Seadrill Limited (SDRL) Lifts Revenue Forecast as Contract Backlog Hits $3.1 Billion

Key Highlights

• Seadrill achieves Q1 adjusted EBITDA of $97M while expanding contract pipeline beyond $3.1B.

• Shares of SDRL advance 3.05% following upgraded 2026 financial projections.

• Offshore driller secures fresh rig agreements spanning Brazil, Angola, and Gulf of Mexico operations.

• First-quarter net loss shrinks as improved dayrates strengthen operational performance.

• Intraday trading shows early volatility despite positive earnings metrics and enhanced outlook.

Seadrill Limited delivered improved first-quarter financial performance while announcing contract wins that pushed its total backlog past the $3.1 billion threshold. Shares of SDRL closed at $49.79, marking a 3.05% increase, though the stock retreated from intraday peaks near $53. The quarterly report highlighted strengthening rig market conditions, upgraded forecasts, and extended revenue certainty through 2026.

Seadrill Limited, SDRL

Offshore Driller Elevates 2026 Financial Projections

Seadrill recorded operating revenue of $358 million during the first quarter, representing a slight decline from the prior quarter’s $362 million. Despite this modest revenue dip, adjusted EBITDA climbed to $97 million compared with $88 million previously. The offshore driller also expanded its adjusted EBITDA margin, excluding reimbursables, reaching 27.9%.

The company narrowed its quarterly net loss to $7 million from $10 million in the preceding period. Diluted loss per share decreased to 11 cents versus 16 cents previously. Operating expenditures declined to $334 million as certain project preparation activities transitioned into capitalized investments.

Management upgraded its 2026 operating revenue forecast to a range of $1.43 billion to $1.48 billion. Adjusted EBITDA guidance for 2026 was similarly raised to between $370 million and $420 million. The company maintained its capital expenditure and long-term maintenance projection at $200 million to $240 million.

Fresh Agreements Expand Backlog Beyond $3.1 Billion

Seadrill supplemented its contract backlog with over $860 million in new awards following its February fleet update. These contract wins originated from operations in the U.S. Gulf of Mexico, Brazil, and Angola. Consequently, the total contract backlog now exceeds $3.1 billion.

The West Polaris rig obtained a three-year extension with Petrobras in Brazil, scheduled to commence in January 2028. This agreement contributed approximately $480 million to the backlog. Meanwhile, West Neptune and West Vela secured Gulf of Mexico assignments with LLOG, collectively adding $260 million.

In Angola, Sonangol Quenguela extended operations with TotalEnergies for roughly 480 days. This extension maintains rig commitment through July 2028. Additionally, West Carina’s Brazil contract received an extension running into June 2026.

Shares Show Positive Movement Despite Intraday Volatility

SDRL stock appreciated 3.05% to $49.79 following the company‘s first-quarter earnings disclosure. However, trading patterns revealed weakening momentum after an initial surge toward $53. Prices subsequently stabilized toward the lower portion of the session’s range.

Market participants responded to Seadrill’s enhanced EBITDA performance, elevated guidance, and expanded contract pipeline. The intraday retreat suggested profit-taking activity following the opening rally. Nevertheless, SDRL maintained positive territory through the session update.

Seadrill specializes in offshore drilling services, deploying deepwater rigs across key energy markets globally. The company gains when oil producers allocate capital toward long-duration offshore exploration and development initiatives. Recent contract additions provide revenue visibility extending into late 2026, throughout 2027, and into portions of 2028.

The post Seadrill Limited (SDRL) Lifts Revenue Forecast as Contract Backlog Hits $3.1 Billion appeared first on Blockonomi.