Seadrill Announces Second Quarter 2026 Results

HAMILTON, Bermuda--(BUSINESS WIRE)--$SDRL--Seadrill Limited (“Seadrill” or the “Company”) (NYSE: SDRL) today announced its second quarter 2026 results. Highlights Secured contract awards and extensions in the U.S. Gulf and Malaysia, adding approximately $200 million to Contract Backlog(1) subsequent to the May fleet status report. Extended the Company's share repurchase program through December 31, 2026, and repurchased approximately $20 million of shares in the second quarter. Refinanced prior senior notes due in 2030, extending maturity into 2034 and increased the revolving credit facility to $300 million from $225 million, extending maturity to 2031. Reported net income of $29 million and Adjusted EBITDA(2) of $144 million. Increased full year 2026 Total operating revenues and Adjusted EBITDA(3) guidance ranges as follows: Total operating revenues range increased to $1.50 - $1.55 billion (previously $1.43 - $1.48 billion), excluding $50 million of reimbursable revenues; Adjusted EBITDA range increased to $420 - $450 million (previously $370 - $420 million); Capital Expenditure and Long-Term Maintenance range maintained at $200 - $240 million. Financial Highlights Figures in USD million, unless otherwise indicated Three months ended June 30, 2026 Three months ended March 31, 2026 Total operating revenues 449 358 Contract revenues 355 277 Net income/(loss) 29 (7 ) Adjusted EBITDA 144 97 Adjusted EBITDA margin excluding Reimbursables(2) 33.5 % 27.9 % Diluted earnings/(loss) per share ($) 0.47 (0.11 ) “Seadrill’s second quarter performance reflects strong operational, commercial and financial execution, with momentum building across the business. We achieved 96% Economic utilization(4), meaningfully enhanced our contract coverage in the U.S. Gulf and increased our full-year revenue and EBITDA guidance,” said Samir Ali, President and Chief Executive Officer. “Demand for our high specification fleet continues to strengthen and contract coverage is improving as we enter a period where our strategic decisions are enabling us to capture the upside in the market.” Financial and Operational Results Second quarter 2026 Total operating revenues increased to $449 million, compared to $358 million in the prior quarter, primarily driven by more operating days for the West Jupiter and West Capella and an improved average dayrate across the fleet, partially offset by fewer operating days for the West Tellus. Total operating expenses increased by $43 million to $377 million, compared to $334 million in the prior quarter, primarily reflecting higher operating activity for the West Jupiter and West Capella. Net income for the second quarter was $29 million, while Adjusted EBITDA increased to $144 million, compared to $97 million in the prior quarter. Balance Sheet and Cash Flow At quarter-end, Seadrill had gross principal debt of $750 million and $360 million in cash, cash equivalents and restricted cash, resulting in a net debt position of $390 million. Second quarter 2026 cash inflows from the refinancing and lump-sum mobilization revenue were partially offset by an increase in accounts receivable, primarily related to the commencement of the West Jupiter and the West Capella contracts, and the timing of collections across the remainder of the fleet. Cash outflows included contract preparation costs for the West Tellus, ahead of the lump-sum mobilization revenue expected in the third quarter, as well as a $20 million accelerated interest expense payment relating to the redemption of our prior senior notes, a $16 million final payment for a legacy legal judgment relating to the Sonadrill joint venture, and share repurchases. Capital additions and long-term maintenance totaled $57 million. Commercial Activity and Contract Backlog West Vela was awarded a one-year contract in the U.S. Gulf, commencing in June 2027 and adding approximately $161 million to Contract Backlog, excluding additional services. West Capella secured a contract extension in Malaysia. The additional term is for an estimated 75 days and adds approximately $26 million to Contract Backlog, excluding additional services, committing the rig into August 2027. Sevan Louisiana added approximately 45 days in direct continuation of its prior program, committing the rig in the U.S. Gulf into August 2026. As of August 10, 2026, Seadrill’s Contract Backlog was approximately $2.9 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, August 10, 2026 at 08:00 CT / 15:00 CET. Interested participants may join the call by dialing +1 (833) 461-5787 (Conference ID: 296 907 442) 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 stated as of August 10, 2026, and 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, as well as the actual amount of Adjusted EBITDA we eventually report for the period. (4) 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 StatementsRead the full story here

Seadrill Announces Second Quarter 2026 Results

Şirketle ilgili diğer haberler