Seadrill Limited Q1 2025 Financial Results

Seadrill Limited, a leading offshore drilling contractor, has released its financial results for the first quarter of 2025. The company, known for its deepwater drilling operations, has provided a detailed overview of its financial performance, operational highlights, and future outlook in its latest SEC 8-K filing.

Financial Highlights

For the first quarter of 2025, Seadrill reported a net loss of $14 million, a significant shift from the net income of $101 million in the previous quarter. The company's total operating revenues increased to $335 million, up from $289 million in Q4 2024. Adjusted EBITDA also saw a notable rise, reaching $73 million compared to $28 million in the prior quarter. The diluted loss per share was $0.23, contrasting with earnings of $1.54 per share in Q4 2024.

Business and Operational Highlights

Seadrill's operational performance was bolstered by the commencement of contracts for the West Auriga and West Polaris rigs in December 2024 and February 2025, respectively. These new contracts contributed to the increase in contract revenues, which rose by $44 million to $248 million. However, the company faced challenges with lower economic utilization, particularly in Brazil.

Strategic Initiatives and Corporate Developments

Seadrill maintained its 2025 guidance ranges, projecting total operating revenues between $1,300 million and $1,360 million, excluding reimbursable revenues of $35 million. The company also expects Adjusted EBITDA to be in the range of $320 million to $380 million, with capital expenditures estimated between $250 million and $300 million. Additionally, Seadrill's order backlog as of May 12, 2025, stood at approximately $2.8 billion.

Management's Perspective

Simon Johnson, President and CEO of Seadrill, emphasized the company's strategic focus on operating a floater-focused fleet in the deepwater market. He highlighted the company's efforts to build a durable backlog extending through 2028 and its proactive engagement with customers for future opportunities. Johnson expressed confidence in Seadrill's robust financial position as a platform for long-term value creation.

Future Outlook

Looking ahead, Seadrill remains committed to its previously issued guidance for 2025. The company anticipates continued growth in operating revenues and Adjusted EBITDA, supported by its strong order backlog and ongoing contract opportunities. Seadrill's management remains focused on navigating near-term market volatility while positioning the company for sustained success in the deepwater drilling sector.

SEC Filing: Seadrill Ltd [ SDRL ] - 8-K - May. 12, 2025