(WO) – Seadrill’s contract backlog stood at about $3.3 billion as of Nov. 3, with more than 85% of its available drillship days for 2027 now contracted. Awards and extensions since the company’s August fleet status report total about $800 million. That includes a West Carina contract in Indonesia with an undisclosed operator, worth about $420 million for an estimated 880-day firm term, plus priced options for up to another 880 days. The program is expected to start in the first half of 2027.
“Over 85% of available drillship days are now contracted in 2027, further enhancing visibility into next year’s earnings and cash flow,” said Samir Ali, president and CEO. He said the West Carina award completes the repricing of three legacy contracts, with the higher dayrate taking effect in 2027, and that a healthy tender pipeline and growing deepwater demand “reinforce our confidence in the market outlook.”
Seadrill averaged nine rigs on contract in the third quarter, down from 10 in the second quarter. Its average contractual dayrate rose to $376,000 from $360,000, and economic utilization was 94.5%. Operating revenues fell to $428 million from $449 million, mainly because of fewer operating days for the West Carina and idle time between contracts for the West Vela, West Elara and Sevan Louisiana.
Adjusted EBITDA fell to $121 million from $144 million. The company generated $179 million of free cash flow and reported a net loss of $30 million, including a legal provision.
Seadrill raised its 2026 revenue guidance to $1.56 billion to $1.58 billion, excluding reimbursables, and its adjusted EBITDA range to $440 million to $460 million.
About The Author
