Core Viewpoint - Seadrill Limited has secured a one-year extension for the ultra-deepwater drillship West Saturn, adding $114 million to its contract backlog and extending the contract through October 2027 [1]. Group 1: Contract Details - Equinor Brasil Energia Ltda has exercised a priced option for the West Saturn drillship, which originally commenced in 2022 [1]. - The contract extension marks the continuation of the agreement into a sixth consecutive year [1]. Group 2: Financial Impact - The exercised option contributes an additional $114 million to Seadrill's contract backlog [1].

Seadrill (SDRL) shares soared 8.9% in the last trading session to close at $38.16. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.8% gain over the past four weeks.Seadrill’s share price surged yesterday, primarily due to the company's announcement of multiple new offshore drilling contracts totaling approximately $235 million. These contracts bolstered its revenue backlog and enhanced earnings visibility into 2026–2027. Key aw ...

HAMILTON, Bermuda--(BUSINESS WIRE)--Seadrill Announces Multiple Contract Awards. ...

Core Insights - Seadrill Limited (SDRL) has secured multiple contracts for its drillships, enhancing its backlog and customer relationships [1][9] Contract Details - The West Neptune drillship has a four-month contract with LLOG Exploration in the Gulf of America, adding approximately $48 million to Seadrill's backlog [2] - The Sevan Louisiana drillship has been contracted for two months by an undisclosed operator in the Gulf of America, marking the first deployment of Trendsetter's well-intervention equipment in the region [3] - The Sonangol Quenguela drillship in Angola has had its operations extended by five months, allowing it to remain active until February 2027 [4] Operational Strategy - Seadrill's ability to secure contracts in direct continuation of existing ones helps avoid idle time between contracts, thereby building a strong contract backlog into 2027 and ensuring future revenue visibility [5]

Core Insights - The article discusses the performance and investment strategies of a research team that has achieved significant returns in various market conditions, particularly in the energy, shipping, and offshore sectors [1]. Company Insights - Seadrill Limited (SDRL) is highlighted as a company of interest, with the article serving as an update to previous analyses [2]. - The analyst has a historical focus on technology stocks but has expanded coverage to include the offshore drilling and supply industry, as well as the shipping industry [3]. Industry Insights - The research team claims an annualized return of almost 40% over the past decade, with a long-only model portfolio return exceeding 23 times [1]. - The article emphasizes the importance of steady dividend payouts for lower-risk investment options within the energy and shipping sectors [1].

Core Insights - The article emphasizes the strong performance of the analyst team, highlighting a 10-year track record that demonstrates the ability to outperform across various market conditions with an annualized return of almost 40% and a long-only model portfolio return of over 23x [1]. Company Insights - Seadrill Limited (SDRL) is mentioned as a company that has been previously covered, indicating ongoing interest and updates regarding its performance and market position [2]. Industry Insights - The focus of the analysis has expanded beyond tech stocks to include the offshore drilling and supply industry, as well as the shipping industry, which encompasses tankers, containers, and dry bulk [3].

Core Insights - Seadrill Limited (NYSE:SDRL) experienced a significant share price decline of 10.58% from November 3 to November 10, 2025, ranking among the energy stocks that lost the most during that week [1][2] Financial Performance - In Q3 2025, Seadrill reported an adjusted EPS of -$0.14, which was $0.48 below forecasts, indicating weaker-than-expected earnings performance [3] - The company generated $363 million in revenue for the quarter, exceeding expectations by over $19 million, showcasing strong revenue generation despite the loss [3] - Seadrill reported a net loss of $11 million, attributed mainly to a higher number of idle rigs than anticipated [3] Contract Awards and Market Position - Seadrill secured $300 million in new contract awards across five rigs, including a significant joint venture in Angola, reinforcing its status as a leading operator in the region [4] - Following the Q3 results, Barclays adjusted its price target for Seadrill from $33 to $32 while maintaining an 'Equal Weight' rating on the shares [4]

