SEADRILL Ltd
For the period ended Sep 30, 2026. Filed Nov 4, 2026.
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, 2026 · Filed Nov 4, 2026
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 2026-06-30; filed 2026-08-10.
0001737706-26-000026
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-04.
0001737706-26-000033
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 186 previous paragraphs and 177 current paragraphs.
109 unchanged; 56 reworded; 11 added; 14 removed; 7 previous and 1 current paragraphs rearranged.
Tables are not compared: 19 previous and 17 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 (11)
Current report
During the three months ended September 30, 2026, the Company repurchased an aggregate of 547,674 Shares with a weighted average Share price of $40.34, amounting to approximately $22 million. During the nine months ended September 30, 2026, the Company repurchased an aggregate of 1,058,752 Shares with a weighted average Share price of $39.53, amounting to approximately $42 million.
Current report
During the three months ended September 30, 2026, the Company canceled 1,058,752 treasury Shares repurchased.
Current report
Source: eia.gov
Current report
The average number of rigs on contract decreased to nine during the three months ended September 30, 2026, compared to 10 during the three months ended September 30, 2025. This resulted in a decrease in contract revenues of $10 million in the three months ended September 30, 2026 compared to the three months ended September 30, 2025.
Current report
The increase of $13 million during the three months ended September 30, 2026 compared to the three months ended September 30, 2025 was primarily due to incremental reimbursables on the Sonangol Quenguela related to long-term maintenance and capital projects, along with increased reimbursable revenues related to services provided across various customers.
Current report
The increase in earnings of $16 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 was primarily driven by the West Gemini being on contract in Angola throughout the three months ended September 30, 2026, compared to not operating during the three months ended September 30, 2025, as it was undergoing preparation activities for its contract that started in January 2026 in Angola.
Current report
Other financial and non-operating items increased by $44 million during the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily attributable to an unfavorable court judgment related to a claim on the redelivery of the West Hercules.
Current report
Results for the nine months ended September 30, 2026 and September 30, 2025
Current report
b) Reimbursable revenues
Current report
The increase of $11 million during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 was primarily due to incremental reimbursables on the Sonangol Quenguela related to long-term maintenance and capital projects, along with increased reimbursable revenues related to services provided across various customers.
Current report
a)Net cash provided by operating activities
Removed paragraphs (14)
Previous report
Refinancing of Senior Notes
Previous report
Refer to "Liquidity and Capital Resources - Borrowing Activities" and Note 9- "Debt" for additional information.
Previous report
Revolving Credit Facility Amendment
Previous report
During the three and six months ended June 30, 2026, the Company repurchased an aggregate of 511,078 Shares with a weighted average Share price of $38.66, amounting to approximately $20 million.
Previous report
Source: Bloomberg
Previous report
The average number of rigs on contract remained consistent at 10 in each of the three months ended June 30, 2026 and 2025; however, there was an increase in the total days on contract resulting in higher contract revenues of $11 million in the three months ended June 30, 2026 compared to the three months ended June 30, 2025.
Previous report
There was an increase in contract revenues of $15 million during the three months ended June 30, 2026, compared to the three months ended June 30, 2025, primarily attributable to the West Capella, West Saturn, West Vela, West Neptune and Sevan Louisiana earning revenues from integrated and add-on services during the three months ended June 30, 2026, compared to the three months ended June 30, 2025.
Previous report
The $3 million increase in the three months ended June 30, 2026 compared to the three months ended June 30, 2025 was primarily due to additional hired equipment on the Sevan Louisiana during the second quarter of 2026, compared to the second quarter of 2025.
Previous report
a) Interest on debt facilities
Previous report
Results for the six months ended June 30, 2026 and June 30, 2025
Previous report
v. Other items
Previous report
c) Management contract expenses
Previous report
a) Interest on debt facilities
Previous report
a)Net cash used in operating activities
Reworded paragraphs (56)
Previous wording
The price of oil has experienced increased volatility and has risen in response to the ongoing conflicts in the Middle East, including the current conflict in Iran, which started on February 28, 2026, and the unprecedented blockades of the Strait of Hormuz resulting therefrom. The Brent oil price was $71 per barrel on February 27, 2026 and increased to an average price of approximately $103 per barrel for the second quarter of 2026. We continue to evaluate and monitor the impacts of the recent oil price volatility and the ongoing conflicts in the Middle East on our business and operations; however, it is not possible to predict the long-term impact, if any, of the disruptions to commodity prices, global energy supplies, energy markets and economic conditions, on our business and operations.
