SDRL Earnings Prediction
The chart below shows how SDRL performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SDRL sees a +2.93% change in stock price 10 days leading up to the earnings, and a -1.64% change 10 days following the report. On the earnings day itself, the stock moves by -0.87%. This data can give you a slight idea of what to expect for the next quarter's release.
SDRL Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
334.00M
-17.12%
-7.22%
Gross Margin
22.46%
-30.38%
-27.15%
Operating Margin
14.67%
-47.21%
-39.98%
Net Margin
9.58%
-57.10%
-86.37%
EPS
0.47
-57.27%
-86.53%
No Data Available
SDRL Earnings Analysis
Seadrill Limited Corporation (SDRL.N) Earnings Conference Call
Positive
EBITDA Guidance Increase: 1. Increased EBITDA Guidance: Seadrill raised its full-year adjusted EBITDA guidance midpoint by 13% to $385 million, driven by strong performance from the Sevan Louisiana and additional work secured.
Contract Utilization Improvement: 2. Strong Contract Utilization: The company achieved 70% contract utilization for its market and managed fleet in calendar year 2025, with expectations for improvement as customer conversations convert to contracts.
Share Repurchase Program Update: 3. Significant Share Repurchases: Seadrill completed $183 million in share repurchases during the third quarter, totaling $692 million returned to shareholders since initiating the buyback program in September 2023, reducing the issued share count by 19%.
Quarterly Revenue Highlights: 4. Positive Revenue Performance: The company reported $354 million in total operating revenues for the third quarter, with contract drilling revenues effectively flat quarter-on-quarter at $263 million, supported by the Sevan Louisiana's higher average rate.
Drillship Integration Success: 5. Successful Integration of Aquadrill Drillships: Seadrill successfully reintegrated four Aquadrill drillships into its fleet, exceeding cost synergy targets and enhancing operational efficiency.
Negative
Revenue Decline Analysis: 1. Declining Total Operating Revenues: Seadrill reported total operating revenues of $354 million in Q3 2024, down from $375 million in the prior quarter, indicating a sequential decline in revenue generation.
Operating Expenses Increase: 2. Increased Operating Expenses: Total operating expenses rose to $307 million in Q3 2024, up from $290 million in the previous quarter, driven by higher vessel operating expenses and management contract expenses.
Decreased EBITDA Margin: 3. Lower Adjusted EBITDA Margin: The adjusted EBITDA margin, excluding reimbursables, was 27.5% in Q3 2024, reflecting a decrease in profitability compared to previous quarters due to rising costs and lower revenues.
Market Demand Decline: 4. Softening Market Conditions: Drillship marketed utilization has slipped below 90% and is currently hovering in the high 80s, indicating a weakening demand environment that may lead to further downward pressure on rates in 2025.
Contracting Activity Decline: 5. Reduced Contracting Activity: The company noted a slow pace of contracting tied to market uncertainties, with many contracts being deferred into 2026, which could negatively impact future revenue and cash flow.
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SDRL Earning Call Sentiment
Seadrill Limited (SDRL) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
SDRL.N
-2.08%Positive
The earnings call presents a mixed outlook. Financial performance shows some positive aspects like increased EBITDA and significant share repurchases, which are shareholder-friendly. However, there are concerns about market dynamics, supply chain challenges, and regulatory issues, particularly in Brazil, which could impact future performance. The Q&A section reveals management's cautious approach and lack of clarity on future contracts and buybacks, adding uncertainty. Given the mixed signals and the company's mid-sized market cap, the stock price is likely to remain stable, leading to a neutral prediction (-2% to 2%).
