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Seadrill posts $94m Q2 profit

Simon Johnson, president and CEO of Seadrill Limited (File photograph)

Seadrill Limited, the Bermudian-based offshore drilling company, has reported net income of $94 million in the second quarter of the year and operating profit of $109 million.

The company said the results reflect a full quarter's contribution from contracted rigs acquired as part of the Aquadrill transaction, which was completed on April 3.

Seadrill now owns 12 benign deep water floaters, beyond the two it manages as part of a 50:50 joint venture with Sonangol; three harsh-environment rigs; and four jack-ups, three of which it plans to sell consistent with ongoing fleet refinement.

President and chief executive Simon Johnson said: “We delivered strong results this quarter, and the full year continues to be in line with previous guidance. This quarter, we executed decisively on strategic initiatives that simplify and strengthen our organisation.

“We established greater scale with the closing of the Aquadrill acquisition. We continued to refine our fleet through value-accretive asset divestitures, completing the sale of three tender-assist units at attractive valuations and announcing intentions to sell our jack-up fleet in Qatar.

“We also strengthened our financial position, refinancing our secured debt at competitive rates to reduce our cost of capital and improve our strategic flexibility.”

He added: “We remain committed to prioritising a conservative capital structure, a refined fleet, and a disciplined, value-accretive approach to growth. Our new repurchase authorisation will allow us to evaluate opportunities to return capital to shareholders when available and prudent, driving further value creation.”

Seadrill generated $414 million in total operating revenues, a sequential increase of $148 million, or 56 per cent.

The company incurred $308 million in operating expenses, an increase of $89 million, or 41 per cent, from the previous quarter, primarily owing to higher vessel and rig operating expense consistent with the growth in the company’s fleet size.

The company’s board of directors has authorised a share repurchase programme that allows the company to repurchase up to $250 million of its outstanding common shares.

At quarter-end, Seadrill’s order backlog stood at $2.6 billion, reflecting approximately $203 million of contract additions.

As of August 15, the company’s order backlog stands at $2.4 billion.

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Published August 15, 2023 at 3:58 pm (Updated August 15, 2023 at 9:10 pm)

Seadrill posts $94m Q2 profit

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