Key Takeaways SDRL won new Gulf of America contracts for West Vela and Sevan Louisiana drillships.West Vela to drill two wells for Talos Energy starting in November 2025.Sevan Louisiana, on a three-well project for Murphy Oil from August to November 2025.Seadrill Limited (SDRL) , an offshore drilling contractor, has secured new drilling contracts for two of its drillships, namely West Vela and Sevan Louisiana, in the Gulf of America. The offshore driller secured a two-well contract with Talos Energy (TALO) ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __ to __ Commission file number: 001-39327 SEADRILL LIMITED | (Exact name of Registrant as specified in its charter) | | | --- | --- | | Bermuda | 98-1834031 | | (State o ...

Seadrill (SDRL) Q2 2025 Earnings Call August 07, 2025 09:00 AM ET Speaker0My name is Gil, and I will be your conference operator today. At this time, I would like to welcome everyone to the Seadrill Second Quarter twenty twenty five Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. It is now my pleasure to turn today's call over to Mr.Kevin Smith, Vice President of Corporate Finance and Investor Relati ...

Fleet Status Report August 6, 2025 This Fleet Status Report ("Report") includes forward-looking statements within the meaning of U.S. federal securities laws. All statements other than statements of historical facts included in this Report, including, without limitation, those regarding Seadrill Limited's (the "Company") plans, business prospects, financial performance, operations and rig activity, including with respect to contract awards, values, commencements, durations, extensions and options and planne ...

Exhibit 99.1 Seadrill Announces Second Quarter 2025 Results Hamilton, Bermuda, August 6, 2025 - Seadrill Limited ("Seadrill" or the "Company") (NYSE: SDRL) today announced its second quarter 2025 results. Quarterly Highlights Financial Highlights | Figures in USD million, unless otherwise indicated | Three months ended June | Three months ended | | --- | --- | --- | | | 30, 2025 | March 31, 2025 | | Total operating revenues | 377 | 335 | | Contract revenues | 288 | 248 | | Net loss | (42) | (14) | | (1) Adj ...

Contract Status Overview - The report provides an overview of Seadrill Limited's fleet contract status as of May 12, 2025 [1] - The fleet includes drillships, benign semi-submersibles, and harsh environment rigs [9, 10] - The report contains forward-looking statements subject to risks and uncertainties [2, 3] Drillship and Semi-Submersible Contracts - West Auriga has a contract with Petrobras in Brazil, with a total contract value at signing of approximately $577 million, including mobilization and additional services [9] - West Carina is contracted with Petrobras in Brazil at a dayrate of $252,600 [9] - West Jupiter has a contract with Petrobras in Brazil, 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, 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, with a total contract value at signing of approximately $539 million, including mobilization and additional services [10] - West Neptune has a contract with LLOG in the U.S Gulf, with a total contract value of approximately $86 million, excluding additional services, for an approximate 180-day duration [9] - West Gemini is contracted with TotalEnergies in Angola at a dayrate of $404,800 [9] Harsh Environment Rigs - West Elara is contracted with ConocoPhillips in Norway until March 2028 at a market-indexed rate [10]

