Seadrill: Disappointing Quarter But Improving Medium-Term Prospects Comments Summary Seadrill Limited reported disappointing third quarter results, with profitability impacted by unplanned downtime for rigs offshore Brazil and expenses in conjunction with an unfavorable litigation outcome. In addition, the company continues to face a number of ongoing legal challenges, which could result in substantial cash outflows. While 2027 should benefit from improved fleet utilization and full contributions from higher-margin contracts offshore Brazil, Seadrill’s less-than-stellar execution and legal risks remain a cause for concern. Consequently, I have lowered my assigned EV/EBITDA multiple and based my new $36 price target on very conservative 2027 profitability expectations. With more than 20% upside from current levels, I am reiterating my “Buy” rating on Seadrill Limited’s common shares. Black Friday Sale 2025: Get 20% Off Note: Seadrill Limited or “Seadrill” (SDRL) has been covered by me previously, so investors should view this as an update to my earlier articles on the company. Please note also that Seadrill is part of This article was written by 20. 67K Follower s I am mostly a trader engaging in both long and short bets intraday and occasionally over the short- to medium term. My historical focus has been mostly on tech stocks but over the past couple of years I have also started broad coverage of the offshore drilling and supply industry as well as the shipping industry in general (tankers, containers, drybulk). In addition, I am having a close eye on the still nascent fuel cell industry. I am located in Germany and have worked quite some time as an auditor for PricewaterhouseCoopers before becoming a daytrader almost 20 years ago. During this time, I managed to successfully maneuver the burst of the dotcom bubble and the aftermath of the world trade center attacks as well as the subprime crisis. Despite not being a native speaker, I always try to deliver high quality research to followers and the entire Seeking Alpha community. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body. Comments Recommended For You.
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Seadrill: Disappointing Quarter But Improving Medium-Term Prospects
