Seadrill Ltd
For the period ended Sep 30, 2025. Filed Nov 6, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 6, 2025
SDRL$42.20+2.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0001737706-25-000008
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-06.
0001737706-25-000017
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 175 previous paragraphs and 175 current paragraphs.
107 unchanged; 56 reworded; 10 added; 10 removed; 2 previous and 2 current paragraphs rearranged.
Tables are not compared: 21 previous and 20 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
Marketed utilization for harsh environment floaters and jackups declined in the first nine months of 2025 compared to the prior year, primarily reflecting reduced capital spending on drilling activities.
Current report
We generally receive reimbursements from our customers for the purchase of supplies, equipment, personnel and other services provided at their request in accordance with a drilling contract. We classify such revenues as reimbursable revenues.
Current report
For the three months ended September 30, 2025 and the three months ended September 30, 2024, reimbursable revenues primarily related to rigs managed for the Sonadrill joint venture for long-term maintenance projects on the Libongos and Quenguela, along with some reimbursable revenues related to services provided across various customers.
Current report
The $9 million decrease in the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was primarily due to reduced reimbursable services provided to the Libongos and Quenguela for long-term maintenance during the third quarter of 2025, compared to the third quarter of 2024.
Current report
The increase in losses of $9 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was primarily driven by the West Gemininot operating during the third quarter of 2025, compared to operating during the third quarter of 2024.
Current report
Results for the nine months ended September 30, 2025 and September 30, 2024
Current report
b) Reimbursable revenues
Current report
Refer to Note 10 -"Related party transactions" of our unaudited Condensed Consolidated Financial Statements, included in Part I, Item 1. "Financial Statements" of this Quarterly Report on Form 10-Q, for additional details.
Current report
Refer to Note 10 -"Related party transactions" of our unaudited Condensed Consolidated Financial Statements, included in Part I, Item 1. "Financial Statements" of this Quarterly Report on Form 10-Q, for additional details.
Current report
In August 2025, the Company issued a NOK403 million guarantee ($40 million as of September 30, 2025) under the Revolving Credit Facility related to the SFL Hercules Ltd. claim, which reduced the available borrowings under the Revolving Credit Facility to $185 million.
Removed paragraphs (10)
Previous report
Marketed utilization for harsh environment floaters and jackups decreased during the first half of 2025 compared to the previous year, primarily due to long lead times for new projects to commence. Therefore, contracting activities are projected to increase in the near to medium term.
Previous report
Leasing revenues for the three months ended June 30, 2025 represent revenues earned on the charter of the West Gemini to Sonadrill, and for the three months ended June 30, 2024, also included revenues earned on the charter of the West Castor, West Telesto and West Tucanato Gulfdrill prior to their disposal in June 2024.
Previous report
Leasing revenues decreased by $18 million in the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The decrease was primarily attributable to the disposal of the Gulfdrill rigs in June 2024, along with an increase to the bareboat charter rate for the West Gemini during the three months ended June 30, 2024 retroactively applied to January 1, 2024, which did not recur during the second quarter of 2025.
Previous report
d) Selling, general and administrative expenses
Previous report
Selling, general and administrative expenses include the cost of our corporate and regional offices, certain legal and professional fees as well as the remuneration and other compensation of our officers, directors and employees engaged in central management and administration activities. Selling, general and administrative expense increased by $2 million during the three months ended June 30, 2025 compared to the three months ended June 30, 2024, primarily due to personnel costs and legal and professional fees, partially offset by lower costs attributable to the closure of our London office.
Previous report
The increase of $21 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 was primarily attributable to lower bareboat charter costs for the Libongos, Quenguela and West Gemini. During the second quarter of 2024, increases to the bareboat charter rates were applied retroactive to January 1, 2024, which did not recur in 2025. In addition, there was an increase to the operating dayrate for the West Gemini during the three months ended June 30, 2025 compared to the three months ended June 30, 2024.
