Seadrill(SDRL) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter 2024 total operating revenues were $289 million, a decrease of 18% from $354 million in the prior quarter[4]. - Contract revenues for the fourth quarter were $204 million, down 22% sequentially due to fewer operating days[4]. - Net income for the fourth quarter was $101 million, compared to $32 million in the prior quarter, reflecting a significant increase[8]. - Adjusted EBITDA for the fourth quarter was $28 million, down from $93 million in the previous quarter, resulting in an adjusted EBITDA margin of 9.7%[3][8]. - Net income for the year ended December 31, 2024, increased to $446 million, up from $300 million in 2023, representing a 48.7% growth[27]. - Net cash flows provided by operating activities for the year ended December 31, 2024, were $88 million, down from $287 million in 2023, a decrease of 69.3%[27]. Cash Flow and Debt - The company finished 2024 with a cash balance of $505 million and gross principal debt of $625 million, resulting in a net debt position of $120 million[9]. - Free Cash Flow for the fourth quarter was negative $31 million, with capital expenditures of $132 million primarily for contract preparations[9]. - Free Cash Flow for Q4 2024 was negative $31 million, compared to negative $80 million in Q3 2024, an improvement of 61.3%[35]. - Cash and cash equivalents, including restricted cash, at the end of the period were $505 million, down from $728 million in 2023, a decrease of 30.7%[26]. Operational Metrics - Average number of rigs on contract decreased to 8 in Q4 2024 from 10 in Q3 2024, a reduction of 20%[33]. - Average contractual dayrates decreased to $289,000 in Q4 2024 from $304,000 in Q3 2024, a decline of 4.9%[33]. - Economic utilization for Q4 2024 was 93.0%, down from 95.3% in Q3 2024, a decrease of 2.4%[33]. Shareholder Actions - The company repurchased $100 million of shares in the fourth quarter, totaling approximately $792 million or 22% of the issued share count since September 2023[10]. Backlog and Contracts - The company secured long-term contracts for West Jupiter and West Tellus, adding $1 billion to the backlog, extending utilization into 2029[6][14]. - As of February 26, 2025, Seadrill's Order Backlog was approximately $3.0 billion, with 75% of available rig days contracted for 2025[12]. Assets and Liabilities - Total current assets decreased to $928 million in 2024 from $1,158 million in 2023, a decline of 19.8%[24]. - Total liabilities decreased to $1,238 million in 2024 from $1,235 million in 2023, a slight increase of 0.2%[24]. - Total shareholders' equity decreased to $2,918 million in 2024 from $2,983 million in 2023, a decline of 2.2%[24].