Overview

* Seadrill ( SDRL ) Q3 operating revenue beats analyst expectations, despite a decrease from prior quarter

* Adjusted EBITDA for Q3 misses analyst estimates, reflecting lower economic utilization

* Company secures over $300 mln in new contracts, boosting order backlog

Outlook

* Seadrill ( SDRL ) narrows 2025 revenue guidance to $1,360 mln-$1,390 mln

* Seadrill ( SDRL ) narrows 2025 capex guidance to $280 mln-$300 mln

Result Drivers

* CONTRACT AWARDS - Secured over $300 mln in new contracts across five rigs, boosting order backlog

* ANGOLA CONTRACTS - West Gemini, Sonangol Libongos and Sonangol Quenguela secured 1,000 days of work in Angola, extending Sonadrill JV

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $363 mln $338.20

Operatin mln (5

g Analysts

Revenue )

Q3 EPS -$0.17

Q3 Net -$11 mln

Income

Q3 Miss $86 mln $91.70

Adjusted mln (5

EBITDA Analysts

)

Q3 24.40%

Adjusted

EBITDA

Margin

Q3 $26 mln

Operatin

g Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the oil & gas drilling peer group is "buy"

* Wall Street's median 12-month price target for Seadrill Ltd ( SDRL ) is $33.00, about 6.3% above its November 4 closing price of $30.91

* The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release:

For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)