Seadrill Shares Soar 12.17% on Debt Swap, New Contract

Seadrill (SDRL) shares surged 1.55% today, marking the fourth consecutive day of gains, with a cumulative increase of 12.17% over the past four days. The share price reached its highest level since February 2025, with an intraday gain of 5.18%.

The strategy of buying SDRL shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 4.40% annualized return and a 57.67% peak-to-trough gain. However, it underperformed the market by 1.55 percentage points and had a maximum drawdown of -11.74%, indicating some volatility and risk.

Seadrill Ltd. has been making significant strides in its financial restructuring efforts. The company has successfully completed a debt-for-equity swap, which has helped to reduce its debt burden and improve its financial stability. This move has been well-received by investors, who see it as a positive step towards the company's long-term sustainability.

In addition to its financial restructuring, Seadrill has also been focusing on expanding its fleet and securing new contracts. The company recently announced that it has secured a new contract with a major oil and gas company, which is expected to generate significant revenue over the next few years. This contract is a testament to Seadrill's strong position in the offshore drilling market and its ability to secure long-term contracts with major players in the industry.

Seadrill's efforts to improve its financial health and expand its operations have not gone unnoticed by investors. The company's stock has been on an upward trajectory in recent months, as investors have become more confident in its ability to navigate the challenges of the offshore drilling industry. With a strong balance sheet and a growing fleet of drilling rigs, Seadrill is well-positioned to capitalize on the increasing demand for offshore drilling services in the coming years.