Previous report
Results for the six months ended June 30, 2025 and June 30, 2024
Previous report
d) Leasing revenues
Previous report
Other operating items
Previous report
a) Gain on disposals
Reworded paragraphs (56)
Previous wording
As of June 30, 2025, we owned a total of 15 drilling rigs, of which nine were operating, one was undergoing a special periodic survey (the West Gemini, which is leased to the Sonadrill joint venture), one was undergoing repairs and maintenance between contracts, and four were stacked. The operating units include eight floaters (comprising seven 7th generation drillships and one 6th generation drillship) and one harsh environment jackup. In addition to our owned assets, as of June 30, 2025, we managed two 7th generation drillships owned by Sonangol EP.
Current wording
As of September 30, 2025, we owned a total of 15 drilling rigs, of which nine were operating, two were undergoing capital upgrade projects, one was preparing for contract commencement in late 2025 or early 2026, following completion of its special periodic survey, and three were stacked. The operating units include eight floaters (comprising six 7th generation drillships, one 6th generation drillship and one benign environment semi-submersible) and one harsh environment jackup. In addition to our owned assets, as of September 30, 2025, we managed two 7th generation drillships owned by Sonangol EP.
Previous wording
Ongoing and recently proposed changes to U.S. global trade policy, along with potential international retaliatory measures, have continued to cause high volatility in global markets and uncertainty around short- and long-term economic impacts in the U.S., including concerns over inflation, recession and slowing growth. We continue to evaluate and monitor the potential impacts of these changes and measures, including the imposition of tariffs, on our business and operations; however, it is not possible to predict the impact, if any, of any changes or proposed changes to the U.S. global trade policy, or any international retaliatory measures, on our business and operations.
Current wording
Ongoing and recently proposed changes to U.S. global trade policy, along with potential international retaliatory measures, have continued to cause high volatility in global markets and uncertainty around short- and long-term economic impacts in the U.S., including concerns over inflation, recession and slowing growth. We continue to evaluate and monitor the potential impacts of these changes and measures, including the imposition of tariffs and ongoing legal challenges to such tariffs, on our business and operations; however, it is not possible to predict the impact, if any, of any changes or proposed changes to the U.S. global trade policy, or any international retaliatory measures, on our business and operations.
Previous wording
The table below shows the average oil price for the six months ended June 30, 2025 andyear ended December 31, 2024. The Brent oil price as of August 1, 2025 was $70/bbl.
Current wording
The table below shows the average oil price for thenine months ended September 30, 2025 andyear ended December 31, 2024. The Brent oil price as of November 3, 2025 was $65/bbl.
Previous wording
The price of Brent oil averaged $70 per barrel during the six months ended June 30, 2025, down from $80 per barrel in 2024. Global growth in the production of oil and slower growth in demand has put downward pressure on prices.
Current wording
The price of Brent oil averaged $70 per barrel during the nine months ended September 30, 2025 down from $80 per barrel in 2024. Global growth in the production of oil and slower growth in demand have put downward pressure on prices.
Previous wording
Uncertainty persists in the market in light of concerns over global economic conditions, government trade policies and output increases by the Organization of Petroleum Exporting Countries and other major international producers. This has led to the continued deferral of offshore capital expenditures and contracting of offshore drilling services, and could have a negative impact on future demand for offshore drilling services. In addition, inflationary pressures may impact the cost base in our industry, including personnel costs and the prices of goods and services required to reactivate or operate rigs. As anticipated, 2025 is shaping up to be a year marked by softer utilization and a corresponding increase in competition, placing downward pressure on near term dayrates; however, we see signs that point towards a market recovery in late 2026.
Current wording
Uncertainty persists in the market in light of concerns over global economic conditions, government trade policies and output increases by the Organization of Petroleum Exporting Countries and other major international producers. This has led to the continued deferral of offshore capital expenditures and contracting of offshore drilling services, and could have a negative impact on near-term future demand for offshore drilling services. In addition, inflationary pressures may impact the cost base in our industry, including personnel costs and the prices of goods and services required to reactivate or operate rigs. As anticipated, 2025 is shaping up to be a year marked by softer utilization and a corresponding increase in competition, placing downward pressure on near term dayrates; however, as global tendering activity accelerates, we see signs that point towards a market recovery in 2027. In addition, we believe oil majors are calling for renewed focus on large-scale exploration and investment, and there is also growing consensus that U.S. shale production is plateauing.
