SEADRILL LTD, 10-Q filed on 5/12/2025
Quarterly Report
v3.25.1
Cover - shares
3 Months Ended
Mar. 31, 2025
May 07, 2025
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2025  
Document Transition Report false  
Entity File Number 001-39327  
Registrant Name SEADRILL LIMITED  
Entity Incorporation, State or Country Code D0  
Entity Tax Identification Number 98-1834031  
Entity Address, Address Line One 11025 Equity Dr.  
Entity Address, Address Line Two Suite 150,  
Entity Address, City or Town Houston  
Entity Address, State or Province TX  
Entity Address, Country US  
Entity Address, Postal Zip Code 77041  
City Area Code (713)  
Local Phone Number 329-1150  
Title of 12(b) Security Common Shares, par value $0.01 per share  
Trading Symbol SDRL  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Bankruptcy Proceedings, Reporting Current true  
Entity Common Stock, Shares Outstanding   62,225,301
Central Index Key 0001737706  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q1  
Current Fiscal Year End Date --12-31  
Amendment Flag false  
v3.25.1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Operating revenues    
Contract revenues $ 248 $ 275
Management contract revenues [1] 61 58
Leasing revenues [1] 8 11
Total operating revenues 335 367
Operating expenses    
Depreciation and amortization (55) (38)
Management contract expenses (45) (38)
Selling, general and administrative expenses (23) (25)
Merger and integration related expenses 0 (2)
Total operating expenses (317) (303)
Other operating items    
Other operating income 0 16
Total other operating items 0 16
Operating profit 18 80
Financial and other non-operating items    
Interest income 4 7
Interest expense (15) (15)
Equity in earnings of equity method investments (net of tax) 8 4
Other financial and non-operating items (14) (6)
Total financial and other non-operating items, net (17) (10)
Profit before income taxes 1 70
Income tax expense (15) (10)
Net (loss)/income $ (14) $ 60
Basic EPS (in usd per share) $ (0.23) $ 0.83
Diluted EPS (in usd per share) $ (0.23) $ 0.81
Reimbursable revenues and expenses    
Operating revenues    
Revenue [1] $ 15 $ 20
Operating expenses    
Cost of goods and services sold (15) (20)
Other revenues    
Operating revenues    
Revenue [1] 3 3
Vessel and rig operating expenses    
Operating expenses    
Cost of goods and services sold $ (179) $ (180)
[1] Includes revenue from related parties of $79 million and $76 million, for the three months ended March 31, 2025, and March 31, 2024, respectively. Refer to Note 10 - "Related party transactions" for further details.
v3.25.1
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Current assets    
Cash and cash equivalents $ 404,000 $ 478,000
Restricted cash 26,000 27,000
Accounts receivables, net 143,000 193,000
Other current assets 228,000 230,000
Total current assets 801,000 928,000
Non-current assets    
Equity method investments 76,000 68,000
Drilling units (net of accumulated depreciation of 491 as of March 31, 2025 (December 31, 2024: 430) 2,969,000 2,946,000
Deferred tax assets 60,000 63,000
Equipment 5,000 5,000
Other non-current assets 152,000 146,000
Total non-current assets 3,262,000 3,228,000
Total assets 4,063,000 4,156,000
Current liabilities    
Trade accounts payable 78,000 118,000
Other current liabilities 321,000 383,000
Total current liabilities 399,000 501,000
Non-current liabilities    
Long-term debt 611,000 610,000
Deferred tax liabilities 11,000 11,000
Other non-current liabilities 134,000 116,000
Total non-current liabilities 756,000 737,000
Commitments and contingencies (see Note 13)
Shareholders' equity    
Common shares of par value $0.01 per share: 375,000,000 shares authorized as of March 31, 2025 (December 31, 2024: 375,000,000) and 62,163,028 issued as of March 31, 2025 (December 31, 2024: 62,154,422) 622 622
Additional paid-in capital 1,973,000 1,969,000
Accumulated other comprehensive income 1,000 1,000
Retained earnings 933,000 947,000
Total shareholders' equity 2,908,000 2,918,000
Total liabilities and shareholders' equity $ 4,063,000 $ 4,156,000
v3.25.1
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Mar. 31, 2024
Statement of Financial Position [Abstract]      
Drilling units, accumulated depreciation $ 491   $ 430
Common shares, par value (in dollars per share) $ 0.01 $ 0.01  
Common shares, authorized (in shares) 375,000,000 375,000,000  
Common shares, issued (in shares) 62,163,028 62,154,422  
v3.25.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Cash flows from operating activities    
Net (loss)/income $ (14) $ 60
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract]    
Depreciation and amortization 55 38
Equity in earnings of equity method investments (net of tax) (8) (4)
Deferred tax expense/(benefit) 3 (5)
Unrealized (gain)/loss on foreign exchange (1) 3
Amortization of debt issue costs 1 1
Share based compensation expense 4 3
Other 12 0
Other cash movements in operating activities    
Additions to long-term maintenance (54) (29)
Changes in operating assets and liabilities    
Trade accounts receivable 42 25
Trade accounts payable (35) 11
Prepaid expenses/accrued revenue (2) (7)
Deferred revenue (9) 5
Deferred mobilization costs 6 4
Related party receivables 0 (5)
Other assets (2) (21)
Other liabilities (25) (50)
Net cash (used in)/provided by operating activities (27) 29
Cash flows from investing activities    
Additions to drilling units and equipment (45) (23)
Other (4) 0
Net cash used in investing activities (49) (23)
Cash flows from financing activities    
Shares repurchased 0 (119)
Net cash used in financing activities 0 (119)
Effect of exchange rate changes on cash 1 (3)
Net decrease in cash and cash equivalents, including restricted cash (75) (116)
Cash and cash equivalents, including restricted cash, at beginning of the period 505 728
Cash and cash equivalents, including restricted cash, at the end of period $ 430 $ 612
v3.25.1
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
(Unaudited) - USD ($)
$ in Millions
Total
Common shares
Additional paid-in capital
Accumulated other comprehensive income
Retained earnings
Beginning balance (in shares) at Dec. 31, 2023   1,000,000      
Beginning balance at Dec. 31, 2023 $ 2,983   $ 2,480 $ 1 $ 501
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Share based compensation 3   3    
Shares repurchased and cancelled (119)   (119)    
Net (loss)/income 60       60
Ending balance (in shares) at Mar. 31, 2024   1,000,000      
Ending balance at Mar. 31, 2024 $ 2,927   2,364 1 561
Beginning balance (in shares) at Dec. 31, 2024 62,154,422 1,000,000      
Beginning balance at Dec. 31, 2024 $ 2,918   1,969 1 947
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Share based compensation 4   4    
Net (loss)/income $ (14)       (14)
Ending balance (in shares) at Mar. 31, 2025 62,163,028 1,000,000      
Ending balance at Mar. 31, 2025 $ 2,908   $ 1,973 $ 1 $ 933
v3.25.1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Parenthetical) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Revenues $ 335 $ 367
Related Party    
Revenues $ 79 $ 76
v3.25.1
General information
3 Months Ended
Mar. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
General information General information
Seadrill Limited (along with any one or more of its consolidated subsidiaries, or to all such entities, referred to as "Seadrill", "we", "us", "our", and "the Company") is incorporated in Bermuda. We are an offshore drilling contractor providing worldwide offshore drilling services to the oil and gas industry. Our primary business is the ownership and operation of drillships and semi-submersible rigs for operations in shallow to ultra-deepwater areas in both benign and harsh environments. We contract our drilling units to drill wells for our customers on a dayrate basis. Our customers include oil super-majors, state-owned national oil companies and independent oil and gas companies. In addition, we provide management services to certain affiliated entities.
