Seadrill Reports Q2 2025 Financial Results with Increased Revenues but Significant Net Loss

Seadrill Limited reported its financial results for the second quarter of 2025, revealing total operating revenues of $377 million, a slight increase of 1% from $375 million in the same period of 2024. The company's contract revenues rose to $288 million, up 8% from $267 million year-over-year, primarily driven by higher average dayrates. However, net loss for the quarter was $42 million, compared to a profit of $253 million in the prior year, reflecting a significant decline in profitability. The loss per share was reported at $0.68, compared to earnings per share of $3.61 in the second quarter of 2024.

In the first half of 2025, Seadrill's total operating revenues decreased by 4% to $712 million from $742 million in the same period of 2024. The decline was attributed to a drop in contract revenues, which fell to $536 million from $542 million, alongside a significant increase in operating expenses, which rose to $688 million from $593 million. The company reported a net loss of $56 million for the six months ended June 30, 2025, compared to a profit of $313 million in the same period of the previous year.

Operationally, Seadrill owned a total of 15 drilling rigs as of June 30, 2025, with nine units actively operating. The company experienced a decrease in economic utilization, which fell to 89% for the first half of 2025, down from 95% in the same period of 2024. This decline was primarily due to unplanned downtime and regulatory issues affecting several rigs. The company’s contract backlog also decreased to $2.605 billion from $3.180 billion at the end of 2024, indicating a reduction in future revenue visibility.

Strategically, Seadrill has focused on maintaining a conservative capital structure and liquidity position, with available liquidity of $618 million as of June 30, 2025. The company has not engaged in share repurchases during the second quarter of 2025, leaving $208 million available under its $500 million share repurchase program initiated in July 2023. Looking ahead, Seadrill anticipates a challenging market environment characterized by increased competition and downward pressure on dayrates, although management remains optimistic about a potential market recovery in late 2026.