Previous wording
The table below shows the global number of rigs on contract and marketed utilization for the six months ended June 30, 2025 and year ended December 31, 2024:
Current wording
The table below shows the global number of rigs on contract and marketed utilization for the nine months ended September 30, 2025 and year ended December 31, 2024:
Previous wording
Marketed utilization decreased in the first half of 2025 compared to the previous year, mainly due to fewer contracted floaters, which were primarily benign environment semi-submersibles. As uncertainties persist in the market, there has been a continued deferral in the contracting of offshore drilling services.
Current wording
Marketed utilization decreased in the first nine months of 2025 compared to the prior year, mainly due to fewer contracted floaters, which were primarily benign environment semi-submersibles.
Previous wording
The average number of rigs on contract remained consistent at 10 in each of the three months ended June 30, 2025 and 2024. However, there was a decrease in total days on contract resulting in lower contract revenues of $3 million in the three months ended June 30, 2025 compared to the three months ended June 30, 2024.
Current wording
The average number of rigs on contract remained consistent at 10 in each of the three months ended September 30, 2025 and 2024. However, there was a minor increase in the total days on contract resulting in higher contract revenues of $2 million in the three months ended September 30, 2025 compared to the three months ended September 30, 2024.
Previous wording
The decrease was primarily driven by the Sevan Louisiana operating for fewer days in the second quarter of 2025 compared to the same period in 2024. The West Phoenix and West Capella also did not operate during the three months ended June 30, 2025, compared to being fully contracted during the three months ended June 30, 2024. However, these impacts were partially offset by the West Auriga and West Polaris commencing work in Brazil in December 2024 and February 2025, respectively, and therefore, operating during the three months ended June 30, 2025, in contrast to the three months ended June 30, 2024, during which contract preparation activities were performed.
Current wording
The increase was primarily driven by the West Auriga and West Polaris commencing work in Brazil in December 2024 and February 2025, respectively, and therefore, operating during the three months ended September 30, 2025, in contrast to the three months ended September 30, 2024, during which contract preparation activities were performed. The increase was partially offset by the West Phoenix and West Capella, which did not operate during the three months ended September 30, 2025, compared to being partially contracted during the three months ended September 30, 2024, along with the Sevan Louisiana and West Vela operating for fewer days in the third quarter of 2025 compared to the same period in 2024.
Previous wording
The average contractual dayrate earned during the three months ended June 30, 2025 was $331 thousand compared to $289 thousand during the three months ended June 30, 2024, resulting in a $28 million increase in contract revenues in the three months ended June 30, 2025 compared to the three months ended June 30, 2024.
Current wording
The average contractual dayrate earned during the three months ended September 30, 2025 was $330 thousand compared to $304 thousand during the three months ended September 30, 2024, resulting in a $22 million increase in contract revenues in the three months ended September 30, 2025 compared to the three months ended September 30, 2024.
Previous wording
The increase was driven by higher dayrates for the West Auriga and West Polaris operating in Brazil and the West Neptune, West Vela and Sevan Louisiana operating in the U.S. Gulf of America during the three months ended June 30, 2025, compared to the three months ended June 30, 2024. These impacts were partially offset by higher-than-average dayrates for the West Phoenix and West Capella during the three months ended June 30, 2024, in contrast to the second quarter of 2025, during which the rigs were not on contract.
Current wording
The increase was driven by higher-than-average dayrates for the West Auriga and West Polaris operating in Brazil and the West Neptuneand West Vela operating in the U.S. Gulf of America during the three months ended September 30, 2025, compared to the three months ended September 30, 2024. These impacts were partially offset by higher-than-average dayrates for the West Phoenix and West Capella during the three months ended September 30, 2024, in contrast to the third quarter of 2025, during which the rigs were not on contract, along with a decreased operating dayrate for the Sevan Louisiana operating in the U.S. Gulf of America during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.
