Seadrill Limited (SDRL) - Second Quarter 2020 Results

Hamilton, Bermuda, August 25, 2020 - Seadrill Limited (“Seadrill” or "the Company") (OSE:SDRL, OTCQX:SDRLF), a world leader in offshore drilling, announces its second quarter results for the period ended June 30, 2020.

Highlights

  • Technical utilization1 of 97% and economic utilization2 of 91%
  • Revenue down 14% at $277 million due to lower management contract revenues
  • Operating Loss of $88 million 
  • Adjusted EBITDA3 of $35 million, representing 12.6% margin 
  • Net loss attributable to shareholders of $181 million, equivalent to net loss per share of $1.80
  • During the quarter we added $41 million in backlog, total backlog now stands at $2.3 billion
  • Closing cash of $1.0 billion
Financial Highlights Seadrill Limited
Figures in USD million, unless otherwise indicated Q2 2020 Q1 2020 % Change
Total Operating Revenue 277  321  (14) %
Adjusted EBITDA 35  55  (36) %
Adjusted EBITDA Margin (%) 12.6  % 17.1  % (5) %
Operating Loss (88) (1,284) 93  %
Net loss (183) (1,565) 88  %
Net Loss attributable to shareholder (181) (1,564) 88  %
Net Loss per Share (1.80) (15.59) 88  %

Subsequent Events

  • West Phoenix obtained an extension of work in Norway
  • We continue to evaluate capital structure proposals from our financial stakeholders; whilst no agreement has been reached at this point it is expected that potential solutions will lead to significant equitization of debt which is likely to result in minimal or no recovery for current shareholders

Anton Dibowitz, CEO, commented:

“Global market sentiment for the quarter has been poor, as the real impacts of COVID-19 and reduced demand have begun to crystallize. While the industry-wide demand deficiencies remain outside our control, we have been concentrating our efforts on what we can influence, namely, our day-to-day operations and our capital structure. Despite the weak market outlook, we are pleased to be adding to our backlog and above all, delivering for our customers including through extended work programs on our rigs. 

“We will be prioritizing our cash preservation and efficiency plan to prepare ourselves for the challenges that our industry faces in the short to medium-term. From a capital structure perspective, we continue to engage with our financial stakeholders to ensure we create a debt structure appropriate for the new market environment. Our $1.0bn cash balance at the end of the quarter provides us with necessary flexibility to manage this process.

“I’d like to commend every member of the Seadrill community for their contributions during this time. We have seen how our onshore and offshore employees have adjusted and grown accustomed to the new ways of working during COVID-19, the effectiveness with which they have done so has galvanized our entire organization and motivated us to persevere through these challenging times.”

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