Financial Data and Key Metrics Changes - The company reported revenues of $194 million for the quarter, with an EBITDA equivalent cash flow of $112 million [5][24] - The EBITDA equivalent over the last twelve months was $526 million [5] - The net profit for the second quarter was approximately SEK 1.5 million or $0.01 per share, compared to a net loss of approximately SEK 32 million or $0.02 per share in the previous quarter [26] Business Line Data and Key Metrics Changes - The container vessel segment generated approximately $2 million in revenue, while the car carrier fleet generated approximately NOK 26 million, slightly up from the last quarter [21][22] - The tanker fleet's gross charter hire decreased to approximately NOK 41 million from NOK 45 million in the previous quarter due to scheduled dry dockings [22] - The overall utilization across the shipping fleet was 98.1%, with an adjusted utilization of 99.9% [15] Market Data and Key Metrics Changes - The charter backlog currently stands at $4.2 billion, with two-thirds of this backlog from customers with investment-grade ratings [10][29] - The company has a diversified fleet consisting of 60 maritime assets, including 30 containerships, 16 large tankers, and two drilling rigs [12] Company Strategy and Development Direction - The company is focused on strengthening its charter backlog by securing agreements with strong counterparties and investing in cargo handling and fuel efficiency upgrades [6][10] - The company has divested older, less efficient vessels and is committed to fleet renewal and new technology, with 11 vessels now capable of operating on LNG fuel [7][12] - The company aims to enhance its fleet to position itself for organic growth and comply with strict regulatory demands aimed at reducing shipping emissions [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about finding new employment for the idle drilling rig Hercules, despite current market volatility and oil price fluctuations [8][9] - The decision to adjust the dividend to $0.20 per share was made to ensure that distributions are not subsidized by idle assets, particularly the Hercules rig [10][36] - The company has a strong liquidity position, including undrawn credit lines and unencumbered vessels, which will enable continued investment in new assets [11][27] Other Important Information - The company has returned nearly $2.9 billion to shareholders over 86 consecutive quarters [10] - The average age of the vessels sold was about 18 years, reducing the fleet average by about two years [12] Q&A Session Summary Question: What’s the status with the lawsuit with Seadrill? - The company is involved in two lawsuits, with the larger one regarding the redelivery of the Hercules scheduled for 2026, and a guarantee for an adjustment amounting to approximately $45 million to $50 million has been received from Seadrill [30] Question: Can you walk us through your thought process on the decision to lower the dividend? - Management acknowledged disappointment regarding the dividend adjustment, attributing it to the idle status of the Hercules rig and the need to ensure that distributions are not subsidized by non-operational assets [34][36] Question: What are the expected costs for dry docking in the second half of the year? - Management expects dry docking costs to be significantly lower in Q3 and Q4 compared to Q2, with estimates around $3 million to $3.5 million for Q3 and $1 million to $2 million for Q4 [42][44] Question: How is the company viewing opportunities for potential acquisitions? - The company continues to look for acquisition opportunities, although the market has been slower due to general uncertainty. They have significant investment capacity following recent divestitures [46][47] Question: What should be expected for the organic EBITDA contribution from the energy side? - The energy segment is expected to have a negative drag going forward, but the shipping fleet is generating solid contributions and cash flow [50][54]

Key Takeaways SDRL won new Gulf of America contracts for West Vela and Sevan Louisiana drillships.West Vela to drill two wells for Talos Energy starting in November 2025.Sevan Louisiana, on a three-well project for Murphy Oil from August to November 2025.Seadrill Limited (SDRL) , an offshore drilling contractor, has secured new drilling contracts for two of its drillships, namely West Vela and Sevan Louisiana, in the Gulf of America. The offshore driller secured a two-well contract with Talos Energy (TALO) ...