Previous wording
The economic utilization for the three months ended June 30, 2025 was 93%, compared to 94% for the three months ended June 30, 2024, resulting in a $3 million decrease in contract revenues in the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The decrease during the second quarter of 2025 was primarily due to downtime on the West Polarisand West Elara, offset by improved economic utilization on the West Neptuneand West Jupiter compared to the second quarter of 2024.
Current wording
The economic utilization for the three months ended September 30, 2025 was 91%, compared to 95% for the three months ended September 30, 2024, resulting in an $11 million decrease in contract revenues in the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The decrease during the third quarter of 2025 was primarily due to downtime on the West Carinaand West Polaris, offset by improved economic utilization on the West Tellus compared to the third quarter of 2024.
Previous wording
We receive fees for the mobilization of our rigs, where the associated revenue is recognized ratably over the expected term of the related drilling contract. As a result, we record a contract liability for mobilization fees received, which is amortized ratably to contract drilling revenue as services are rendered over the initial term of the related drilling contract.
Current wording
We receive fees for the mobilization of our rigs, where the associated revenue is recognized ratably over the expected term of the related drilling contract. As a result, we record a contract liability for mobilization fees received, which is amortized ratably to contract revenues as services are rendered over the initial term of the related drilling contract.
Previous wording
Amortization of deferred mobilization revenues increased by $6 million during the three months ended June 30, 2025, compared to the three months ended June 30, 2024. The increase was primarily attributable to mobilization fees received on the West Polaris and West Auriga, which commenced operations within the last nine months.
Current wording
The amortization of deferred mobilization revenues increased by $9 million during the three months ended September 30, 2025, compared to the three months ended September 30, 2024. The increase was primarily attributable to mobilization fees received on the West Polaris and West Auriga, which commenced operations within the last 12 months.
Previous wording
There was a decrease in contract revenues of $7 million during the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily attributable to the West Phoenix earning revenues from add-on services and a performance bonus during the three months ended June 30, 2024, which did not recur during the three months ended June 30, 2025.
Current wording
There was a decrease in contract revenues of $5 million during the three months ended September 30, 2025, compared to the three months ended September 30, 2024, primarily attributable to the West Phoenix earning revenues from add-on services and a performance bonus during the three months ended September 30, 2024, which did not recur during the three months ended September 30, 2025.
Previous wording
Vessel and rig operating expenses increased by $15 million during the three months ended June 30, 2025 compared to the three months ended June 30, 2024. During the three months ended June 30, 2025, there was a $42 million increase in vessel and rig operating expenses compared to the three months ended June 30, 2024, primarily related to the West Aurigaand West Polaris commencing operations in Brazil, of which $13 million related to increased amortization of deferred mobilization costs, along with higher repair and maintenance costs across the fleet. This was partially offset by a $19 million decrease in vessel and rig operating expenses during the three months ended June 30, 2025 related to the West Phoenixand West Capella, which were stacked during the second quarter of 2025, and lower managed service agreement fees of $8 million, as the rigs acquired through the Aquadrill transaction are now managed by Seadrill, rather than by third parties.
Current wording
Vessel and rig operating expenses increased by $19 million during the three months ended September 30, 2025 compared to the three months ended September 30, 2024. During the three months ended September 30, 2025, there was a $46 million increase in vessel and rig operating expenses compared to the three months ended September 30, 2024, primarily related to the West Aurigaand West Polaris commencing operations in Brazil, of which $13 million related to increased amortization of deferred mobilization costs, along with higher repair and maintenance costs across the fleet. This was partially offset by a $21 million decrease in vessel and rig operating expenses during the three months ended September 30, 2025 related to the West Phoenixand West Capella, which were stacked during the third quarter of 2025, and lower managed service agreement fees of $6 million, as the rigs acquired through the Aquadrill transaction are now managed by Seadrill, rather than by third parties.
Previous wording
The $13 million increase in depreciation and amortization for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 is mainly attributable to the capital projects on the West Auriga and West Polaris related to preparations for the recently commenced contracts in Brazil.
Current wording
The $16 million increase in depreciation and amortization for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 is mainly attributable to the capital projects on the West Auriga and West Polaris related to their respective contracts in Brazil.
