HAMILTON, Bermuda, May 23, 2023 /PRNewswire/ -- Seadrill
Limited ("Seadrill" or the "Company") (NYSE: SDRL) (OSE: SDRL), a
leader in offshore drilling, provides financial results for the
three months ended March 31, 2023.
Q1 2023 Highlights
- Seadrill added approximately $39
million of Order Backlog[1] during the quarter,
bringing the total as of March 31,
2023, to approximately $2.2
billion. The addition related to the West Neptune
drillship securing a three-month extension with LLOG Exploration
Offshore, L.L.C ("LLOG") in the U.S. Gulf
of Mexico in direct continuation of the existing term.
- Total Adjusted EBITDA[2] was $85 million in Q1 2023, a significant increase
compared to Q4 2022 primarily due to higher operating days overall
across the fleet, including notably with respect to our four
drillships operating offshore Brazil, and the West Neptune working at
a higher dayrate with LLOG.
- Total Operating Revenues increased by 17% to $266 million in Q1 2023.
- Strong operational performance in Q1 2023 with technical
utilization of 96%.
- On February 10, 2023, Seadrill
made a voluntary payment of $118
million (inclusive of principal, accrued interest and exit
fee) under its secured second lien debt facility (the "Second Lien
Facility"). On March 15, 2023,
Seadrill made a further voluntary payment of $44 million (inclusive of principal, accrued
interest and exit fee) with respect to the Second Lien
Facility.
- On February 24, 2023, Seadrill
completed the sale of its 35% shareholding in Paratus Energy
Services Ltd. ("PES") (formerly Seadrill New Finance Ltd.) and
certain other interests for total consideration of $44 million (the "PES Sale"). PES is the entity
which holds investments in SeaMex Holdings Ltd. ("SeaMex"), Seabras
Sapura and Archer Ltd. In connection with the PES Sale, on
March 14, 2023, Seadrill issued each
of PES and SeaMex with a termination notice in respect of the
master service agreements under which Seadrill provides management
services. The terminations will take effect from July 12, 2023, and September 10, 2023, respectively.
- On January 25, 2023, Seadrill
announced the appointment of Ana
Zambelli as a new member of the Board of Directors.
Subsequent Events
- On April 3, 2023, Seadrill
completed the all-stock acquisition of Aquadrill LLC ("Aquadrill"),
at which point Aquadrill became a wholly-owned subsidiary of
Seadrill (the "Aquadrill Acquisition"). As a result of the
Aquadrill Acquisition, Seadrill added $470
million in Order Backlog on April 3,
2023. The operating results and assets and liabilities of
Aquadrill will be consolidated from April 3,
2023. As such, Seadrill's Q1 2023 interim financial
statements do not include the effects of the Aquadrill Acquisition.
Conversely, Seadrill's market guidance for its 2023 financial year
contained in this Q1 2023 earnings release includes the
consolidation of Aquadrill from April 3,
2023.
- In connection with the Aquadrill Acquisition, Harry Quarls and
Jonathan Swinney were appointed to
serve on Seadrill's Board of Directors on April 3, 2023.
- Gulfdrill LLC ("Gulfdrill"), a 50:50 joint venture between
Seadrill and Gulf Drilling International, was awarded contract
extensions by a leading operator for three jackup rigs working in
Qatar. The West Castor
jackup rig, which is bareboat chartered to Gulfdrill by Seadrill,
received a contract extension, together with the two jackup rigs
that are bareboat chartered to Gulfdrill by a third-party shipyard.
The total contract value of the three contract extensions is
approximately $343 million and
extends these contracts until 2026. The bareboat charter rates
payable in connection with the associated extension periods
represent a significant increase relative to the existing rates.
Seadrill's Order Backlog as of May 23,
2023, is $2.6 billion.
Financial
Highlights
|
|
Change
|
Figures in USD
million, unless otherwise indicated
|
1Q23
|
4Q22
|
%
|
Total Operating
Revenues
|
266
|
228
|
17 %
|
Adjusted
EBITDA2
|
85
|
39
|
118 %
|
Adjusted EBITDA
Margin 2
|
32.0 %
|
17.1 %
|
87 %
|
Total Adjusted
EBITDA2 - continuing and discontinued
operations
|
85
|
41
|
107 %
|
Operating
Profit/(Loss)
|
51
|
(7)
|
829 %
|
Simon Johnson, President &
CEO, commented:
"Seadrill has started 2023 strongly, with a near-fully
utilized fleet and the closing of our Aquadrill acquisition in
April. We are pleased with our operational and financial
performance as we move through the year, with our technical
utilization at 96% and our operating revenues and adjusted EBITDA
substantially increasing quarter-on-quarter. We benefited from our
four drillships offshore Brazil
operating for the full quarter and the West Neptune
drillship working at a higher dayrate in the U.S. Gulf of Mexico. Furthermore, during the
quarter we were delighted to announce that LLOG had extended its
contract for the West Neptune, furthering Seadrill and
LLOG's long-term association.
We have a confident posture and remain constructive about
this developing upcycle. Seadrill has an enhanced fleet following
our acquisition of Aquadrill, which cemented our position as a key
player in the offshore drilling sector, and we are highly focused
on maximizing the value that it can generate for our
shareholders."
