A company’s backlog helps gauge its future revenue. On August 24, 2017, Seadrill (SDRL) had a backlog of $3.1 billion, which was lower than its backlog of $3.4 billion three months ago on May 24, 2017. Also, the company’s backlog of $3.6 billion is lower compared to a year ago in August 2016.
During 2Q17, Seadrill secured the following contracts:
- The rig: West Freedom was awarded a one-well contract in Columbia with Ecopetrol. The backlog for this contract is estimated to be $5 million.
- The jack-ups: West Elara and West Linus were awarded contract extensions for a period of ten years, and this added ~$1.4 billion in contract backlog.
- Statoil exercised an option to extend the contract on West Elara until September 2017 at a rate $135,000 per day.
- The contract on West Cressida was awarded a 90-day contract, which began in June 2017. The approximate backlog for this contract is $5 million.
- In July 2017, the contract on West Telesto awarded a two-well contract with Petronas in Malaysia. The backlog for this contract is ~$5 million.
- Seadrill’s semi submersible West Hercules secured a contract, which will begin in April 2018. The minimum backlog for the contract is estimated at $7 million.
From July to August 24, 2017, Seadrill secured the following contracts:
- Seadrill’s rig, West Saturn, secured a one-well contract with Statoil in Brazil. The contract will begin in 1Q18, and the estimated backlog for this contract is $26 million.
- The rig, West Neptune secured a contract extension of three wells. The contract is expected to begin in the US Gulf of Mexico on December 15, 2017. The estimated backlog for this contract is ~$31 million.
- Seadrill’s semi-submersible: West Phoenix secured a one-well contract with Wintershall. The contract will begin in 4Q17 and has an estimated backlog of $6 million.