Previous wording
Management contract expenses increased by $52 million during the three months ended June 30, 2025, compared to the three months ended June 30, 2024, primarily attributable to estimated damages following the unfavorable court judgment related to fees for arranging the Sonadrill joint venture.
Current wording
Management contract expenses increased by $4 million during the three months ended September 30, 2025, compared to the three months ended September 30, 2024, primarily attributable to estimated damages following the unfavorable court judgment related to fees for arranging the Sonadrill joint venture.
Previous wording
Refer to Note 13 -"Commitments and contingencies - Legal Proceedings - Sonadrill fees claim" for additional details.
Current wording
Refer to Note 13 -"Commitments and contingencies - Legal Proceedings - Sonadrill fees claim" of our unaudited Condensed Consolidated Financial Statements, included in Part I, Item 1. "Financial Statements" of this Quarterly Report on Form 10-Q, for additional details.
Previous wording
Interest income relates to interest earned on bank deposits. The $4 million decrease in interest income for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 was primarily attributable to lower cash balances.
Current wording
Interest income relates to interest earned on bank deposits. The $2 million decrease in interest income for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was primarily attributable to lower cash balances.
Previous wording
b) Equity in earnings/(losses) of equity method investments (net of tax)
Current wording
b) Equity in losses of equity method investment (net of tax)
Previous wording
The earnings/(losses) during the three months ended June 30, 2025 and the three months ended June 30, 2024 relates to Seadrill's proportion of earnings/(losses) from Sonadrill.
Current wording
The losses during the three months ended September 30, 2025 and the three months ended September 30, 2024 related to Seadrill's proportion of losses from Sonadrill.
Previous wording
Other financial and non-operating items increased by $5 million during the three months ended June 30, 2025 compared to the three months ended June 30, 2024, primarily related to the recognition of VAT liabilities, partially offset by favorable foreign exchange movements due to the depreciation of the USD against the Brazilian Real, Norwegian Krone and Indonesian Rupiah.
Current wording
Other financial and non-operating items decreased by $7 million during the three months ended September 30, 2025 compared to the three months ended September 30, 2024, primarily due foreign exchange movements of the USD against the Indonesian Rupiah.
Previous wording
The $31 million increase in tax expense during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily reflects changes in the Company's mix of pre-tax income and loss among tax jurisdictions in addition to the recognition of a tax benefit in 2024, attributable to changes in valuation allowances established for Switzerland and Brazil.
Current wording
The $4 million increase in tax expense during the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily reflects changes in the Company's mix of pre-tax income and loss among tax jurisdictions.
Previous wording
The tables included below set out financial information for the six months ended June 30, 2025 and June 30, 2024:
Current wording
The tables included below set out financial information for the nine months ended September 30, 2025 and September 30, 2024:
Previous wording
The average number of rigs on contract remained consistent at 10 in each of the six months ended June 30, 2025 and 2024. However, there was a decrease in total days on contract resulting in a decrease of $45 million in contract revenues in the six months ended June 30, 2025 compared to the six months ended June 30, 2024.
Current wording
The average number of rigs on contract remained consistent at 10 in each of the nine months ended September 30, 2025 and 2024. However, there was a decrease in total days on contract resulting in lower contract revenues of $43 million in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.
Previous wording
The decrease was primarily driven by the West Phoenix being stacked through the first half of 2025, West Capella being stacked for a majority of the first half of 2025, and West Neptune operating for fewer days during the six months ended June 30, 2025 compared to the six months ended June 30, 2024.
Current wording
The decrease was primarily driven by the West Phoenix being stacked through the nine months ended September 30, 2025, West Capella being stacked for the majority of the nine months ended September 30, 2025, and West Neptune operating for fewer days, compared to the nine months ended September 30, 2024.
Previous wording
However, these impacts were partially offset by the Sevan Louisiana operating for more days during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 due to its special periodic survey in the first quarter of 2024. The West Auriga and West Polaris also commenced work in Brazil in December 2024 and February 2025, respectively, and therefore, were operating for more days during the six months ended June 30, 2025 compared to the six months ended June 30, 2024.
