Seadrill Limited reported a decline in financial performance for the first quarter of 2025, with total operating revenues of $335 million, down from $367 million in the same period of 2024, representing a decrease of 9%. The company's net loss for the quarter was $14 million, compared to a net income of $60 million in the prior year. This shift in profitability was attributed to a combination of reduced contract revenues and increased operating expenses, which rose to $317 million from $303 million year-over-year. The basic loss per share for the quarter was $0.23, a significant drop from earnings of $0.83 per share in the previous year.
The decrease in revenues was primarily driven by a reduction in the average number of rigs on contract, which fell from ten to nine, leading to a $42 million decline in contract revenues. Additionally, economic utilization dropped to 84% from 97%, further impacting revenue generation. The company noted that the West Phoenix was stacked during the quarter, and other rigs operated for fewer days compared to the previous year. Despite these challenges, the average contractual dayrate increased to $323,000 from $300,000, contributing positively to revenue.
In terms of operational developments, Seadrill's contract backlog decreased to $2.914 billion as of March 31, 2025, down from $3.180 billion at the end of 2024. The backlog includes firm contracts and is expected to be realized over the coming years, with $810 million anticipated in 2025. The company continues to manage a fleet of 15 drilling rigs, with 11 currently in operation. Seadrill's strategic focus remains on maintaining a conservative capital structure and enhancing liquidity, with available liquidity reported at $629 million, comprising $404 million in cash and $225 million in undrawn credit facilities.
Looking ahead, Seadrill faces a challenging market environment characterized by fluctuating oil prices and global economic uncertainties. The average Brent oil price for the quarter was $76 per barrel, down from $80 in 2024, which may influence future demand for offshore drilling services. The company is closely monitoring market conditions and trade policies that could impact its operations. Seadrill's management remains committed to navigating these challenges while pursuing opportunities for growth and maintaining financial stability.
About Seadrill Ltd
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.