Seadrill Secures $860M in New Contracts, Boosts 2026 Guidance

Event summary

  • Seadrill added $860M to its contract backlog, bringing total backlog to $3.1B.
  • Completed West Capella and West Jupiter projects ahead of schedule and on budget.
  • Reported Q1 2026 net loss of $7M but increased full-year revenue and EBITDA guidance.
  • Secured contract extensions with Petrobras, LLOG, and TotalEnergies.
  • Maintained capital expenditure range at $200–$240M for the year.

The big picture

Seadrill’s strong Q1 2026 results reflect growing demand for deepwater drilling services, particularly in regions like Brazil and the U.S. Gulf. The company’s ability to secure long-term contracts with major oil firms like Petrobras and TotalEnergies underscores the industry’s focus on energy security. However, the broader market dynamics, including geopolitical risks and fluctuating oil prices, will influence Seadrill’s ability to maintain this momentum.

What we're watching

Contract Backlog Growth
Whether Seadrill can sustain this pace of contract wins amid rising demand for deepwater rigs.
Operational Efficiency
How the company’s ability to complete projects ahead of schedule will impact future contract negotiations.
Financial Discipline
The pace at which Seadrill can convert increased backlog into free cash flow while maintaining capital expenditure discipline.

Related topics

EBITDA