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.

19,8 %

−5,4 %

+3,8 %

2.03

2.03

— Seadrill Ltd
%
Contract drilling services85% Dayrate drilling services provided with owned offshore rigs under customer contracts.
Mobilization revenue5% Fees recognized over the contract term for moving rigs to new assignments.
Reimbursable revenues5% Customer reimbursements for supplies, equipment, personnel and other requested services.
Management contract revenues5% Operational, technical and management support for affiliated or joint-venture rigs.

Seadrill sells primarily to oil super-majors, state-owned national oil companies, and independent oil and gas companies...

  • Oil super-majorsprimary

    Large integrated oil companies that charter drillships and semi-submersibles for major offshore development and exploration programs.

  • State-owned national oil companiesprimary

    National oil companies that buy offshore drilling capacity for domestic or regional offshore fields and long-duration campaigns.

  • Independent oil and gas companiesprimary

    Smaller E&P operators that contract rigs for targeted offshore wells where specialized equipment and execution matter.

  • Affiliated and joint-venture rigssecondary

    Entities such as Sonadrill that receive management, operational and technical support services.

Seadrill describes its business as worldwide, with operations based on where offshore drilling activity occurs rather...

  • •Worldwide offshore operations tied to active oil and gas basins
  • •Fleet deployed where customer drilling programs require capacity
  • •Bermuda parent structure with subsidiaries in multiple jurisdictions
  • •Exposure to local tax, regulatory and withholding regimes
  • •Operational footprint follows offshore activity in the Atlantic, Brazil and beyond

Seadrill’s strategy centers on maintaining a conservative capital structure, preserving liquidity, and investing...

01
Conservative balance sheet managementshort-term

Offshore drilling is cyclical, so liquidity and leverage discipline help the company withstand downturns.

02
Fleet investment and upgradesmedium-term

Rig capability and reliability determine contract wins, dayrates and customer retention.

03
Shareholder returnsmedium-term

Capital returns are tied to free cash flow generation and covenant headroom.

Seadrill is exposed to the cyclicality of offshore drilling demand, which depends on oil and gas prices, exploration...

high

Cyclical offshore drilling demand

Customer spending depends on oil and gas prices, exploration activity and regulatory conditions.

Scope
Worldwide offshore markets
Materiality
high
high

Customer concentration

A small number of customers account for a large share of revenue, increasing renegotiation and non-payment risk.

Scope
Petrobras, Sonadrill, Talos, LLOG
Materiality
high
high

Cybersecurity and operational technology disruption

Rigs and support systems rely on connected IT/OT infrastructure that can be targeted by attacks or failures.

Scope
Fleet operations and remote support systems
Materiality
high
medium

Asset impairment risk

Drilling unit values depend on future utilization, dayrates and costs, which are highly judgmental.

Scope
Owned drillships and semi-submersibles
Materiality
high
medium

Regulatory and tax exposure across jurisdictions

Operations and income span multiple countries with differing tax and withholding rules.

Scope
Bermuda and operating jurisdictions
Materiality
medium
Mobilization revenue recognition
Can shift revenue between periods when new contracts begin
Reimbursable and management contract revenues
Adds volatility to reported operating revenue
Impairment of drilling units
Can create large non-cash charges
Income taxes and valuation allowances
Tax expense can vary with jurisdictional mix and estimate changes

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: 29/04/2026