Seadrill has announced its fourth quarter and full year 2024 results, highlighting a net income of $446 million and Adjusted EBITDA of $378 million in 2024.
However, fourth quarter 2024 operating revenues totaled $289 million, compared to $354 million in the prior quarter, a decrease of 18%, primarily due to lower contract revenues. Contract revenues were $204 million, a sequential decrease of 22%, due to fewer operating days following scheduled contract completions for the West Phoenix and West Capella and planned out-of-service time for the West Neptune.
Management contract revenues were $62 million in the fourth quarter, consistent with the prior quarter. Leasing revenues were also in line, with the fourth quarter at $8 million, compared to $9 million in the third quarter. Reimbursable revenues were $15 million for the quarter.
Fourth quarter 2024 total operating expenses increased by 5% to $323 million, compared to $307 million in the third quarter. The impact of reduced vessel and rig operating expenses was offset by increases in merger and integration related expenses, management contract expenses and selling, general and administrative expenses. Vessel and rig operating expenses decreased $8 million, or 5%, to $164 million due to fewer operating days.
Net income for the fourth quarter was $101 million. Adjusted EBITDA was $28 million, compared to $93 million in the prior quarter.
“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,” said President and Chief Executive Officer, Simon Johnson. “With a strong balance sheet, and durable backlog that extends meaningfully into 2029, we are well-positioned to navigate any market volatility.”
At quarter-end, Seadrill had gross principal debt of $625 million and $505 million in cash and cash equivalents, including $27 million of restricted cash, for a net debt position of $120 million. Net cash provided by operating activities during the fourth quarter of 2024 was $7 million. Capital expenditures were $132 million, mostly related to contract preparation for West Auriga and West Polaris, in addition to the planned survey and upgrades for West Neptune.
In December 2024, the West Jupiter and the West Tellus secured long-term contracts with Petrobras in Brazil. The 1,095 day contracts, scheduled to commence in the first and second quarter of 2026 respectively, add $1 billion in backlog, securing the rigs' utilization into 2029.
The West Vela drilled its most recent well ahead of schedule. Following exceptional operational performance, the rig secured 40 days of additional work and added approximately $20 million in backlog, which is expected to keep the rig working into September 2025.
The Sevan Louisiana continued its existing contract with an independent operator in the U.S. Gulf, securing the rig’s services into June 2025.
As of February 26, 2025, Seadrill’s order backlog was approximately $3.0 billion. For 2025, the company has approximately 75% of available rig days contracted across its marketed and managed rig fleet.
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