Seadrill Partners’ (SDLP) backlog was $1.5 billion on February 22, 2018. It fell from $1.7 billion in November 2017. A company’s backlog helps investors gauge what its revenue might be in the future. The company’s average contract term is 1.5 years. Seadrill Partners’ backlog to the TTM (trailing-12-month) revenue ratio was 136% at the end of 4Q17. The ratio fell from 146% in the previous quarter.
Backlog for 2018
In the above chart, you can see that Seadrill Partners’ backlog for 2018 is $630 million. If the company isn’t able to secure new contracts, its revenue in 2018 could fall more than 42% from its 2017 revenue. In 2017, its revenues were $1.1 billion.
Of Seadrill Partners’ 11 rigs, only seven are contracted, and only two of those rigs are contracted beyond 2019. Three contracts will end in 2019, and the remaining two contracts will end in 2018. Seadrill Partners’ rigs are contracted with BP, Chevron, and Petronas.
Below are the backlog details of other offshore drillers (XLE):
- Diamond Offshore Drilling’s (DO) backlog fell to $2.4 billion as of January 2018 compared to $3.5 billion on January 1, 2017.
- Transocean (RIG) had a backlog of $12.8 billion as of February 2018 compared to $9.4 billion in October 2017.
- Noble Corporation’s (NE) contract backlog was sustained at $3 billion in January 2018.