Current wording
The price of oil has experienced increased volatility and has risen in response to the ongoing conflicts in the Middle East, including the current conflict in Iran, which started on February 28, 2026, and the unprecedented blockades of the Strait of Hormuz resulting therefrom. The Brent oil price was $71 per barrel on February 27, 2026 and increased to an average price of approximately $103 per barrel for the second quarter of 2026 and an average price of $96 per barrel for the third quarter of 2026. We continue to evaluate and monitor the impacts of the recent oil price volatility and the ongoing conflicts in the Middle East (including Iran) on our business and operations; however, it is not possible to predict the long-term impact, if any, of the disruptions to commodity prices, global energy supplies, energy markets and economic conditions, on our business and operations.
Previous wording
The contract backlog for our fleet was as follows as of the dates specified:
Current wording
The contract backlog for our fleet was as follows:
Previous wording
The table below shows the average oil price for thesix months ended June 30, 2026 andyear ended December 31, 2025. The Brent oil price as of August 6, 2026 was $82/bbl.
Current wording
The table below shows the average oil price for thenine months ended September 30, 2026 andyear ended December 31, 2025. The Brent oil price as of October 30, 2026, was $118/bbl.
Previous wording
In recent years, oil prices have generally remained at levels that support offshore exploration and development activity, where global rig demand has been steady. This level of demand was sustained by the combination of commodity prices, heightened focus on energy security, and relative attractiveness of offshore plays with respect to both cost and carbon emissions. Recently, however, the ongoing conflict in Iran and the unprecedented closure of the Strait of Hormuz have caused significant disruption in the normal flow of oil, refined petroleum products, and related commodities, resulting in higher oil prices.
Current wording
Ongoing conflicts in the Middle East (including Iran) and the unprecedented closure of the Strait of Hormuz have significantly disrupted, and continue to disrupt, the normal flow of oil, refined petroleum products, and related commodities, resulting in higher oil prices.
Previous wording
The price of Brent oil averaged $88 per barrel during the six months ended June 30, 2026 up from an average of $70 per barrel in 2025, driven primarily by ongoing conflicts in the Middle East that disrupted global oil supply during the first half of 2026.
Current wording
The price of Brent oil averaged $89 per barrel during the nine months ended September 30, 2026 compared to an average of $70 per barrel in 2025, driven primarily by ongoing conflicts in the Middle East (including Iran) that have disrupted, and continue to disrupt, global oil supply.
Previous wording
Uncertainty persists in the market, particularly in light of concerns over global economic conditions (including the current conflict in Iran), government trade policies and output increases by the Organization of the Petroleum Exporting Countries and other major international producers. 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.
Current wording
Uncertainty persists in the market, particularly in light of concerns over global economic conditions (including ongoing conflicts in the Middle East, including Iran), government trade policies and output increases by the Organization of the Petroleum Exporting Countries and other major international producers. 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.
Previous wording
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. As a result, with projections of growing oil and gas demand and the lagging energy transition, operators are pivoting back towards deepwater exploration in order to replace reserves and sustain production growth.
Current wording
As global tendering activity accelerates, we see signs that point towards a market recovery in 2027, driven by structurally higher oil prices, heightened focus on energy security, and the need to rebuild reserve bases. 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. As a result, with projections of growing oil and gas demand and the lagging energy transition, operators are pivoting back towards deepwater exploration in order to replace reserves and sustain production growth.
