Seadrill announces Q3 2025 results

Seadrill has announced its third quarter 2025 results.

Quarterly Highlights

• Secured contract awards across five rigs, adding over $300 million to Order Backlog (1).
• West Gemini, Sonangol Libongos and Sonangol Quenguela secured an estimated 1,000 days of incremental work in Angola, extending the longevity of the Sonadrill joint venture.
• West Vela was awarded two contracts in the U.S. Gulf, adding over four months in firm term, securing the rig into the second half of 2026.
• Sevan Louisiana received an award in the U.S. Gulf, scheduled to commence in direct continuation of the current contract in November 2025.
• Reported a net loss of $11 million and Adjusted EBITDA (2) of $86 million.
• Full year 2025 guidance ranges are narrowed. Total operating revenue of $1,360 million to $1,390 million (previously $1,320 million to $1,380 million). Current and prior guidance excludes $50 million of reimbursable revenue. Adjusted EBITDA (3) range is narrowed to $330 million to $360 million (previously $320 million to $380 million) and Capital Expenditure and Long-Term Maintenance is narrowed to $280 million to $300 million (previously $250 million to $300 million).

Financial Highlights

“We continue to execute our strategy to build backlog coverage through 2025 and 2026, minimizing our exposure to contract gaps. Our commercial team secured over $300 million in new contracts across five rigs, including all three assets in the Sonadrill joint venture in Angola, reaffirming our position as a leading operator in the region. The awards in the U.S. Gulf demonstrate Seadrill’s continued ability to collaborate with customers, leverage advanced technology, and deliver operational excellence,” said President and CEO Simon Johnson. “As industry fundamentals improve and global tendering activity accelerates, Seadrill remains well positioned to create shareholder value and support long-term demand for energy services through a disciplined commercial strategy that drives sustainable growth.”

Financial and Operational Results

Third quarter 2025 total operating revenues decreased $14 million to $363 million, compared to $377 million in the prior quarter, primarily due to lower economic utilization(4), fewer rig operating days and a sequential decrease in reimbursable revenues.

Third quarter 2025 total operating expenses decreased by $34 million to $337 million, compared to $371 million in the prior quarter. A decrease of $44 million in management contract expenses was largely driven by an accrual in the prior quarter, partially offset by an $11 million increase in vessel and rig operating expenses due to the timing of repair and maintenance spend.

Net loss for the third quarter was $11 million. Adjusted EBITDA(2) was $86 million, compared to $106 million in the prior quarter.

Balance Sheet and Cash Flow

At quarter-end, Seadrill had gross principal debt of $625 million and $428 million in cash and cash equivalents, including $26 million of restricted cash, for a net debt position of $197 million. Net cash provided by operating activities during the third quarter of 2025 was $28 million, including additions of $69 million for capitalized long-term maintenance. Payments for capital additions captured in net cash used in investing activities were $19 million. Free Cash Flow(2) was $9 million.

Commercial Activity and Order Backlog(1)

• West Gemini secured a contract with Sonangol Exploração & Produção, S.A. in Angola. The estimated term is 280 days and work is scheduled to commence in December 2025 or January 2026.
• Sonangol Libongos received an award from Azule Energy Angola B.V. The estimated term is 525 days, plus priced options, with the commencement in direct continuation of the previous program in August 2025.
• Sonangol Quenguela received a contract with Total Energies in Angola. The estimated term is 210 days, plus priced options, with the commencement in direct continuation of the previous program in October 2025.
• West Vela was awarded a one-well contract with Walter Oil and Gas in the U.S. Gulf. The estimated term is 65 days, with the contract expected to commence in the first quarter of 2026 in direct continuation of the Talos program.
• West Vela was also awarded a further one-well contract with Talos in the U.S. Gulf. The estimated term is 60 days, with the contract expected to commence in the second quarter of 2026 in direct continuation of the Walter Oil and Gas program.
• Sevan Louisiana was awarded a contract with Walter Oil and Gas in the U.S. Gulf. The estimated term is 70 days, with the contract expected to commence in November 2025 in direct continuation of the current program.

As of November 5, 2025, Seadrill’s Order Backlog(1) was approximately $2.5 billion. The Company today provided an updated fleet status report on the Investor Relations section of its website, www.seadrill.com.

Original announcement link

Source: Seadrill