Seadrill secures three contract wins in the U.S. Gulf and Angola
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 16 2025
0mins
Should l Buy SDRL?
Source: SeekingAlpha
Drilling Contracts Secured: Seadrill announced the acquisition of three drilling contract awards and extensions in the U.S. Gulf and offshore Angola, demonstrating its ability to secure contracts in a challenging market.
U.S. Gulf Operations: The West Neptune drillship received a four-month contract with LLOG Exploration, adding approximately $48 million to Seadrill's backlog, while the Sevan Louisiana was awarded a two-month program from an undisclosed operator.
Angola Operations Extended: In Angola, a five-well option was exercised for the Sonangol Quenguela rig, extending operations by about 10 months after the current contract ends in April 2026.
Market Context: The contract awards reflect Seadrill's strategy to avoid gaps in operations and maintain a steady workflow amid a tight market environment.
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Analyst Views on SDRL
Wall Street analysts forecast SDRL stock price to rise
5 Analyst Rating
3 Buy
2 Hold
0 Sell
Moderate Buy
Current: 41.130
Low
32.00
Averages
44.20
High
80.00
Current: 41.130
Low
32.00
Averages
44.20
High
80.00
About SDRL
Seadrill Limited is an offshore drilling contractor. The Company is engaged in providing worldwide offshore drilling services to the oil and gas industry. Its primary business is the ownership and operation of drill ships, semi-submersible rigs, and jack-up rigs for operations in shallow to ultra-deepwater in both benign and harsh environments. Its fleet portfolio includes West Phoenix, West Aquarius, West Eclipse, Sevan Louisiana, West Capella, West Gemini, West Tellus, West Neptune, West Jupiter, West Saturn, West Carina, West Polaris, West Auriga, West Vela, West Castor, West Tucana, West Telesto, and West Elara. Its drill ships are self-propelled ships equipped for drilling offshore in water depths ranging from approximately 1,000 to 12,000 feet and are positioned over the well through a computer-controlled thruster system. Its customers include oil super-majors, state-owned national oil companies, and independent oil and gas companies. It also provides management services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Surge in Trading Volume: The company saw a trading volume of 102.9 million shares, approximately 159% above the three-month average of 39.8 million shares, indicating strong market interest in its acquisition and contract developments.
- Market Consolidation Impact: This acquisition will create one of the world's largest deepwater drilling fleets for Transocean, likely enhancing pricing power and revenue visibility in an increasingly tightening offshore market.
- Divergent Analyst Views: While BTIG raised its price target reflecting scale benefits and contract momentum, Fearnley Fonds downgraded the stock due to valuation and balance sheet risks, prompting investors to monitor whether the merger can effectively convert increased scale and backlog into sustained cash flow.
See More
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- Surge in Trading Volume: The company's trading volume reached 102.9 million shares, which is 159% above its three-month average, indicating heightened market interest in its acquisition and new contracts, potentially impacting future liquidity and investor confidence.
- Increased Backlog: The signing of new contracts increased Transocean's backlog by approximately $184 million, enhancing the company's pricing power and revenue visibility in a tightening offshore market, which may support future cash flow.
- Divergent Analyst Views: While BTIG raised its price target citing scale benefits and contract momentum, Fearnley Fonds downgraded the stock due to valuation and balance-sheet risks, highlighting market concerns about post-merger integration and sustainable cash flow generation.
See More
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- Management Commentary: Seadrill's CEO Simon Johnson noted that the continuation of the contract reinforces their commitment to collaboration with Equinor, emphasizing their shared goals in delivering safe and reliable offshore operations.
- Market Outlook: With the contract extension, Seadrill is poised to benefit from a stable revenue stream over the coming years, which will help maintain its competitive edge in the evolving offshore drilling market.
See More
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- Business Growth: This renewal not only continues the collaboration that began in 2022 but also indicates a strong business foundation for Seadrill in the Brazilian market, which is expected to further enhance the company's revenue and market share.
- Commitment to Safety: Seadrill's CEO Simon Johnson emphasized the shared commitment to safe and reliable offshore operations, reflecting the company's operational capabilities and market position in strategically important basins.
- Industry Outlook: With the increasing global demand for deepwater drilling, Seadrill's modern fleet and advanced technologies will enable it to maintain a competitive edge in the industry, further solidifying its critical role in oil and gas resource development.
See More
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- Key Contract Details: Notable contracts include a $157 million ultra-deepwater drillship contract set to commence in Q2 2026 for 440 days, along with a $78 million accommodation contract, further strengthening the company's competitive position in the Norwegian market.
- Earnings Outlook Analysis: Although the upcoming quarterly EPS is projected at $0.07, representing a 93.5% year-over-year decline, revenues are expected to reach $332 million, up 14.9% from the previous year, indicating resilience and potential growth capacity amid challenges.
See More
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See More