Basis of presentation
The accompanying unaudited Condensed Consolidated Financial Statements of Seadrill Limited have been prepared in accordance with accounting principles generally accepted in the U.S. ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the SEC. Accordingly, pursuant to such rules and regulations, they do not include all disclosures required by U.S. GAAP for annual financial statements. In the opinion of management, the unaudited Condensed Consolidated Financial Statements includes all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of financial position, results of operations and cash flows for the interim periods.
Results of operations for interim periods are not necessarily indicative of results of operations for the respective full years, or any future period. The accompanying unaudited Condensed Consolidated Financial Statements and related notes should be read in conjunction with our 2024 10-K.
Reclassifications
Effective the second quarter of 2024, we have classified revenues from our bareboat charter agreements in "Leasing revenues" in order to enhance the presentation of the arrangements. To conform to current period presentation, $11 million of "Other revenues" for the three months ended March 31, 2024 have been reclassified to "Leasing revenues".
Significant accounting policies
Refer to Note 2 - "Accounting Policies" of our Consolidated Financial Statements from our 2024 10-K for additional information related to our significant accounting policies.
v3.25.1
Revenue from contracts with customers
3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue from contracts with customers Revenue from contracts with customers
The following table provides information about receivables and contract liabilities from our contracts with customers, as of the dates presented:
(In $ millions)March 31,
2025
December 31,
2024
Accounts receivable, net143 193 
Current contract liabilities (classified within other current liabilities)(58)(63)
Non-current contract liabilities (classified within other non-current liabilities)(69)(48)
Significant changes in the contract liabilities balances during the three months ended March 31, 2025 are as follows:
(In $ millions)Contract Liabilities
Net contract liability as of January 1, 2025(111)
Amortization of revenue that was included in the beginning contract liability balance23 
Additional contract liabilities recognized, excluding amounts recognized as revenue(39)
Net contract liability as of March 31, 2025(127)
Revenues are attributed to geographical locations based on the country of operations for drilling activities, i.e., the country where the revenues are generated. The following table presents our revenues by geographic area:
Three months ended March 31,
(In $ millions)20252024
Brazil12189 
United States81 95 
Angola81 77 
Norway23 54 
Other (1)
29 52 
Total operating revenues335 367 
(1) "Other" represents countries in which we operate that individually had revenues representing less than 10% of total operating revenues earned for any of the periods presented.
We had the following customers with revenues greater than 10% of total operating revenues in any of the periods presented:
Three months ended March 31,
(In $ millions)20252024
Petrobras29 %18 %
Sonadrill24 %18 %
Talos13 %— %
LLOG%10 %
Other28 %54 %
v3.25.1
Taxation
3 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
Taxation Taxation
For the three months ended March 31, 2025, income tax expense was $15 million, compared to income tax expense of $10 million for the three months ended March 31, 2024.
The increase in tax expense relative to the comparative period primarily reflects the recognition, during the quarter ended March 31, 2024, of a deferred tax benefit of $8 million attributable to changes in valuation allowances established for Switzerland and Brazil, net of a $3 million charge recognized in the same quarter related to the tax effect of import duty credits in Brazil. The increase in tax expense also reflects changes in the Company's mix of pre-tax income among tax jurisdictions.
v3.25.1
Loss/earnings per share
3 Months Ended
Mar. 31, 2025
Earnings Per Share [Abstract]  
Loss/earnings per share Loss/earnings per share
The computation of basic loss/earnings per share ("LPS/EPS") is based on the weighted average number of common shares of the Company, par value $0.01 per share (the "Shares"), outstanding during the period. Diluted LPS/EPS includes the effect of the assumed conversion of potentially dilutive instruments related to the effect of the unsecured senior convertible bond and share based compensation. Refer to Note 9 – "Debt" for further details on the unsecured senior convertible bond.
The components of the numerator for the calculation of basic and diluted LPS/EPS were as follows:
Three months ended March 31,
(In $ millions)20252024
Net (loss)/income available stockholders(14)60 
Effect of dilution (interest on unsecured senior convertible bond)
Diluted (loss)/profit available to stockholders(13)61 
The components of the denominator for the calculation of basic and diluted LPS/EPS were as follows:
Three months ended March 31,
 (In millions)20252024
Basic (loss)/earnings per share: 
Weighted average number of common shares outstanding (1)
62 72 
Diluted (loss)/earnings per share: 
Effect of dilution
Weighted average number of common shares outstanding adjusted for the effects of dilution65 75 


(1) Weighted average number of Shares outstanding in the three months ended March 31, 2024 excludes Shares repurchased during the period.
