Key Highlights

  • The third-quarter net loss at Seadrill (NYSE:SDRL) totaled USD 30 million, or USD 0.49 per diluted share, after a legal provision, compared with USD 29 million of Net Income in the second quarter.
  • Adjusted EBITDA guidance moved up to USD 440 million to USD 460 million from USD 420 million to USD 450 million, while Revenue guidance rose to USD 1.56 billion to USD 1.58 billion.
  • Operating cash flow of USD 195 million produced USD 179 million of free cash flow, supported by lump-sum mobilization income and a Working Capital release.
  • Backlog stood at USD 3.3 billion on November 3, 2026, following roughly USD 800 million of awards and extensions booked since the August fleet status report.

Legal Provision Tips the Quarter Into Loss

Seadrill (NYSE:SDRL) announced third-quarter 2026 results on November 3, 2026. Operating revenues came to USD 428 million against USD 449 million in the second quarter, and the USD 30 million net loss stood in contrast to USD 29 million of earlier net income. The company attributed the loss partly to a legal provision booked in the quarter, though the amount was not disclosed in the material reviewed. Revenue declined mostly because the West Carina had fewer operating days after finishing its contract in the second quarter, and because of 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 the decline. Adjusted EBITDA, a non-GAAP measure, came in at USD 121 million versus USD 144 million, and the Margin before reimbursables was 29.7% against 33.5%.

Awards in Indonesia, Malaysia and Angola Lift Guidance

Revenue guidance now stands at USD 1.56 billion to USD 1.58 billion excluding USD 90 million of reimbursables, up from USD 1.50 billion to USD 1.55 billion excluding USD 50 million. The midpoint climbed by USD 45 million (own arithmetic). Capital spending guidance was narrowed to USD 210 million to USD 230 million. New work includes a West Carina contract in Indonesia valued at about USD 420 million for a firm 880 days starting in the first half of 2027, along with priced options. The West Capella will work in Malaysia through February 2028 following Options worth about USD 94 million combined, and the Sonangol Libongos, via the Sonadrill joint venture, is committed into 2030. The chief executive said more than 85% of available drillship days are contracted for 2027.

Net Debt of USD 244 Million and a Caution on One-Off Cash Boosts

Gross principal debt at quarter-end was USD 750 million against USD 506 million of cash and restricted cash, which leaves net debt of USD 244 million. The company bought back about USD 22 million of shares during the quarter. Free cash flow was helped by the one-time mobilization receipt and a working capital release, while capital additions and long-term maintenance totaled USD 56 million. Backlog includes only firm contracts at contractual dayrates, excludes mobilization revenue and could shrink if drilling contracts are cancelled, a risk the company itself lists. Other flagged risks include customer payment disputes, oil price swings and litigation effects. A conference call is set for 8:00 a.m. CT on November 4, 2026.

Where Things Stand

The loss and the higher outlook do not conflict. Seadrill (NYSE:SDRL) posted a USD 30 million loss driven by a legal provision and Idle Time between contracts, yet the higher forecast leans on fresh awards and repriced older deals, including a better West Carina dayrate starting in 2027. Next, watch the size of the legal provision, the pace of rig mobilizations and whether cash conversion holds up once one-off boosts fade.