Seadrill (SDRL) Q4 2024 earnings summary

Executive summary

• Delivered 2024 results within EBITDA guidance, reporting $446 million net income and $378 million Adjusted EBITDA on $1.4 billion revenue, with $418 million in capital expenditures.

• Returned over $500 million in capital to shareholders, repurchasing $792 million in shares and reducing share count by 22% since September 2023.

• Added $1.3 billion in contracted backlog and divested non-core assets for $400 million in cash, including the $45 million sale of West Prospero, finalizing exit from the benign jack-up market.

• Achieved 75% fleet contract coverage for 2025 and $3 billion in durable backlog extending into 2029.

• 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

• Q4 2024 operating revenues were $289 million, down from $354 million in Q3, due to fewer operating days and planned out-of-service time.

• Q4 operating expenses rose to $323 million, mainly due to merger, integration, and SG&A costs.

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

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

• Q4 cash flow from operations was $7 million, including $94 million in long-term maintenance CapEx; Free Cash Flow for Q4 was negative $31 million.

Outlook and guidance

• 2025 revenue guidance: $1.3–$1.36 billion (excluding $35 million reimbursable revenue).

• 2025 Adjusted EBITDA guidance: $320–$380 million, with $250–$300 million in capital expenditures.

• Q1 and full-year 2025 EBITDA expected to be adversely impacted by $55 million due to operational issues, now resolved.

• 2025 revenue guidance midpoint includes $1.2 billion of contracted backlog; additional Capella backlog would be incremental.

• Backlog stands at $3.0 billion as of February 26, 2025, with 75% of 2025 available rig days contracted.