Seadrill Limited: Results for the first half of 2021
HAMILTON, Bermuda, Aug. 20, 2021 / PRNewswire / – Seadrill Limited (“Seadrill” or “the Company”) (OSE: SDRL) (OTCPK: SDRLF), a global leader in offshore drilling, announces a business update and provides financial results for the six-month period ended June 30, 2021.
Operational / Commercial
92% technical usage and 88% economic usage due to downtime incidents on Saturn west and Tellus west. Excluding these units, technical use and economic use are 98% and 94% respectively.
Thirteen units held in operation as of June 30, 2021, and three additional units resuming activities in the second half of 2021. In addition, ten unowned units remain under the management of Seadrill.
Total order book of $ 2.1 billion, of which about $ 0.5 billion was added in the first half of the year.
Health, Safety and Environment (“HSE“)
Record safety performance with a Total Injury Frequency Rate (“TRIR”) above the industry average.
Maintaining our position as an industry leader in carbon management.
Operating loss decreased to $ 252 million, includes a non-cash impairment of $ 152 million against the Western Hercules platform.
Cash and cash equivalents at June 30, 2021 of $ 644 million, of which $ 428 million unrestricted.
Figures in millions of USD, unless otherwise indicated
Total operating revenues
Adjusted EBITDA margin (%)
Major milestones reached towards exiting Chapter 11 bankruptcy by entering into restructuring agreements with certain senior secured lenders and senior note holders, representing 58% and 79% of outstanding debt, respectively. The proposed plan leaves current shareholders with approximately 0.25% of future equity and, as a result, they face a significant deterioration in value.
Separate agreements concluded with SFL Corporation, to reduce our commitments on the lease of the Western Hercules, and with Northern Ocean Ltd., to close all outstanding balances and claims.
An order book of approximately $ 120 million added after period end, including contracts obtained for the Western Hercules in Canada and Western Gemini in Angola.
Stuart Jackson, CEO, commented:
“Seadrill continued to operate safely and efficiently throughout the first half of 2021, despite the continued disruption caused by COVID-19 straining the logistics capabilities of the industry. We are delighted to have increased our backlog during the period after signing agreements with a number of clients, and we continue to implement our plan to positively streamline our operations, removing assets that do not returning to work and addressing broader leverage issues through the Chapter 11 process.
Looking ahead, we will continue to leverage our technical and functional excellence to maintain our leadership position in the offshore drilling industry, as evidenced by our Saturn west drill ship where the introduction of hydrogen fuel is expected to significantly reduce fuel consumption and our carbon footprint.
Addressing the leverage of offshore drilling entities and moving forward on the path of asset rationalization are the first important steps before considering the next step in streamlining the industry through consolidation, where I think that we will play an active role. Filing our Plan Support Agreement with strong creditors support marked the next step on this journey for Seadrill. “
Seadrill is a leading offshore drilling contractor using cutting edge technology to unlock oil and gas resources for clients in difficult and benign locations across the world. Seadrill’s high-quality, state-of-the-art fleet covers all asset classes, enabling its experienced crews to operate in shallow or ultra-deep water environments. The Company operates 42 platforms, which include drill ships, jackups and semi-submersibles.
Seadrill is listed on the Oslo Børs and OTC Pink markets. For more information, visit https://www.seadrill.com/.
This press release contains forward-looking statements. Such statements are generally not historical in nature and specifically include statements about plans, strategies, business prospects, changes and trends of the Company and the markets in which it operates. These statements are made on the basis of management’s current plans, expectations, assumptions and beliefs regarding future events affecting the Company and therefore involve a number of risks, uncertainties and assumptions that could result in that actual results differ materially from those expressed or implied in forward-looking statements. statements, which speak only as of the date of this press release. Important factors that could cause actual results to differ materially from those of forward-looking statements include, but are not limited to, offshore drilling market conditions, including supply and demand, per diem rates, schedules. drilling rigs and the effects of new platforms on the market, contracts for allocation and mobilization of platforms, order book, dry-docking and other maintenance costs for drilling platforms in the fleet of the Company, the cost and timing of shipyards and other capital projects, the performance of drilling rigs in the Company’s fleet, late payments or disputes with customers, Seadrill’s ability to successfully employ its drilling units, obtain or have access to financing, the ability to comply with loan covenants, liquidity and adequacy of cash flows related to the x operations, fluctuations in the international oil price, international financial market conditions, changes in government regulations that affect the company or the company’s fleet operations, increased competition in the offshore drilling industry , the impact of global economic conditions and threats to global health and the impact of future negotiations with its lenders for changes to credit facilities and all related contingency planning efforts, the impact of active negotiations , contingency planning efforts, rulings and results with respect to a full restructuring of our debt under Chapter 11 U.S. Bankruptcy Court proceedings for the South District of Texas, the outcome of which is uncertain, our ability to maintain relationships with suppliers, customers, employees and other third parties as a result of our d deposit in Chapter 11 and the increased performance and credit risks associated with our limited liquidity and capital structure, our ability to maintain and obtain adequate funding to support our post-emergence business plans of the Chapter 11, the length of time we will operate under Chapter 11 protection, the risks associated with third-party arty motions in the Chapter 11 procedure that may interfere with the solicitation and ability to confirm and consummate a reorganization plan, the dispute over production levels between members of the Organization of the Petroleum Exporting Countries and other oil and gas producing countries, downtime and other risks associated with offshore drilling operations and capacity to ” successfully employ our drilling units, expected debt levels, the ability of our affiliates or related companies to service their debt, credit risks of our key customers, the concentration of our revenues in certain geographic jurisdictions, the limitations of insurance coverage, such as war risk coverage, in certain regions, any inability to repatriate income or capital, quotas of import-export, wage and price controls and the imposition of trade barriers, our ability to attract and retain qualified personnel on commercially reasonable terms, whether due to labor regulations, unionization or otherwise, or to retain employees, customers or suppliers because of our financial situation in general or because of the procedure of Chapter 11, the risk of internal control due to significant downsizing, questions tax, changes in tax laws, treaties and regulations, tax assessments and obligations for tax matters, including those as associated with our operations in Bermuda, Brazil, Norway, United Kingdom, Nigeria, Mexico and the United States, customs and environmental matters and the potential impacts on our activities resulting from laws or regulations on climate change or greenhouse gases, and the impact on our business of physical changes related to climate change or changes in weather conditions, the occurrence of cybersecurity incidents, attacks or other violations of our computer systems, including our platform operating systems and other important factors described from time to time in reports filed or provided by us with the SEC. Therefore, no forward-looking statement can be guaranteed. When reviewing such forward-looking statements, you should keep in mind the risks described from time to time in documents filed by the Company with the SEC, including its 2020 Annual Report on Form 20-F (File No. ° 333-224459).
The Company assumes no obligation to update forward-looking statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unforeseen events. New factors appear from time to time, and it is impossible for us to predict all of them. In addition, the Company cannot assess the impact of each of these factors on its business or the extent to which a factor, or a combination of factors, may cause actual results to differ materially from those contained in a forward-looking statement.
August 20, 2021
The Board of Directors Seadrill Limited Hamilton, Bermuda