Seadrill(NYSE) SDRL

Seadrill Limited helps energy companies find oil under the ocean. It uses specialized floating platforms to drill wells in deep waters. These services help ensure global energy supplies reach the market.

What Seadrill Does

• Contract Drilling: Drilling units provided to customers primarily on a daily fee basis; earned $355 million in the three months ended June 30, 2026.
• Management Services: Operational and technical support for rigs owned by partners like Sonangol; earned $67 million in the three months ended June 30, 2026.
• Reimbursable Services: Payments for supplies and personnel provided at a customer's request; earned $19 million in the three months ended June 30, 2026.
• Leasing Services: Bareboat charter arrangements where the company rents out rigs to other operators; earned $8 million in the three months ended June 30, 2026.

Recent Strategic Moves

• Issued $700 million in Senior Notes in June 2026 to pay off existing debt due in 2030.
• Increased the revolving credit facility to $300 million and extended its maturity to 2031 in June 2026.
• Authorized an extension of the share repurchase program through December 2026 and repurchased 511,078 shares during the second quarter of 2026.
• Signed new drilling contracts in Malaysia and Brazil during the first half of 2026 to expand the project pipeline.

How the Fleet Stand Out

Seadrill maintains a fleet of high-specification rigs designed for ultra-deepwater and harsh environments. This focus allows the company to operate in regions like the North Sea and deepwater Brazil where standard rigs cannot function.

Key Financial Numbers

• Operating revenues were $449 million in the three months ended June 30, 2026, up 19% year over year.
• Operating profit was $72 million in the three months ended June 30, 2026, up 1,100% year over year.
• Net income reached $29 million in the three months ended June 30, 2026, compared to a $42 million loss in the prior year period.
• Total contract backlog reached $2.9 billion as of June 30, 2026, compared to $2.4 billion at the end of 2025.
• Available liquidity stood at $585 million as of June 30, 2026, including $337 million in unrestricted cash.

Bottom Line

Seadrill has evolved into a leaner offshore driller with a focus on high-specification rigs and a strengthened balance sheet. Its recent debt refinancing and growing contract backlog highlight its focus on long-term financial stability.