Core Insights - The company reported strong financial results for Q2 2025, with total operating revenues of $267.7 million, a 24% increase quarter-over-quarter, driven by increased operating days and higher day rates [4][19] - Adjusted EBITDA rose to $133.2 million, reflecting a 39% increase from the previous quarter, attributed to improved profitability from new contracts and enhanced utilization [5][21] - The company secured 14 new contract commitments year-to-date, adding $318 million to its backlog, with 2025 contract coverage now at 84% at an average day rate of $145,000 [7][29] Financial Performance - Revenue for Q2 2025 was $267.7 million, up $51.1 million from the previous quarter [4][19] - Adjusted EBITDA reached $133.2 million, an increase of $37.1 million or 39% quarter-over-quarter [5][21] - Net income was $35.1 million, a significant increase of $52 million compared to the previous quarter [5][21] - Free cash flow for the first six months of 2025 was $106.5 million, with Q2 free cash flow at $92.4 million [6][24] Operational Metrics - Technical utilization was reported at 99.6% and economic utilization at 97.8% for Q2 2025, indicating high fleet reliability and efficiency [3][10] - The company has $242.4 million in available liquidity at the end of Q2, which includes cash and undrawn revolving credit capacity [6][22] Strategic Developments - The company announced a comprehensive capital initiative that increased pro forma liquidity to $425 million, including a successful $102.5 million equity raise [10][25] - CEO succession was confirmed, with Bruno Morand set to take over as CEO effective September 1, 2025, while Patrick Schorn transitions to Executive Chairman [7][38] - The company is focusing on asset utilization over pushing for higher day rates, emphasizing that "utilization remains king" in the current market environment [12][66] Market Outlook - The company expressed confidence in meeting the 2025 adjusted EBITDA guidance of approximately $470 million, supported by positive developments in Mexico and the government's commitment to Pemex [8][18] - The oil and gas sector is facing a complex global environment, but demand for shallow water projects remains strong due to attractive breakeven prices and low emissions [31][37] - The company is well-positioned to capture incremental work, especially on private investment projects in Mexico, which are expected to contribute significantly to the country's production by 2033 [11][57]

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Core Points - Vantage Drilling International Ltd. has completed the sale of the Tungsten Explorer to TEVA Ship Charter LLC, a joint venture where Vantage holds a 25% stake and TotalEnergies holds 75% [1][2] - Vantage will continue to manage the Tungsten Explorer for a ten-year term, with an option to extend for an additional five years [1] - The CEO of Vantage Drilling expressed satisfaction with the sale and looks forward to a productive relationship with TotalEnergies [2] Company Overview - Vantage Drilling International Ltd. is an offshore drilling contractor based in Bermuda, primarily engaged in contracting drilling units and related services on a dayrate basis for oil and gas wells globally [3] - The company also markets, operates, and provides management services for drilling units owned by other entities [3]

Financial Data and Key Metrics Changes - Seadrill reported adjusted EBITDA of $106 million for Q2 2025, with an adjusted EBITDA margin of 29% [6][29] - Total operating revenues for Q2 were $377 million, a sequential increase of $42 million, primarily driven by higher contract drilling revenues [27] - Economic utilization improved to 93%, up from 84% in the previous quarter [28] Business Line Data and Key Metrics Changes - The West Vallor secured a two-well contract with TELUS Energy, while the Savan, Louisiana commenced a well intervention contract with Murphy Oil [7] - Management contract revenues increased to CAD 65 million, reflecting an inflationary increase for the daily management fee [28] Market Data and Key Metrics Changes - The market is expected to recover in late 2026, driven by increased exploration activities and significant investments in offshore projects [11][14] - Wood Mackenzie forecasts a substantial increase in FIDs from $91 billion in 2025 to $164 billion in 2026 [14] - Recent legislation mandates at least two lease sales annually from 2026, increasing exploration drilling and rig demand [13] Company Strategy and Development Direction - Seadrill is focused on maximizing profitability and minimizing gaps between contracts, with a disciplined approach to contracting [32] - The