Financial Performance - Operating revenues for the three months ended March 31, 2025, were $335 million, down 9% from $367 million in the same period of 2024 [91]. - The total operating profit for Q1 2025 was $18 million, a significant decrease of 78% compared to $80 million in Q1 2024 [91]. - Net loss for the three months ended March 31, 2025, was $14 million, compared to a net income of $60 million in the same period of 2024, marking a 123% decline [91]. - Total operating expenses for Q1 2025 were $317 million, an increase of 5% compared to $303 million in Q1 2024 [112]. - Other financial items increased by $8 million in Q1 2025, primarily due to a provision recognized related to assets sold in 2023 [127]. - The income tax expense increased by $5 million in Q1 2025, primarily due to the recognition of a deferred tax benefit in Q1 2024 [129]. Revenue Sources - The average contractual dayrate increased to $323 thousand in Q1 2025 from $300 thousand in Q1 2024, contributing an additional $26 million to contract revenues [99]. - Economic utilization for rigs on contract dropped to 84% in Q1 2025 from 97% in Q1 2024, resulting in a $22 million decrease in contract revenues [102]. - Management contract revenues increased by $3 million in Q1 2025, driven by higher management fees on three managed rigs [107]. - Leasing revenues decreased by $3 million in Q1 2025 due to the disposal of Gulfdrill rigs in June 2024, despite higher charter rates for the West Gemini [110]. Cash Flow and Liquidity - Net cash used in operating activities was $27 million in Q1 2025, a decrease of $56 million compared to net cash provided of $29 million in Q1 2024 [141]. - Available liquidity as of March 31, 2025, was $629 million, consisting of $404 million in unrestricted cash and $225 million in available borrowings [137]. - $49 million cash used in investing activities for Q1 2025 primarily for capital expenditures on West Neptune, West Elara, and West Auriga [142]. - $119 million cash used in financing activities for Q1 2024 related to share repurchases [143]. Debt and Financing - Total debt as of March 31, 2025, is $625 million, with a carrying value of $611 million [144]. - The company entered into a $225 million, 5-year Senior Secured Revolving Credit Agreement in July 2023 [145]. - $575 million notes issued in July 2023, maturing on August 1, 2030, secured by a second priority lien [146]. - The company has $208 million remaining under the $500 million share repurchase program as of March 31, 2025 [133]. Market Conditions - The average Brent oil price for the three months ended March 31, 2025, was $76 per barrel, down from $80 per barrel in 2024 [85]. - The company is exposed to market risks, including foreign exchange and interest rate risks, with no material changes reported as of March 31, 2025 [151]. Compliance and Accounting - As of March 31, 2025, the company was in compliance with financial covenants, including an Interest Coverage Ratio of at least 2.50 to 1.00 [148][152]. - The company made critical accounting estimates affecting reported amounts of assets, liabilities, revenues, and expenses [149]. - There have been no material changes to the judgments, assumptions, and estimates upon which critical accounting policies are based as of March 31, 2025 [150]. Contract Backlog and Rig Utilization - As of March 31, 2025, the total contract backlog was $2,914 million, a decrease from $3,180 million as of December 31, 2024, representing a decline of 8.3% [80]. - The average number of rigs on contract decreased from 10 in Q1 2024 to 9 in Q1 2025, leading to a $42 million decrease in contract revenues [96]. - Vessel and rig operating expenses remained consistent at $179 million in Q1 2025, with a decrease of $33 million attributed to lower managed service agreement fees [114]. - Depreciation and amortization increased by $17 million to $55 million in Q1 2025, primarily due to capital projects on the West Auriga and West Polaris [115]. - Interest income decreased by $3 million to $4 million in Q1 2025, primarily due to a decrease in cash and cash equivalents [125].

Financial Data and Key Metrics Changes - Seadrill reported total operating revenues of $335 million for Q1 2025, an increase of $46 million from the prior quarter [24] - Adjusted EBITDA was $73 million, up from $28 million in the previous quarter [26] - Economic utilization for the quarter was 84%, impacted by downtime in three rigs in Brazil [7][8] Business Line Data and Key Metrics Changes - Contract drilling revenues increased by $44 million sequentially to $248 million due to additional operating days [24] - Total operating expenses decreased to $317 million from $323 million in the prior quarter [25] - Vessel and rig operating expenses rose by $15 million to $179 million due to additional operating days across the fleet [25] Market Data and Key Metrics Changes - Global macro uncertainty and OPEC's decision to increase supply are affecting commodity prices and client investment confidence [8][9] - The U.S. Gulf is expected to see increased competition with up to five rigs rolling off contract before year-end, exerting downward pressure on rates in 2025 [16] - Demand in Africa is projected to decline by two to four rigs in 2025 before rebounding in 2027 and beyond [18] Company Strategy and Development Direction - Seadrill focuses on high specification floaters and deepwater basins, believing that deepwater investments are compelling due to expansive reserves [11][29] - The company aims to prioritize margins and cash flow over utilization for long-term value creation [12][29] - Seadrill maintains a robust balance sheet with $430 million in cash and a backlog of $2.8 billion extending through 2028 and into 2029 [12][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future demand for deepwater drilling despite current market volatility [10][29] - Active dialogues with clients for opportunities in the second half of 2025 and 2026 are ongoing, with expectations for multiple contract awards [9][29] - The company is optimistic about the longevity of demand in Brazil, with Petrobras issuing a multiyear tender for rigs [19][20] Other Important Information - Seadrill is participating in voluntary mediation with Petrobras regarding delayed penalty notices [13] - The company has undertaken an initial review of the impact of tariffs, believing any impact is already reflected in current guidance [28] Q&A Session Summary Question: Shift in client interest towards performance-based contracts - Management noted that performance-based contracts are not new and they are open to larger performance-based contracts for the right clients [34][36] Question: Costs associated with stacking the Capella - Management indicated they are in a ramp-down mode and have not reached a long-term cold stacking rate yet [38] Question: Decision process for stacking versus keeping a rig warm - Management emphasized the importance of being decisive and disciplined about removing supply from the market when necessary [41] Question: Confidence in securing contracts for the second half of 2025 - Management expressed confidence in their contracting outlook, noting that they have not moved to cold stack certain rigs, indicating ongoing market opportunities [61] Question: Need to compete on price - Management stated that performance still matters significantly and they have historically been able to secure leading edge day rates [63][65]

