Q2 2024 Seadrill Ltd (Hamilton) Earnings Call Transcript
Key Points
- Seadrill Ltd (SDRL) delivered a strong EBITDA of $133 million for the second quarter, with an EBITDA margin of 35.5%.
- The company maintains a strong balance sheet with a net cash position of $237 million at the end of the quarter.
- Seadrill Ltd (SDRL) completed a $500 million share buyback program and initiated another $500 million program, reducing the issued share count by over 15%.
- Five of Seadrill Ltd (SDRL)'s rigs achieved nearly 100% uptime during the quarter, demonstrating operational efficiency.
- The company remains confident in the long-term position of the deepwater drilling industry, with expectations of burgeoning demand in the future.
- Seadrill Ltd (SDRL) lowered its second-half expectations due to revised estimates for contract start dates and uncommitted near-term availability of rigs.
- The company faces limited contracting options and intensifying competition, impacting some rigs and potentially others into 2025.
- There is a slower conversion of demand to contract awards, expected to persist into 2025, affecting revenue projections.
- Seadrill Ltd (SDRL) is experiencing delays in the start dates for the Auriga and Polaris rigs due to unexpected scope and vendor delays.
- The company anticipates idle time for some rigs, such as the Sevan Louisiana and West Phoenix, due to a softer outlook for speculative rig contracting.
Thank you for standing by, and welcome to the Seadrill second-quarter earnings conference call. (Operator Instructions)
I'd now like to turn the call over to Lydia Mabry, Director of Investor Relations. You may begin.
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Thank you, operator. Welcome to Seadrill's second-quarter 2024 earnings call. Today's call will feature prepared remarks from Simon Johnson, our President and Chief Executive Officer; Samir Ali, Executive Vice President and Chief Commercial Officer; and Grant Creed, Executive Vice President and Chief Financial Officer. Also joining is Marcel Wieggers, Senior Vice President of Operations.
Today's call includes forward-looking statements that involve risks and uncertainties. Actual results may differ materially. No one should assume these forward-looking statements remain valid later in the quarter or year, and we assume no obligation to update. Our latest Forms 20-F and 6-K filed with the US Securities and Exchange Commission,
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