Q2 2026 Seadrill Ltd Earnings Call Transcript
Key Points
- Seadrill Ltd (SDRL) delivered strong Q2 2026 results with EBITDA of $144 million, exceeding expectations and prompting a second guidance raise this year.
- The company achieved high operational performance with 96% economic utilization and completed the West Telus reacceptance on schedule and on budget.
- Seadrill Ltd (SDRL) secured approximately $200 million in new backlog, including a 12-month contract with Talos for the West Vela at leading-edge day rates.
- The refinancing in June strengthened the balance sheet by extending debt maturities to 2034 and increasing the revolving credit facility to $300 million.
- Management resumed shareholder returns with $20 million in share repurchases and extended the buyback program through year-end, reflecting confidence in future cash flow.
- Seadrill Ltd (SDRL) faces limited visibility for the Savannah, Louisiana rig for the remainder of 2026, which is reflected in conservative guidance.
- The company expects higher repair and maintenance expenses in the second half of 2026, which could pressure margins.
- The West Gemini is due to roll off contract later this year, and its follow-on work is not yet secured, creating potential idle time.
- The West Carina is currently stacked in Walvis Bay with no contract, and securing work is expected only in the first half of 2027, leading to a gap in revenue.
- The U.S. Gulf market is in transition with several drillships becoming available before year-end, potentially creating near-term oversupply and pricing pressure.
Hello, everyone.
Thank you for joining us and welcome to the Seadrill Second Quarter 2026 Earnings Call.
(Operator Instructions)
I will now hand the conference over to Kevin Smith.
Hello and welcome to Seadrill's second quarter 2026 earnings call. I'm Kevin Smith, Vice President of Corporate Finance and Investor Relations, and I'm joined today by Samir Ali, President and Chief Executive Officer; Grant Creed, Executive Vice President and Chief Financial Officer, and Jacob Taylor, Vice President, Commercial.
Our call will include forward-looking statements that involve risks and certainty.
Actual results may differ materially.
No one should assume these forward-looking statements remain valid later in the quarter or year, and we assume no obligation to update them except as required by securities laws.
Our filings with the US Securities and Exchange Commission provide a more detailed discussion of our forward
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