An offshore drilling contractor that rents out a fleet of modern drillships, semi-submersibles, and jackups to oil giants like Petrobras on a daily rate, working in waters up to 12,000 feet deep. Norwegian-born shipping tycoon John Fredriksen launched the company in 2005 in Bermuda, and it grew fast by buying up rivals like Smedvig. Its name is a simple mash-up of "sea" and "drill" — exactly what it does.
CINS: G7997W102CUSIP: G7997W102EnergyBM3 holders
Feb 23, 2022 — Reclassified from Seadrill Ltd (1:1)
Seadrill returned to net income of $29M in Q2 2026 as revenue rose 19% to $449M and a prior-year legal charge did not recur.
Seadrill swung back to profitability. rose 19% to $449 million and reached $72 million, driven by higher dayrates and utilization alongside the absence of a $51 million Sonadrill legal charge that had wiped out earnings a year ago. The grew to $2.9 billion and the company refinanced its debt, but cash remains tight at $337 million.
Key takeaways
was $29 million, compared to a $42 million loss in Q2 2025, as swung from $6 million to $72 million — the prior-year period included a $51 million charge for estimated damages from a Sonadrill joint venture legal judgment that did not recur.
rose 19% to $449 million, with contract revenues up 23% to $355 million, driven by a rise in average contractual dayrates to $360,000 from $331,000 and an improvement in to 96% from 93%.
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue rose 19% to $449M on higher dayrates and utilization, turning a $42M net loss into $29M net income.
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Operating revenues grew 19% to $449M, driven by a 23% increase in contract revenues to $355M from higher average dayrates ($360k vs. $331k) and improved (96% vs. 93%).
Vessel and rig operating expenses rose 19% to $215 million, primarily from the West Capella commencing operations in Malaysia and higher integrated services, repair, and personnel costs.
Total increased to $2.9 billion as of June 30, 2026, up from $2.4 billion at year-end 2025, with $763 million expected to be realized in the remainder of 2026.
The company refinanced its debt, issuing $700 million of 6.750% Senior Notes due 2034 to redeem its 2030 Notes, and upsized its to $300 million; rose to $737 million from $612 million in Q1 2026.
Cash and equivalents stood at $337 million, up 11% from Q1 2026 but down 20% , and remained negative at -$18 million.
What changed
The $52 million Sonadrill damages charge flagged in Q2 2025 as a one-off risk did not recur, allowing to recover from $6 million to $72 million.
, which had been a concern after falling to 84% in Q1 2025, recovered to 96% in Q2 2026 — the highest level since Q2 2024 — as rigs like West Capella began new contracts.
The , which had been shrinking from $3.2 billion at year-end 2024 to $2.4 billion at year-end 2025, reversed course and grew to $2.9 billion, supported by new contract awards.
The company resumed debt market activity after pausing share repurchases throughout 2025, refinancing its 2030 Notes and upsizing its to $300 million, addressing the refinancing risk flagged in earlier filings.
Average contractual dayrates continued their upward trajectory, reaching $360,000 in Q2 2026 from $343,000 in Q1 2026 and $331,000 a year ago, as higher-priced contracts rolled on.
What to watch
Whether the $763 million in expected for the remainder of 2026 is realized at or above the current $360,000 average dayrate, as this will determine full-year and margin trajectory.
Whether turns positive after two consecutive quarters of negative cash flow, and if the cash balance stabilizes above $300 million or requires drawing on the upsized $300 million .
Whether the Sonadrill joint venture's persist or result in further cash outflows beyond the $52 million charge taken in Q2 2025.
Whether the company resumes share repurchases, given the $208 million remaining authorization and the improving operational performance, or continues to prioritize liquidity preservation.
swung from $6M to $72M as the prior-year period included a $51M charge for estimated damages related to a Sonadrill joint venture legal judgment that did not recur.
Vessel and rig operating expenses rose 19% to $215M, primarily due to the West Capella commencing operations in Malaysia and higher integrated services, repair, and personnel costs.
Total increased to $2.9B as of June 30, 2026, up from $2.4B at year-end 2025, with $763M expected to be realized in the remainder of 2026.
Available liquidity stood at $585M, and the company refinanced its debt by issuing $700M of 6.750% Senior Notes due 2034 to redeem its 2030 Notes, while also upsizing its to $300M.
Quantitative and Qualitative Disclosures About Market Risk
We are exposed to market risks, including foreign exchange risk and interest rate risk. Our policy is to reduce our exposure to these risks, where possible, within boundaries deemed appropriate by our management team. This may include the use of derivative instruments. There hav…
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We are exposed to market risks, including foreign exchange risk and interest rate risk. Our policy is to reduce our exposure to these risks, where possible, within boundaries deemed appropriate by our management team. This may include the use of derivative instruments. There have been no material changes to our market risks as compared to the information previously reported under Part II, Item 7A. "Quantitative and Qualitative Disclosures About Market Risk" in our 2025 10-K.
Except as set forth in Note 13 – "Commitments and contingencies" to our unaudited Condensed Consolidated Financial Statements included in Part I, Item 1. "Financial Statements" of this Quarterly Report on Form 10-Q, we were involved in a number of lawsuits, regulatory matters, d…
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Except as set forth in Note 13 – "Commitments and contingencies" to our unaudited Condensed Consolidated Financial Statements included in Part I, Item 1. "Financial Statements" of this Quarterly Report on Form 10-Q, we were involved in a number of lawsuits, regulatory matters, disputes, and claims, asserted and unasserted, all of which have arisen in the ordinary course of our business and for which we do not expect the liability, if any, to have a material adverse effect on our consolidated financial position, results of operations, or cash flows. We cannot predict with certainty the outcome or effect of any of the matters referred to above or of any such other pending or threatened litigation or legal proceedings. We can provide no assurance that our beliefs or expectations as to the outcome or effect of any lawsuit or claim or dispute will prove correct and the eventual outcome of these matters could materially differ from management’s current estimates.