Forward-Looking Statements
This news release includes forward-looking statements within the
meaning of Section 27A of the Securities Act and Section 21E of the
Exchange Act. All statements other than statements of
historical facts included in this communication, including those
regarding future guidance, including total revenue, Adjusted
EBITDA, Total Adjusted EBITDA and capital expenditures and
long-term maintenance, and statements about the Company's plans,
strategies, business prospects, changes and trends in its business
and the markets in which it operates are forward-looking
statements. These forward-looking statements can often, but not
necessarily, be identified by the use of forward-looking
terminology, including the terms "assumes", "projects",
"forecasts", "estimates", "expects", "anticipates", "believes",
"plans", "intends", "may", "might", "will", "would", "can",
"could", "should" or, in each case, their negative, or other
variations or comparable terminology. These statements are
based on management's current plans, expectations, assumptions and
beliefs concerning future events impacting the Company and
therefore involve a number of risks, uncertainties and assumptions
that could cause actual results to differ materially from those
expressed or implied in the forward-looking statements, which speak
only as of the date of this news release. Important factors
that could cause actual results to differ materially from those in
the forward-looking statements include, but are not limited to
offshore drilling market conditions including supply and demand,
day rates, customer drilling programs and effects of new rigs on
the market, contract awards and rig mobilizations, contract
backlog, dry-docking and other costs of maintenance of the drilling
rigs in the Company's fleet, the cost and timing of shipyard and
other capital projects, the performance of the drilling rigs in the
Company's fleet, delay in payment or disputes with customers,
Seadrill's ability to successfully employ its drilling units,
procure or have access to financing, ability to comply with loan
covenants, liquidity and adequacy of cash flow from operations,
fluctuations in the international price of oil, international
financial market conditions, inflation, changes in governmental
regulations that affect the Company or the operations of the
Company's fleet, increased competition in the offshore drilling
industry, the impact of global economic conditions and global
health threats, pandemics and epidemics, our ability to maintain
relationships with suppliers, customers, employees and other third
parties and our ability to maintain adequate financing to support
our business plans, our ability to successfully complete any
acquisitions, divestitures and mergers, our liquidity and the
adequacy of cash flows for our obligations, our liquidity and the
adequacy of cash flows for our obligations, our ability to satisfy
the continued listing requirements of the New York Stock Exchange
("NYSE") and the Oslo Stock Exchange ("OSE"), or other exchanges
where our common shares may be listed, or to cure any continued
listing standard deficiency with respect thereto, the cancellation
of drilling contracts currently included in reported contract
backlog, losses on impairment of long-lived fixed assets, shipyard,
construction and other delays, the results of meetings of our
shareholders, political and other uncertainties, including those
related to the conflict in Ukraine, the effect and results of litigation,
regulatory matters, settlements, audit, assessments and
contingencies, including any litigation related to the Merger of
the Company ("Merger") with Aquadrill LLC ("Aquadrill"), our
ability to successfully integrate with Aquadrill following the
Merger, the concentration of our revenues in certain geographical
jurisdictions, limitations on insurance coverage, our ability to
attract and retain skilled personnel on commercially reasonable
terms, the level of expected capital expenditures, our expected
financing of such capital expenditures, and the timing and cost of
completion of capital projects, fluctuations in interest rates or
exchange rates and currency devaluations relating to foreign or
U.S. monetary policy, tax matters, changes in tax laws, treaties
and regulations, tax assessments and liabilities for tax issues,
legal and regulatory matters in the jurisdictions in which we
operate, customs and environmental matters, the potential impacts
on our business resulting from decarbonization and emissions
legislation and regulations, the impact on our business from
climate-change generally, the occurrence of cybersecurity
incidents, attacks or other breaches to our information technology
systems, including our rig operating systems and other important
factors described from time to time in the reports filed or
furnished by us with the SEC . Consequently, no forward-looking
statement can be guaranteed. When considering these
forward-looking statements, you should also keep in mind the risks
described from time to time in the Company's filings with the SEC,
including its Annual Report on Form 20-F for the year ended
December 31, 2022, filed with the SEC
on April 19, 2023 (File No.
001-39327) and subsequent reports on Form 6-K.
The Company undertakes no obligation to update any
forward-looking statements to reflect events or circumstances after
the date on which such statement is made or to reflect the
occurrence of unanticipated events. New factors emerge from time to
time, and it is not possible for us to predict all of these
factors. Further, the Company cannot assess the impact of each such
factors on its business or the extent to which any factor, or
combination of factors, may cause actual results to be materially
different from those contained in any forward-looking
statement.
May 23, 2023
The Board of Directors
Seadrill Limited
Hamilton, Bermuda
Questions should be directed to Seadrill Management Ltd.
represented by:
Simon Johnson President and Chief Executive Officer
Analyst and investor questions should be directed to:
Benjamin Wiseman Investor
Relations +44 786 713 9312
Media questions should be directed to:
Sara Dunne Director of Communications +1 281 630
7064
[1]For a definition of Order Backlog, please see
"Commercial Review" section.
[2]Adjusted EBITDA, Total Adjusted EBITDA and
Adjusted EBITDA Margin are non-GAAP financial measures. For a
definition of each such measure and a reconciliation to the most
comparable GAAP financial measure, please see the Appendices.
Contact:
seadrill@hawthornadvisors.com
The following files are available for download:
https://mb.cision.com/Main/18925/3772970/2074630.pdf
|
Seadrill 6-K
1Q23
|
https://mb.cision.com/Public/18925/3772970/8bcfc1cd03d11ffe.pdf
|
SDRL FSR 23 May
2023
|
https://mb.cision.com/Public/18925/3772970/b8e035d774ecab80.pdf
|
Seadrill Press Release
1Q23
|
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