company is actively pursuing opportunities to fill its order book for 2025 while also securing contracts for 2026 and 2027 [20] - The establishment of the West Minerva real-time operations center aims to enhance operational efficiency and decision-making [9] Management's Comments on Operating Environment and Future Outlook - Management views the current market conditions as a trough, with expectations of recovery starting in late 2026 [21][22] - There is a tightening supply of rigs, and operators are increasingly moving towards offshore investments [21] - The company remains optimistic about securing contracts in Angola and Brazil, despite some political and administrative delays [39][40] Other Important Information - Seadrill maintains a robust balance sheet with gross principal debt of $625 million and cash holdings of $419 million [30] - The company is in active dialogue with multiple customers for work starting in 2026 [25] Q&A Session Summary Question: Contracting opportunities and future work - Management expressed optimism about recontracting in Angola despite political unrest, with advanced dialogues on three assets [39] - The company has secured near-term work for the Westfella and is actively marketing rigs globally [40] Question: Capital investment in idle rigs - Management confirmed reluctance to invest in idle rigs without strong visibility for future work, particularly regarding the Gemini rig [50] Question: Market dynamics and operator behavior - Management acknowledged that operators are locking in multiyear contracts due to anticipated demand in late 2026 and 2027 [56] Question: Well intervention market outlook - Management sees potential for well intervention work to grow, particularly with the Savant Louisiana rig, which has unique capabilities [76] Question: Share buyback strategy - Management indicated that stability in the economy and a favorable oil price outlook are key factors for considering share buybacks [102]

Contract Overview - Seadrill's West Auriga has a contract with Petrobras in Brazil, running from December 2024 to December 2027, valued at approximately $577 million, including mobilization and additional services[9] - West Carina is contracted with Petrobras in Brazil from November 2022 to January 2026, with a dayrate of $262,000[9] - West Jupiter has a contract with Petrobras in Brazil from December 2022 to November 2025, with a dayrate of $261,600, and a total contract value at signing was approximately $525 million, including mobilization and additional services, with a follow-on contract from March 2026 to March 2029[9] - West Polaris is contracted with Petrobras in Brazil from February 2025 to February 2028, with a total contract value at signing of approximately $518 million, including mobilization and additional services[9] - West Tellus has a contract with Petrobras in Brazil from January 2023 to February 2026, with a dayrate of $246,100, and a total contract value at signing was approximately $539 million, including mobilization and additional services, with a follow-on contract from June 2026 to June 2029[9] - West Neptune is contracted with LLOG in the U S Gulf from May 2025 to November 2025, with a total contract value of approximately $86 million, excluding additional services, for an approximate 180-day duration, with a follow-on contract from November 2025 to May 2026[9] Harsh Environment & Joint Venture Rigs - West Elara is operating in Norway under a market-indexed rate with ConocoPhillips, with the contract running from May 2018 to March 2028[10] - West Gemini, managed by Seadrill through the Sonadrill joint venture, is operating in Angola with TotalEnergies from November 2024 to June 2025, with a dayrate of $404,800, and experienced an out-of-service period of approximately 60 days due to SPS, commencing in June[10] Stacked Rigs - West Capella is currently stacked in Malaysia[10]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $282 million and free cash flow of $107 million for Q2 2025, with a total revenue of €812 million [6][34] - The capital return program has returned over $1.1 billion to shareholders since Q4 2022 through dividends and share repurchases, with an additional $80 million returned this quarter [7][8] - The total backlog as of August 5 stands at €6.9 billion, with €1.1 billion scheduled for revenue conversion for the remainder of the year [35] Business Line Data and Key Metrics Changes - The company secured new contracts with a total contract value of $2.8 billion year-to-date, indicating strong commercial activity [15] - The Noble Stanley LaFos was extended for five additional wells, and the Noble Viking received a