Highlights

  • Second quarter 2026 total operating revenues were $449 million, and net income was $29 million, or $0.47 per diluted share.
  • Total contract backlog was $2,934 million at June 30, 2026, compared with $2,380 million at December 31, 2025.
  • Seadrill Finance issued $700 million of 6.750% Senior Notes due 2034 on June 30, 2026, and increased revolving commitments to $300 million.
  • Management said it now expects 2026 operating revenues of $1.5 billion to $1.55 billion and EBITDA of $420 million to $450 million.

Seadrill (NYSE: SDRL) shares were trading at USD 50.96 on October 27, 2026, down 1.91%, with a relative volume at time of 2.34. The offshore drilling contractor amended its revolving credit facility on June 16, 2026, issued $700 million of senior notes on June 30, 2026, and filed its quarterly report on Form 10-Q for the quarter ended June 30, 2026 on August 10, 2026.

Seadrill Limited is incorporated in Bermuda, and its principal executive offices are in Houston, Texas. It provides offshore drilling services to the oil and gas industry, owning and operating drilling rigs in shallow to ultra-deepwater environments under dayrate contracts. As of June 30, 2026, it owned 15 drilling rigs and managed two 7th generation drillships owned by Sonangol EP. It also provides management services to certain affiliated entities. The fiscal year ends December 31.

Second Quarter 2026 Results

Total operating revenues were $449 million for the three months ended June 30, 2026, compared with $377 million a year earlier. Contract revenues were $355 million, compared with $288 million. Operating expenses were $377 million, operating profit was $72 million, and interest expense was $16 million. Net income was $29 million, or $0.47 per basic and diluted share, compared with a net loss of $42 million, or $0.68 per share, in the second quarter of 2025.

The average number of rigs on contract was 10 in each period. The average contractual dayrate was $360 thousand, compared with $331 thousand, and economic utilization was 96%, compared with 93%. For the six months ended June 30, 2026, total operating revenues were $807 million, net income was $22 million and net cash used in operating activities was $40 million.

Backlog, Liquidity and Debt

Contract backlog was $2,934 million at June 30, 2026, made up of $2,628 million of drilling contracts and $306 million of other. The company estimated $763 million would be realized over the remainder of 2026, $1,180 million in 2027, $555 million in 2028 and $436 million thereafter.

Available liquidity was $585 million, consisting of unrestricted cash of $337 million and $248 million of available borrowings under the revolving credit facility. No funded borrowings had been made under the facility. Total debt had a principal value of $750 million, made up of $700 million of senior notes due July 2034 and $50 million of senior convertible bond due August 2028. The company redeemed the $575 million of 2030 Notes and paid a make-whole premium of $25 million.

The board extended the share repurchase program through December 31, 2026. The company repurchased 511,078 shares at a weighted average price of $38.66, about $20 million, in the quarter, and approximately $188 million of the $500 million authorization remained available.

Disclosed Claims

In January 2025, Seadrill Brazil received notices from Petrobras asserting delay penalties of approximately $213 million relating to three drillships under the Sete Brazil Project. The company disputes liability and has not accrued any amounts. Petrobras has committed not to exercise set-off rights pending voluntary mediation, which the filing says continues to be delayed. The company also issued a NOK403 million guarantee related to the SFL Hercules Ltd. claim.

2026 Outlook

On the earnings call, management said it raised 2026 guidance to operating revenues of $1.5 billion to $1.55 billion, excluding $50 million of reimbursable revenues, and EBITDA of $420 million to $450 million. It maintained capital expenditure guidance of $200 million to $240 million. Management said guidance reflects assumed utilization for the Sevan Louisiana, which has less visibility for the rest of 2026, and the timing of repair and maintenance expenses, which it expects to be higher over the balance of the year. It also said it expects drillship utilization could reach the mid-90% range by 2027 if tenders convert into awards.