Current wording
These impacts were partially offset by the Sevan Louisiana operating for more days during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 due to its special periodic survey in the first quarter of 2024. The West Auriga and West Polaris also commenced work in Brazil in December 2024 and February 2025, respectively, and therefore, were operating for more days during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.
Previous wording
The average contractual dayrate earned during the six months ended June 30, 2025 was $327 thousand compared to $295 thousand during the six months ended June 30, 2024, resulting in a $54 million increase in contract revenues in the six months ended June 30, 2025 compared to the six months ended June 30, 2024.
Current wording
The average contractual dayrate earned during the nine months ended September 30, 2025 was $328 thousand compared to $297 thousand during the nine months ended September 30, 2024, resulting in a $76 million increase in contract revenues in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.
Previous wording
The increase was driven by higher dayrates for the West Neptune, West Vela and Sevan Louisiana operating in the U.S. Gulf of America, West Auriga and West Polaris operating in Brazil, and the West Elara operating in Norway during the six months ended June 30, 2025 compared to the six months ended June 30, 2024. These impacts were partially offset by higher-than-average dayrates for the West Phoenix and West Capella during the six months ended June 30, 2024, in contrast to the six months ended June 30, 2025, during which the rigs were not on contract throughout the period.
Current wording
The increase was driven by higher-than-average dayrates for the West Neptuneand West Vela operating in the U.S. Gulf of America, West Auriga and West Polaris operating in Brazil, and the West Elara operating in Norway during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. These impacts were partially offset by higher-than-average dayrates for the West Phoenix and West Capella during the nine months ended September 30, 2024, in contrast to the nine months ended September 30, 2025, during which the rigs were not on contract during the period.
Previous wording
The economic utilization for the six months ended June 30, 2025 was 89%, compared to 95% for the six months ended June 30, 2024, resulting in a $25 million decrease in contract revenues in the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The decrease during the first half of 2025 was primarily due to unplanned downtime related to regulatory matters impacting the West Tellusand downtime on the West Polaris, West Auriga, West Elaraand Sevan Louisiana, partially offset by improved economic utilization on the West Neptuneand West Jupiter compared to the six months ended June 30, 2024.
Current wording
The economic utilization for the nine months ended September 30, 2025 was 90%, compared to 95% for the nine months ended September 30, 2024, resulting in a $36 million decrease in contract revenues in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The decrease during the nine months ended September 30, 2025 was primarily due to unplanned downtime related to regulatory matters impacting the West Tellusand downtime on the West Polaris, West Auriga, West Elara, West Carinaand Sevan Louisiana, partially offset by improved economic utilization on the West Neptuneand West Jupiter compared to the nine months ended September 30, 2024.
Previous wording
Amortization of deferred mobilization revenues increased by $17 million during the six months ended June 30, 2025, compared to the six months ended June 30, 2024. The increase was primarily attributable to mobilization fees received on the West Capella, West Polaris and West Auriga, which commenced operations within the last nine months.
Current wording
The amortization of deferred mobilization revenues increased by $26 million during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. The increase was primarily attributable to mobilization fees received on the West Capella, West Polaris and West Auriga, which commenced operations within the last 12 months.
Previous wording
There was a decrease in contract revenues of $7 million during the six months ended June 30, 2025, compared to the six months ended June 30, 2024, primarily attributable to the West Phoenix earning revenues from add-on services and a performance bonus during the six months ended June 30, 2024, which did not recur during the six months ended June 30, 2025.
Current wording
There was a decrease in contract revenues of $12 million during the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, primarily attributable to the West Phoenix earning revenues from add-on services and a performance bonus during the nine months ended September 30, 2024, which did not recur during the nine months ended September 30, 2025.
Previous wording
The decrease of $4 million during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024 was primarily due to additional reimbursable services provided to the Libongos and Quenguela for long-term maintenance during the six months ended June 30, 2024, which did not recur during the six months ended June 30, 2025.
Current wording
The decrease of $13 million during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024 was primarily due to additional reimbursable services provided to the Libongos and Quenguela for long-term maintenance during the nine months ended September 30, 2024, which did not recur during the nine months ended September 30, 2025.
