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Seadrill Contract Backlog Expands; Fleet Economic Utilization Up Sequentially

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Offshore drilling company Seadrill (SDRL) said Monday its backlog as of Aug. 10 stands at about $2.9 billion, expanding from the May level following around $200 million worth of contract awards and extensions in the US Gulf and Malaysia.

West Vela's one-year contract award in the US Gulf beginning in June 2027 added about $161 million to contract backlog, while West Capella's 75-day contract extension in Malaysia contributed $26 million. Sevan Louisiana also secured a 45-day contract extension in the US Gulf.

Seadrill also said the economic utilization of its fleet in the three months ended June 30 reached 95.5%, up compared with 94.6% recorded in the previous quarter.

The average number of rigs on contract in Q2 was 10, with an average contractual day rate of $360,000. This compared with Q1's 9 rigs and day rate of $343,000.

More operating days for the West Jupiter and the West Capella, along with an improved average day-rate across the fleet, underpinned the company's Q2 revenue, which saw a quarter-over-quarter increase.

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