before income taxes 16 1
Income tax expense (23) (15)
------------ -----------
Net loss (7) (14)
------------ -----------
Basic LPS ($) (0.11) (0.23)
Diluted LPS ($) (0.11) (0.23)
(1) Includes revenue from related parties of $75 million and $79 million,
for the three months ended March 31, 2026, and March 31, 2025,
respectively.
SEADRILL LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31, December 31,
(In $ millions, except share data) 2026 2025
--------- -------------
ASSETS
Current assets
Cash and cash equivalents 304 339
Restricted cash 25 26
Accounts receivables, net 214 162
Amounts due from related parties, net 7 --
Other current assets 261 231
--------- -------------
Total current assets 811 758
--------- -------------
Non-current assets
Equity method investment 62 58
Drilling units, net of accumulated depreciation of
754 as of March 31, 2026 (December 31, 2025:
682) 2,950 2,969
Deferred tax assets 29 44
Equipment 15 8
Other non-current assets 125 110
--------- -------------
Total non-current assets 3,181 3,189
--------- -------------
Total assets 3,992 3,947
--------- -------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Trade accounts payable 80 61
Other current liabilities 337 313
--------- -------------
Total current liabilities 417 374
--------- -------------
Non-current liabilities
Long-term debt 614 613
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