The basic and diluted LPS/EPS were as follows:
Three months ended March 31,
(In $)20252024
Basic (loss)/earnings per share(0.23)0.83
Diluted (loss)/earnings per share (1)
(0.23)0.81
(1) For the three months ended March 31, 2025, the effect of including all potentially dilutive instruments in the calculation resulted in decreased loss per share, which is anti-dilutive. The instruments were not included in the calculation due to their anti-dilutive effect, and, as a result, the basic and diluted loss per share are equal.
v3.25.1
Restricted cash
3 Months Ended
Mar. 31, 2025
Restricted Cash and Investments [Abstract]  
Restricted cash Restricted cash
Restricted cash as of March 31, 2025 and December 31, 2024 was as follows:
(In $ millions)March 31,
2025
December 31,
2024
Cash held in escrow23 23 
Other
Total restricted cash26 27 
v3.25.1
Other current assets
3 Months Ended
Mar. 31, 2025
Other Assets [Abstract]  
Other current assets Other current assets
As of March 31, 2025 and December 31, 2024, other current assets included the following:
(In $ millions)March 31,
2025
December 31,
2024
Taxes receivable53 55
Prepaid expenses64 57
Deferred contracts costs78 83
Pre-funding of MSA manager arrangements12 13
Other21 22
Total other current assets228 230 
v3.25.1
Equity method investments
3 Months Ended
Mar. 31, 2025
Equity Method Investments and Joint Ventures [Abstract]  
Equity method investments Equity method investments
As of March 31, 2025 and December 31, 2024, the carrying values of our equity method investments were as follows:
(In $ millions)March 31,
2025
December 31,
2024
Sonadrill76 68 
Total equity method investments76 68 
v3.25.1
Other current and non-current liabilities
3 Months Ended
Mar. 31, 2025
Payables and Accruals [Abstract]  
Other current and non-current liabilities Other current and non-current liabilities
Other current liabilities
As of March 31, 2025 and December 31, 2024, other current liabilities included the following:
(In $ millions)March 31,
2025
December 31,
2024
Accrued expenses142 163 
Employee withheld taxes, social security and vacation payments37 64
Taxes payable28 20
Contract liabilities 58 63
Unfavorable drilling contracts14 19
Accrued interest expense21
Other liabilities33 33 
Total other current liabilities321 383 
Other non-current liabilities
As of March 31, 2025 and December 31, 2024, other non-current liabilities included the following:
(In $ millions)March 31,
2025
December 31,
2024
Uncertain tax positions55 55 
Contract liabilities69 48 
Unfavorable drilling contracts
Lease liabilities
Other liabilities
Total other non-current liabilities134 116 
Unfavorable drilling contracts
The following table summarizes the movement in unfavorable drilling contracts for the three months ended March 31, 2025:
 (In $ millions)
Carrying amount
As of January 1, 202522 
Amortization(6)
As of March 31, 202516 
Upon emergence from Chapter 11 proceedings and the application of fresh start accounting in 2022, and in connection with the acquisition of Aquadrill in 2023, unfavorable drilling contract and management service contract intangible liabilities were recognized. The amortization is recognized in the unaudited Condensed Consolidated Statement of Operations as "Depreciation and amortization". The weighted average remaining amortization for unfavorable contracts is 10 months.
The table below shows the amounts relating to unfavorable contracts that is expected to be amortized over the following periods:
Period ended December 31,
(In $ millions)Remainder of 20252026Total
Amortization of unfavorable contracts13 16 
v3.25.1
Debt
3 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Debt Debt
The table below sets out our debt agreements as of March 31, 2025 and December 31, 2024:
(In $ millions)March 31,
2025
December 31,
2024
Secured debt:
$575 million secured bond
575575 
Total secured debt 575 575 
Unsecured bond:
Unsecured senior convertible bond50 50 
Total unsecured bond50 50 
Total principal debt 625 625 
Debt premium:
Premium on bond issuance
Total debt premium1 1 
Less: bond issuance costs
(15)(16)
Total debt 611 610 
$575 million secured bond
In July 2023, Seadrill issued $500 million in aggregate principal amount of 8.375% Senior Secured Second Lien Notes due 2030 in an offering conducted pursuant to Rule 144A and Regulation S under the Securities Act. Subsequently, in August 2023, Seadrill issued an additional $75 million in aggregate principal amount of 8.375% Senior Secured Second Lien Notes due 2030 (the "Incremental Notes"), maturing on August 1, 2030 (together the "Notes"). The Incremental Notes were issued at 100.75% of par.

Revolving credit facility
On July 27, 2023, Seadrill Limited, along with its subsidiary, Seadrill Finance Limited ("Seadrill Finance"), established a Senior Secured Revolving Credit Facility (the "Revolving Credit Facility"). The commitments under the Revolving Credit Facility, which carries a five-year term, became available for drawdown on July 27, 2023. The Revolving Credit Facility permits borrowings of up to $225 million in revolving credit for working capital and other corporate purposes and includes an "accordion feature" allowing Seadrill to increase this limit by up to an additional $100 million, subject to agreement from the lenders. It also includes a provision for issuing letters of credit up to $50 million. The Revolving Credit Facility incurs interest at a rate equal to a specified margin plus the Secured Overnight Financing Rate ("SOFR"). This facility has not been drawn to date. Seadrill is required to pay a quarterly commitment fee on any unused portion of the revolving credit.
Unsecured senior convertible bond
The $50 million unsecured senior convertible bond (the "unsecured senior convertible bond"), issued on emergence from Chapter 11, has a maturity of August 2028 and bears interest, payable quarterly in cash, at the Term SOFR (as defined in the Note Purchase Agreement dated as of February 22, 2022, as amended (the "Note Purchase Agreement"), plus 6% on the aggregate principal amount of $50 million. The bond is convertible (in full and not in part) into Shares at a conversion rate of 52.6316 Shares per $1,000 principal amount of the bond, subject to certain adjustments set forth in the Note Purchase Agreement relating to the unsecured senior convertible bond. If not converted, a bullet repayment will become due on the maturity date.
v3.25.1
Related party transactions
3 Months Ended
Mar. 31, 2025
Related Party Transactions [Abstract]  
Related party transactions Related party transactions
As of March 31, 2025, our major related party is the Sonadrill joint venture, over which we hold significant influence.
Related party revenue
Our related party revenues include the following:
Three months ended March 31,
 (In $ millions)
20252024
Management fees revenues (a)
58 55 
Add-on services
Reimbursable revenues (b)
10 
Leasing revenues (c)
11 
Other— 
Total related party operating revenues79 76 
(a) Seadrill provides management and administrative services and operational and technical support services to Sonadrill. These services were charged on a dayrate basis.
(b) Reimbursable revenues relate to Sonadrill project work on the Libongos, Quenguela and West Gemini rigs.
(c) During the first quarter of 2025, we earned leasing revenues on the charter of the West Gemini to Sonadrill. During the first quarter of 2024, we also earned leasing revenues from the West Castor, West Telesto, and West Tucana, which were leased to Gulfdrill, up to their disposal in June 2024.