Previous wording
The table below shows the global number of rigs on contract and marketed utilization for the six months ended June 30, 2026 and year ended December 31, 2025:
Current wording
The table below shows the global number of rigs on contract and marketed utilization for the nine months ended September 30, 2026 and year ended December 31, 2025:
Previous wording
Marketed utilization and the number of contracted rigs remained relatively consistent in the six months ended June 30, 2026 compared to the year ended December 31, 2025.
Current wording
Marketed utilization and the number of contracted rigs remained relatively consistent in the nine months ended September 30, 2026 compared to the year ended December 31, 2025.
Previous wording
Marketed utilization for harsh environment floaters improved in the six months ended June 30, 2026 compared to the year ended December 31, 2025, whereas utilization for harsh environment jackups remained relatively consistent over the same periods, reflecting continued demand for high-specification assets.
Current wording
Marketed utilization for harsh environment floaters improved in the nine months ended September 30, 2026 compared to the year ended December 31, 2025, whereas utilization for harsh environment jackups remained relatively consistent over the same periods, reflecting continued demand for high-specification assets.
Previous wording
Contract revenues represent the revenues we earn from contracting our drilling units to customers, primarily on a dayrate basis, and are predominately driven by the average number of rigs under contract during a period, the average dayrates earned and economic utilization achieved by those rigs under contract. We have set out movements in these key indicators of performance in the sections below.
Current wording
Contract revenues represent the revenues we earn from contracting our drilling units to customers, primarily on a dayrate basis, and are predominantly driven by the average number of rigs on contract during a period, the average dayrates earned and economic utilization achieved by those rigs on contract. We have set out movements in these key indicators of performance in the sections below.
Previous wording
The increase was primarily driven by the West Capellaand Sevan Louisiana, with contracts that started in March 2026 in Malaysia and the U.S. Gulf of America, respectively, compared to the three months ended June 30, 2025, during which the rigs were operating for less days. The increase was partially offset by the West Tellus operating for fewer days during the three months ended June 30, 2026, due to contract preparations for its new contract that started in June 2026 in Brazil, compared to being fully contracted during the three months ended June 30, 2025.
Current wording
The decrease was primarily driven by the West Carina, as its contract in Brazil ended in June 2026, and therefore, was not on contract during the three months ended September 30, 2026, compared to being fully contracted during the three months ended September 30, 2025. The Sevan Louisiana and West Elara also operated for fewer days during the three months ended September 30, 2026, compared to the three months ended September 30, 2025. These impacts were partially offset by the West Capella operating throughout the three months ended September 30, 2026, compared to being off contract during the three months ended September 30, 2025.
Previous wording
The average contractual dayrate earned during the three months ended June 30, 2026 was $360 thousand compared to $331 thousand during the three months ended June 30, 2025, resulting in a $24 million increase in contract revenues in the three months ended June 30, 2026 compared to the three months ended June 30, 2025.
Current wording
The average contractual dayrate earned during the three months ended September 30, 2026 was $376 thousand compared to $330 thousand during the three months ended September 30, 2025, resulting in a $37 million increase in contract revenues in the three months ended September 30, 2026 compared to the three months ended September 30, 2025.
Previous wording
The increase was driven by higher dayrates for the West Jupiter, West Tellus, West Auriga, and West Carina operating in Brazil, and the West Neptune operating in the U.S. Gulf of America during the three months ended June 30, 2026, compared to the three months ended June 30, 2025. These impacts were partially offset by lower dayrates for the West Vela and Sevan Louisiana operating in the U.S. Gulf of America, and the West Polaris operating in Brazil during the three months ended June 30, 2026, compared to the three months ended June 30, 2025.
Current wording
The increase was driven by higher dayrates for the West Jupiter, West Tellusand West Auriga operating in Brazil during the three months ended September 30, 2026, compared to the three months ended September 30, 2025. These impacts were partially offset by lower dayrates for the West Vela and West Neptune operating in the U.S. Gulf of America, and the West Polaris operating in Brazil during the three months ended September 30, 2026, compared to the three months ended September 30, 2025.
