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SDRL - seadrill Limited Announces Fourth Quarter 2019 Results

Highlights

  • Revenue up 8% at $398 million with higher proportion of reimbursable revenues
  • Technical utilization of 97% and economic utilization of 93% 
  • Operating Loss of $93 million
  • Adjusted EBITDA of $39 million, in line with guidance of $40 million 
  • Net loss of $199 million equivalent to net loss per share of $1.99
  • Strong order intake of $1.0 billion, resulting in total backlog of $2.5 billion at year end. 
  • Closing cash of $1.4 billion

Subsequent Events

  • Continued productive discussions with banking group regarding capital structure.
  • Continued progress in the independently assessed Carbon Disclosure Project
  • In a separate announcement Eugene I. Davis and Scott D. Vogel have stepped down from their current positions and will be replaced by Herman R. Flinder and Birgit Aagaard-Svendsen effective February 27, 2020.

Anton Dibowitz, CEO, commented:

"We close 2019 maintaining our strong operating track record, adding in excess of $1bn to backlog during the quarter and making continued progress in our ESG focus. I am particularly pleased that we finished 2019 with an improved rating of seadrill’s activities by the independently assessed Carbon Disclosure Project and that we achieved a world first in respect of DNV Battery (Power) class notation on the West Mira.

We have seen a broad-based market recovery through 2019, led by the harsh environment segment, followed by the high specification jack-up and the benign environment ultra-deepwater segments. The pace of the recovery has slowed as we enter 2020, however we expect to see continued improvement as the year progresses.  

Our first bank maturities do not fall due until Q2 2022, however we took the initiative to engage in a dialogue with our banks at an early stage to address capital structure challenges relative to current trading conditions. We have been engaged in a productive dialogue with the lead banks throughout the fourth quarter and into 2020 and we expect to provide a fuller update at the appropriate time."
 

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