Seadrill to Announce Q4 Earnings with Strong Performance Indicators
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 23 2026
0mins
Should l Buy SDRL?
Source: seekingalpha
Seadrill Ltd's stock fell by 5.15% as it crossed below the 5-day SMA amid broader market declines.
The company is set to release its Q4 2023 earnings report on February 25, with a consensus EPS estimate of $0.01 and revenue forecast of $335.36 million, reflecting a 16% year-over-year growth. Additionally, Seadrill has secured contracts totaling over $235 million, indicating strong operational performance and profitability. Despite the tight market environment, the company's valuation is perceived positively, suggesting growing market confidence in its medium-term prospects.
The upcoming earnings report and contract acquisitions position Seadrill favorably for future growth, despite the current stock decline.
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Analyst Views on SDRL
Wall Street analysts forecast SDRL stock price to fall
5 Analyst Rating
3 Buy
2 Hold
0 Sell
Moderate Buy
Current: 46.170
Low
32.00
Averages
44.20
High
80.00
Current: 46.170
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.
Seadrill Shares Rise Following Transocean Contract Announcement
- Industry Boost: Seadrill's shares rose 2.1% in the afternoon session following Transocean's announcement of a $158 million contract, indicating a positive outlook for high-specification ultra-deepwater drilling units amid improving market conditions.
- Market Reaction: After an initial surge, Seadrill's shares cooled to $46.74, up 1.7% from the previous close, reflecting market interest in the sector but suggesting no fundamental change in the company's outlook.
- Volatility Analysis: With 16 moves greater than 5% over the past year, today's increase indicates that the market views this news as significant, although it does not fundamentally alter perceptions of the business.
- Year-to-Date Performance: Seadrill has gained 33.7% since the beginning of the year, trading close to its 52-week high of $48.58, demonstrating strong market performance and investor confidence in the company.
See More
Seadrill Secures 1,095-Day Contract Extension with Petrobras
- Contract Extension: Seadrill has secured a 1,095-day contract extension with Petrobras for its West Polaris ultra-deepwater drillship, ensuring stable revenue for the next three years from operations at the Buzios field offshore Brazil.
- Revenue Growth: The drillship's daily earnings will increase from $409,200 in April 2026 to $454,700 in April 2027, which is expected to significantly enhance Seadrill's financial performance and profitability.
- Enhanced Earnings Visibility: Seadrill's CEO Samir Ali stated that this contract extension improves the company's earnings visibility for a mature asset, indicating stability and growth potential over the next decade.
- Market Dynamics: Amidst a tight market, Seadrill's valuation is perceived to overshadow favorable industry dynamics, reflecting the company's strong position in the competitive offshore drilling sector.
See More
Seadrill Secures 1,095-Day Contract Extension with Petrobras
- Contract Extension: Seadrill has secured a 1,095-day contract extension with Petrobras, which is expected to add approximately $480 million to the company's backlog, significantly enhancing future earnings visibility.
- Dayrate Adjustment: The updated dayrates are set at $409,200 from April 1, 2026, to March 31, 2027, and $454,700 from April 1, 2027, to January 15, 2028, directly boosting Seadrill's revenue potential.
- Long-term Partnership: Seadrill's CEO, Samir Ali, noted that this contract extension not only provides substantial value to Seadrill but also strengthens the long-term partnership with Petrobras, reflecting mutual trust and collaboration potential.
- Market Outlook: The signing of this contract signifies enhanced earnings visibility for Seadrill's mature assets, expected to provide stable cash flow over the next decade, supporting the company's ongoing growth in the deepwater drilling market.
See More
Seadrill Extends Contract with Sonangol for Sonangol Quenguela
- Contract Extension: Seadrill's 50:50 joint venture Sonadrill has secured a contract extension for the ultra-deepwater drillship Sonangol Quenguela, extending operations in Angola by approximately 480 days and ensuring deployment through June 2028.
- Management Fee Revenue: Under the joint venture structure with Sonangol E.P., Seadrill will continue to earn management fees for providing comprehensive operational and technical support, which will contribute to a stable revenue stream for the company.
- Improved Market Outlook: Seadrill's improved visibility into 2026-27 has led Citi to upgrade its rating from Sell, reflecting increased market confidence in the company's future performance.
- Revenue Target Setting: Seadrill has outlined a revenue target of $1.4B to $1.45B for 2026, indicating that the company is actively seeking growth opportunities amid rising day rates and utilization.
See More
Seadrill Extends Contract with Sonangol Joint Venture
- Contract Extension: Seadrill's joint venture Sonadrill has secured a contract extension for seven wells, extending operations in Angola by approximately 480 days until June 2028, ensuring a steady revenue stream for the company.
- Management Fee Revenue: Seadrill will earn management fees for providing operational and technical support to Sonadrill, enhancing its financial stability and competitive position in the offshore drilling market.
- Deepwater Drilling Standards: With its modern fleet and advanced technologies, Seadrill continues to set the standard in deepwater oil and gas drilling, bolstering its reputation and influence in the global market.
- Market Outlook: This contract extension reflects strong demand in the Angolan market, indicating that Seadrill will play a crucial role in future oil and gas extraction, supporting its long-term growth strategy.
See More
DME Capital Management Fully Exits Seadrill Position
- Complete Exit: DME Capital Management disclosed in a February 17 SEC filing that it has fully exited its position in Seadrill by selling 1,588,828 shares, which previously accounted for approximately 1.9% of the fund's AUM, indicating a loss of confidence in the company's prospects.
- Impact of Share Changes: Following this transaction, DME's stake in Seadrill is now zero, reflecting a cautious outlook on the company's future, especially after a significant 11.1% drop in share price in 2025, despite a rebound of 21.7% in 2026 through March 12.
