Bermudian-based offshore drilling company Seadrill net loss widened to $30 million in the third quarter of 2026, compared with a loss of $11 million during the same period a year ago.

This also represented a $59 million drop against the previous quarter’s net profit of $29 million.

The results came despite generating $195 million in net cash from operating activities and $179 million in free cashflow.

Total operating revenues also reached $428 million for the three months ended September 30, up from $363 million during Q3 2025.

Seadrill said the latest loss included the impact of a legal provision recorded during the quarter.

The firm did not specify the specific legal dispute, the amount set aside or whether the provision relates to litigation, a settlement or another potential liability.

Samir Ali, who succeeded Simon Johnson as president and chief executive of the firm in March, said the free cashflow results in Q3 delivered on Seadrill’s commitment to convert backlog into cash.

“Over 85 per cent of available drillship days are now contracted in 2027, further enhancing visibility into next year’s earnings and cashflow,” Mr Ali said.

Seadrill secured approximately $800 million in new contract awards and extensions in Indonesia, Malaysia, Angola and the United States Gulf following its August fleet status report.

The largest award was a contract worth approximately $420 million for the West Carina drillship in Indonesia, covering an estimated 880 days, with options for a further 880 days.

In Malaysia, extensions for the West Capella added approximately $94 million in contract value, with operations now expected to continue through February 2028.

Seadrill also secured an approximately three-year extension for the Sonangol Libongos in Angola, keeping the rig contracted into 2030.

The company reported a contract backlog of approximately $3.3 billion as of today (November 3).

Seadrill increased its full-year revenue forecast to between $1.56 billion and $1.58 billion, excluding reimbursable revenues, compared with its previous projection of $1.50 billion to $1.55 billion.

Its adjusted earnings before interest, taxes, depreciation and amortisation forecast was also raised to between $440 million and $460 million, from $420 million to $450 million.

At September 30, Seadrill had $750 million in gross principal debt and $506 million in cash, cash equivalents and restricted cash, leaving net debt of $244 million.

The company also repurchased approximately $22 million of its shares during the quarter.