Seadrill Announces Second Quarter 2023 Results and $250 Million Share Repurchase Authorization
- None.
- None.
- Delivered
of Adjusted EBITDA(1) on$159 million of revenue, resulting in an Adjusted EBITDA Margin(1) of$414 million 38.4% , and net income of , or$94 million per diluted share$1.16 - Closed Aquadrill transaction on April 3, increasing contracted floater count for the quarter by four to 12
- After the quarter, successfully issued
of$575 million 8.375% senior secured second lien notes due 2030 and executed a new revolving credit facility with an accordion feature of up to$225 million $100 million - On July 28, completed the sale of three tender-assist units for approximately
, as the Company focuses on deepwater$85 million - Initiated shareholder return program with share repurchase authorization of up to
$250 million
Financial Highlights | Three months ended | |
Figures in USD million, unless otherwise indicated | June 30, 2023 | March 31, 2023 |
Total Operating Revenues | 414 | 266 |
Contract Revenues | 329 | 186 |
Operating Profit | 109 | 51 |
Adjusted EBITDA | 159 | 85 |
Adjusted EBITDA Margin | 38.4 % | 32.0 % |
Diluted Earnings Per Share ($) | 1.16 | 0.83 |
"We delivered strong results this quarter, and the full year continues to be in line with previous guidance. This quarter, we executed decisively on strategic initiatives that simplify and strengthen our organization," stated President and Chief Executive Officer, Simon Johnson. "We established greater scale with the closing of the Aquadrill acquisition. We continued to refine our fleet through value-accretive asset divestitures, completing the sale of three tender-assist units at attractive valuations and announcing intentions to sell our jackup fleet in
Johnson further explained, "We remain committed to prioritizing a conservative capital structure, a refined fleet, and a disciplined, value- accretive approach to growth. Our new repurchase authorization will allow us to evaluate opportunities to return capital to shareholders when available and prudent, driving further value creation."
Financial and Operational Results
Seadrill generated
Seadrill incurred
Adjusted EBITDA nearly doubled from
Net cash provided by operating activities totaled
Share Repurchase Authorization
Seadrill's Board of Directors has authorized a share repurchase program that allows the Company to repurchase up to
Balance Sheet and Debt Refinancing
At quarter-end, Seadrill had total debt of
Operational and Commercial Activity
Throughout the last year, Seadrill has focused increasingly on the floater segment, through continued accretive acquisitions and divestitures, believing that this part of the rig market will produce the most growth and value for shareholders. The Company announced the potential sale of three jackup rigs and related interest in its 50:50 joint venture with Gulf Drilling International ("GDI") and completed the sale of its three tender-assist units to certain affiliates of Energy Drilling Pte. Ltd. ("Edrill") for aggregate cash proceeds of approximately
At quarter-end, Seadrill's Order Backlog(3) stood at
Conference Call Information
The Company will host a call to discuss its results today at 09:00 EST / 14:00 BST / 15:00 CET. Interested participants may join the call by dialing +1 855 979 6654 or +44 800 358 1035 (Passcode: 610792) at least 15 minutes prior to the scheduled start time. The Company will also webcast the call live at https://bit.ly/3rBMARr and provide a replay on its website (www.seadrill.com/investors).
(1) Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures. For a definition and a reconciliation to the most comparable GAAP measure, see Appendices.
(2) The number of rigs contributing to contract revenue includes fleet additions from the Aquadrill transaction (West Capella, West Vela, West Auriga, West Polaris, T-15); excludes rigs managed on behalf of Sonadrill (West Gemini, Sonangol Quenguela, Sonangol Libongos); and excludes rigs managed on behalf of Gulfdrill (West Telesto, West Castor, West Tucana).
(3) Order Backlog includes all firm contracts at the contractual operating dayrate multiplied by the number of days remaining in the firm contract period. It includes management contract revenues and lease revenues from bareboat charter arrangements and excludes revenues for mobilization, demobilization, contract preparation, and other incentive provisions and backlog relating to non-consolidated entities.
Seadrill Contact Information
Lydia Mabry
Director of Investor Relations
T: +1 (832) 252-7064
E: lydia.mabry@seadrill.com
About Seadrill
Seadrill is a leading offshore drilling contractor utilizing advanced technology to unlock oil and gas resources for clients across harsh and benign locations around the globe. Seadrill's high-quality, technologically-advanced fleet spans all asset classes allowing its experienced crews to conduct operations across geographies, from shallow to ultra-deepwater environments.
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 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
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.
Contact: seadrill@hawthornadvisors.com
The following files are available for download:
https://mb.cision.com/Public/18925/3817709/a2df8528d313f606.pdf | Seadrill 6-K 2023 Q2 |
https://mb.cision.com/Public/18925/3817709/898aa599fb8a72a6.pdf | Seadrill Fleet Status Report 2023 Q2 |
https://mb.cision.com/Public/18925/3817709/8f9d96abba1cacd1.pdf | Seadrill Press Release 2023 Q2 |
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SOURCE Seadrill Limited
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