Seadrill booked a profitable second quarter as it continued to improve its financial performance in a recovering market.

The New York-listed driller, which has been through two bankrputcy restructurings since the offshore market crashed post 2014, logged an operating profit for the second quarter in succession, backed by fleet growth and stronger rig rates.

Simon Johnson, chief executive of Seadrill, said: "We delivered strong results this quarter, and the full year continues to be in line with previous guidance."

Seadrill said in its financial statement that operating profit has more than doubled to $109 million in the second quarter compared with $51 million in the first quarter of 2023.

Revenue almost doubled to $414 million against $266 million in the first quarter of this year, mostly in the result of the contribution from contracted rigs, acquired as part of the all-share Aquadrill deal, completed in the beginning of April.

"This quarter, we executed decisively on strategic initiatives that simplify and strengthen our organization," Johnson said.

“We established greater scale with the closing of the Aquadrill acquisition. We continued to refine our fleet through value-accretive asset divestitures, completing the sale of three tender-assist units at attractive valuations and announcing intentions to sell our jackup fleet in Qatar."

The driller has demonstrated excellent profitability of the business in the reporting period, the adjusted earnings before interest, taxes, depreciation, and amortisation (Ebitda) margin exceeding 38%.

Johnson was appointed to lead Seadrill last April, just as the company had emerged from bankruptcy.

The executive has spoken about a return of dividend for Seadrill. However, for now it plans to return capital to shareholders via a $250 million share buyback.

It comes with Seadrill's balance sheet in better health following a $575 million notes issue and a new $225 million revolving credit facility which has removed restrictive covenance from it's previous debt structure.

Seadrill now owns 12 deepwater floaters, beyond the two it manages as part of its joint venture with Angola’s Sonangol, Sonadrill.

Throughout the last year, Seadrill has focused increasingly on the floater segment, through acquisitions and divestitures, believing that this part of the rig market will produce the most growth and value for shareholders, the company said.

At the end of June, Seadrill's order backlog stood at $2.6 billion, reflecting approximately $203 million of contract additions during the second quarter.

The company has also secured multi-well contract extensions against existing agreements for two drillships, the Sonangol Quenguela and the West Gemini, operating in Angola through Sonadrill.

These extensions will commence in direct continuation of the existing contracts for the two drillships, committing the Sonangol Quenguela through January 2025 and the West Gemini through May 2025, Seadrill said.