SEADRILL Ltd
Seadrill Ltd is an offshore drilling contractor that owns and operates drillships and semi-submersible rigs for oil and gas customers worldwide. The company contracts its drilling units on a dayrate basis and also provides management services for certain affiliated rigs.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueDayrate drilling services provided with owned offshore rigs under customer contracts.
Fees recognized over the contract term for moving rigs to new assignments.
Customer reimbursements for supplies, equipment, personnel and other requested services.
Operational, technical and management support for affiliated or joint-venture rigs.
Customers
Seadrill sells primarily to oil super-majors, state-owned national oil companies, and independent oil and gas companies that need offshore drilling capacity. Its revenue base is concentrated among a small number of large customers, reflecting the project-based nature of offshore drilling and the scale of individual rig contracts.
Large integrated oil companies that charter drillships and semi-submersibles for major offshore development and exploration programs.
National oil companies that buy offshore drilling capacity for domestic or regional offshore fields and long-duration campaigns.
Smaller E&P operators that contract rigs for targeted offshore wells where specialized equipment and execution matter.
Entities such as Sonadrill that receive management, operational and technical support services.
Strategy
Seadrill’s strategy centers on maintaining a conservative capital structure, preserving liquidity, and investing selectively in its core offshore rig fleet. The company also seeks to return capital to shareholders when leverage and liquidity targets are met, while evaluating accretive additions in core asset categories.
Offshore drilling is cyclical, so liquidity and leverage discipline help the company withstand downturns.
Rig capability and reliability determine contract wins, dayrates and customer retention.
Capital returns are tied to free cash flow generation and covenant headroom.
Geography
Q1/2026Seadrill describes its business as worldwide, with operations based on where offshore drilling activity occurs rather than a single home market. Its fleet serves offshore basins across multiple jurisdictions, and the company also manages rigs owned by affiliated entities in other regions. Geography matters because rig demand, regulation, tax treatment and operating conditions vary materially by basin and country.
Share of the revenue the company reports by geography.
Risks
Seadrill is exposed to the cyclicality of offshore drilling demand, which depends on oil and gas prices, exploration budgets and regulatory conditions. The business also faces concentration risk from a small customer base, operational and cybersecurity risks across globally deployed rigs, and impairment risk tied to the carrying value of drilling units.
- Cyclical offshore drilling demandImpact: HighLikelihood: Medium
Customer spending depends on oil and gas prices, exploration activity and regulatory conditions.
Exposure: Worldwide offshore markets
- Customer concentrationImpact: HighLikelihood: Medium
A small number of customers account for a large share of revenue, increasing renegotiation and non-payment risk.
Exposure - Cybersecurity and operational technology disruptionImpact: HighLikelihood: Medium
Rigs and support systems rely on connected IT/OT infrastructure that can be targeted by attacks or failures.
Exposure: Fleet operations and remote support systems
- Asset impairment riskImpact: MediumLikelihood: Medium
Drilling unit values depend on future utilization, dayrates and costs, which are highly judgmental.
Exposure: Owned drillships and semi-submersibles
- Regulatory and tax exposure across jurisdictionsImpact: MediumLikelihood: Medium
Operations and income span multiple countries with differing tax and withholding rules.
Exposure: Bermuda and operating jurisdictions
Accounting
Judgemental itemsFees received to move rigs are deferred and recognized ratably, affecting timing of revenue and contract liabilities.
Impact: Can shift revenue between periods when new contracts begin
These items can move with maintenance activity and affiliated rig operations, affecting comparability.
Impact: Adds volatility to reported operating revenue
Long-lived asset values depend on subjective assumptions about future dayrates, utilization and costs.
Impact: Can create large non-cash charges
The group operates in multiple tax jurisdictions, including Bermuda and operating countries with withholding taxes.
Impact: Tax expense can vary with jurisdictional mix and estimate changes
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Last updated: 24/09/2026