Seadrill Secures $157M Contract for West Capella in Malaysia
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Malaysia Contract: Seadrill's ultra-deepwater drillship West Capella has secured a contract with an undisclosed operator, expected to commence in Q2 2026 for an estimated duration of 440 days, enhancing the company's operational footprint in Southeast Asia with a total contract value of approximately $157 million.
- Norway Accommodation Contract: The West Elara has secured an accommodation contract with Equinor AS on the Norwegian Continental Shelf, anticipated to start in Q3 2026 and extend into Q4 2027, with a total contract value of $78 million, further solidifying Seadrill's market position in the North Sea.
- Contract Value Increase: Following an agreement with the current contract holder, the scheduling update for West Elara results in a net increase of $23 million in total contract value, demonstrating the company's flexibility and adaptability in resource allocation.
- Brazil Contract Extension: The current contract for West Carina has been extended through April 2026, ensuring a continued revenue stream from the Brazilian market, reflecting Seadrill's commitment to maintaining strong client relationships.
Analyst Views on SDRL
Wall Street analysts forecast SDRL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SDRL is 44.20 USD with a low forecast of 32.00 USD and a high forecast of 80.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
3 Buy
2 Hold
0 Sell
Moderate Buy
Current: 34.720
Low
32.00
Averages
44.20
High
80.00
Current: 34.720
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.
