Seadrill Limited has reported an operating profit of $51 million in the first quarter of 2023, a dramatic improvement on the operating loss of $7 million in the fourth quarter of last year.

The Bermudian-domiciled offshore drilling contractor said total operating revenues in the quarter were $266 million, a 17 per cent increase over Q4 2022 figures.

Total adjusted earnings before interest taxes and depreciation was $85 million in Q1 2023.

Seadrill added approximately $39 million of order backlog during the quarter, bringing the total as of March 31 to approximately $2.2 billion.

Simon Johnson, the president and chief executive, said: “Seadrill has started 2023 strongly, with a near-fully utilised fleet and the closing of our Aquadrill acquisition in April. We are pleased with our operational and financial performance as we move through the year, with our technical utilisation at 96 per cent and our operating revenues and adjusted ebitda substantially increasing quarter-on-quarter.”

He added: “We have a confident posture and remain constructive about this developing upcycle. Seadrill has an enhanced fleet following our acquisition of Aquadrill, which cemented our position as a key player in the offshore drilling sector, and we are highly focused on maximising the value that it can generate for our shareholders."