The West Gemini, Libongos, and Quenguela rigs sit inside Seadrill's management-contract expense line. That line fell by $51 million in the three months ended June 30, contributing to the change from a $42 million loss a year earlier to $29 million of net income.
The reported operating figures improved: revenue rose 19.1% to $449 million, while operating income climbed to $72 million from $6 million. The less tidy part is cash. Operating cash flow went from negative $16 million to negative $40 million, cash fell to $337 million, and accounts receivable rose 62% to $311 million.
Management identifies the main profit swing plainly. The prior comparable period included estimated damages after an unfavorable court judgment related to fees for arranging the Sonadrill joint venture. Those damages did not recur in the latest three months.
"Management contract expenses decreased by $51 million during the three months ended June 30, 2026, compared to the three months ended June 30, 2025, primarily attributable to estimated damages recognized following the unfavorable court judgment related to fees for arranging the Sonadrill joint venture in the three months ended June 30, 2025, not recurring in the three months ended June 30, 2026."
Seadrill, 10-Q, Aug. 10, 2026.
That is a year-over-year reduction in reported expenses, largely reflecting the nonrecurrence of the prior-period charge. The operating margin still widened sharply, from 1.6% to 16.0%, alongside the expense change. The filing does not say how much of the improvement came from dayrates, utilization, or other operating changes in the three-month period.
The cash statement brings a second complication. Seadrill says depreciation increased because of long-term maintenance and capital projects across the fleet, including the West Neptune, West Vela, West Gemini, West Capella, and Sevan Louisiana.
"Depreciation of drilling units and equipment increased by $12 million in the three months ended June 30, 2026 compared to the three months ended June 30, 2025, mainly attributable to long-term maintenance and capital projects across the fleet, primarily related to the West Neptune , West Vela, West Gemini, West Capella and Sevan Louisiana ."
Seadrill, 10-Q, Aug. 10, 2026.
Depreciation itself is non-cash, but the maintenance and capital work it describes sits next to a cash-flow result that worsened. Receivables also grew much faster than revenue. That does not explain the cause of the cash shortfall, which Seadrill does not disclose, but it changes the question from “did profit return?” to “how much of that profit is arriving as cash, and when?”
The balance sheet also reflects active financing work. During the first six months, Seadrill issued $700 million of 2034 notes, redeemed $575 million of 2030 notes, paid a $25 million make-whole premium, and repurchased $17 million of shares. Net debt is $274.0 million, according to the supplied balance-sheet data.
The stock closed at $43.28 on Aug. 7, up 0.7% that day, with a 46.0% trailing 12-month gain. Seadrill is also part of an offshore oil and gas group in which all seven tracked members crossed the activity threshold on Aug. 10. That is a description of shared market activity, not an explanation for any one company's move.
The next three-month comparison has one especially useful receipt: whether operating cash flow improves alongside the $311.0 million accounts-receivable balance, or whether that balance remains the number carrying forward.