Key Highlights

  • USD 30 million: the third quarter net loss at Seadrill (NYSE:SDRL), or USD 0.49 per diluted share, after a legal provision, versus Net Income of USD 29 million in the second quarter.
  • USD 440 million to USD 460 million: the raised 2026 Adjusted EBITDA guidance, up from USD 420 million to USD 450 million, alongside a higher Revenue range of USD 1.56 billion to USD 1.58 billion.
  • USD 179 million: free Cash Flow generated in the quarter from USD 195 million of operating cash flow, helped by lump-sum mobilization revenue and a Working Capital release.
  • USD 3.3 billion: contract Backlog as of November 3, 2026, after awards and extensions worth about USD 800 million since the August fleet status report.

A Legal Provision Pushes the Quarter Into a Loss

Seadrill announced third quarter 2026 results on November 3, 2026. Total operating revenues were USD 428 million, down from USD 449 million in the second quarter, while the net loss of USD 30 million compared with net income of USD 29 million. The company said the loss includes a legal provision booked in the quarter but no amount was available in the material reviewed. Revenue fell mainly on fewer operating days for the West Carina, which finished its contract in the second quarter, and gaps between contracts for the West Vela, West Elara and Sevan Louisiana. The West Tellus, which began a long-term contract in June, partly offset that. Adjusted EBITDA, a non-GAAP measure, was USD 121 million versus USD 144 million, with the Margin excluding reimbursables at 29.7% versus 33.5%.

Guidance Raised on Contract Wins in Indonesia, Malaysia and Angola

The company raised revenue guidance to USD 1.56 billion to USD 1.58 billion, excluding USD 90 million of reimbursables, from USD 1.50 billion to USD 1.55 billion excluding USD 50 million. The midpoint rose by USD 45 million, our own arithmetic. Capital spending guidance was narrowed to USD 210 million to USD 230 million. New work includes a West Carina contract in Indonesia worth about USD 420 million for a firm 880 days starting in the first half of 2027, plus priced options. The West Capella in Malaysia will work through February 2028 after Options worth about USD 94 million combined, and the Sonangol Libongos, through the Sonadrill joint venture, is committed into 2030. The CEO said more than 85% of available drillship days are contracted for 2027.

Net Debt of USD 244 Million and the Cash Flow Caveat

At quarter-end gross principal debt was USD 750 million against USD 506 million of cash and restricted cash, a net debt position of USD 244 million. The company repurchased about USD 22 million of shares in the quarter. Free cash flow benefited from the one-off mobilization receipt and the working capital release, and capital additions and long-term maintenance totaled USD 56 million. Backlog counts only firm contracts at contractual dayrates, excludes mobilization revenue and can shrink if drilling contracts are cancelled, a risk the company lists. Other flagged risks include customer payment disputes, oil price swings and the effects of litigation. A conference call is scheduled for 8:00 a.m. CT on November 4, 2026.

Where Things Stand

The loss and the guidance raise are not in conflict. Seadrill (NYSE:SDRL) booked a USD 30 million loss because of a legal provision and gaps between contracts, while the higher outlook rests on new awards and repricing of older contracts, with the improved West Carina dayrate effective in 2027. The next checks are the size of the legal provision, the pace of rig mobilizations and whether cash conversion stays strong once the one-off boosts fade.