one-well contract valued at $34 million [10][11] - The Noble Globetrotter I secured a two-well contract in the Black Sea valued at approximately $82 million [12] Market Data and Key Metrics Changes - The global contracted rig count currently stands at 97 rigs, down from a peak of 105-106 during 2023-2024 [18] - In South America, contracted UDW demand is 43 units, with a strong outlook supported by recent tenders from Petrobras [19] - U.S. Gulf demand has softened, with 21 contracted UDW rigs, down from 22-24 last year [20] Company Strategy and Development Direction - The company is focused on optimizing its fleet following the successful integration of the Diamond acquisition, achieving a $100 million synergy target ahead of schedule [8][34] - The strategy includes managing costs and active fleet posture based on current market realities, with a focus on high-end drillships [27][28] - The company anticipates a potential rebound in the deepwater market by late 2026 or 2027, supported by a credible path back to a contracted UDW rig count of around 105 [27][40] Management's Comments on Operating Environment and Future Outlook - Management noted significant macro uncertainties affecting upstream spending, but remains optimistic about the long-term market outlook [17][38] - The company expects adjusted EBITDA to decline sequentially in Q3 due to contract rollovers and planned downtime, but anticipates a material rebound starting in 2026 [36][38] - Management emphasized the importance of cash flow maximization and returning capital to shareholders, with a target annualized free cash flow run rate of $400 million to $500 million by the second half of next year [40] Other Important Information - The company is actively pursuing opportunities in various regions, including Southeast Asia and the Americas, with significant planning and coordination required for new projects [15][16] - The harsh environment North Sea market currently represents six units of UDW demand, with expectations of muted market conditions until policy-driven impediments are removed [29][30] - Recent disposals of cold stacked drillships reflect the company's commitment to maintaining a high-spec competitive fleet [31] Q&A Session Summary Question: Guidance update clarification - Management explained the revenue guidance was lowered by about 3% due to unexercised options, while EBITDA guidance was tweaked higher due to strong cost management [43][44] Question: Strategy around key rigs - Management highlighted a strong focus on the Black Rhino, Viking, and Jerry D'Souza, with ongoing discussions for contracts that could significantly impact earnings [46][47] Question: Brazil market outlook - Management expressed a positive outlook for Brazil, anticipating flat to slightly increasing rig demand, driven by Petrobras and ongoing tenders [52][54] Question: Rig sales and retirement plans - Management confirmed that the Highlander will go to a drilling project, while the Globetrotter and Reacher are not expected to be sold for drilling purposes [55][56] Question: Near-term pricing expectations - Management indicated that day rates are currently in the low to mid-400s, with expectations for stability or slight decreases due to near-term softness [63][64] Question: Timing of Exxon rig resets - Management confirmed that new rates for Exxon rigs go into effect on March 1 and September 1, with the mechanism tracking the market effectively [73][74] Question: Impact of recent jackup market consolidation - Management stated that recent M&A activity in the jackup market does not significantly change their demand outlook or strategy [78][80] Question: Economics of current contracts - Management noted that while there may be some economic leakage in contract terms, the broader pricing strategies remain unaffected [84][86] Question: Contracting behavior and lead times - Management acknowledged unusual contracting behavior with long lead times despite softer near-term demand, driven by optimism for future projects [92][94]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $282 million and free cash flow of $107 million for Q2 2025, with a total revenue of €812 million [5][33] - The adjusted EBITDA margin was 33%, and cash flow from operations was €216 million, with net capital expenditures of €110 million [33] - The company returned an additional $80 million to shareholders through a $0.50 per share quarterly dividend, totaling over $1.1 billion in capital returns since Q4 2022 [6][34] Business Line Data and Key Metrics Changes - The company secured new contracts with a total contract value of $2.8 billion, with a total backlog of $6.9 billion as of August 5 [14][34] - Significant contracts included a six-well contract with BP for carbon capture and storage in the UK North Sea and a two-well contract with OMV in the Black Sea [12][14] - The integration of the Diamond acquisition achieved a synergy target of $100 million ahead of schedule [6][34] Market Data and Key Metrics Changes - The global contracted rig count for ultra-deepwater (UDW) currently stands at 97 rigs, down from a peak of 105-106 in 2023-2024 [16][26] - UDW demand in South America remains strong, with 43 total units contracted, while West Africa shows softness with only 12 rigs currently contracted [18][21] - The U.S. Gulf has seen a decrease in contracted UDW rigs, currently at 21, down from 22-24 last year [20] Company Strategy and Development Direction - The company is focused on optimizing its fleet and managing costs effectively in a flat market while preparing for potential growth in 2026 and 2027 [26][30] - The strategy includes disposing of underperforming rigs to maintain a high-spec competitive fleet and maximize cash flow [30] - The company is actively pursuing contracts for its key rigs, including the Black Rhino, Viking, and Jerry D'Souza, which are seen as critical for future earnings [27][46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the deepwater market firming up by late 2026 or 2027, despite current macro uncertainties [38][39] - The company anticipates a material rebound in EBITDA starting in 2026, supported by new long-term contracts and rising deepwater demand levels [36][37] - Management highlighted the importance of disciplined cost management and cash flow maximization in the current market environment [30][39] Other Important Information - The company updated its full-year 2025 guidance, lowering total revenue expectations to $3.2 billion to $3.3 billion while narrowing the adjusted EBITDA range to €1.075 billion to €1.15 billion [35] - Capital expenditures for 2025 are expected to increase to $400 million to $450 million, reflecting investments tied to recent long-term awards [36] Q&A Session Summary Question: Guidance update clarification - The company lowered top-line guidance by about 3% but increased EBITDA guidance by about 1%, attributing the revenue decrease to unexercised options and strong customer management [42][44] Question: Strategy for key rigs - The focus is on securing contracts for the Black Rhino, Viking, and Jerry D'Souza, with strong conversations ongoing for these rigs [46][48] Question: Brazil market outlook - The company views Brazil's rig demand as stable to slightly increasing, with positive narratives from Petrobras regarding upcoming tenders [53][54] Question: Rig sales and retirement plans - The Highlander will go to a drilling project, while the Reacher and Globetrotter II are not expected to be sold for drilling purposes [56][58] Question: Day rates expectations - Current day rates for UDW rigs are in the low to mid-400s, with expectations that rates may hold firm despite near-term softness [64][66] Question: Rig reset timing and impact - Rig resets occur on March 1 and September 1, with rates set a few months prior, and the mechanism has tracked the market effectively [74][75] Question: Impact of recent M&A in the jackup market - The recent M&A activity in the jackup market does not significantly change the company's demand outlook or strategy [80][81]

Financial Performance - Second quarter Adjusted EBITDA was $282 million[6, 10], compared to $338 million in the prior quarter[10] - Free cash flow for the second quarter was $107 million[6, 10], down from $173 million in the first quarter[10] - Capital expenditures, net of insurance proceeds, were $110 million in the second quarter[10], compared to $98 million in the previous quarter[10] - The company returned over $1.1 billion to shareholders since Q4 2022, including a Q3 dividend of $0.50 per share[6] Contract Backlog and Fleet - Current contract backlog stands at $6.9 billion[10, 12], a decrease from $7.5 billion in the previous quarter[10] - Approximately $380 million in new contracts were secured[6] - 62% of floater rig days are committed for 2025, 49% for 2026, and 36% for 2027[13] - 20% of floater rig days are committed for 2028, and 5% for 2029-2031[13] Guidance and Fleet Rationalization - Full year 2025 Adjusted EBITDA guidance is $1.075 billion to $1.15 billion[32] - Full year 2025 capital additions, net of reimbursements, are guided at $400 million to $450 million[32] - Revenue guidance for 2025 is $3.2 billion to $3.3 billion[32] - The company completed the retirement of Meltem and Scirocco rigs and plans to retire Globetrotter II, Highlander, and Reacher rigs[8]