Seadrill appoints new auditor after corporate consolidation

In a recent shift of its auditing framework, Seadrill (OL:SDRL) Limited (NYSE:SDRL), a $1.44 billion market cap offshore drilling contractor currently trading at $23.46, has announced the dismissal of PricewaterhouseCoopers LLP in the UK (PwC UK) and the proposed appointment of PricewaterhouseCoopers LLP in the United States (PwC US) as its new independent registered public accounting firm. According to InvestingPro analysis, the company currently shows a FAIR financial health score, with particularly strong marks in relative value metrics. This change, effective from Monday, comes after the company’s transition to U.S. domestic reporting status earlier this year and the consolidation of its corporate offices in Houston, Texas.

The decision was made by Seadrill’s Audit and Risk Committee on Monday and is pending approval by the company’s shareholders at the upcoming 2025 Annual General Meeting of Shareholders. If approved, PwC US will handle the company’s audit for the fiscal year ending December 31, 2025, and review interim periods starting with the quarter ending March 31, 2025. With revenue of $1.32 billion in the last twelve months and a gross profit margin of 34.9%, Seadrill maintains a solid financial position in the offshore drilling sector.

Seadrill, a Bermuda-incorporated company trading under the ticker (NYSE:SDRL), emphasized that there were no disagreements or reportable events with PwC UK that would have impacted their audit reports for the fiscal years 2023 and 2024. Additionally, Seadrill has not consulted with PwC US on any accounting principles or auditing matters that would have influenced their financial reporting during those fiscal years or the subsequent interim period through Monday.

The company has complied with regulatory protocols by providing PwC UK with the disclosures in the Form 8-K filed today and has received a letter from PwC UK confirming their agreement with the company’s statements. This letter, dated today, has been filed with the SEC as part of Seadrill’s regulatory disclosure.

This recent development is a direct result of Seadrill’s organizational changes, marking a significant shift in the company’s auditing process. The information in this article is based on statements from a press release. Looking ahead, analysts maintain a bullish outlook on Seadrill, with price targets ranging from $41 to $80 per share. For deeper insights into Seadrill’s financial health and growth prospects, including exclusive ProTips and comprehensive analysis, check out the detailed Research Report available on InvestingPro.

In other recent news, Seadrill Limited has announced the completion of its sale of the jack-up rig West Prospero for $45 million in cash. This transaction aligns with Seadrill’s strategy to exit the benign jack-up market and focus on its core business operations. The West Prospero rig had been out of operation since 2016, and its sale is part of Seadrill’s efforts to optimize its fleet and improve its financial position. Additionally, Seadrill has secured a significant contract with Brazilian oil giant Petrobras for its ultra-deepwater drillship, West Tellus. This contract, valued at approximately $498 million, is set to commence in the first quarter of 2026 and will last for 1,095 days. The deal also includes an option for extending the contract by up to 305 days and is expected to have a positive impact on earnings and free cash flow starting in 2026. These developments reflect Seadrill’s ongoing efforts to strengthen its financial standing and deepen relationships with key customers.

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