Seadrill earnings rise on improved utilization and higher dayrates

Seadrill (NYSE:SDRL) posted first-quarter 2026 adjusted EBITDA of $97 million, surpassing the $88 million recorded in the previous quarter, even as total operating revenues saw a marginal decline.

Total operating revenues for the period reached $358 million, down from $362 million in the final quarter of 2025.

The company attributed the dip to fewer operating days and a reduction in reimbursable revenues.

However, these headwinds were significantly mitigated by higher average contractual dayrates and improved economic utilization across the fleet.

Operating expenses fell by $10 million to $334 million, aided by the capitalization of costs associated with preparing the West Jupiter for its new contract.

Both the West Jupiter and West Capella began operations late in the first quarter, with the company expecting a cash flow boost in the second quarter when mobilization revenues for these units are collected.

Despite the stronger EBITDA, Seadrill reported a net loss of $7 million for the quarter.

Meanwhile, the Bermuda-based driller ended the quarter with a net debt position of $296 million, comprising $625 million in gross principal debt and $329 million in cash and cash equivalents.

Capital expenditures and long-term maintenance accounted for $51 million in cash use during the quarter, driven largely by rig preparations and working capital timing.