Core Viewpoint - Seadrill reported quarterly earnings of $0.49 per share, significantly exceeding the Zacks Consensus Estimate of $0.05 per share, but down from $1.10 per share a year ago, indicating an earnings surprise of 880% [1][2] Financial Performance - The company achieved revenues of $354 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 5.05%, although this is a decrease from $414 million in the same quarter last year [2] - Over the last four quarters, Seadrill has consistently surpassed consensus EPS and revenue estimates [2] Stock Performance and Outlook - Seadrill shares have declined approximately 15.5% since the beginning of the year, contrasting with the S&P 500's gain of 25.8% [3] - The company's current Zacks Rank is 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Earnings Estimates - The consensus EPS estimate for the upcoming quarter is -$0.57 on revenues of $270 million, while the estimate for the current fiscal year is $1.26 on revenues of $1.35 billion [7] Industry Context - The Oil and Gas - Drilling industry is currently ranked in the bottom 8% of over 250 Zacks industries, suggesting a challenging environment for stocks in this sector [8]

Wall Street expects a year-over-year decline in earnings on lower revenues when Seadrill (SDRL) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on November 12, 2024, might help the stock move higher if these key numbers are better than exp ...

Core Viewpoint - The article emphasizes the importance of understanding the current market dynamics and the potential implications for investment strategies in the financial sector [1]. Group 1: Market Analysis - The financial market is experiencing significant volatility, influenced by macroeconomic factors such as interest rates and inflation [1]. - Analysts suggest that companies with strong fundamentals may present better investment opportunities during uncertain times [1]. Group 2: Company Insights - Companies that have adapted to changing consumer behaviors and technological advancements are likely to outperform their peers [1]. - The article highlights specific sectors, such as technology and healthcare, as having robust growth potential due to ongoing innovation and demand [1].

Michael Saint Maur Sheil/DigitalVision via Getty Images The core idea of our thesis on Seadrill (NYSE:SDRL), as we recently wrote in this article, is as follows: 1. Growing oil demand and electric vehicle hiccups will support oil prices, which will drive exploration and production ("E&P") 2. Peaking Permian Basin output will increase demand for offshore projects 3. Supply-constrained offshore rig market, exacerbated by high newbuilding prices and reactivation costs Following the 2Q24 earnings release, h ...

Financial Data and Key Metrics Changes - Seadrill reported EBITDA of $133 million on total operating revenues of $375 million for Q2 2024, resulting in an EBITDA margin of 35.5% [6][23] - The company lowered its second half EBITDA expectations due to revised estimates for contract start dates and uncommitted near-term availability on other rigs [6][26] - Full year EBITDA guidance was adjusted to a range of $315 million to $365 million, reflecting risks and opportunities [26] Business Line Data and Key Metrics Changes - Contract drilling revenues for Q2 2024 were $267 million, down $8 million from Q1 2024, with no contributions from the Polaris and Auriga during the quarter [20] - Leasing revenues were $26 million, including two quarters of bareboat charter income [21] - Vessel and rig operating expenses decreased to $165 million from $180 million in the prior quarter, primarily due to the Polaris and Auriga undergoing contract preparation [22] Market Data and Key Metrics Changes - Brazil remains the most important deepwater market, with expectations of flat floating rig numbers around 30 [15] - The U.S. Gulf of Mexico is active with high specification thresholds driving day rate development, but contract awards vary significantly [16] - West Africa is expected to see incremental demand in 2026 and beyond, particularly in Namibia and Nigeria [17] Company Strategy and Development Direction - Seadrill aims to achieve through-cycle resiliency by focusing on scale, balance sheet strength, management discipline, and safe operations [8][12] - The company is transitioning to a domestic issuer and simplifying its business by ending its secondary listing on the Oslo Stock Exchange [19] - Seadrill continues to prioritize capital return programs, having completed a $500 million buyback facility and announced another $500 million program [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term position of the deepwater drilling industry despite short-term visibility challenges [10][12] - The company noted that demand delays, rather than destruction, are occurring due to E&P customers prioritizing capital returns over new contracts [11][12] - Management acknowledged the importance of maintaining a strong balance sheet and operational discipline to navigate market volatility [12][26] Other Important Information - The company achieved a $203 million gain on the sale of the Gulfdrill joint venture and Qatar jack-ups, contributing positively to its financials [22] - Seadrill's cash flow from operations was $79 million for the quarter, with free cash flow of $36 million [25] Q&A Session Summary Question: Thoughts on sixth gen rates and their impact - Management believes sixth gen rates can be maintained through strategic placement of rigs in favorable markets [30] Question: Competitive landscape changes due to consolidation - Management maintains that their posture remains unchanged despite recent competitor exits, focusing on growth opportunities while being a potential acquisition target [35] Question: Delays in Auriga and Polaris contracts - Delays are attributed to supply chain issues and uncertainties in the customer acceptance process [36][38] Question: Guidance implications for 2025 - Reduced guidance for 2024 primarily affects timing, with expectations that it will not impact 2025 significantly [40][41] Question: Reactivation costs and strategy for cold-stacked rigs - Management is focused on ensuring a material contribution to reactivation costs before proceeding with any cold-stacked units [47] Question: Impact of capital discipline on operator partnerships - Some clients are looking to farm down their exposure, which complicates securing contracts [61] Question: Factors influencing contracting activity - Management noted that project timing, equipment availability, and capital discipline are key factors affecting contracting [66][68]

Anastasia Yakovleva Investment Thesis We believe that dayrates will increase thanks to robust demand for offshore rigs and supply constraints. Consequently, we expect sequential increases in realized dayrates for Seadrill (NYSE:SDRL) starting in the 4Q24, as older contracts will have rolled off. We estimate SDRL's fair value at $79 per share (base case), assuming the stock will trade at 8x EV/EBITDA. Investment risks include lower oil demand due to decarbonization measures in the long run and out-of-ser ...

Seadrill Limited (SDRL) has signed an agreement to sell off three of its jack-up rigs, also known as Qatar jack-up fleet, along with its 50% equity interest in the joint venture that operates these rigs, to Gulf Drilling International (GDI). Seadrill’s joint venture partner GDI will be taking over the three rigs, West Castor, West Telesto and West Tucana, and the venture in exchange for cash proceeds worth $338 million.SDRL has stated that the divestiture aligns with its overall strategy to simplify its bus ...

Shares of Seadrill (SDRL) have gained 7.3% over the past four weeks to close the last trading session at $52.51, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $68.25 indicates a potential upside of 30%.The average comprises four short-term price targets ranging from a low of $60 to a high of $80, with a standard deviation of $9.95. While the lowest estimate indicates an increa ...

Seadrill Limited (NYSE:SDRL) Q1 2024 Earnings Conference Call May 15, 2024 10:00 AM ET Company Participants Lydia Mabry - Director of Investor Relations Simon Johnson - President and Chief Executive Officer Grant Creed - Executive Vice President and Chief Financial Officer Samir Ali - Executive Vice President, Chief Commercial Officer Marcel Wieggers - Senior Vice President of Operations Conference Call Participants Ben Nolan - Stifel Greg Lewis - BTIG Kurt Hallead - Benchmark Josh Jayne - Daniel Energy Par ...

Seadrill (SDRL) came out with quarterly earnings of $0.81 per share, beating the Zacks Consensus Estimate of $0.68 per share. This compares to earnings of $0.83 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 19.12%. A quarter ago, it was expected that this offshore drilling services provider would post earnings of $0.65 per share when it actually produced earnings of $0.95, delivering a surprise of 46.15%.Over the last four q ...