Financial Data and Key Metrics Changes - Seadrill reported total operating revenues of $335 million for Q1 2025, an increase of $46 million from the prior quarter [25] - Adjusted EBITDA was $73 million, up from $28 million in the previous quarter [27] - Economic utilization for the quarter was 84%, impacted by downtime in three rigs in Brazil [7] Business Line Data and Key Metrics Changes - Contract drilling revenues increased by $44 million sequentially to $248 million due to additional operating days [25] - Vessel and rig operating expenses rose by $15 million to $179 million due to increased operating days across the fleet [26] - Management contract expenses decreased by $6 million to $45 million, largely due to timing of project spending [26] Market Data and Key Metrics Changes - Global macro uncertainty and OPEC's decision to increase supply have negatively impacted commodity prices and client investment confidence [8] - Offshore sanctioning activity is forecasted to double in 2026 and 2027 compared to 2025, with a significant portion of projects being economically viable above $50 per barrel [11] Company Strategy and Development Direction - The company aims to prioritize margins and cash flow over utilization to create long-term value for shareholders [12] - Seadrill is focused on high specification floaters and deepwater basins, maintaining a strong balance sheet and durable backlog [30] - The company is actively pursuing opportunities in the second half of 2025 and 2026, despite current market volatility [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future demand for deepwater drilling, citing the need for investment to offset depletion [9] - The company is encouraged by ongoing dialogues with clients for upcoming contract opportunities [8] - Management acknowledged the current market's volatility but remains optimistic about securing contracts for their rigs [61] Other Important Information - Seadrill closed Q1 2025 with cash of $430 million and a backlog of $2.8 billion extending through 2028 and into 2029 [12] - The company is engaged in voluntary mediation with Petrobras regarding delayed penalty notices [13] Q&A Session Summary Question: Shift in client interest towards performance-based contracts - Management noted that performance-based contracts are not new and they are open to such arrangements for the right clients and rigs [36] Question: Costs associated with stacking the Capella rig - Management indicated they are currently reducing costs while pursuing contracting opportunities and have not yet moved to cold stack the rig [38] Question: Decision process for stacking versus keeping a rig warm - Management emphasized the importance of being decisive and disciplined in removing supply from the market when necessary [41] Question: Confidence in securing contracts for the second half of 2025 - Management expressed confidence in their assets and the ongoing market dynamics, indicating they are actively pursuing opportunities [61] Question: Need to compete on price - Management stated that performance remains a key differentiator and they are not feeling pressured to lower prices significantly [63]

Financial Performance - Total operating revenues for Q1 2025 increased by $46 million to $335 million compared to $289 million in Q4 2024[3] - Contract revenues rose by $44 million to $248 million in Q1 2025, driven by increased operating days from West Auriga and West Polaris[3] - Net loss for Q1 2025 was $14 million, with an adjusted EBITDA of $73 million, up from $28 million in the previous quarter[5] - The adjusted EBITDA margin improved to 21.8% in Q1 2025 from 9.7% in Q4 2024[2] - Net loss for the three months ended March 31, 2025, was $14 million, compared to a net income of $60 million in the same period of 2024[21] - Adjusted EBITDA for the same period was $73 million, with an Adjusted EBITDA margin of 21.8%, up from 9.7% in the previous quarter[26] - Total operating revenues increased to $335 million in Q1 2025, compared to $289 million in Q4 2024[26] Cash Flow and Expenses - Free cash flow for Q1 2025 was negative $72 million, impacted by contract preparation and mobilization costs[6] - Total operating expenses decreased by $6 million to $317 million in Q1 2025, reflecting lower merger and integration costs[4] - Cash and cash equivalents at the end of Q1 2025 were $404 million, down from $478 million at the end of Q4 2024[18] - Net cash used in operating activities was $(27) million for Q1 2025, compared to $29 million provided in Q1 2024[21] - Free Cash Flow for Q1 2025 was $(72) million, a decline from $(31) million in Q4 2024[29] - Additions to drilling units and equipment amounted to $(45) million in Q1 2025, compared to $(23) million in Q4 2024[21] - Cash and cash equivalents at the end of the period were $430 million, down from $612 million at the end of Q1 2024[21] Debt and Backlog - Gross principal debt stood at $625 million as of March 31, 2025[6] - As of May 12, 2025, Seadrill's order backlog was approximately $2.8 billion[7] Operational Metrics - The average number of rigs on contract rose to 9 in Q1 2025, with average contractual dayrates increasing to $323, up from $289 in Q4 2024[27] - Economic utilization decreased to 83.9% in Q1 2025, down from 93.0% in Q4 2024[27] - The company reported a significant increase in depreciation and amortization expenses, rising to $55 million in Q1 2025 from $38 million in Q1 2024[21] Guidance - For the full year 2025, Seadrill maintains guidance for total operating revenues in the range of $1,300 million to $1,360 million[7]