Seadrill Reports $1.385 Billion Revenue for Fiscal Year 2024, Net Income Rises to $446 Million

Seadrill Limited reported a total operating revenue of $1.385 billion for the fiscal year ending December 31, 2024, a decrease of 8% from $1.502 billion in 2023. The decline in revenue was primarily attributed to a reduction in the average number of rigs on contract, which fell from 11 in 2023 to 9 in 2024. This decrease was influenced by operational preparations for contracts with Petrobras in Brazil, which limited the operational days of certain rigs. Despite the drop in revenue, the company achieved a net income of $446 million, a significant increase from $300 million in the previous year, largely due to a gain of $234 million from the disposal of three jackup rigs and a 50% equity interest in Gulfdrill.

In terms of operational metrics, Seadrill's economic utilization improved to 95% in 2024, up from 93% in 2023, contributing an additional $24 million to contract revenues. The average contractual dayrate increased to $296,000, compared to $284,000 in 2023, resulting in a $22 million revenue boost. The company’s contract backlog stood at approximately $3 billion as of December 31, 2024, reflecting firm commitments from signed drilling contracts, although actual revenue realization may vary due to factors such as rig downtime and customer liquidity issues.

Strategically, Seadrill completed the acquisition of Aquadrill in April 2023, adding four drillships and one semi-submersible rig to its fleet. The company also executed a successful share repurchase program, repurchasing approximately 11.6 million shares for $527 million in 2024. This was part of a broader capital allocation framework aimed at returning at least 50% of free cash flow to shareholders. The company’s liquidity position remained strong, with total available liquidity of $703 million as of December 31, 2024, consisting of $478 million in cash and $225 million in undrawn credit facilities.

Looking ahead, Seadrill's management expressed cautious optimism regarding market conditions, noting that while oil prices have stabilized, uncertainties remain due to global economic conditions and inflationary pressures. The company aims to maintain a conservative capital structure and continue focusing on operational efficiency and customer relationships to navigate the cyclical nature of the offshore drilling industry. The outlook for 2025 includes expectations for increased rig activity, particularly in regions where Seadrill has established a strong operational presence.