Seadrill Limited (SDRL) SEC Filings & Earnings Calls

Geopolitical risk from Middle East conflict

“The ongoing conflict in Iran and the unprecedented closure of the Strait of Hormuz have caused significant disruption in the normal flow of oil, refined petroleum products, and related commodities, resulting in higher oil prices.” · word for word

Inflationary cost pressure

“Inflationary pressures may impact the cost base in our industry, including personnel costs and the prices of goods and services required to reactivate or operate rigs.” · word for word

Trade policy uncertainty

“Ongoing and recently proposed changes to U.S. global trade policy, along with potential international retaliatory measures, have continued to cause high volatility in global markets and uncertainty around short- and long-term economic impacts in the U.S.” · word for word

Offshore drilling is capital-intensive with commodity price sensitivity; refinancing reduces near-term risk.

“Net debt position of $390 million; refinancing extended maturities.”

Offshore drilling market cyclicality and oil price volatility may affect ability to service debt.

“Forward-looking statements highlight risks from oil price fluctuations, competition, and geopolitical conflicts.”

Net loss position despite operational improvements

“Reported a net loss of $7 million” · word for word

Capital expenditure and working capital timing risks

“payments for contract preparation activities for West Jupiter and West Capella as well as timing of working capital”

Geopolitical disruption uncertainty

“it is not possible to predict the long-term impact, if any, of the disruptions to commodity prices, global energy supplies, energy markets and economic conditions, on our business and operations.” · word for word

Trade policy volatility

“Ongoing and recently proposed changes to U.S. global trade policy, along with potential international retaliatory measures, have continued to cause high volatility in global markets” · word for word

Inflationary cost pressure

“inflationary pressures may impact the cost base in our industry, including personnel costs and the prices of goods and services required to reactivate or operate rigs.” · word for word

Negative Free Cash Flow

“Unlevered Free Cash Flow (USD million) 20% 38.5 55.0 71.5 -51 0.0% 0.0%” · word for word

CEO Transition Execution Risk

“On March 12, 2026, the Board appointed Mr. Ali as President and Chief Executive Officer, replacing Mr. Johnson.” · word for word

Equity Dilution from MIP Amendment

“The MIP Amendment provides for an increase in the number of the Company’s common shares that may be issued under the MIP by 1,400,000 shares” · word for word

CEO transition risk; internal promotion mitigates disruption.

“Immediate replacement; outgoing CEO entitled to severance; enhanced severance for new CEO.”

Oil Price Volatility Risk

“Our business depends on the level of activity in the oil and gas industry. Adverse developments affecting the industry, including a decline in the price of oil or gas... have in the past had and may in the future have a material adverse effect on our business.” · word for word

Customer Concentration Risk

“For the year ended December 31, 2025, our largest customers... accounted for approximately 79% of our total revenues in aggregate.” · word for word

Contract Renewal Risk

“Of the 12 owned drilling units either currently or future contracted, we expect five will become available before the end of 2026.” · word for word

Tariff and Trade Policy Risk

“Such tariffs may put upwards pressure on the prices of goods and services across the jurisdictions in which we operate... which could reduce our ability to offer competitive pricing to potential customers.” · word for word

Legal judgment payment related to Sonadrill joint venture

“$43 million payment pertaining to an unfavorable legal judgment associated with the Sonadrill joint venture” · word for word

Net loss position despite positive EBITDA

“Reported full year 2025 net loss of $77 million” · word for word

Oil price and demand risk

“The price of Brent oil averaged $70 per barrel during the nine months ended September 30, 2025 down from $80 per barrel in 2024. Global growth in the production of oil and slower growth in demand have put downward pressure on prices.” · word for word

Trade policy uncertainty

“Ongoing and recently proposed changes to U.S. global trade policy, along with potential international retaliatory measures, have continued to cause high volatility in global markets and uncertainty around short- and long-term economic impacts.” · word for word

Lower economic utilization and higher repair/maintenance costs impacted margins.

“Third quarter 2025 total operating revenues decreased $14 million to $363 million, primarily due to lower economic utilization, fewer rig operating days.” · word for word

Net loss of $11 million despite positive Adjusted EBITDA.

“Reported a net loss of $11 million.” · word for word