Seadrill (SDRL) Q4 2024 earnings summary

Executive summary

• Delivered 2024 results within EBITDA guidance, reporting net income of $446 million and Adjusted EBITDA of $378 million, while returning over $500 million in capital to shareholders and adding $1.3 billion in contracted backlog.

• Divested non-core assets for $400 million, completed exit from benign jack-up market via $45 million sale of West Prospero, and repurchased $792 million in shares, reducing share count by 22% since September 2023.

• Secured $1 billion in new long-term contracts for West Jupiter and West Tellus, extending backlog into 2029, and maintained a strong balance sheet with $505 million in cash at year-end.

• Seadrill's February 2025 Fleet Status Report highlights ongoing operations and contract coverage across Brazil, Angola, the U.S. Gulf, and Southeast Asia.

Financial highlights

• Full-year 2024 Adjusted EBITDA was $378 million on $1.4 billion in revenue; Q4 operating revenues were $289 million, down 18% sequentially, with contract revenues at $204 million.

• Q4 Adjusted EBITDA margin was 9.7%, down from 26.3% in Q3; net income margin was 34.9%.

• Q4 operating expenses rose to $323 million, mainly from merger and integration costs; SG&A was $31 million.

• Year-end gross principal debt was $625 million, with net debt at $120 million and $505 million in cash.

• Free Cash Flow for Q4 was negative $31 million; net cash from operations was $7 million.

Outlook and guidance

• 2025 revenue guidance: $1.3–$1.36 billion (excluding $35 million reimbursable revenue); Adjusted EBITDA: $320–$380 million; CapEx: $250–$300 million.

• 75% of marketed fleet contracted for 2025; $3 billion in durable contract cover extends through 2028–2029.

• Operational issues in early 2025 expected to reduce EBITDA by $55 million, but these are now resolved.

• Management highlights a strong balance sheet and durable backlog to navigate market volatility.