Seadrill(SDRL) - 2025 Q1 - Quarterly Results

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]