Hamilton, Bermuda – Seadrill Limited announced its fourth quarter and full year 2024 results on February 26, 2025, highlighting significant operational and financial achievements over the period.
For the full year 2024, the company reported net income of $446 million and an Adjusted EBITDA of $378 million. During the fourth quarter, despite a sequential decline in operating revenues – attributed to fewer operating days following scheduled contract completions and planned out-of-service time – Seadrill posted net income of $101 million. Adjusted EBITDA for the quarter totaled $28 million, reflecting the operational challenges alongside rigorous cost management.
• Long-term contracts secured for the West Jupiter and West Tellus rigs with Petrobras in Brazil. The 1,095-day contracts are set to commence in early to mid-2026, adding approximately $1 billion in backlog and ensuring rig utilization extending into 2029.
• The divestment of the benign jack-up rig West Prospero generated $45 million in cash proceeds. This strategic move aligns with the company’s efforts to focus on more competitive and higher margin sectors.
• Seadrill repurchased $100 million of shares during the quarter as part of its ongoing share repurchase program. Since September 2023, approximately $792 million has been returned to shareholders, resulting in a reduction of 22% of the issued share count.
Operational performance details for Q4 indicated that contract revenues declined by 22% sequentially as a result of fewer operating days, while management contract and leasing revenues remained consistent with prior periods. Vessel and rig operating expenses were lower, partially offset by higher merger and integration related expenses, increased management costs for scheduled repair and maintenance projects, and elevated general and administrative costs.
The company ended the quarter with a cash balance of $505 million and reported a net debt position of $120 million, bolstered by a robust balance sheet and a durable backlog which extend significantly into the future. In addition to the Petrobras contracts, Seadrill noted that its West Vela and Sevan Louisiana rigs continued to perform well, securing additional work that further extended the backlog and ensured rig utilization into upcoming fiscal periods.
Seadrill’s management reiterated confidence in the company’s ability to navigate market volatility, supported by its strategic divestments, strong financial discipline, and a contract portfolio that provides visibility into future revenues.
Investors and market participants will be watching closely as the company continues to implement its strategic initiatives, streamline operations, and capitalize on long-term contract opportunities in a challenging and evolving offshore drilling market.
This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Seadrill’s 8K filing here.
About Seadrill
Seadrill Limited provides offshore drilling services to the oil and gas industry worldwide. It operates in three segments: Harsh Environment, Floaters, and Jack-ups Rigs. The company owns and operates drillships, semi-submersible rigs, and jack-up rigs for operations to ultra-deepwater in benign and harsh environments.
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