Seadrill Reports Q3 2025 Revenue Increase but Net Loss of $11 Million

Seadrill Limited reported its financial results for the third quarter of 2025, revealing total operating revenues of $363 million, a 3% increase from $354 million in the same period last year. However, the company experienced a net loss of $11 million, compared to a net income of $32 million in the third quarter of 2024. For the nine months ending September 30, 2025, Seadrill's operating revenues decreased by 2% to $1.075 billion, down from $1.096 billion in the prior year, while the net loss for the period reached $67 million, a significant decline from a profit of $345 million in the same timeframe last year.

The decline in profitability can be attributed to several factors, including increased operating expenses, which rose by 10% to $337 million in the third quarter, and a notable decrease in other operating items, which fell to zero from $219 million in the previous year. The increase in operating expenses was primarily driven by higher vessel and rig operating costs, which increased by $19 million, largely due to the commencement of operations for the West Auriga and West Polaris in Brazil. Additionally, depreciation and amortization expenses rose significantly, reflecting capital projects related to these rigs.

In terms of operational metrics, Seadrill maintained an average of 10 rigs on contract for both the third quarter of 2025 and 2024. The average contractual dayrate increased to $330,000 from $304,000, contributing to a $17 million rise in contract revenues. However, economic utilization dropped to 91% from 95%, resulting in a $11 million decrease in contract revenues due to unplanned downtime. The company’s contract backlog as of September 30, 2025, was reported at $2.511 billion, down from $3.180 billion at the end of 2024, indicating a reduction in future revenue visibility.

Strategically, Seadrill continues to focus on maintaining a conservative capital structure and liquidity position, with available liquidity reported at $587 million as of September 30, 2025. This includes $402 million in unrestricted cash and $185 million available under its revolving credit facility. The company has not engaged in share repurchases during the third quarter, leaving $208 million of its $500 million share repurchase program authorized but unutilized. Looking ahead, Seadrill anticipates a challenging market environment characterized by increased competition and downward pressure on dayrates, although there are signs of potential recovery in the offshore drilling market by 2027.