Seadrill Q2 Revenues Jump 56% Q/Q, Plans $250M Stock Buyback

Seadrill Ltd SDRL reported a Q2 2023 operating revenue of $414 million (+56% Q/Q), with economic utilization of 93%.

Seadrill witnessed contract additions of around $203 million of order backlog during the quarter, bringing the total to roughly $2.6 billion as of June 30, 2023.

In Q2, Seadrill operated an average of 13 rigs that contributed to contract revenues at an average day rate of $276 thousand and economic utilization of 93%, compared to an average of nine rigs in the first quarter. 

Adjusted EBITDA rose significantly to $159 million in Q2 2023 from $85 million in Q1 2023.

The company reported Q2 EPS of $1.16 vs. $0.83 in Q1 2023.

Seadrill held $539 million in cash and cash equivalents as of June 30, 2023.

The company disclosed the potential sale of three jackup rigs and related stake in its 50:50 joint venture with Gulf Drilling International (GDI) and sold its three tender-assist units to certain affiliates of Energy Drilling Pte. Ltd. (Edrill) for proceeds of around $85 million at the end of July.

"We delivered strong results this quarter, and the full year continues to be in line with previous guidance. This quarter, we executed decisively on strategic initiatives that simplify and strengthen our organization. We established greater scale with the closing of the Aquadrill acquisition. We continued to refine our fleet through value-accretive asset divestitures, completing the sale of three tender-assist units at attractive valuations and announcing intentions to sell our jackup fleet in Qatar. We also strengthened our financial position, refinancing our secured debt at competitive rates to reduce our cost of capital and improve our strategic flexibility," said Simon Johnson, President and Chief Executive Officer.

Also Read: Seadrill To Sell Qatar Jack-Up Fleet to Unspecified Buyer for Undisclosed Terms

Repurchase: The company authorized a share repurchase program to buy back up to around $250 million.

Price Action: SDRL shares are trading higher by 4.99% at $50.26 premarket on the last check Tuesday.