Seadrill Limited (SDRL) Balance Sheet

The decline in equity appears driven by retained earnings falling from $947.0M in 2024Q4 to $862.0M in 2026Q3, consistent with the reported net losses in recent quarters. Investors should monitor whether this erosion continues, as it may indicate that operating earnings are not yet sufficient to rebuild the equity base.

Total debt rose from $609.0M in 2024Q2 to $737.0M in 2026Q3, a move that warrants attention even though leverage remains modest. The lower leverage may give SDRL room to absorb weaker dayrates without immediate interest-coverage pressure, though the trend of rising borrowings should be tracked against cash generation.

The PP&E figure declined from roughly $3.0B across most of the window to $2.9B, consistent with depreciation outpacing reinvestment during the period. The absence of goodwill reduces impairment risk on the balance sheet, but it also means carrying values depend on rig utilization and the realizable value of cold-stacked units, which the reported figures do not separately disclose.

The swing in cash between quarters indicates that liquidity has been sensitive to working capital timing rather than a steady accumulation trend. A current ratio above 2.0 provides a reasonable near-term buffer, yet the relatively thin cash balance against a $737.0M debt load suggests the company remains reliant on continued operating cash inflows.