Previous wording
Management contract revenues increased by $3 million in the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily driven by higher management fees on the Libongos, Quenguela and the West Gemini.
Current wording
Management contract revenues increased by $4 million in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, primarily driven by higher management fees on the Libongos, Quenguela and the West Gemini.
Previous wording
Leasing revenues decreased by $21 million in the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily attributable to the disposal of the Gulfdrill rigs in June 2024.
Current wording
Leasing revenues decreased by $21 million in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, primarily attributable to the disposal of the Gulfdrill rigs in June 2024.
Previous wording
Vessel and rig operating expenses increased by $14 million during the six months ended June 30, 2025 compared to the six months ended June 30, 2024. During the six months ended June 30, 2025 there was a $71 million increase in vessel and rig operating expenses compared to the six months ended June 30, 2024, primarily related to the West Aurigaand West Polaris commencing operations in Brazil, of which $22 million related to increased amortization of deferred mobilization costs, along with higher repair and maintenance costs across the fleet. This was partially offset by a $36 million decrease in vessel and rig operating expenses during the six months ended June 30, 2025 related to the West Phoenixand West Capella, which were stacked for the majority of the six months ended June 30, 2025, and lower managed service agreement fees of $21 million, as the rigs acquired through the Aquadrill transaction are now managed by Seadrill, rather than by third parties.
Current wording
Vessel and rig operating expenses increased by $33 million during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. During the nine months ended September 30, 2025 there was a $117 million increase in vessel and rig operating expenses compared to the nine months ended September 30, 2024, primarily related to the West Aurigaand West Polaris commencing operations in Brazil, of which $35 million related to increased amortization of deferred mobilization costs, along with higher repair and maintenance costs across the fleet. This was partially offset by a $57 million decrease in vessel and rig operating expenses during the nine months ended September 30, 2025 related to the West Phoenixand West Capella, which were stacked for the majority of the nine months ended September 30, 2025, and lower managed service agreement fees of $27 million, as the rigs acquired through the Aquadrill transaction are now managed by Seadrill, rather than by third parties.
Previous wording
The $30 million increase in depreciation and amortization for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 is mainly attributable to the capital projects on the West Auriga and West Polarisand unfavorable contracts being fully amortized during 2024.
Current wording
The $46 million increase in depreciation and amortization for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 is mainly attributable to the capital projects on the West Auriga and West Polarisand unfavorable contracts being fully amortized during 2024.
Previous wording
Depreciation increased by $26 million in the six months ended June 30, 2025 compared to the six months ended June 30, 2024, mainly attributable to the capital projects on the West Auriga and West Polaris related to preparations for the recently commenced contracts in Brazil.
Current wording
Depreciation increased by $40 million in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, mainly attributable to the capital projects on the West Auriga and West Polaris related to their respective contracts in Brazil.
Previous wording
Amortization expense increased by $4 million during the six months ended June 30, 2025 compared to the six months ended June 30, 2024, mainly attributable to unfavorable contracts being fully amortized during 2024 related to the West Auriga and West Vela.
Current wording
Amortization expense increased by $6 million during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, mainly attributable to unfavorable contracts being fully amortized during 2024 related to the West Auriga and West Vela.
Showing the first 40 of 56 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Refer to Note 13 -"Commitments and contingencies - Legal Proceedings - Sonadrill fees claim" of our unaudited Condensed Consolidated Financial Statements, included in Part I, Item 1. "Financial Statements" of this Quarterly Report on Form 10-Q, for additional details.
Current report — wording carried from elsewhere
For further details, please refer to Note 13 – "Commitments and contingencies" of our unaudited Condensed Consolidated Financial Statements, included in Part I, Item 1. "Financial Statements" of this Quarterly Report on Form 10-Q, which are incorporated herein by reference.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Refer to Note 13 -"Commitments and contingencies - Legal Proceedings - Sonadrill fees claim" for additional details.
Previous report — wording carried elsewhere
Gain on disposals of $203 million for the six months ended June 30, 2024 relates to the disposal of the West Castor, West Telesto and West Tucana jackup units, along with our 50% equity interest in the Gulfdrill joint venture.