Related party balances
As of March 31, 2025, Sonadrill prepaid management fees of $1 million to Seadrill (December 31, 2024: $7 million). These balances are recorded in "Other current liabilities" within our unaudited Condensed Consolidated Balance Sheets.
v3.25.1
Fair value of financial instruments
3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Fair value of financial instruments Fair value of financial instruments
Fair value of financial instruments measured at amortized cost
The carrying value and estimated fair value of our financial instruments that are measured at amortized cost as of the dates specified are as follows:

March 31, 2025December 31, 2024
(In $ millions)Fair
value
Carrying
value
Fair
value
Carrying
value
Liabilities
$575 million secured bond (Level 1)
575 561 587 560 
Unsecured senior convertible bond - debt component (Level 3)
56 50 56 50 
Fair value is a market-based measurement, not an entity-specific measurement, and is determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, a fair value hierarchy distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within levels 1 and 2 of the hierarchy) and the reporting entity's own assumptions about market participant assumptions (unobservable inputs classified within level 3 of the hierarchy).
Financial instruments categorized as level 1
The fair value of the $575 million secured bond is based on market traded value. We have categorized this at level 1 on the fair value measurement hierarchy.
Financial instruments categorized as level 3
The fair value attributed to the unsecured senior convertible bond is bifurcated into two elements: the straight debt component is derived through a discounted cash flow approach, and the conversion option is derived through an option pricing model, which forecasts equity volatility and compares the potential conversion redemption against historical and implied equity movements in comparable companies in our industry. The conversion option was recorded in equity at the point the bond was issued and, therefore, has not been included in the table above.
Our accounts receivable and accounts payable are by their nature short-term. As a result, the carrying values included in our unaudited Condensed Consolidated Balance Sheets approximate fair value.
Financial instruments measured at fair value on a recurring basis
The carrying value and estimated fair value of our financial instruments that are measured at fair value on a recurring basis as of the dates specified are as follows: 
March 31, 2025December 31, 2024
(In $ millions)Fair
value
Carrying
value
Fair
value
Carrying
value
Assets
Cash and cash equivalents (Level 1)
404 404 478 478 
Restricted cash (Level 1)
26 26 27 27 
Level 1 fair value measurements
The carrying value of cash and cash equivalents and restricted cash, which are highly liquid, is a reasonable estimate of fair value and are categorized at level 1 of the fair value hierarchy.
v3.25.1
Common shares
3 Months Ended
Mar. 31, 2025
Equity [Abstract]  
Common shares Common shares
Share capital as of March 31, 2025 and December 31, 2024 was as follows:
Issued and fully paid share capital
SharesPar value per share ($)$ thousands
As of December 31, 202462,154,4220.01 622 
Vesting of restricted stock units8,6060.01 — 
As of March 31, 202562,163,0280.01 622 
Share transactions for period presented
During the three months ended March 31, 2025, 8,606 Shares were issued relating to the vesting of restricted stock units under the Company's share based compensation plan.
v3.25.1
Commitments and contingencies
3 Months Ended
Mar. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and contingencies Commitments and contingencies
We recognize loss contingencies in the unaudited Condensed Consolidated Financial Statements where it is probable that an outflow of economic benefits will be required to settle an obligation, and the amount is reasonably estimable. An adverse outcome in a matter described below could have an adverse effect on Seadrill's operating results, cash flows and financial position.
Legal Proceedings
SFL Hercules Ltd
On March 5, 2023, Seadrill was served with a claim from SFL Hercules Ltd., filed in the Oslo District Court in Norway, relating to our redelivery of the rig West Hercules to SFL Corporation Ltd. ("SFL") in December 2022. On February 6, 2025, the Oslo District Court delivered a judgment in favor of SFL Hercules Ltd. ordering Seadrill to pay SFL approximately $37 million plus interest and legal costs of approximately $11 million. Seadrill intends to vigorously contest the judgment and filed an appeal on March 5, 2025. The timing of resolution and ultimate amount due, if any, cannot be predicted at this time.
Sonadrill fees claim
In March 2023, Seadrill was served with a claim from an individual (the “Claimant”) filed in the High Court of Justice, Business and Property Courts of England and Wales, King's Bench Division, Commercial Court. The Claimant alleges breach of contract and unjust enrichment damages of approximately $72 million related to an alleged failure by the Company to pay the Claimant a fee for services in arranging the Sonadrill joint venture. The case concluded on March 18, 2025, and we are awaiting the High Court's judgment, which we expect to receive by end of the second quarter of 2025.
Nigerian Cabotage Act litigation
In November 2015, the Nigerian Maritime Administration and Safety Agency ("NMASA") issued a detention in respect of the rig West Capella for failure to comply with requirements of the Coastal and Inland Shipping (Cabotage) Act 2003 (the "Cabotage Act"), specifically, failure to pay a Cabotage fee of 2% on contract revenue. While the named party is Seadrill Mobile Units Nigeria Ltd (previously an Aquadrill entity, acquired by Seadrill upon the merger of Seadrill and Aquadrill) ("SMUNL"), the matter relates to three rigs: the West Capella, West Saturn and West Jupiter. SMUNL commenced proceedings in May 2016 against the Honourable Minister for Transportation, the Attorney General of the Federation and NMASA with respect to interpretation of the Cabotage Act. On June 14, 2019, the Federal High Court of Nigeria delivered a judgment (1) finding that: (a) Drilling operations fall within the definition of "Coastal Trade" or "Cabotage" under the Cabotage Act and (b) Drilling Rigs fall within the definition of "Vessels" under the Cabotage Act, and (2) directing SMUNL to deduct 2%, or approximately $69 million, of their contract value and remit the same to NMASA. On June 24, 2019, the Court of Appeals sitting in Lagos ("COA") issued a conflicting judgment in Transocean Support Services Nigeria & Ors v NIMASA & Anor, finding drilling rigs cannot be deemed vessels under the Cabotage Act pending appeal. SMUNL filed an appeal to the COA on July 22, 2019, and applied to the Federal High Court for an injunction pending appeal to prevent enforcement. Due to the volume of cases currently being handled by the COA, the Registry of the COA is yet to schedule the hearing date for the appeal. Although we intend to strongly pursue this appeal, we cannot predict the outcome of this case.
Brazil tax audit
Seadrill Serviços de Petróleo Ltda ("Seadrill Brazil") has a long-standing tax audit relating to years 2009 and 2010, which is being litigated through the Brazilian courts. The initial court ruled in favor of Seadrill Brazil, but the appellate court reversed the lower court decision in September 2023 and ruled in favor of the tax authorities, assessing a tax and interest thereon of approximately $70 million. We will vigorously defend our position and, in the first quarter of 2024, our appeal was admitted by the higher courts, but the ultimate timing and outcome of this litigation cannot be determined. There are additional open cases relating to years 2012, 2016, and 2017, where a similar principle is being contested but they are not as far advanced through the courts, for an aggregate assessed amount, including tax and interest, of approximately $75 million.
