SDRL - Seadrill Limited Announces Third Quarter 2019 Results

Highlights

• Lower economic utilization of 93% primarily due to the West Linus 5-year classing
• Revenue up 14% at $367 million with increasing reimbursable revenues and more operating days
• Operating Loss of $58 million
• Adjusted EBITDA of $85 million, ahead of $70-75 million guidance
• $302 million non-cash impairment in investments relating to Seadrill Partners
• Net loss of $521 million equivalent to net loss per share of $5.21
• Total cash of $1.4 billion, slightly below the second quarter balance
• Order backlog of $1.8 billion as at September 30, 2019

Subsequent Events

• In a separate announcement planned board changes were announced today including John Fredriksen stepping down as Chairman and Glen Ole Rødland stepping into the role effective 21 November 2019
• Over $250 million awards post quarter end
• First utilisation notification issued in respect of Amortization Conversion Election

Anton Dibowitz, CEO, commented:
"Third Quarter results reflected a step up in EBITDA compared to our guidance. We performed well for our customers in the quarter and made good progress on both the new Sonadrill and Gulfdrill joint ventures with the first rig starting up in Sondarill early in the fourth quarter. Additionally, we continued to show commercial success in awards during and subsequent to the quarter which reinforces our confidence in a recovering market across all sectors, albeit at a lower pace. We expect that as we move into 2020 the gradually improving market conditions will result in a limited number of reactivations but also continued scrapping of rigs across the global fleet.

The suspension of trading of Seadrill Partners from the NYSE was a trigger to review impairment and we have taken an appropriate non-cash charge in the quarter.”

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

Attachments

• Seadrill Limited 3Q 2019 Fleet Status
• Seadrill Limited 3Q 2019