Seadrill Announces Second Quarter 2024 Results
Seadrill (NYSE & OSE: SDRL) reported strong Q2 2024 results with $288 million Operating Profit and $133 million Adjusted EBITDA on $375 million Total Operating Revenues. The company achieved a 35.5% Adjusted EBITDA Margin. Key highlights include:
1. Completed sale of three jack-up rigs and Gulfdrill joint venture interest
2. Repurchased $566 million of shares since September 2023
3. Generated $79 million cash flow from operations
4. Maintained a strong balance sheet with $862 million in cash and $625 million in gross debt
5. Updated full-year 2024 guidance: revenues between $1,355-$1,405 million, Adjusted EBITDA of $315-$365 million
Seadrill's Order Backlog stands at approximately $2.5 billion as of August 5, 2024.
Seadrill (NYSE & OSE: SDRL) ha riportato risultati solidi per il secondo trimestre del 2024 con un utile operativo di 288 milioni di dollari e un EBITDA rettificato di 133 milioni di dollari su un fatturato totale operativo di 375 milioni di dollari. L'azienda ha raggiunto un margine EBITDA rettificato del 35,5%. I punti salienti includono:
1. Completamento della vendita di tre piattaforme jack-up e dell'interesse nella joint venture Gulfdrill
2. Riacquisto di azioni per 566 milioni di dollari da settembre 2023
3. Generato un flusso di cassa dalle operazioni di 79 milioni di dollari
4. Mantenuto un bilancio solido con 862 milioni di dollari in contante e 625 milioni di dollari in debito lordo
5. Aggiornata la guida per l'intero anno 2024: ricavi tra 1.355 e 1.405 milioni di dollari, EBITDA rettificato di 315-365 milioni di dollari
Il portafoglio ordini di Seadrill si attesta a circa 2,5 miliardi di dollari a partire dal 5 agosto 2024.
Seadrill (NYSE & OSE: SDRL) reportó resultados sólidos para el segundo trimestre de 2024 con un beneficio operativo de 288 millones de dólares y un EBITDA ajustado de 133 millones de dólares sobre unos ingresos operativos totales de 375 millones de dólares. La compañía logró un margen EBITDA ajustado del 35,5%. Los aspectos destacados incluyen:
1. Venta completa de tres plataformas jack-up y el interés en la joint venture Gulfdrill
2. Recompra de acciones por 566 millones de dólares desde septiembre de 2023
3. Generación de un flujo de efectivo operativo de 79 millones de dólares
4. Mantenimiento de un balance sólido con 862 millones de dólares en efectivo y 625 millones de dólares en deuda bruta
5. Actualización de la guía para el año completo 2024: ingresos entre 1.355 y 1.405 millones de dólares, EBITDA ajustado de 315 a 365 millones de dólares
El backlog de pedidos de Seadrill es de aproximadamente 2,5 mil millones de dólares al 5 de agosto de 2024.
Seadrill (NYSE & OSE: SDRL)이 2024년 2분기 강력한 실적을 발표했습니다. 2억 8,800만 달러의 운영 이익과 1억 3,300만 달러의 조정 EBITDA를 기록했으며, 3억 7,500만 달러의 총 운영 수익을 올렸습니다. 회사는 조정 EBITDA 마진 35.5%를 달성했습니다. 주요 하이라이트는 다음과 같습니다:
1. 세 대의 잭업 리그와 Gulfdrill 조인트 벤처 지분 매각 완료
2. 2023년 9월 이후 주식 5억 6,600만 달러 재매입
3. 운영에서 7천 9백만 달러의 현금 흐름 창출
4. 현금 8억 6,200만 달러 및 총 부채 6억 2,500만 달러로 강력한 재무상태 유지
5. 2024 전체 연도 가이던스 업데이트: 수익 13억 5,500만 - 14억 5백만 달러, 조정 EBITDA 3억 1,500만 - 3억 6,500만 달러
Seadrill의 수주 잔고는 2024년 8월 5일 기준으로 약 25억 달러입니다.