In order to litigate the tax audit relating to years 2009 and 2010, Seadrill Brazil has entered into an agreement for an insurance bond of BRL405 million ($70 million as of March 31, 2025), which is supported by a parent company guarantee.
Sete Brazil claim
On January 6, 2025, Seadrill Brazil received notices from Petroleo Brasileiro S.A. ("Petrobras") asserting delay penalties against Seadrill Brazil relating to drillships to be operated in Brazil by Seadrill Brazil pursuant to the Sete Brazil Project, an initiative aimed at constructing a fleet of 28 offshore drilling rigs to support Petrobras. The alleged penalties arise from contracts awarded in relation to the Sete Brazil Project in 2012 for three drillships that were to be constructed by Sete Brazil and operated by Seadrill, but were never completed. Sete Brazil was eventually declared bankrupt by the Brazilian courts in December 2024 although that bankruptcy is presently suspended. The aggregate amount claimed by Petrobras as of the date of receipt of the notices was approximately $213 million in delay penalties, with the potential for further delay penalties to be assessed ratably over the remaining term of the drilling contracts for the three Sete drillships. The contracts limit aggregate delay penalties to 10% of the total "estimated contract value," as defined in the contract. Petrobras has indicated it may exercise set-off rights against certain amounts payable to Seadrill Brazil under its contracts with Petrobras for our five drillships currently operating in Brazil, revenues related to which are included in our backlog as of March 31, 2025. No set-off right has been exercised to date. Petrobras and Seadrill have agreed to participate in voluntary mediation, and Petrobras has committed to not exercise any set-off rights pending the outcome of the mediation. We cannot predict when the mediation will commence or be completed, or what the outcome may be. Dialogue between the parties is ongoing. We are evaluating our legal options, which may include, among other things, seeking injunctive relief and asserting counterclaims against Petrobras in Brazilian courts, and seeking remedies against Petrobras under Seadrill’s prior U.S. Chapter 11 bankruptcy proceedings. This matter is in its early stages, and we are not able to predict its timing or outcome. In addition, the nature, timing, calculation and ultimate amount of the purported penalties are subject to principles of contract interpretation before Brazilian courts. Seadrill intends to vigorously defend its position and pursue available remedies.
Other matters
In addition to the foregoing, from time to time we are a named defendant or party in certain other lawsuits, claims or proceedings arising in the ordinary course of business or in connection with our acquisition and disposal activities. Although the outcome of such lawsuits or other proceedings cannot be predicted with certainty, and the amount of any liability that could arise with respect to such lawsuits or other proceedings cannot be predicted accurately, we currently do not expect these other matters to have a material adverse effect on our financial position, operating results and cash flows.
Guarantees
We have issued performance guarantees for potential liabilities that may result from drilling activities under current or previously managed rig arrangements with Sonadrill. As of March 31, 2025, we have not recognized any liabilities for these guarantees as we do not consider it probable that the guarantees will be called. The guarantees provided on behalf of Sonadrill have been capped at $1.1 billion (December 31, 2024: $1.1 billion), in the aggregate, across the three rigs operating in the joint venture on three active, and one historic, contract.
v3.25.1
Insider Trading Arrangements
3 Months Ended
Mar. 31, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.1
General information (Policies)
3 Months Ended
Mar. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of presentation
Basis of presentation
The accompanying unaudited Condensed Consolidated Financial Statements of Seadrill Limited have been prepared in accordance with accounting principles generally accepted in the U.S. ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the SEC. Accordingly, pursuant to such rules and regulations, they do not include all disclosures required by U.S. GAAP for annual financial statements. In the opinion of management, the unaudited Condensed Consolidated Financial Statements includes all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of financial position, results of operations and cash flows for the interim periods.
Results of operations for interim periods are not necessarily indicative of results of operations for the respective full years, or any future period. The accompanying unaudited Condensed Consolidated Financial Statements and related notes should be read in conjunction with our 2024 10-K.
Reclassifications
Reclassifications
Effective the second quarter of 2024, we have classified revenues from our bareboat charter agreements in "Leasing revenues" in order to enhance the presentation of the arrangements. To conform to current period presentation, $11 million of "Other revenues" for the three months ended March 31, 2024 have been reclassified to "Leasing revenues".
Significant accounting policies
Significant accounting policies
Refer to Note 2 - "Accounting Policies" of our Consolidated Financial Statements from our 2024 10-K for additional information related to our significant accounting policies.
v3.25.1
Revenue from contracts with customers (Tables)
3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of contract assets and contract liabilities from contracts with customers
The following table provides information about receivables and contract liabilities from our contracts with customers, as of the dates presented:
(In $ millions)March 31,
2025
December 31,
2024
Accounts receivable, net143 193 
Current contract liabilities (classified within other current liabilities)(58)(63)
Non-current contract liabilities (classified within other non-current liabilities)(69)(48)
Significant changes in the contract liabilities balances during the three months ended March 31, 2025 are as follows:
(In $ millions)Contract Liabilities
Net contract liability as of January 1, 2025(111)
Amortization of revenue that was included in the beginning contract liability balance23 
Additional contract liabilities recognized, excluding amounts recognized as revenue(39)
Net contract liability as of March 31, 2025(127)
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas The following table presents our revenues by geographic area:
Three months ended March 31,
(In $ millions)20252024
Brazil12189 
United States81 95 
Angola81 77 
Norway23 54 
Other (1)
29 52 
Total operating revenues335 367 
(1) "Other" represents countries in which we operate that individually had revenues representing less than 10% of total operating revenues earned for any of the periods presented.
Schedules of Concentration of Risk, by Risk Factor
We had the following customers with revenues greater than 10% of total operating revenues in any of the periods presented:
Three months ended March 31,
(In $ millions)20252024
Petrobras29 %18 %
Sonadrill24 %18 %
Talos13 %— %
LLOG%10 %
Other28 %54 %
v3.25.1
Loss/earnings per share (Tables)
3 Months Ended
Mar. 31, 2025
Earnings Per Share [Abstract]  
Schedule of calculation of basic and diluted EPS
The components of the numerator for the calculation of basic and diluted LPS/EPS were as follows:
Three months ended March 31,
(In $ millions)20252024
Net (loss)/income available stockholders(14)60 
Effect of dilution (interest on unsecured senior convertible bond)
Diluted (loss)/profit available to stockholders(13)61 
The components of the denominator for the calculation of basic and diluted LPS/EPS were as follows:
Three months ended March 31,
 (In millions)20252024
Basic (loss)/earnings per share: 
Weighted average number of common shares outstanding (1)
62 72 
Diluted (loss)/earnings per share: 
Effect of dilution
Weighted average number of common shares outstanding adjusted for the effects of dilution65 75 


(1) Weighted average number of Shares outstanding in the three months ended March 31, 2024 excludes Shares repurchased during the period.