Previous wording
The economic utilization for the three months ended June 30, 2026 was 96%, compared to 93% for the three months ended June 30, 2025, resulting in a $8 million increase in contract revenues in the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase was primarily due to improved economic utilization on the West Polarisand West Elara during the three months ended June 30, 2026 compared to the three months ended June 30, 2025. This was partially offset by downtime on the West Saturn during the three months ended June 30, 2026.
Current wording
The economic utilization for the three months ended September 30, 2026 was 95%, compared to 91% for the three months ended September 30, 2025, resulting in an $11 million increase in contract revenues in the three months ended September 30, 2026 compared to the three months ended September 30, 2025. The increase was primarily due to improved economic utilization on the West Polaris during the three months ended September 30, 2026 compared to the three months ended September 30, 2025, along with the West Capella operating at higher than average economic utilization during the three months ended September 30, 2026. This was partially offset by lower economic utilization on the West Jupiterand West Neptune during the three months ended September 30, 2026 compared to the three months ended September 30, 2025.
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 revenues 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 term of the related drilling contract.
Previous wording
The amortization of deferred mobilization revenues increased by $8 million during the six months ended June 30, 2026, compared to the six months ended June 30, 2025. The increase was primarily attributable to revenues related to the West Elara recognized during the six months ended June 30, 2026, along with mobilization fees related to West Jupiter and West Capella following the start of their contracts in March 2026.
Current wording
The amortization of deferred mobilization revenues increased by $9 million during the three months ended September 30, 2026, compared to the three months ended September 30, 2025. The increase was primarily attributable to revenues related to the West Elara recognized during the three months ended September 30, 2026, along with mobilization fees related to West Jupiter, West Tellus and West Capella following the start of their respective contracts in the first half of 2026. This was partially offset by a decrease in the recognition of mobilization fees related to West Carina during the three months ended September 30, 2026 compared to the three months ended September 30, 2025, following the end of its contract in June 2026.
Previous wording
For the three months ended June 30, 2026 and the three months ended June 30, 2025, reimbursable revenues primarily related to rigs managed for the Sonadrill joint venture for long-term maintenance projects on the Libongos and Quenguela, along with reimbursable revenues related to services provided across various customers.
Current wording
For the three months ended September 30, 2026 and the three months ended September 30, 2025, reimbursable revenues related to rigs managed for the Sonadrill joint venture for long-term maintenance projects on the Sonangol Libongos and Sonangol Quenguela, along with reimbursable revenues related to services provided across various customers.
Previous wording
Vessel and rig operating expenses increased by $35 million during the three months ended June 30, 2026 compared to the three months ended June 30, 2025. There was a $43 million increase in vessel and rig operating expenses primarily related to the West Capella commencing operations in Malaysia in March 2026, along with higher integrated services, repair and maintenance and personnel costs during the three months ended June 30, 2026 compared to the three months ended June 30, 2025. This was partially offset by an $8 million decrease in vessel and rig operating expenses during the three months ended June 30, 2026, attributable to the West Tellus preparing for its contract that started in June 2026 in Brazil, compared to operating throughout the three months ended June 30, 2025.
Current wording
Vessel and rig operating expenses increased by $20 million during the three months ended September 30, 2026 compared to the three months ended September 30, 2025. The increase in vessel and rig operating expenses primarily related to the West Capella commencing operations in Malaysia in March 2026, along with higher integrated services, repair and maintenance and personnel costs during the three months ended September 30, 2026 compared to the three months ended September 30, 2025. The increase was partially offset by lower operating costs attributable to the West Carina being off contract during the three months ended September 30, 2026, compared to being on contract during the three months ended September 30, 2025.
Previous wording
The $16 million increase in depreciation and amortization for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 is mainly related to long-term maintenance and capital projects across the fleet, and unfavorable contracts recorded as liabilities being fully amortized during 2025.
Current wording
The $19 million increase in depreciation and amortization for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 is mainly related to long-term maintenance and capital projects across the fleet, and unfavorable contracts recorded as liabilities being fully amortized during 2025.
Previous wording
Depreciation increased by $12 million in the three months ended June 30, 2026 compared to the three months ended June 30, 2025, mainly attributable to long-term maintenance and capital projects across the fleet, primarily related to the West Neptune, West Vela, West Gemini, West Capella and Sevan Louisiana.