Financial Data and Key Metrics Changes - Total operating revenues for Q3 2025 were $363 million, a sequential decrease of $14 million [21] - Contract drilling revenues declined by $8 million to $280 million due to fewer operating days for West Vela and Savannah, Louisiana [21] - Adjusted EBITDA was $86 million, a sequential decrease of $20 million from the prior quarter [22] - Total cash increased by $9 million to $428 million, including $26 million of restricted cash [22] Business Line Data and Key Metrics Changes - The management contract revenues decreased by $2 million to $63 million, influenced by a prior quarter catch-up for inflationary increases [21] - Reimbursable revenues decreased by $5 million to $11 million, offset by a corresponding decrease in reimbursable expenses [21] - The West Vela and Savannah, Louisiana secured new contracts, adding a combined firm term of 195 days [7][16] Market Data and Key Metrics Changes - The company added over $300 million to its backlog, bringing the total contracted backlog to approximately $2.5 billion [14] - The U.S. Gulf market showed resilience with new contracts secured, while there are expectations of potential weakness in West Africa and Brazil [27][29] - The International Energy Agency reported that nearly 90% of upstream investment since 2019 has gone towards offsetting production declines rather than adding new capacity [17] Company Strategy and Development Direction - The company aims to build backlog coverage through 2026 and minimize exposure to contract gaps [24] - A collaborative approach with customers and operational excellence are key strategies to maintain competitive edge [5] - The company is strategically positioned to capture value from the renewed focus on offshore resources amid a decade of underinvestment [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a market recovery, with signs of increased contracting momentum and global tendering activity [17] - The company highlighted the need for renewed investment in offshore drilling to meet future energy demand [12] - Management noted that the offshore industry is at an inflection point, with a shift in capital allocation towards offshore drilling [20] Other Important Information - The company has maintained a robust balance sheet with total liquidity of approximately $600 million [22] - The West Gemini is expected to commence a well-based contract in the next few months after completing its special periodic survey [6] Q&A Session Summary Question: What are the leading-edge day rates in the Golden Triangle? - Management indicated that day rates in the U.S. Gulf are resilient, while there may be some weakness in West Africa and Brazil [27][29] Question: What is the medium to long-term outlook for Asia? - Management highlighted optimism in India, Malaysia, and Indonesia, with various operators showing interest [31] Question: What are the current thoughts on potential downtime for the Capella and Carina rigs? - Management expressed confidence in minimizing exposure to downtime, with ongoing efforts to secure contracts [37][39] Question: How are conversations with Petrobras regarding cost reductions progressing? - Management noted early discussions with Petrobras, focusing on mutual benefits and potential blend and extend contracts [51][52] Question: How is economic utilization trending? - Management acknowledged a slip in economic utilization but emphasized that most rigs performed well, with a technical uptime of 97.6% excluding one incident [53][54]

Fleet Status Overview - The report is a Fleet Status Report from Seadrill Limited, dated November 5, 2025[1] - The report contains forward-looking statements and is subject to risks and uncertainties that could cause actual results to differ materially[2, 3, 4] Active Rigs - Seadrill has 13 active rigs across various locations including S E Asia, Brazil, U S Gulf, Norway and Angola[7] - 6 rigs are located in Brazil, 3 in the U S Gulf, 3 in Angola, 1 in S E Asia and 1 in Norway[7] Contract Details - West Auriga has a contract with Petrobras in Brazil until December 2027, with a total contract value at signing of approximately $577 million, including mobilization and additional services[9] - West Carina has a contract with Petrobras in Brazil until January 2026[9] - West Jupiter has a contract with Petrobras in Brazil from April 2026 to April 2029, with a total contract value at signing of approximately $525 million, including mobilization and additional services[9] - West Polaris has a contract with Petrobras in Brazil until January 2028, with a total contract value at signing of approximately $518 million, including mobilization and additional services[9] - West Tellus has a contract with Petrobras in Brazil until February/April 2026, with a total contract value at signing of approximately $539 million, including mobilization and additional services, and another contract from June 2026 to June 2029[9] - West Neptune has a contract with LLOG in the U S Gulf until November 2025/May 2026, with a total contract value at signing of approximately $86 million, excluding additional services, for an approximate 180-day duration[9] - West Vela has a contract with Walter Oil & Gas in the U S Gulf from March 2026 to May/June 2026, with a total contract value at signing of approximately $26 million, excluding MPD[9] - West Elara has a contract with ConocoPhillips in Norway until March 2028, but a notice of suspension has been received for the period from late Q3 2026 to late Q4 2027[10]