The basic and diluted LPS/EPS were as follows:
Three months ended March 31,
(In $)20252024
Basic (loss)/earnings per share(0.23)0.83
Diluted (loss)/earnings per share (1)
(0.23)0.81
(1) For the three months ended March 31, 2025, the effect of including all potentially dilutive instruments in the calculation resulted in decreased loss per share, which is anti-dilutive. The instruments were not included in the calculation due to their anti-dilutive effect, and, as a result, the basic and diluted loss per share are equal.
v3.25.1
Restricted cash (Tables)
3 Months Ended
Mar. 31, 2025
Restricted Cash and Investments [Abstract]  
Schedule of restricted cash
Restricted cash as of March 31, 2025 and December 31, 2024 was as follows:
(In $ millions)March 31,
2025
December 31,
2024
Cash held in escrow23 23 
Other
Total restricted cash26 27 
v3.25.1
Other current assets (Tables)
3 Months Ended
Mar. 31, 2025
Other Assets [Abstract]  
Schedule of other assets
As of March 31, 2025 and December 31, 2024, other current assets included the following:
(In $ millions)March 31,
2025
December 31,
2024
Taxes receivable53 55
Prepaid expenses64 57
Deferred contracts costs78 83
Pre-funding of MSA manager arrangements12 13
Other21 22
Total other current assets228 230 
v3.25.1
Equity method investments (Tables)
3 Months Ended
Mar. 31, 2025
Equity Method Investments and Joint Ventures [Abstract]  
Schedule of investment in associated companies
As of March 31, 2025 and December 31, 2024, the carrying values of our equity method investments were as follows:
(In $ millions)March 31,
2025
December 31,
2024
Sonadrill76 68 
Total equity method investments76 68 
v3.25.1
Other current and non-current liabilities (Tables)
3 Months Ended
Mar. 31, 2025
Payables and Accruals [Abstract]  
Schedule of Accounts Payable and Accrued Liabilities
As of March 31, 2025 and December 31, 2024, other current liabilities included the following:
(In $ millions)March 31,
2025
December 31,
2024
Accrued expenses142 163 
Employee withheld taxes, social security and vacation payments37 64
Taxes payable28 20
Contract liabilities 58 63
Unfavorable drilling contracts14 19
Accrued interest expense21
Other liabilities33 33 
Total other current liabilities321 383 
As of March 31, 2025 and December 31, 2024, other non-current liabilities included the following:
(In $ millions)March 31,
2025
December 31,
2024
Uncertain tax positions55 55 
Contract liabilities69 48 
Unfavorable drilling contracts
Lease liabilities
Other liabilities
Total other non-current liabilities134 116 
Movement in Unfavorable Drilling Contracts
The following table summarizes the movement in unfavorable drilling contracts for the three months ended March 31, 2025:
 (In $ millions)
Carrying amount
As of January 1, 202522 
Amortization(6)
As of March 31, 202516 
Amounts Relating To Unfavorable Contracts That Is Expected To Be Amortized
The table below shows the amounts relating to unfavorable contracts that is expected to be amortized over the following periods:
Period ended December 31,
(In $ millions)Remainder of 20252026Total
Amortization of unfavorable contracts13 16 
v3.25.1
Debt (Tables)
3 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Schedule of debt
The table below sets out our debt agreements as of March 31, 2025 and December 31, 2024:
(In $ millions)March 31,
2025
December 31,
2024
Secured debt:
$575 million secured bond
575575 
Total secured debt 575 575 
Unsecured bond:
Unsecured senior convertible bond50 50 
Total unsecured bond50 50 
Total principal debt 625 625 
Debt premium:
Premium on bond issuance
Total debt premium1 1 
Less: bond issuance costs
(15)(16)
Total debt 611 610 
v3.25.1
Related party transactions (Tables)
3 Months Ended
Mar. 31, 2025
Related Party Transactions [Abstract]  
Schedule of related party transactions
Our related party revenues include the following:
Three months ended March 31,
 (In $ millions)
20252024
Management fees revenues (a)
58 55 
Add-on services
Reimbursable revenues (b)
10 
Leasing revenues (c)
11 
Other— 
Total related party operating revenues79 76 
(a) Seadrill provides management and administrative services and operational and technical support services to Sonadrill. These services were charged on a dayrate basis.
(b) Reimbursable revenues relate to Sonadrill project work on the Libongos, Quenguela and West Gemini rigs.
(c) During the first quarter of 2025, we earned leasing revenues on the charter of the West Gemini to Sonadrill. During the first quarter of 2024, we also earned leasing revenues from the West Castor, West Telesto, and West Tucana, which were leased to Gulfdrill, up to their disposal in June 2024.
v3.25.1
Fair value of financial instruments (Tables)
3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of fair value of financial instruments measured at amortized cost
The carrying value and estimated fair value of our financial instruments that are measured at amortized cost as of the dates specified are as follows:

March 31, 2025December 31, 2024
(In $ millions)Fair
value
Carrying
value
Fair
value
Carrying
value
Liabilities
$575 million secured bond (Level 1)
575 561 587 560 
Unsecured senior convertible bond - debt component (Level 3)
56 50 56 50 
Schedule of fair value of financial instruments measured at fair value
The carrying value and estimated fair value of our financial instruments that are measured at fair value on a recurring basis as of the dates specified are as follows: 
March 31, 2025December 31, 2024
(In $ millions)Fair
value
Carrying
value
Fair
value
Carrying
value
Assets
Cash and cash equivalents (Level 1)
404 404 478 478 
Restricted cash (Level 1)
26 26 27 27 
v3.25.1
Common shares (Tables)
3 Months Ended
Mar. 31, 2025
Equity [Abstract]  
Schedule of share capital
Share capital as of March 31, 2025 and December 31, 2024 was as follows:
Issued and fully paid share capital
SharesPar value per share ($)$ thousands
As of December 31, 202462,154,4220.01 622 
Vesting of restricted stock units8,6060.01 — 
As of March 31, 202562,163,0280.01 622 
v3.25.1
General information (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Related Party Transaction [Line Items]    
Leasing revenues [1] $ 8 $ 11
Revision of Prior Period, Reclassification, Adjustment    
Related Party Transaction [Line Items]    
Leasing revenues   $ 11
[1] Includes revenue from related parties of $79 million and $76 million, for the three months ended March 31, 2025, and March 31, 2024, respectively. Refer to Note 10 - "Related party transactions" for further details.