Current wording
Depreciation increased by $14 million in the three months ended September 30, 2026 compared to the three months ended September 30, 2025, mainly attributable to long-term maintenance and capital projects across the fleet, primarily related to the West Neptune, West Tellus, West Vela, West Gemini, West Capella and Sevan Louisiana.
Previous wording
Amortization increased by $4 million during the three months ended June 30, 2026 compared to the three months ended June 30, 2025, mainly attributable to unfavorable contracts recorded as liabilities being fully amortized during 2025 related to the West Tellus, West Jupiterand West Carina.
Current wording
Amortization increased by $5 million during the three months ended September 30, 2026 compared to the three months ended September 30, 2025, mainly attributable to unfavorable contracts recorded as liabilities being fully amortized during 2025 related to the West Tellus, West Carinaand West Jupiter.
Previous wording
The equity in earnings of equity method investment relates to Seadrill's proportion of earnings from Sonadrill.
Current wording
The earnings during the three months ended September 30, 2026 and the three months ended September 30, 2025 related to Seadrill's proportion of earnings from Sonadrill.
Previous 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.
Current wording
Refer to Note 13 -"Commitments and contingencies - Legal Proceedings - SFL Hercules Ltd." 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
The $17 million decrease in tax expense during the three months ended June 30, 2026 compared to the three months ended June 30, 2025 primarily reflects changes in the Company's mix of pre-tax income and loss among tax jurisdictions and changes in the valuation allowance established for Switzerland in the three months ended June 30, 2026 compared to the three months ended June 30, 2025.
Current wording
The $8 million increase in tax expense during the three months ended September 30, 2026 compared to the three months ended September 30, 2025 primarily reflects changes in the Company's mix of pre-tax income and loss among tax jurisdictions and changes in the valuation allowance established for Switzerland in the three months ended September 30, 2026 compared to the three months ended September 30, 2025.
Previous wording
The tables included below set out financial information for the six months ended June 30, 2026 and June 30, 2025:
Current wording
The tables included below set out financial information for the nine months ended September 30, 2026 and September 30, 2025:
Previous wording
The average number of rigs on contract decreased from 10 in the six months ended June 30, 2025 to nine in the six months ended June 30, 2026. The decrease in total days on contract resulted in lower contract revenues of $3 million in the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
Current wording
The average number of rigs on contract decreased from 10 in the nine months ended September 30, 2025 to nine in the nine months ended September 30, 2026. The decrease in total days on contract resulted in lower contract revenues of $13 million in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025.
Previous wording
The decrease was primarily driven by fewer operating days on the West Jupiter and the West Tellus, which were undergoing contract preparation activities during the six months ended June 30, 2026, for contracts that started in March 2026 and June 2026, respectively, compared to being fully contracted during the six months ended June 30, 2025.
Current wording
The decrease was primarily driven by fewer operating days on the West Jupiter and West Tellus, which were undergoing contract preparation activities during the nine months ended September 30, 2026, for contracts that started in March 2026 and June 2026, respectively, compared to being fully contracted during the nine months ended September 30, 2025. In addition, the West Carina finished its contract in Brazil in June 2026 compared to being fully contracted during the nine months ended September 30, 2025.
Previous wording
The decrease was partially offset by the West Neptune and West Polaris, operating throughout the six months ended June 30, 2026 compared to being partially contracted during the six months ended June 30, 2025, along with the West Capella starting its contract in March 2026 compared to the six months ended June 30, 2025, during which the rig was operating for less days.
Current wording
The decrease was partially offset by the West Neptune and West Polaris, operating throughout the nine months ended September 30, 2026 compared to being partially contracted during the nine months ended September 30, 2025, along with the West Capella starting its contract in March 2026 compared to the nine months ended September 30, 2025, during which the rig was operating for less days.
