Seadrill Announces Fourth Quarter and Full Year 2023 Results

Core Insights - Seadrill Limited reported a full-year operating profit of $329 million and Adjusted EBITDA of $495 million for 2023, aligning with guidance [2][7] - The company secured significant contracts in Brazil and the U.S. Gulf of Mexico, achieving some of the highest dayrates in the current market cycle [2][10] - Seadrill completed $342 million in share repurchases, representing 11% of its share capital, as part of its ongoing buyback program [2][8] Quarterly Highlights - For Q4 2023, Seadrill reported total operating revenues of $408 million, with contract revenues of $315 million, a slight decrease from the previous quarter [3][5] - Adjusted EBITDA for Q4 2023 was $100 million, down from $151 million in Q3 2023, reflecting a decrease in operating profit to $52 million from $117 million [3][5][29] - The company operated an average of 12 rigs with an economic utilization rate of 92.4% [5][33] Financial Performance - Full-year total operating revenues reached approximately $1.5 billion, a 48% increase from $1.0 billion in the previous year [6][7] - Operating expenses increased to $356 million in Q4 2023, primarily due to provisions, repair and maintenance projects, and personnel costs [5] - Net cash provided by operating activities for Q4 was $140 million, marking a 25% improvement from Q3 [6] Share Repurchase Program - Seadrill initiated a $250 million buyback program in September 2023, which was expanded by an additional $250 million in December 2023 [8] - As of February 27, 2024, the company had repurchased a total of eight million shares at an average price of $43.36 per share [8] Balance Sheet Overview - As of December 31, 2023, Seadrill had gross principal debt of $625 million and cash and cash equivalents of $728 million [9][21] - The company maintains an additional $225 million in available borrowings under its undrawn senior secured revolving credit facility [9] Operational and Commercial Activity - Seadrill's order backlog stood at approximately $2.9 billion as of February 28, 2024, including $1.1 billion in contract additions since November 2023 [10] - Notable contracts secured include $1.1 billion in Brazil and a $74 million contract in the U.S. Gulf of Mexico [11][12]