Seadrill Limited (SDRL) - Second Quarter 2020 Results

HAMILTON, Bermuda, Aug. 25, 2020 /PRNewswire/ -- Seadrill Limited ("Seadrill" or "the Company") (OS: SDRL) (OTCQX: SDRLF), a world leader in offshore drilling, announces its second quarter results for the period ended June 30, 2020.

Highlights

    --  Technical utilization of 97% and economic utilization of 91%

    --  Revenue down 14% at $277 million due to lower management contract
        revenues

    --  Operating Loss of $88 million

    --  Adjusted EBITDA 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




                                         
     
           Seadrill Limited

          Financial Highlights


                                                                    Q1 2020      % Change

          Figures in USD million, unless
           otherwise indicated                     Q2 2020


          Total Operating Revenue                                                                (14)
                                                                                                    %

                                                       277                             321


                                                                                                 (36)
                                                                                                    %


       
     Adjusted EBITDA                               35                              55




          Adjusted EBITDA Margin (%)         12.6
          %                   17.1
          %   (5)
        %


                                                                                                   93


       
     Operating Loss                              (88)                        (1,284)             
     %





       
     Net loss                                   (183)                        (1,565)    88
        %


                                                                                                      
     %

          Net Loss attributable to
           shareholder                               (181)                        (1,564)          88


                                                                                                   88

          Net Loss per Share                        (1.80)                        (15.59)             
     %

    ---

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."

For more information, please contact:

seadrill@hawthornadvisors.com
+44 (0)20-8811-4700

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/seadrill-limited/r/seadrill-limited--sdrl----second-quarter-2020-results,c3180439

The following files are available for download:



     
     https://mb.cision.com/Main/18925/3180439/1296762.pdf            Seadrill Limited (SDRL) -Second
                                                                         Quarter Results 2020



     
     https://mb.cision.com/Public/18925/3180439/882436cb96226b74.pdf Seadrill Consolidated -Fleet
                                                                         Status -Q2-20

View original content:http://www.prnewswire.com/news-releases/seadrill-limited-sdrl---second-quarter-2020-results-301117554.html

SOURCE Seadrill Limited