Financial Performance - Operating revenues for the three months ended September 30, 2025, were $363 million, a 3% increase from $354 million in the same period of 2024[97]. - The net loss for the three months ended September 30, 2025, was $11 million, compared to a net income of $32 million in the same period of 2024, marking a 134% decline[97]. - Operating revenues for the nine months ended September 30, 2025, decreased by $21 million, or 2%, to $1,075 million compared to $1,096 million in the same period of 2024[130]. - Contract revenues increased by $11 million, or 1%, to $816 million for the nine months ended September 30, 2025, driven by higher average contractual dayrates[131][135]. Contract and Backlog Information - As of September 30, 2025, the total contract backlog was $2,511 million, down from $3,180 million as of December 31, 2024, representing a decrease of approximately 21%[87]. - Contract revenues for the three months ended September 30, 2025, included $280 million from drilling contracts, an increase of $17 million from $263 million in Q3 2024[99]. - The contract backlog is expected to be realized over the following periods: $335 million in 2025, $1,013 million in 2026, $707 million in 2027, and $456 million thereafter[88]. Operational Metrics - The average contractual dayrate increased to $330 thousand in Q3 2025 from $304 thousand in Q3 2024, contributing to a $22 million increase in contract revenues[105]. - Economic utilization for rigs on contract was 91% for Q3 2025, down from 95% in Q3 2024, resulting in an $11 million decrease in contract revenues[108]. - The average Brent oil price was $70 per barrel for the nine months ended September 30, 2025, down from $80 per barrel in 2024, reflecting downward pressure on prices due to increased production and slower demand growth[90][92]. Expenses and Costs - Total operating expenses increased by $30 million, or 10%, to $337 million for the three months ended September 30, 2025, compared to $307 million in the same period of 2024[116]. - Vessel and rig operating expenses rose by $19 million, or 11%, to $191 million for the three months ended September 30, 2025, primarily due to increased activity in Brazil[116][118]. - Depreciation and amortization increased by $16 million, or 38%, to $58 million for the three months ended September 30, 2025, mainly due to capital projects related to the West Auriga and West Polaris[116][119]. - Total operating expenses for the nine months ended September 30, 2025, increased by $125 million, or 14%, to $1,025 million compared to $900 million in the same period of 2024[144]. - Management contract expenses rose by $63 million, or 51%, to $187 million for the nine months ended September 30, 2025, primarily due to higher management fees[144]. Debt and Liquidity - As of September 30, 2025, available liquidity was $587 million, consisting of $402 million in unrestricted cash and $185 million in available borrowings[169]. - Total debt as of September 30, 2025, was $625 million, including a $575 million secured bond and a $50 million unsecured senior convertible bond[177]. - The Company entered into a $225 million, 5-year Senior Secured Revolving Credit Agreement, secured by first priority liens on substantially all of its rigs and related assets[178]. - As of September 30, 2025, the available borrowings under the Revolving Credit Facility were reduced to $185 million due to a NOK403 million guarantee issued[179]. Compliance and Financial Covenants - The Credit Agreement requires an Interest Coverage Ratio of not less than 2.50 to 1.00 and a Consolidated Total Net Leverage Ratio of not greater than 3.00 to 1.00 as of the last day of each fiscal quarter[187]. - As of September 30, 2025, the Company was in compliance with all financial covenants outlined in the Credit Agreement[183]. Market Outlook - The company anticipates a market recovery in 2027, despite a projected decrease in utilization and increased competition in 2025[93]. Accounting and Risk Management - The Company has made critical accounting estimates that may affect reported amounts of assets, liabilities, revenues, and expenses[184]. - The Company is exposed to market risks, including foreign exchange risk and interest rate risk, and employs strategies to mitigate these risks[186]. - There have been no material changes to the judgments, assumptions, and estimates upon which the Company's critical accounting policies are based as of September 30, 2025[185].