Seadrill beat Q1 estimates and raised 2026 EBITDA guidance to $370M-$420M on better project execution. A $157M PTTEP contract for West Capella extends backlog into 2031, signalling tight Southeast Asian floater supply.
Seadrill Ltd currently carries an Alpha Score of n/a, giving AlphaScala's model a neutral read on the setup.
Seadrill (SDRL) posted a smaller-than-expected loss for the first quarter and raised its full-year guidance, a sign that offshore drilling demand is strengthening two years out. The company reported an adjusted loss of $0.11 per share, narrower than the $0.2758 loss analysts had penciled in. Revenue came in at $358 million, topping the $326.75 million consensus by 9.5%.
Seadrill now expects full-year 2026 operating revenue between $1.43 billion and $1.48 billion, net of reimbursables. EBITDA should land between $370 million and $420 million, up from previous internal projections. Management attributed the higher EBITDA range to better project execution and tighter cost control on its active rig fleet.
The same day, Seadrill released its quarterly fleet status report covering the 14 rigs it currently operates. The report showed a new contract for the West Capella drillship, which will deploy offshore Malaysia for PTTEP. The deal runs 440 days starting in March 2027 and carries a total estimated value of roughly $157 million. Seadrill also secured pricing options for an additional 150 days, giving the operator flexibility to extend into early 2028.
The contract backlog now stretches into 2031, a timeframe that suggests the deepwater and harsh-environment segments are not running out of work despite the volatility in short-term crude prices. Seadrill operates across three categories: harsh-environment rigs, floaters, and jack-ups. The PTTEP award falls in the floater segment, which has been the most active for new awards in 2025 and early 2026.
For investors watching the offshore drilling space, the earnings beat and the guidance raise are the headline numbers. The contract detail matters more. A 440-day fixture with a state-owned operator at a disclosed value well above dayrate averages for the floater class implies tight supply in Southeast Asian waters. Seadrill said the improved utilisation outlook was a direct driver of the higher EBITDA forecast.
The next data point to watch is the utilisation rate across the active fleet when Seadrill reports second-quarter results in August. If utilisation holds above 90% and dayrates keep climbing, the full-year guidance could prove conservative. If utilisation slips, the EBITDA midpoint of $395 million becomes the ceiling.
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