Seadrill Reports 19% Revenue Growth and Significant Profit Improvement in Q2 2026

Seadrill Limited reported a significant improvement in its financial performance for the second quarter of 2026, with total operating revenues reaching $449 million, a 19% increase from $377 million in the same period of 2025. The company's operating profit surged to $72 million, compared to just $6 million a year earlier, reflecting a substantial turnaround in profitability. Net income for the quarter was $29 million, a notable recovery from a loss of $42 million in the prior year, resulting in a basic earnings per share of $0.47, up from a loss per share of $0.68.

The company's financial results for the first half of 2026 also showed positive trends, with total operating revenues of $807 million, up 13% from $712 million in the first half of 2025. Operating profit for the six-month period increased to $96 million from $24 million, while net income improved to $22 million from a loss of $56 million. The increase in revenues was primarily driven by higher contract revenues, which rose to $632 million from $536 million, attributed to an increase in average contractual dayrates and improved economic utilization of rigs.

Strategically, Seadrill has made significant moves to strengthen its financial position, including the issuance of $700 million in senior notes due in 2034. This refinancing effort allowed the company to discharge its previous $575 million secured bond. Additionally, Seadrill amended its revolving credit facility, increasing borrowing commitments from $225 million to $300 million and extending the maturity date to 2031. The company also continued its share repurchase program, buying back 511,078 shares for approximately $20 million during the quarter.

Operationally, Seadrill maintained a fleet of 15 drilling rigs as of June 30, 2026, with an average of 10 rigs under contract during the quarter. The company reported an economic utilization rate of 96%, up from 93% in the previous year, indicating improved efficiency in rig operations. The contract backlog increased to $2.934 billion, up from $2.380 billion at the end of 2025, reflecting strong demand for offshore drilling services.

Looking ahead, Seadrill's management expressed optimism about the market recovery, driven by rising oil prices and increased global demand for offshore drilling. The Brent oil price averaged $88 per barrel in the first half of 2026, up from $70 per barrel in 2025, influenced by geopolitical tensions in the Middle East. The company anticipates that ongoing conflicts and a renewed focus on large-scale exploration will further bolster its operational performance and financial results in the coming quarters.