- Market Performance Comparison: Seadrill's stock has shown strong performance in 2026, contrasting sharply with the S&P 500's 2.3% decline, highlighting the company's recovery potential amid rising energy prices, although its revenue remains sensitive to commodity price fluctuations.
- Revenue Volatility Risk: Seadrill reported fourth-quarter contract revenue of $273 million, down 2.5% from the previous quarter, indicating that its business is highly dependent on the energy sector's market dynamics, necessitating a long-term investment perspective to manage revenue volatility.
See More
Seadrill Shares Rise Following Transocean Contract Announcement
- Industry Boost: Seadrill's shares rose 2.1% in the afternoon session following Transocean's announcement of a $158 million contract, indicating a positive outlook for high-specification ultra-deepwater drilling units amid improving market conditions.
- Market Reaction: After an initial surge, Seadrill's shares cooled to $46.74, up 1.7% from the previous close, reflecting market interest in the sector but suggesting no fundamental change in the company's outlook.
- Volatility Analysis: With 16 moves greater than 5% over the past year, today's increase indicates that the market views this news as significant, although it does not fundamentally alter perceptions of the business.
- Year-to-Date Performance: Seadrill has gained 33.7% since the beginning of the year, trading close to its 52-week high of $48.58, demonstrating strong market performance and investor confidence in the company.
See More
Seadrill Secures 1,095-Day Contract Extension with Petrobras
- Contract Extension: Seadrill has secured a 1,095-day contract extension with Petrobras for its West Polaris ultra-deepwater drillship, ensuring stable revenue for the next three years from operations at the Buzios field offshore Brazil.
- Revenue Growth: The drillship's daily earnings will increase from $409,200 in April 2026 to $454,700 in April 2027, which is expected to significantly enhance Seadrill's financial performance and profitability.
- Enhanced Earnings Visibility: Seadrill's CEO Samir Ali stated that this contract extension improves the company's earnings visibility for a mature asset, indicating stability and growth potential over the next decade.
- Market Dynamics: Amidst a tight market, Seadrill's valuation is perceived to overshadow favorable industry dynamics, reflecting the company's strong position in the competitive offshore drilling sector.
See More
Seadrill Secures 1,095-Day Contract Extension with Petrobras
- Contract Extension: Seadrill has secured a 1,095-day contract extension with Petrobras, which is expected to add approximately $480 million to the company's backlog, significantly enhancing future earnings visibility.
- Dayrate Adjustment: The updated dayrates are set at $409,200 from April 1, 2026, to March 31, 2027, and $454,700 from April 1, 2027, to January 15, 2028, directly boosting Seadrill's revenue potential.
- Long-term Partnership: Seadrill's CEO, Samir Ali, noted that this contract extension not only provides substantial value to Seadrill but also strengthens the long-term partnership with Petrobras, reflecting mutual trust and collaboration potential.
- Market Outlook: The signing of this contract signifies enhanced earnings visibility for Seadrill's mature assets, expected to provide stable cash flow over the next decade, supporting the company's ongoing growth in the deepwater drilling market.
See More
Seadrill Extends Contract with Sonangol for Sonangol Quenguela
- Contract Extension: Seadrill's 50:50 joint venture Sonadrill has secured a contract extension for the ultra-deepwater drillship Sonangol Quenguela, extending operations in Angola by approximately 480 days and ensuring deployment through June 2028.
- Management Fee Revenue: Under the joint venture structure with Sonangol E.P., Seadrill will continue to earn management fees for providing comprehensive operational and technical support, which will contribute to a stable revenue stream for the company.
- Improved Market Outlook: Seadrill's improved visibility into 2026-27 has led Citi to upgrade its rating from Sell, reflecting increased market confidence in the company's future performance.
- Revenue Target Setting: Seadrill has outlined a revenue target of $1.4B to $1.45B for 2026, indicating that the company is actively seeking growth opportunities amid rising day rates and utilization.
See More
Seadrill Extends Contract with Sonangol Joint Venture
- Contract Extension: Seadrill's joint venture Sonadrill has secured a contract extension for seven wells, extending operations in Angola by approximately 480 days until June 2028, ensuring a steady revenue stream for the company.
- Management Fee Revenue: Seadrill will earn management fees for providing operational and technical support to Sonadrill, enhancing its financial stability and competitive position in the offshore drilling market.
- Deepwater Drilling Standards: With its modern fleet and advanced technologies, Seadrill continues to set the standard in deepwater oil and gas drilling, bolstering its reputation and influence in the global market.
- Market Outlook: This contract extension reflects strong demand in the Angolan market, indicating that Seadrill will play a crucial role in future oil and gas extraction, supporting its long-term growth strategy.
See More
DME Capital Management Fully Exits Seadrill Position
- Complete Exit: DME Capital Management disclosed in a February 17 SEC filing that it has fully exited its position in Seadrill by selling 1,588,828 shares, which previously accounted for approximately 1.9% of the fund's AUM, indicating a loss of confidence in the company's prospects.
- Impact of Share Changes: Following this transaction, DME's stake in Seadrill is now zero, reflecting a cautious outlook on the company's future, especially after a significant 11.1% drop in share price in 2025, despite a rebound of 21.7% in 2026 through March 12.
- Market Performance Comparison: Seadrill's stock has shown strong performance in 2026, contrasting sharply with the S&P 500's 2.3% decline, highlighting the company's recovery potential amid rising energy prices, although its revenue remains sensitive to commodity price fluctuations.
- Revenue Volatility Risk: Seadrill reported fourth-quarter contract revenue of $273 million, down 2.5% from the previous quarter, indicating that its business is highly dependent on the energy sector's market dynamics, necessitating a long-term investment perspective to manage revenue volatility.
See More