Seadrill (NYSE & OSE: SDRL) a annoncé des résultats solides pour le deuxième trimestre de 2024 avec un bénéfice d'exploitation de 288 millions de dollars et un EBITDA ajusté de 133 millions de dollars sur un chiffre d'affaires total d'exploitation de 375 millions de dollars. L'entreprise a atteint une marge EBITDA ajustée de 35,5%. Les points clés comprennent :
1. Vente achevée de trois plateformes jack-up et participation dans la joint-venture Gulfdrill
2. Rachat de 566 millions de dollars d'actions depuis septembre 2023
3. Génération d'un flux de trésorerie de 79 millions de dollars provenant des opérations
4. Maintien d'un bilan solide avec 862 millions de dollars en espèces et 625 millions de dollars de dette brute
5. Mise à jour des prévisions pour l'année 2024 : revenus compris entre 1 355 et 1 405 millions de dollars, EBITDA ajusté de 315 à 365 millions de dollars
Le carnet de commandes de Seadrill s'élève à environ 2,5 milliards de dollars au 5 août 2024.
Seadrill (NYSE & OSE: SDRL) meldete starke Ergebnisse für das 2. Quartal 2024 mit einem Operating Profit von 288 Millionen US-Dollar und einem Adjusted EBITDA von 133 Millionen US-Dollar bei 375 Millionen US-Dollar Gesamterlöse. Das Unternehmen erzielte eine Adjusted EBITDA-Marge von 35,5%. Zu den wichtigsten Highlights gehören:
1. Abschluss des Verkaufs von drei Jack-Up-Riggs und des Anteils an der Gulfdrill-Joint-Venture
2. Rückkauf von 566 Millionen US-Dollar an Aktien seit September 2023
3. Generierung eines Cashflows aus der Geschäftstätigkeit von 79 Millionen US-Dollar
4. Starke Bilanz mit 862 Millionen US-Dollar in bar und 625 Millionen US-Dollar an Bruttoverschuldung aufrechterhalten
5. Aktualisierte Prognose für das gesamte Jahr 2024: Umsätze zwischen 1.355 und 1.405 Millionen US-Dollar, Adjusted EBITDA von 315 bis 365 Millionen US-Dollar
Der Auftragsbestand von Seadrill beläuft sich zum 5. August 2024 auf etwa 2,5 Milliarden US-Dollar.
- Strong Q2 2024 results with $288 million Operating Profit and $133 million Adjusted EBITDA
- Improved Adjusted EBITDA Margin to 35.5% from 33.8% in Q1 2024
- Completed sale of three jack-up rigs and Gulfdrill joint venture interest for $338 million
- Repurchased $566 million of shares, representing 15% of issued share count
- Maintained a net cash position of $237 million
- Order Backlog of approximately $2.5 billion
- Decrease in Contract Revenues by $8 million compared to Q1 2024
- Revised full-year 2024 guidance downward due to asset sale and delayed contract starts
- Delayed start dates for West Auriga and West Polaris contracts
- Near-term outlook uncertainty for uncommitted capacity on Sevan Louisiana and West Phoenix
Insights
Seadrill's Q2 2024 results show a mixed performance. The company reported an Operating Profit of
The sale of three jack-up rigs and associated interest in the Gulfdrill joint venture for
Seadrill's aggressive share repurchase program, totaling
The offshore drilling market appears to be in a transitional phase. Seadrill's management expresses faith in a "long and enduring upcycle" based on strong supply-side fundamentals. However, they also acknowledge ongoing volatility that can affect financial outcomes, highlighting the importance of through-cycle resiliency.
The company's Order Backlog of approximately
Seadrill's strategic positioning in "advantaged geographies" and focus on a standardized fleet could provide competitive advantages. However, the decision to delist from the Oslo Stock Exchange and report as a U.S. domestic issuer may impact its investor base and should be monitored for any effects on stock liquidity or valuation.
Seadrill's Q2 results reflect the cyclical nature of the offshore drilling industry. The company's ability to generate Free Cash Flow of
The sale of jack-up rigs aligns with industry trends towards focusing on higher-specification assets, particularly floaters for deepwater operations. This move could enhance Seadrill's competitive position in key markets like Brazil, where the delayed but upcoming contracts for West Auriga and West Polaris are significant.
