Seadrill boosts 2026 outlook after securing $3.1B in new drilling contracts
Seadrill has raised its financial outlook for 2026 after securing new contracts and extending existing ones. The company’s shares climbed by 3.05% following the announcement of stronger revenue and earnings forecasts. Recent deals in Brazil, Angola, and the Gulf of Mexico have boosted its contract backlog beyond $3.1 billion. The offshore drilling firm reported a mixed first quarter for 2023. Operating revenue reached $358 million, slightly lower than the $362 million recorded in the previous quarter. Despite this dip, the company narrowed its net loss to $7 million, an improvement from the $10 million loss in Q4 2022.
Adjusted EBITDA for Q1 2023 stood at $97 million, with a margin of 27.9% when excluding reimbursables. These figures reflect steady operational performance despite softer revenue. A key driver of the upgraded forecasts was the three-year extension for the West Polaris rig with Petrobras in Brazil. This deal alone adds around $480 million to Seadrill’s backlog. Combined with other new contracts, the company now expects operating revenue of $1.43 billion to $1.48 billion in 2026. Adjusted EBITDA guidance was also lifted to between $370 million and $420 million for the same period.
Seadrill’s improved financial projections come on the back of strong contract momentum. The extended Petrobras deal and new agreements in multiple regions have strengthened its revenue pipeline. Investors responded positively, pushing the company’s share price higher after the announcement.
