Seadrill Limited has reported a fourth-quarter 2024 net income of $101 million, well over the $32 million for the previous quarter. Fourth-quarter operating revenues totaled $289 million, down 18 percent from $354 million for the prior quarter primarily due to lower contract revenues.
The company said its contract revenues were $204 million, a sequential decrease of 22 percent due to fewer operating days following scheduled contract completions for West Phoenix and West Capella and planned out-of-service time for West Neptune.
Fourth-quarter 2024 total operating expenses increased by 5 percent to $323 million, compared to $307 million for the third quarter. A reduction in vessel and rig operating expenses was offset by increases in merger and integration-related expenses, management contract expenses, and selling, general and administrative expenses.
“During the fourth quarter, we secured long-term contracts for West Jupiter and West Tellus, adding $1 billion in backlog; sold the cold-stacked West Prospero at a favorable valuation compared to recent sales by our peers; and repurchased $100 million of shares under our share repurchase program”, President and Chief Executive Officer Simon Johnson said. “With a strong balance sheet, and durable backlog that extends meaningfully into 2029, we are well-positioned to navigate any market volatility”.
The West Jupiter and West Tellus rigs were awarded 1,095-day contracts by Petróleo Brasileiro S.A. (Petrobras) in Brazil. These contracts, starting in 2026, add $1 billion to the company’s backlog and ensure rig utilization through 2029.
West Vela, having completed its previous well ahead of schedule, gained an additional 40 days of work, adding approximately $20 million to the backlog and extending its operations to September 2025.
Sevan Louisiana’s contract in the U.S. Gulf has been extended to June 2025. As of February 26, 2025, Seadrill said its order backlog reached approximately $3.0 billion, with approximately 75 percent of available rig days contracted for 2025.
West Auriga and West Polaris began contracts with Petrobras on December 20, 2024, and February 18, 2025, respectively, with West Polaris’ start delayed due to equipment upgrades. West Tellus experienced 50 days of downtime in the first quarter of 2025 for regulatory issues in Brazil. The West Neptune resumed drilling on February 16, 2025, after completing surveys and upgrades, though the timeline was affected by vendor issues and bad weather, Seadrill said.
Source: By Paul Anderson from Rigzone.com