seadrill Limited (SDRL) - Second Half 2020 Results
Hamilton, Bermuda, March 4, 2021 - seadrill Limited (“seadrill” or "the Company") (OSE:SDRL, OTCQX:SDRLF), a world leader in offshore drilling, announces a commercial update for the fourth quarter of 2020 and provides financial results for the six-month period ended December 31, 2020.
Highlights
- Technical utilization1 of 96% and economic utilization2 of 94%.
- Total backlog stands at $1.9 billion with approximately $50 million added during the quarter.
- Cash and cash equivalents as at December 31, 2020 of $723 million of which $526 million was unrestricted.
- Non-cash impairment of $2.9 billion.
- $0.5 billion non-cash gain arising on the deconsolidation of certain subsidiaries of SFL Corporation Limited.
| Financial Highlights | ||||||
| Figures in USD million, unless otherwise indicated | 2H20 | 1H20 | % Change | |||
| Total Operating Revenue | 461 | 598 | (23) | % | ||
| Adjusted EBITDA | 10 | 90 | (89) | % | ||
| Adjusted EBITDA Margin (%) | 2.2 | 15.1 | (85) | % | ||
| Operating Loss | (3,110) | (1,372) | (127) | % | ||
| Net loss | (2,915) | (1,748) | (67) | % | ||
| Net Loss attributable to shareholder | (2,912) | (1,747) | (67) | % | ||
| Net Loss per Share | (29.02) | (17.40) | (67) | % | ||
Subsequent Events
- On February 7, 2021 certain of the Company’s wholly owned subsidiaries filed for bankruptcy protection under Chapter 11 and on February 10, 2021, the Company and certain of the Company’s consolidated subsidiaries filed for Chapter 11 bankruptcy protection in the United States. We would expect the eventual outcome of this process to lead to a significant reduction or elimination of current shareholder positions.
Stuart Jackson, CEO, commented:
"Our 2nd half 2020 results reflect the impact of executing backlog contracted during tough market conditions. As a consequence, we have also taken significant impairments on our assets as the likelihood of scrapping more assets increases. Whilst addressing the asset side of our balance sheet we have also taken action on the liabilities side and filed certain companies for Chapter 11 protection within the US Bankruptcy Code. The Chapter 11 process will run for many months as we seek solutions with our different creditor groups. However, I feel confident that we will find a suitable resolution which will see a financially more robust seadrill continue delivering safe, efficient operations for our customers.”
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1 Technical utilization is calculated as the total hours available for work, excluding planned maintenance, divided by the total number of hours in the period.
2 Economic utilization is calculated as total revenue, excluding bonuses, for the period as a proportion of the full operating dayrate multiplied by the number of days on contract in the period.