Seadrill (NYSE:SDRL) Issues Quarterly Earnings Results

Seadrill (NYSE:SDRL) posted its quarterly earnings results on Monday. The oil and gas company reported ($0.11) earnings per share for the quarter, beating the consensus estimate of ($0.27) by $0.16, Zacks reports. Seadrill had a negative net margin of 5.36% and a negative return on equity of 2.07%.

Here are the key takeaways from Seadrill’s conference call:

• Seadrill added about $860 million of backlog this quarter, including follow?on contracts for the West Neptune and West Vela in the U.S. Gulf, a 7?well option in Angola and a 3?year extension for the West Polaris in Brazil, reducing 2026 white space and improving near?term revenue visibility.
• Management raised full?year guidance after a stronger Q1, with EBITDA of $97 million in the quarter and updated 2026 revenue and EBITDA ranges of $1.43–1.48 billion and $370–420 million, respectively.
• Seadrill expects a free?cash?flow inflection point in mid?2026 driven by early contract starts, higher market day rates on re?contracted rigs, and approximately $70 million of lump?sum mobilization receipts due from Petrobras related to reacceptance projects.
• The balance sheet shows $329 million cash, $625 million gross principal debt and ~$482 million total liquidity, with capex guidance of $200–240 million; management prioritizes FCF generation and says capital returns or M&A will be considered once cash is generated.

Seadrill Stock Up 3.2%

Seadrill stock traded up $1.56 during mid-day trading on Monday, reaching $49.88. 436,811 shares of the company’s stock were exchanged, compared to its average volume of 834,784. The company has a market cap of $3.11 billion, a P/E ratio of -40.26 and a beta of 1.25. Seadrill has a twelve month low of $22.30 and a twelve month high of $51.25. The company has a quick ratio of 2.03, a current ratio of 2.03 and a debt-to-equity ratio of 0.21. The company has a fifty day moving average of $45.72 and a 200-day moving average of $38.36.

Wall Street Analysts Forecast Growth

SDRL has been the subject of a number of research reports. Barclays upgraded shares of Seadrill from an “equal weight” rating to an “overweight” rating and boosted their target price for the company from $41.00 to $59.00 in a research report on Thursday. Wall Street Zen upgraded shares of Seadrill from a “sell” rating to a “hold” rating in a research report on Saturday, March 7th. Zacks Research upgraded shares of Seadrill from a “strong sell” rating to a “hold” rating in a research report on Tuesday, April 28th. BWS Financial reiterated a “buy” rating and issued a $80.00 price objective on shares of Seadrill in a research report on Tuesday, April 7th. Finally, BTIG Research upped their price objective on shares of Seadrill from $50.00 to $55.00 and gave the stock a “buy” rating in a research report on Friday, April 17th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $55.00.

Institutional Investors Weigh In On Seadrill

Hedge funds have recently added to or reduced their stakes in the business. Mercer Global Advisors Inc. ADV acquired a new stake in shares of Seadrill in the 4th quarter valued at $244,000. Elliott Investment Management L.P. grew its position in shares of Seadrill by 23.1% in the 4th quarter. Elliott Investment Management L.P. now owns 4,558,758 shares of the oil and gas company’s stock valued at $157,733,000 after buying an additional 855,012 shares during the last quarter. Empowered Funds LLC grew its position in shares of Seadrill by 35.1% in the 4th quarter. Empowered Funds LLC now owns 285,631 shares of the oil and gas company’s stock valued at $9,883,000 after buying an additional 74,250 shares during the last quarter. SummitTX Capital L.P. grew its position in Seadrill by 2,972.8% during the 4th quarter. SummitTX Capital L.P. now owns 312,385 shares of the oil and gas company’s stock worth $10,809,000 after purchasing an additional 302,219 shares during the last quarter. Finally, Odyssean LLC purchased a new position in Seadrill during the 4th quarter worth $282,000. 95.67% of the stock is currently owned by institutional investors and hedge funds.

About Seadrill

Seadrill Limited, trading on the New York Stock Exchange under the symbol SDRL, is a leading provider of offshore drilling services to the global oil and gas industry. The company specializes in the design, construction, deployment and operation of mobile offshore drilling units, serving major exploration and production companies with turnkey drilling solutions.

Seadrill’s fleet comprises ultra-deepwater drillships, semi-submersible rigs and high-specification jack-up units capable of operating in some of the world’s most challenging offshore environments.