v3.25.1
Revenue from contracts with customers - Receivables, Contract Assets and Contract Liabilities (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]    
Accounts receivables, net $ 143 $ 193
Current contract liabilities (classified within other current liabilities) (58) (63)
Non-current contract liabilities (classified within other non-current liabilities) $ (69) $ (48)
v3.25.1
Revenue from contracts with customers - Significant Changes in Contract Assets and Contract Liabilities (Details)
$ in Millions
3 Months Ended
Mar. 31, 2025
USD ($)
Revenue From Contract With Customer [Roll Forward]  
Contract liabilities, beginning balance $ (111)
Amortization of revenue that was included in the beginning contract liability balance 23
Additional contract liabilities recognized, excluding amounts recognized as revenue (39)
Contract liabilities, ending balance $ (127)
v3.25.1
Revenue from contracts with customers - Geographic (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total operating revenues $ 335 $ 367
Brazil    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total operating revenues 121 89
United States    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total operating revenues 81 95
Angola    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total operating revenues 81 77
Norway    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total operating revenues 23 54
Other    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total operating revenues $ 29 $ 52
v3.25.1
Revenue from contracts with customers - Major Customers (Details) - Contract revenues - Customer concentration risk
3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Petrobras    
Revenue, Major Customer [Line Items]    
Concentration risk percentage 29.00% 18.00%
Sonadrill    
Revenue, Major Customer [Line Items]    
Concentration risk percentage 24.00% 18.00%
Talos    
Revenue, Major Customer [Line Items]    
Concentration risk percentage 13.00% 0.00%
LLOG    
Revenue, Major Customer [Line Items]    
Concentration risk percentage 6.00% 10.00%
Other    
Revenue, Major Customer [Line Items]    
Concentration risk percentage 28.00% 54.00%
v3.25.1
Taxation (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Income Tax Disclosure [Abstract]    
Income tax expense $ 15 $ 10
Change in valuation allowance 8  
Effect of import duty credits $ 3  
v3.25.1
Loss/earnings per share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2024
Earnings Per Share [Abstract]      
Common shares, par value (in dollars per share) $ 0.01   $ 0.01
Net (loss)/income $ (14) $ 60  
Effect of dilution (interest on unsecured senior convertible bond) 1 1  
Diluted (loss)/profit available to stockholders $ (13) $ 61  
Basic (loss)/earnings per share:      
Weighted average number of common shares outstanding (in shares) 62 72  
Diluted (loss)/earnings per share:      
Effect on dilution (in shares) 3 3  
Weighted average number of common shares outstanding adjusted for the effects of dilution (in shares) 65 75  
Basic (loss)/earnings per share (in usd per share) $ (0.23) $ 0.83  
Diluted (loss)/earnings per share (in usd per share) $ (0.23) $ 0.81  
v3.25.1
Restricted cash (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Restricted Cash and Cash Equivalents Items [Line Items]    
Total restricted cash $ 26 $ 27
Cash held in escrow    
Restricted Cash and Cash Equivalents Items [Line Items]    
Total restricted cash 23 23
Other    
Restricted Cash and Cash Equivalents Items [Line Items]    
Total restricted cash $ 3 $ 4
v3.25.1
Other current assets - Other current assets (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Other Assets [Abstract]    
Taxes receivable $ 53 $ 55
Prepaid expenses 64 57
Deferred contracts costs 78 83
Pre-funding of MSA manager arrangements 12 13
Other 21 22
Total other current assets $ 228 $ 230
v3.25.1
Equity method investments (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Schedule of Equity Method Investments [Line Items]    
Equity method investments $ 76 $ 68
Sonadrill    
Schedule of Equity Method Investments [Line Items]    
Equity method investments $ 76 $ 68
v3.25.1
Other current and non-current liabilities - Liability Balances (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Other Liabilities [Abstract]    
Accrued expenses $ 142 $ 163
Employee withheld taxes, social security and vacation payments 37 64
Taxes payable 28 20
Contract liabilities 58 63
Unfavorable drilling contracts 14 19
Accrued interest expense 9 21
Other liabilities 33 33
Total other current liabilities $ 321 $ 383
v3.25.1
Other current and non-current liabilities - Schedule of Other Non-Current Liabilities (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Payables and Accruals [Abstract]    
Uncertain tax positions $ 55 $ 55
Contract liabilities 69 48
Unfavorable drilling contracts 2 3
Lease liabilities 7 8
Other liabilities 1 2
Total other non-current liabilities $ 134 $ 116
v3.25.1
Other current and non-current liabilities - Movement In Unfavorable Drilling Contracts (Details)
$ in Millions
3 Months Ended
Mar. 31, 2025
USD ($)
Payables And Accruals [Roll Forward]  
Net carrying amount, beginning balance $ 22
Amortization (6)
Net carrying amount, ending balance $ 16
v3.25.1
Other current and non-current liabilities - Narrative (Details)
3 Months Ended
Mar. 31, 2025
Payables and Accruals [Abstract]  
Weighted average remaining amortization period 10 months
v3.25.1
Other current and non-current liabilities - Future Amortization of Unfavorable Contracts (Details)
$ in Millions
Mar. 31, 2025
USD ($)
Payables and Accruals [Abstract]  
Remainder of 2025 $ 13
2026 3
Total $ 16
v3.25.1
Debt - Schedule of Debt (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Aug. 31, 2023
Jul. 31, 2023
Debt Instrument [Line Items]        
Total principal debt $ 625 $ 625    
Premium on bond issuance 1 1    
Total debt premium 1 1    
Less: bond issuance costs (15) (16)    
Total debt 611 610    
Secured Debt        
Debt Instrument [Line Items]        
Total principal debt 575 575    
Unsecured Debt        
Debt Instrument [Line Items]        
Total principal debt 50 50    
Second Lien Facility | Secured Debt        
Debt Instrument [Line Items]        
Debt instrument, face amount 575   $ 75 $ 500
Total principal debt 575 575    
Unsecured senior convertible bond | Unsecured Debt        
Debt Instrument [Line Items]        
Total principal debt $ 50 $ 50    
v3.25.1
Debt - Narrative (Details) - USD ($)
$ in Millions
3 Months Ended
Jul. 27, 2023
Mar. 31, 2025
Dec. 31, 2024
Aug. 31, 2023
Jul. 31, 2023
Feb. 23, 2022
Debt Instrument [Line Items]            
Long-term debt   $ 611 $ 610      