Previous wording
The average contractual dayrate earned during the six months ended June 30, 2026 was $352 thousand compared to $327 thousand during the six months ended June 30, 2025, resulting in a $38 million increase in contract revenues in the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
Current wording
The average contractual dayrate earned during the nine months ended September 30, 2026 was $360 thousand compared to $328 thousand during the nine months ended September 30, 2025, resulting in a $73 million increase in contract revenues in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025.
Previous wording
The increase was driven by higher dayrates for the West Jupiter, West Auriga, West Tellus and West Carina operating in Brazil, the West Neptune operating in the U.S. Gulf of America, and the West Elara operating in Norway during the six months ended June 30, 2026, compared to the six months ended June 30, 2025.
Current wording
The increase was primarily driven by higher dayrates for the West Jupiter, West Tellus, and West Auriga operating in Brazil during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. These impacts were partially offset by lower dayrates for the West Vela and Sevan Louisiana operating in the U.S. Gulf of America, and the West Polaris operating in Brazil during the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025.
Previous wording
The economic utilization for the six months ended June 30, 2026 was 95%, compared to 89% for the six months ended June 30, 2025, resulting in a $38 million increase in contract revenues in the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
Current wording
The economic utilization for the nine months ended September 30, 2026 was 95%, compared to 90% for the nine months ended September 30, 2025, resulting in a $51 million increase in contract revenues in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025.
Previous wording
The increase was primarily due to improved economic utilization on the West Tellus, West Polaris, West Auriga and Sevan Louisiana during the six months ended June 30, 2026 compared to the six months ended June 30, 2025. This was partially offset by the impact of lower economic utilization due to increased downtime on the West Saturnand West Carina during the six months ended June 30, 2026, compared to the six months ended June 30, 2025.
Current wording
The increase was primarily due to improved economic utilization on the West Tellus, West Polaris, West Auriga, West Carina and Sevan Louisiana during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. This was partially offset by lower economic utilization on the West Neptuneand West Saturn during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025.
Previous wording
The amortization of deferred mobilization revenues increased by $9 million during the three months ended June 30, 2026, compared to the three months ended June 30, 2025. The increase was primarily attributable to revenues related to the West Elara recognized during the three months ended June 30, 2026, along with mobilization fees related to West Jupiter and West Capella following the start of their contracts in March 2026.
Current wording
The amortization of deferred mobilization revenues increased by $17 million during the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025. The increase was primarily attributable to revenues related to the West Elara recognized during the nine months ended September 30, 2026, along with mobilization fees related to West Jupiter following the start of its contract in March 2026, partially offset by decreased mobilization fees related to the West Capella during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025.
Previous wording
Contract revenues include integrated and add-on services.
Current wording
Contract revenues include integrated services, performance bonuses and add-on sales.
Previous wording
There was an increase in contract revenues of $15 million during the six months ended June 30, 2026, compared to the six months ended June 30, 2025, primarily attributable to the West Capella, West Saturn, West Vela, West Neptune and Sevan Louisiana earning increased revenues from integrated and add-on services during the six months ended June 30, 2026, compared to the six months ended June 30, 2025.
Current wording
There was an increase in contract revenues of $17 million during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily attributable to the West Capella, West Vela, West Neptune and Sevan Louisiana earning increased revenues from integrated services during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025.
Previous wording
Management contract revenues include revenues related to contracts where we provide management, operational and technical support services and are comprised of revenues from our joint venture, Sonadrill, relating to the Libongos, Quenguela and West Gemini.
Current wording
Management contract revenues include revenues related to contracts where we provide management, operational and technical support services and are comprised of revenues from our joint venture, Sonadrill, relating to the Sonangol Libongos, Sonangol Quenguela and West Gemini.
Previous wording
Management contract revenues increased by $4 million in the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily driven by higher management fees on the Libongos, Quenguela and the West Gemini.
Current wording
Management contract revenues increased by $7 million in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily driven by higher management fees on the Sonangol Libongos, Sonangol Quenguela and the West Gemini.
