Seadrill Sets New Record with Cycle-High Dayrate of $545,000

Offshore drilling contractor Seadrill Limited (NYSE & OSE: SDRL) reported a record dayrate of $545,000 for a one-well contract in the first quarter of 2024, the highest in the current cycle.

The company announced its Q1 results on Tuesday, reporting an operating profit of $80 million and an Adjusted EBITDA of $124 million on a revenue of $367 million. The results translate to an impressive Adjusted EBITDA margin of 33.8%.

“Seadrill has had a strong start to the year, delivering safe, efficient operations to our customers, securing a cycle-high dayrate that offers an encouraging indication of market potential, and returning capital to shareholders,” said Simon Johnson, President and Chief Executive Officer of Seadrill. He further added that as the cycle progresses, Seadrill’s competitive fleet, focused market positioning, and balance sheet strength will support durable earnings and capital returns.

Seadrill has also been active in its share repurchase program, repurchasing 9.9 million shares since September 2023, which represents 12.4% of its issued share count.

The company’s order backlog as of May 14, 2024, stood at approximately $2.8 billion, which includes about $108 million in contract additions since the end of February. Among these are several new contracts, including a one-well contract in South Korea for the drillship West Capella, estimated at $32 million, and a six-month contract extension in the U.S. Gulf of Mexico for the drillship West Neptune, valued at approximately $86 million.

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