Seadrill Announces Third Quarter 2026 Results

HAMILTON, Bermuda--(BUSINESS WIRE)--$SDRL #Seadrill--Seadrill Limited (“Seadrill” or the “Company”) (NYSE: SDRL) today announced its third quarter 2026 results. Highlights Secured contract awards and extensions in Indonesia, Malaysia, Angola, and the U.S. Gulf, adding approximately $800 million of Total Contract Value(1) subsequent to the August fleet status report. Generated $195 million of Net cash provided by operating activities, $179 million of Free Cash Flow(2), and repurchased approximately $22 million of shares in the third quarter. Reported Net loss of $30 million, which includes the impact of a legal provision booked in the third quarter, and Adjusted EBITDA(2) of $121 million. Increased and narrowed full year 2026 Total operating revenues and Adjusted EBITDA(3) guidance ranges as follows: Total operating revenues range increased to $1.56 - $1.58 billion, excluding $90 million of Reimbursable revenues (previously $1.50 - $1.55 billion, excluding $50 million of Reimbursable revenues); Adjusted EBITDA(3) range increased to $440 - $460 million (previously $420 - $450 million); Capital Expenditure and Long-Term Maintenance range narrowed to $210 - $230 million (previously $200 - $240 million). Financial Highlights Figures in USD million, unless otherwise indicated Three months ended September 30, 2026 Three months ended June 30, 2026 Total operating revenues 428 449 Contract revenues 329 355 Net (loss)/income (30 ) 29 Adjusted EBITDA 121 144 Adjusted EBITDA margin excluding Reimbursables(2) 29.7 % 33.5 % Diluted (loss)/earnings per share ($) (0.49 ) 0.47 “Seadrill generated $179 million of Free Cash Flow in the third quarter, delivering on our commitment to convert backlog into cash. Over 85% of available drillship days are now contracted in 2027, further enhancing visibility into next year’s earnings and cash flow,” said Samir Ali, President and Chief Executive Officer. “The West Carina award secures the third and final repricing of three legacy contracts, with the improved dayrate effective in 2027. A healthy tender pipeline and growing deepwater demand reinforce our confidence in the market outlook, positioning Seadrill to build on these commercial achievements and capture further upside.” Financial and Operational Results Third quarter 2026 Total operating revenues decreased to $428 million, compared to $449 million in the prior quarter, primarily driven by fewer operating days for the West Carina, which completed its contract in the second quarter, and time between contracts for the West Vela, West Elara, and Sevan Louisiana. This decrease was partially offset by an increase in operating days for the West Tellus, which commenced its long-term contract in June. Total operating expenses increased by $7 million to $384 million, compared to $377 million in the prior quarter. Adjusted EBITDA decreased to $121 million, compared to $144 million in the prior quarter. Balance Sheet and Cash Flow At quarter-end, Seadrill had gross principal debt of $750 million and $506 million in cash, cash equivalents, and restricted cash, resulting in a net debt position of $244 million. Third quarter 2026 cash benefited from the receipt of lump-sum mobilization revenue relating to the West Tellus and a working capital release. Capital additions and long-term maintenance totaled $56 million. Commercial Activity Subsequent to the August fleet status report, Seadrill has secured contract awards and extensions with a Total Contract Value of approximately $800 million. In Indonesia, the West Carina was awarded a contract with an undisclosed operator, with a Total Contract Value of approximately $420 million for the firm term. The contract has an estimated firm duration of 880 days, with priced options for up to an additional 880 days. The program is expected to commence in the first half of 2027. In Malaysia, all remaining priced options have been exercised for the West Capella, extending current operations by 120 days and adding approximately $41 million in Total Contract Value, excluding additional services. Unpriced options have also been exercised for a further 120 days, adding approximately $53 million in Total Contract Value. The West Capella is now expected to work in direct continuation through February 2028. In Angola, Sonadrill Holding Ltd (“Sonadrill”), Seadrill’s 50:50 joint venture with an affiliate of Sonangol E.P. (“Sonangol”), has been awarded a contract extension. All remaining priced options have been exercised for the Sonangol Libongos, extending current operations by approximately three years and committing the rig into 2030. In the U.S. Gulf, the Sevan Louisiana was awarded a 25-day contract with Kosmos, commencing in November 2026, followed by an approximate 60-day contract with LLOG, securing the rig into 2027. As of November 3, 2026, Seadrill’s Contract Backlog(4) was approximately $3.3 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 Wednesday, November 4, 2026 at 08:00 CT / 15:00 CET. Interested participants may join the call by dialing +1 (833) 461-5787 (Conference ID: 184 972 661) 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) Total Contract Value is calculated as the contractual operating dayrate multiplied by the number of days in the firm contract period, plus contractual revenues for mobilization and demobilization, as well as management contract revenues, excluding revenues from additional services. (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 guidance for Adjusted EBITDA, a non-GAAP measure, management cannot reliably predict certain of the necessary components of the most directly comparable forward-looking GAAP measure, net (loss)/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) Contract Backlog stated as of November 3, 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. 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 Third Quarter 2026 Results

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