Seadrill Limited Announces Third Quarter 2022 Results

Source: 11/30/2022, Location: South America

Seadrill Limited, a leader in offshore drilling, provides financial results for the three months ended September 30, 2022.

3Q 2022 Highlights
• Strong operational performance in 3Q 2022, resulting in 98% technical utilization.
• Total operating revenues of $269 million, operating profit of $20 million and Total Adjusted EBITDA of $71 million, representing 23% Total Adjusted EBITDA margin.
• Cash and cash equivalents of $349 million as at September 30, 2022, of which $224 million was unrestricted cash.
• A share purchase agreement was signed on September 01, 2022, agreeing to sell the legal entities that own and operate seven jackup rigs (AOD I, AOD II, AOD III, West Callisto, West Ariel, West Cressida and West Leda) in the Kingdom of Saudi Arabia.
• Share purchase agreements were signed on September 30, 2022, to sell Seadrill's entire 35% shareholding in Paratus Energy Services Limited. The closing is expected to occur in December 2022 or early 2023.
• Seadrill added $91 million of Order Backlog, bringing the total as at September 30, 2022 to approximately $3.0 billion, of which $718 million related to seven jackup rigs contracted in the Kingdom of Saudi Arabia that were sold in October.

Subsequent Events
• Seadrill received approval to relist its common shares on the New York Stock Exchange, with trading commencing on October 14, 2022. Subsequently, Seadrill’s status on the Euronext Expand changed from a primary listing to a secondary listing.
• Seadrill completed the sale of the legal entities that own and operate seven jackup rigs (AOD I, AOD II, AOD III, West Callisto, West Ariel, West Cressida and West Leda) in the Kingdom of Saudi Arabia on October 18, 2022 (the “Jackup Sale”). The Jackup Sale triggered a mandatory payment of $204 million (inclusive of principal, accrued interest and exit fee) under Seadrill’s second lien debt facility.
• On November 14, 2022, Seadrill made a voluntary payment of $269 million (inclusive of principal, accrued interest and exit fee) under its second lien debt facility. As such, in total, Seadrill made payments under its second lien debt facility of $473 million.
• Seadrill received approval to uplist its common shares from the Euronext Expand to the main list of the Oslo Stock Exchange, with the first day of trading being November 17, 2022.

Simon Johnson, CEO, commented:
"Third quarter results reaffirmed Seadrill’s consistent and solid performance this year, with once again high levels of utilization during the quarter, driven by our operational excellence. Total Adjusted EBITDA was $71 million, in line with Management’s expectations.

The West Saturn and West Carina have recently commenced operations in Brazil for their long-term contracts and we look forward to the West Tellus and West Jupiter commencing operations in the coming weeks, solidifying our position as the number one international driller in Brazil.

The sale of 7 jackups to ADES and our stake in Paratus Energy Services are transformative transactions as they enable us to considerably deleverage our balance sheet and materially reduce our cost of debt, driving value for our shareholders and making Seadrill a simpler business to understand for investors.

Furthermore, Seadrill reached the significant milestone of being dual listed on two major stock exchanges, after we re-listed on the New York Stock Exchange and up-listed to the main market of the Oslo Stock Exchange. We remain in a strong position to continue delivering for all our stakeholders and to capitalize on market opportunities. We are focused on ensuring our fleet is one of the youngest and most-technologically advanced in the offshore drilling business and expect to be at the forefront of the sector’s recovery as it continues to be buoyed by strong fundamentals."

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