Seadrill Limited Q4 FY2025 earnings call

Operational Achievements - 2025: Achieved best safety performance with 50% better than IADC offshore industry benchmark. West Neptune delivered record-breaking six-zone completion, West Polaris and West Neptune did complex NPD programs, West Alara won ConocoPhillips Supplier of the Year Award, West Hellas reached 400 consecutive days of BOP subsea deployment. - 2026 Jan: Savan, Louisiana executed two well interventions using Trendsetter's Trident system. ### Contracting - 2025: Secured contracts adding half a billion to backlog, with various rigs in different regions like U.S. Gulf, Angola, Norway, Brazil, Malaysia. ### People Investment: Invested in people through professional development, expanded courses at Cedral Academy, held workshops, launched safety leadership assessment program.

For full year 2025, EBITDA was $353 million. In Q4 2025, total operating revenues were $362 million, contract drilling revenues were $273 million, reimbursable revenues were $16 million, total operating expenses were $344 million, and EBITDA was $88 million. For 2026, anticipated total operating revenues are $1.4 to $1.45 billion (excluding $50 million reimbursable revenues), EBITDA is $350 to $400 million, full-year capital expenditure and long-term maintenance guidance is $200 to $240 million.

2026 Outlook - Anticipates total operating revenues of $1.4 to $1.45 billion (excluding $50 million reimbursable revenues) and EBITDA of $350 to $400 million. - Q1 2026 expected to be lower than subsequent quarters as West Jupiter, West Telus, and West Capella undergo new contract preparations, then a step up in Q2 following commencement of these contracts. - Full-year capital expenditure and long-term maintenance guidance is $200 to $240 million, expecting inflection to strong cash flow generation in the middle of 2026 after certain rigs commence contracts.

Potential Risks - Some tenders may fall away. - Rig redeployment involves costs and may not always be economically viable. - Dependence on specific regions and customers could pose risks if market conditions change in those areas.

Q: Eddie Kim asked about day rates potentially returning to mid-400s level.

A: Simon and Samir responded that they expect rates to be higher than low 400s, with utilization increasing driving day rates.

Q: Frederick Fitin asked about fleet positioning and stacked rigs.

A: Simon said they'll move rigs where it makes most sense, and updates on stacked rigs were provided.

Q: Greg Lewis asked about consolidation and ONGC tender.

A: Simon and Samir discussed consolidation and ONGC tender participation.

Q: Keith Beckman asked about 2026 outlook and rigs.

A: Responses were about active dialogue on rigs and expectations of revenue and EBITDA improvement.

Q: Hamad Korsund asked about outlook certainty and capital redeployment.

A: Response was about difference in this time with broad-based demand and discussion on capital allocation.

Q: Noel Parks asked about pricing and client conversations.

A: Responses were about different client conversations and movement of rigs between regions