Previous wording
Vessel and rig operating expenses increased by $37 million during the six months ended June 30, 2026 compared to the six months ended June 30, 2025. There was a $52 million increase primarily related to the West Capella commencing operations in Malaysia in March 2026 and the West Polaris commencing operations in Brazil in February 2025, along with higher integrated services, repair and maintenance and personnel costs during the six months ended June 30, 2026 compared to the six months ended June 30, 2025. This was partially offset by a $15 million decrease in vessel and rig operating expenses during the six months ended June 30, 2026, attributable to the West Jupiterand West Tellus preparing for contracts that started in March and June 2026, respectively, compared to operating throughout the six months ended June 30, 2025, along with lower deferred mobilization costs for contracts in Brazil completed during the first quarter of 2026.
Current wording
Vessel and rig operating expenses increased by $57 million during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. There was a $72 million increase primarily related to the West Capella commencing operations in Malaysia in March 2026 and the West Polaris commencing operations in Brazil in February 2025, along with higher integrated services, repair and maintenance and personnel costs during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. This was partially offset by a $15 million decrease in vessel and rig operating expenses during the nine months ended September 30, 2026, attributable to the West Jupiterand West Tellus preparing for contracts that started in March and June 2026, respectively, compared to operating throughout the nine months ended September 30, 2025, along with lower deferred mobilization amortization costs for contracts in Brazil completed during the first quarter of 2026.
Previous wording
The $32 million increase in depreciation and amortization for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 was mainly attributable to capital projects on the West Auriga and West Polarisand unfavorable contracts recorded as liabilities being fully amortized during 2025.
Current wording
The $51 million increase in depreciation and amortization for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 was mainly attributable to capital projects on the West Auriga and West Polarisand unfavorable contracts recorded as liabilities being fully amortized during 2025.
Showing the first 40 of 56 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
a) Equity in earnings/(losses) of equity method investment (net of tax)
Rearranged previous paragraphs (7)
Previous report — wording carried elsewhere
On June 16, 2026, Seadrill Limited, along with its subsidiary, Seadrill Finance, entered into the Amendment to the Credit Agreement to, among other things, increase the commitments for revolving borrowings from $225 million to $300 million and extend the maturity date from 2028 to 2031. The Amendment became effective on June 30, 2026, and the commitments thereunder became effective and available to be borrowed, subject to customary borrowing conditions.
Previous report — wording carried elsewhere
Refer to "Liquidity and Capital Resources - Capital allocation framework and Share repurchase program" and Note 9- "Debt" for additional information.
Previous report — wording carried elsewhere
Other financial and non-operating items increased by $10 million during the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily due to a loss on debt extinguishment of the 2030 Notes, partially offset by a recovery of costs during the three months ended June 30, 2026 and the recognition of value-added tax ("VAT") liabilities during the three months ended June 30, 2025, not recurring in the three months ended June 30, 2026.
Previous report — wording carried elsewhere
These impacts were partially offset by lower dayrates for the West Vela and Sevan Louisiana operating in the U.S. Gulf of America, and the West Capella during the six months ended June 30, 2026, compared to the six months ended June 30, 2025.
Previous report — wording carried elsewhere
Management contract expenses decreased by $50 million during the six months ended June 30, 2026, compared to the six months ended June 30, 2025, primarily attributable to estimated damages recognized following the unfavorable court judgment related to fees for arranging the Sonadrill joint venture during the six months ended June 30, 2025, not recurring in the six months ended June 30, 2026.
Previous report — wording carried elsewhere
On June 30, 2026, Seadrill Finance issued $700 million in aggregate principal amount of 6.750% Senior Notes due 2034 in an offering conducted pursuant to Rule 144A and Regulation S under the Securities Act. The 2034 Notes are fully and unconditionally guaranteed, jointly and severally, by the Company and certain subsidiaries of the Company that are guarantors under the Credit Agreement, and in the future by certain subsidiaries of the Company that become borrowers or guarantors under the Credit Agreement or any other syndicated credit facility or capital markets debt in an aggregate principal amount in excess of a certain amount.
Previous report — wording carried elsewhere
On June 30, 2026, in connection with the issuance of the 2034 Notes, Seadrill Finance satisfied and discharged the 2030 Notes Indenture in accordance with its terms.