The company's emphasis on operational excellence and safety is important in an industry where reputation and track record significantly influence contract awards. However, the revised guidance and mentions of supply chain and weather impacts highlight the operational risks inherent in offshore drilling. Investors should closely monitor Seadrill's ability to manage costs and improve utilization in the face of these challenges.
Quarterly Highlights
-
Delivered Operating Profit of
and Adjusted EBITDA(1) of$288 million on$133 million of Total Operating Revenues for an Adjusted EBITDA Margin(1) of$375 million 35.5%
- Completed sale of three jack-up rigs and associated interest in the Gulfdrill joint venture, supporting fleet refinement and capital return program
-
Repurchased total of
of shares, or more than$566 million 15% of its issued share count, since initiating repurchase program in September 2023
Financial Highlights
|
Three months ended |
|||
Figures in USD million, unless otherwise indicated |
June 30, 2024 |
March 31, 2024 |
||
Total Operating Revenues |
375 |
|
367 |
|
Contract Revenues |
267 |
|
275 |
|
Operating Profit |
288 |
|
80 |
|
Adjusted EBITDA (1) |
133 |
|
124 |
|
Adjusted EBITDA Margin (1) |
35.5 |
% |
33.8 |
% |
Diluted Earnings Per Share ($) |
3.49 |
|
0.81 |
|
“Seadrill delivered a strong second quarter and generated a combined
Financial and Operational Results
Second quarter 2024 operating revenues totaled
Second quarter 2024 operating expenses totaled
Adjusted EBITDA(1) was
Cash Flow and Balance Sheet
Cash flow from operations during the second quarter of 2024 was
In the second quarter of 2024, Seadrill made
At quarter-end, Seadrill had gross principal debt of
Operational and Commercial Activity
As of August 5, 2024, Seadrill's Order Backlog(2) was approximately
Outlook
Seadrill revised full year 2024 guidance based on the completion of the Gulfdrill sale; current expectations for contract start dates for the West Auriga and West Polaris that delay EBITDA recognition into future periods; and near-term outlook for uncommitted capacity on the Sevan Louisiana and the
“Though a combination of supply chain, weather, and scope have shifted West Auriga and West Polaris start dates, both rigs will soon set sail for
Other Corporate Items
As previously disclosed, Seadrill will delist from the Oslo Stock Exchange on September 10, 2024 and maintain a single listing on the New York Stock Exchange, consistent with efforts to simplify the business. The Company will also begin reporting as a domestic issuer under
Conference Call Information
The Company will host a conference call to discuss its results on Tuesday, August 6 at 09:00 CT / 16:00 CET. Interested participants may join the call by dialing +1 (800) 715-9871 (Conference ID: 5348977) at least 15 minutes prior to the scheduled start time. The Company will webcast the call live on the Investor Relations section of its website, where a replay will be available afterwards.
(1) These are non-GAAP measures. For a definition and a reconciliation to the most comparable GAAP measure, see Appendices.
(2) 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.
About Seadrill
Seadrill is setting the standard in deepwater oil and gas drilling. With its modern fleet, experienced crews, and advanced technologies, Seadrill safely, efficiently, and responsibly unlocks oil and gas resources for national, integrated, and independent oil companies. For further information, visit www.seadrill.com.
Forward-Looking Statements
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this news release, including, without limitation, those regarding the Company’s outlook and guidance, plans, strategies, business prospects, rig activity, share repurchases and changes and trends in its business and the markets in which it operates, are forward-looking statements. These statements may include words such as "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 in connection with any discussion of the timing or nature of future operating or financial performance or other events. 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. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: those described under Item 3D, “Risk Factors” in the Company’s Annual Report on Form 20-F for the year ended December 31, 2023, filed with the
The foregoing risks and uncertainties are beyond our ability to control, and in many cases, we cannot predict the risks and uncertainties that could cause our actual results to differ materially from those indicated by the forward-looking statements. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. All subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement. We expressly disclaim any obligations or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in our expectations or beliefs with regard to the statement or any change in events, conditions or circumstances on which any forward-looking statement is based, except as required by law.
Investors should note that we announce material financial information in SEC filings, press releases and public conference calls. Based on guidance from the SEC, we may use the Investors section of our website (www.seadrill.com) to communicate with investors. It is possible that the financial and other information posted there could be deemed to be material information. The information on our website is not part of, and is not incorporated into, this news release.
