Seadrill Limited reported its financial results for the first quarter of 2026, revealing total operating revenues of $358.3 million, a 7% increase from $335 million in the same period of 2025. The rise in revenue was primarily driven by a 12% increase in contract revenues, which reached $277 million, compared to $248 million in the prior year. The company also noted a significant improvement in operating profit, which rose to $24 million from $18 million, reflecting a 33% increase. However, Seadrill recorded a net loss of $7 million, an improvement from a net loss of $14 million in the previous year, resulting in a basic loss per share of $0.11, down from $0.23.
In terms of operational metrics, Seadrill maintained an average of nine rigs on contract during both the first quarters of 2026 and 2025. However, the total days on contract decreased, leading to a decline in contract revenues. The company attributed this decrease to several rigs undergoing contract preparation activities, which temporarily reduced their operational days. Economic utilization improved significantly to 95% from 84% year-over-year, contributing an additional $36 million in contract revenues due to better performance from several rigs.
Seadrill's contract backlog as of March 31, 2026, stood at $2.48 billion, an increase from $2.38 billion at the end of 2025. This backlog includes $2.14 billion from drilling contracts and $339 million from other services. The company anticipates that a significant portion of this backlog will be realized in 2026, with $1.02 billion expected to be earned this year. The company continues to focus on maintaining a conservative capital structure and liquidity position, with available liquidity of $482 million as of the end of the quarter, comprising $304 million in cash and $178 million in undrawn credit.
Strategically, Seadrill is navigating a volatile oil market, with Brent crude prices averaging $78 per barrel in the first quarter of 2026, up from $68 per barrel in 2025. The company is closely monitoring the impacts of geopolitical tensions, particularly in the Middle East, on its operations and the broader market. Seadrill has also implemented a new enterprise resource planning system to enhance its internal controls and reporting processes, although it has not materially affected financial reporting.
Looking ahead, Seadrill's management remains cautiously optimistic about the market recovery, particularly in 2027, as global demand for oil and gas is projected to grow. The company is committed to maintaining its financial health while exploring opportunities for growth and shareholder returns, including potential share repurchases, contingent on meeting its liquidity and leverage targets.
About Seadrill Ltd
Seadrill Limited is an offshore drilling contractor providing worldwide services with a fleet of drillships, semi-submersibles, and jackup rigs. It serves oil and gas companies, including majors and national oil firms, in shallow to ultra-deepwater environments. The company emphasizes safety, technological innovation, and long-term customer relationships, operating in a cyclical industry driven by exploration, development, and production activity in global offshore markets.
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.