Second Lien Facility | Secured Debt            
Debt Instrument [Line Items]            
Debt instrument, face amount   $ 575   $ 75 $ 500  
Debt instrument, interest rate (as percent)       8.375% 8.375%  
Debt issued as a percent of par (as a percent)       100.75%    
Five Year First Lien Revolving Credit Facility | Revolving Credit Facility            
Debt Instrument [Line Items]            
Debt instrument, term 5 years          
Maximum borrowing capacity $ 225          
Line of credit facility, accordion feature, increase limit 100          
Five Year First Lien Revolving Credit Facility | Letter of Credit            
Debt Instrument [Line Items]            
Long-term debt $ 50          
Unsecured senior convertible bond | Convertible debt            
Debt Instrument [Line Items]            
Debt instrument, face amount           $ 50
Debt instrument, interest rate (as percent)           6.00%
Debt conversion, converted instrument, shares issued (in shares)   0.0526316        
v3.25.1
Related party transactions - Related Party Revenue (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Related Party Transaction [Line Items]    
Revenues $ 335 $ 367
Related Party    
Related Party Transaction [Line Items]    
Revenues 79 76
Management fee revenues | Related Party    
Related Party Transaction [Line Items]    
Revenues 58 55
Add-on services | Related Party    
Related Party Transaction [Line Items]    
Revenues 3 3
Reimbursable revenues | Related Party    
Related Party Transaction [Line Items]    
Revenues 10 4
Lease revenue | Related Party    
Related Party Transaction [Line Items]    
Revenues 8 11
Other | Related Party    
Related Party Transaction [Line Items]    
Revenues $ 0 $ 3
v3.25.1
Related party transactions - Narrative (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Related Party Transactions [Abstract]    
Management fee received $ 1 $ 7
v3.25.1
Fair value of financial instruments - Carrying Value and Estimated Fair Value of Financial Liabilities (Details) - Secured Debt - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Aug. 31, 2023
Jul. 31, 2023
Second Lien Facility        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Debt instrument, face amount $ 575   $ 75 $ 500
Level 1 | Fair value | Second Lien Facility        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Debt 575 $ 587    
Level 1 | Carrying value | Second Lien Facility        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Debt 561 560    
Level 3 | Fair value | Unsecured senior convertible bond        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Debt 56 56    
Level 3 | Carrying value | Unsecured senior convertible bond        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Debt $ 50 $ 50    
v3.25.1
Fair value of financial instruments - Narrative (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total principal debt $ 625 $ 625
Secured Debt    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total principal debt 575 575
Second Lien Facility | Secured Debt    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total principal debt 575 $ 575
Level 1 | Second Lien Facility | Secured Debt    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total principal debt $ 575  
v3.25.1
Fair value of financial instruments - Carrying Value and Estimated Fair Value of Financial Assets (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents $ 404 $ 478
Level 1 | Fair value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents 404 478
Restricted cash (Level 1) 26 27
Level 1 | Carrying value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents 404 478
Restricted cash (Level 1) $ 26 $ 27
v3.25.1
Common shares - Schedule of Share Capital (Details)
$ / shares in Units, $ in Thousands
3 Months Ended
Mar. 31, 2025
USD ($)
$ / shares
shares
Shares  
Beginning balance (in shares) | shares 62,154,422
Vesting of restricted stock units (in shares) | shares 8,606
Ending balance (in shares) | shares 62,163,028
Par value per share ($)  
Beginning balance (usd per share) | $ / shares $ 0.01
Vesting of restricted stock units (usd per share) | $ / shares 0.01
Ending balance (usd per share) | $ / shares $ 0.01
$ thousands  
Beginning balance | $ $ 622
Vesting of restricted stock units | $ 0
Ending balance | $ $ 622
v3.25.1
Common shares - Narrative (Details)
3 Months Ended
Mar. 31, 2025
shares
Equity [Abstract]  
Vesting of restricted stock units (in shares) 8,606
v3.25.1
Commitments and contingencies (Details)
R$ in Millions, $ in Millions
1 Months Ended 3 Months Ended
Jan. 06, 2025
USD ($)
drillship
rig
Mar. 05, 2023
USD ($)
Sep. 30, 2023
USD ($)
Mar. 31, 2023
USD ($)
Mar. 31, 2025
USD ($)
rig
contract
Mar. 31, 2025
BRL (R$)
Dec. 31, 2024
USD ($)
Nov. 30, 2015
USD ($)
rig
Other Commitments [Line Items]                
Contract value deduction percentage               2.00%
Contract value deduction, value               $ 69
Number of active contracts | contract         3      
Number of historic contracts | contract         1      
Sonadrill | Performance guarantee                
Other Commitments [Line Items]                
Number of rigs | rig         3      
Guarantor obligations, maximum exposure, undiscounted         $ 1,100   $ 1,100  
Sete Brazil Claim                
Other Commitments [Line Items]                
Loss contingency, damages sought, value $ 213              
Number of rigs | rig 28              
Number of drillships | drillship 3              
Loss contingency, delay penalty, percentage 10.00%              
Surety Bond                
Other Commitments [Line Items]                
Loss contingency, damages sought, value         70 R$ 405    
Tax Year 2009 | Seadrill Servicos De Petroleo Ltda Seadrill Brazil                
Other Commitments [Line Items]                
Loss contingency, damages sought, value     $ 70          
Tax Year 2008, 2012, 2016, And 2017 | Seadrill Servicos De Petroleo Ltda Seadrill Brazil                
Other Commitments [Line Items]                
Loss contingency, damages sought, value         $ 75      
NIGERIA                
Other Commitments [Line Items]                
Number of rigs | rig               3
Brazil | Seadrill Servicos De Petroleo Ltda Seadrill Brazil | Sete Brazil Claim                
Other Commitments [Line Items]                
Number of drillships | drillship 5              
SFL Hercules Ltd                
Other Commitments [Line Items]                
Amount awarded   $ 37            
Fee expense   $ 11            
Sonadrill fees claimant                
Other Commitments [Line Items]                
Loss contingency, damages sought, value       $ 72