Seadrill Limited has announced its second quarter 2026 results, highlighting contract awards and extensions in the U.S. Gulf and Malaysia, adding approximately $200 million to its contract backlog subsequent to the May fleet status report.
West Vela was awarded a one-year contract in the U.S. Gulf, commencing in June 2027 and adding approximately $161 million to the contract backlog, excluding additional services.
West Capella secured a contract extension in Malaysia. The additional term is for an estimated 75 days and adds approximately $26 million to the contract backlog, excluding additional services, committing the rig into August 2027.
Sevan Louisiana added approximately 45 days in direct continuation of its prior program, committing the rig in the U.S. Gulf into August 2026.
The company reported a net income of $29 million, adjusted EBITDA of $144 million and increased full year 2026 total operating revenues and adjusted EBITDA guidance ranges as follows:
• Total operating revenues range increased to $1.50 - $1.55 billion (previously $1.43 - $1.48 billion), excluding $50 million of reimbursable revenues;
• Adjusted EBITDA range increased to $420 - $450 million (previously $370 - $420 million);
• Capital Expenditure and Long-Term Maintenance range maintained at $200 - $240 million.
“Seadrill’s second quarter performance reflects strong operational, commercial and financial execution, with momentum building across the business. We achieved 96% economic utilization, meaningfully enhanced our contract coverage in the U.S. Gulf and increased our full-year revenue and EBITDA guidance,” said Samir Ali, President and Chief Executive Officer.
“Demand for our high specification fleet continues to strengthen and contract coverage is improving as we enter a period where our strategic decisions are enabling us to capture the upside in the market.”
Second quarter 2026 total operating revenues increased to $449 million, compared to $358 million in the prior quarter, primarily driven by more operating days for the West Jupiter and West Capella and an improved average dayrate across the fleet, partially offset by fewer operating days for the West Tellus.
Total operating expenses increased by $43 million to $377 million, compared to $334 million in the prior quarter, primarily reflecting higher operating activity for the West Jupiter and West Capella.
Net income for the second quarter was $29 million, while Adjusted EBITDA increased to $144 million, compared to $97 million in the prior quarter.
At quarter-end, Seadrill had gross principal debt of $750 million and $360 million in cash, cash equivalents and restricted cash, resulting in a net debt position of $390 million. Second quarter 2026 cash inflows from the refinancing and lump-sum mobilization revenue were partially offset by an increase in accounts receivable, primarily related to the commencement of the West Jupiter and the West Capella contracts, and the timing of collections across the remainder of the fleet.
Cash outflows included contract preparation costs for the West Tellus, ahead of the lump-sum mobilization revenue expected in the third quarter, as well as a $20 million accelerated interest expense payment relating to the redemption of our prior senior notes, a $16 million final payment for a legacy legal judgment relating to the Sonadrill joint venture, and share repurchases. Capital additions and long-term maintenance totaled $57 million.
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