Seadrill(US:SDRL)2026-02-26 22:02Revenue Contribution - Petrobras accounted for 36% of total operating revenues in 2025, up from 16% in 2023, indicating a significant increase in reliance on this customer [48]. - Sonadrill maintained a steady contribution of 22% to total revenues for both 2025 and 2024, reflecting stable business relations [48]. Safety and Workforce - The total recordable incident rate (TRIR) for the year ended December 31, 2025, was 0.17, significantly below the industry average of 0.34, showcasing the company's commitment to safety [59]. - As of December 31, 2025, the company employed approximately 3,000 staff globally, including contracted personnel, indicating a stable workforce size [53]. - The company has developed a comprehensive training program in collaboration with the International Well Control Forum, aiming to enhance the skills of its drillers [57]. - The Seadrill Development Academy features advanced drilling simulators to improve training and operational efficiency, supporting continuous improvement initiatives [58]. - The collective bargaining agreement in Brazil was successfully negotiated for the period from September 2025 to August 2026, ensuring stable labor relations [55]. Market Conditions - The offshore drilling market is highly competitive, influenced by oil and gas price volatility, which affects customer expenditures on drilling services [49]. Talent Management - The company is focused on attracting and retaining top talent through competitive reward policies and a supportive work environment [56]. Financial Exposure - The majority of the company's revenues and expenses are denominated in U.S. dollars, which is the functional currency of its subsidiaries [353]. - The company is exposed to foreign exchange risks due to a portion of revenues and expenses being denominated in other currencies [353]. - The company does not expect foreign exchange exposures to cause significant fluctuations in net income and does not currently hedge them [354]. - The majority of the company's debt portfolio is on a fixed interest rate [355].