Key Highlights
Seadrill reports Q1 adjusted EBITDA of $97M alongside contract backlog exceeding $3.1 billion.
Shares of SDRL advance 3.05% following upgraded 2026 earnings projections.
Offshore drilling contracts secured in Brazilian, Angolan, and Gulf of Mexico markets drive backlog expansion.
First-quarter losses decrease as improved dayrates reflect strengthening offshore rig activity.
SDRL retreats from session peaks despite positive EBITDA performance and elevated guidance.
Offshore drilling specialist Seadrill Limited delivered encouraging first-quarter performance metrics as fresh contract agreements pushed its total backlog beyond $3.1 billion. Trading at $49.79, SDRL stock appreciated 3.05%, though gains moderated from an earlier session high approaching $53. The quarterly disclosure highlighted expanding rig utilization, upgraded financial targets, and enhanced cash flow projections extending into 2026.
Upgraded 2026 Projections Follow EBITDA Expansion
The offshore driller generated operating revenue of $358 million during the opening quarter, slightly below the previous period’s $362 million. Despite the modest revenue decline, adjusted EBITDA expanded to $97 million compared with $88 million sequentially. Seadrill’s adjusted EBITDA margin, when reimbursable costs are excluded, strengthened to 27.9%.
The company recorded a quarterly net loss of $7 million, representing an improvement from the $10 million deficit posted in the preceding quarter. Diluted loss per share narrowed to 11 cents versus 16 cents previously. Operating expenditures declined to $334 million as certain project preparation expenses transitioned into capitalized investments.
Management elevated its 2026 operating revenue forecast to a range of $1.43 billion to $1.48 billion. Adjusted EBITDA guidance for the same period increased to between $370 million and $420 million. Capital expenditure and long-term maintenance spending projections remained unchanged at $200 million to $240 million.
Major Contract Awards Drive Backlog Beyond $3.1 Billion
Seadrill incorporated over $860 million in new contracts to its backlog following its February fleet update. These awards originated from offshore projects in the U.S. Gulf of Mexico, Brazilian waters, and Angola. Consequently, the company’s total committed contract value now exceeds $3.1 billion.
The West Polaris rig obtained a three-year extension agreement with Petrobras in Brazil, commencing in January 2028. This contract alone contributed approximately $480 million to backlog. Meanwhile, the West Neptune and West Vela rigs secured work with LLOG in the U.S. Gulf, collectively adding $260 million in contract value.
In Angola, Sonangol Quenguela extended its drilling agreement with TotalEnergies for roughly 480 additional days. This extension maintains rig commitment through July 2028. Additionally, the West Carina rig received a contract prolongation in Brazil extending operations until June 2026.
SDRL Shares Advance Despite Intraday Volatility
Shares of SDRL increased 3.05% to $49.79 following the company‘s quarterly financial disclosure. Technical analysis revealed diminishing momentum after an initial surge toward $53. By session’s later stages, the stock price stabilized closer to the lower portion of the trading range.
Market participants responded to Seadrill’s enhanced EBITDA results, elevated guidance parameters, and expanded contract portfolio. The intraday retracement suggested profit-taking activity following the opening advance. Nevertheless, SDRL concluded the trading session with positive gains intact.
Seadrill maintains operations within the offshore drilling sector, deploying deepwater rigs across significant energy-producing regions. The enterprise gains advantage when exploration and production companies allocate capital toward extended offshore development initiatives. Recent contract additions enhance revenue predictability extending through late 2026, throughout 2027, and into portions of 2028.
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