The following is a summary of the Seadrill Limited (SDRL) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Seadrill reported a Q3 adjusted EBITDA of $93 million, exceeding expectations and securing additional work that propels them above previous full year guidance, now increasing EBITDA guidance midpoint by 13% to $385 million.

• In Q3, Seadrill earned $354 million in total operating revenues, with adjusted EBITDA reaching $93 million.

• A focus on cost management and operational efficiency has contributed positively to the financial outcomes.

Business Progress:

• Seadrill integrated four Aquadrill drillships back into their fleet, exceeding cost synergy targets and achieving more efficient operations.

• Continued fleet refinement and industry-leading share repurchases, reducing issued share count by 19% since September 2023.

• Significant contractual advancements, including commitments in Brazil and high contract utilization expected for 2025 with secured contracts for major rigs like the West Carina and West Tellus.

Opportunities:

• Strong contract coverage for the 2025 market with 70% utilization already secured. Continued positive progress in Brazil, a key market for Seadrill.

• Focusing on operational efficiency and asset optimization to meet demand and drive profitability.

Risks:

• The temporary imbalance between drillship supply and demand, coupled with the volatile market, could impact rates and competitive positioning in 2025. This underscores the need for discrete asset management and strategic contracting practices.

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