Seadrill Limited
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||
(In $ millions, except per share data) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Operating revenues |
|
|
|
|
|
|
|
|
||||
Contract revenues |
|
267 |
|
|
329 |
|
|
542 |
|
|
515 |
|
Reimbursable revenues (1) |
|
15 |
|
|
14 |
|
|
35 |
|
|
23 |
|
Management contract revenues (1) |
|
65 |
|
|
61 |
|
|
123 |
|
|
122 |
|
Leasing revenues (1) |
|
26 |
|
|
7 |
|
|
37 |
|
|
14 |
|
Other revenues (1) |
|
2 |
|
|
3 |
|
|
5 |
|
|
6 |
|
Total operating revenues |
|
375 |
|
|
414 |
|
|
742 |
|
|
680 |
|
Operating expenses |
|
|
|
|
|
|
|
|
||||
Vessel and rig operating expenses |
|
(165 |
) |
|
(186 |
) |
|
(345 |
) |
|
(301 |
) |
Reimbursable expenses |
|
(14 |
) |
|
(13 |
) |
|
(34 |
) |
|
(22 |
) |
Depreciation and amortization |
|
(43 |
) |
|
(37 |
) |
|
(81 |
) |
|
(73 |
) |
Management contract expense |
|
(41 |
) |
|
(42 |
) |
|
(79 |
) |
|
(84 |
) |
Selling, general and administrative expenses |
|
(24 |
) |
|
(14 |
) |
|
(49 |
) |
|
(28 |
) |
Merger and integration related expenses |
|
(3 |
) |
|
(16 |
) |
|
(5 |
) |
|
(19 |
) |
Total operating expenses |
|
(290 |
) |
|
(308 |
) |
|
(593 |
) |
|
(527 |
) |
Other operating items |
|
|
|
|
|
|
|
|
||||
Gain on disposals |
|
203 |
|
|
3 |
|
|
203 |
|
|
7 |
|
Other operating income |
|
— |
|
|
— |
|
|
16 |
|
|
— |
|
Total other operating items |
|
203 |
|
|
3 |
|
|
219 |
|
|
7 |
|
Operating profit |
|
288 |
|
|
109 |
|
|
368 |
|
|
160 |
|
Financial and other non-operating items |
|
|
|
|
|
|
|
|
||||
Interest income |
|
7 |
|
|
5 |
|
|
14 |
|
|
12 |
|
Interest expense |
|
(16 |
) |
|
(13 |
) |
|
(31 |
) |
|
(29 |
) |
Share in results from associated companies (net of tax) |
|
(15 |
) |
|
11 |
|
|
(11 |
) |
|
14 |
|
Other financial items |
|
(8 |
) |
|
(5 |
) |
|
(14 |
) |
|
(6 |
) |
Total financial and other non-operating items, net |
|
(32 |
) |
|
(2 |
) |
|
(42 |
) |
|
(9 |
) |
Profit before income taxes |
|
256 |
|
|
107 |
|
|
326 |
|
|
151 |
|
Income tax expense |
|
(3 |
) |
|
(13 |
) |
|
(13 |
) |
|
(14 |
) |
Net income |
|
253 |
|
|
94 |
|
|
313 |
|
|
137 |
|
Basic EPS ($) |
|
3.61 |
|
|
1.18 |
|
|
4.41 |
|
|
2.11 |
|
Diluted EPS ($) |
|
3.49 |
|
|
1.16 |
|
|
4.27 |
|
|
2.07 |
|
(1) Includes revenue received from related parties of
Seadrill Limited
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In $ millions, except per share data) |
|
June 30,
|
|
December 31,
|
ASSETS |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
|
835 |
|
697 |
Restricted cash |
|
27 |
|
31 |
Accounts receivable, net |
|
185 |
|
222 |
Amounts due from related parties, net |
|
31 |
|
9 |
Other current assets |
|
210 |
|
199 |
Total current assets |
|
1,288 |
|
1,158 |
Non-current assets |
|
|
|
|
Investments in associated companies |
|
66 |
|
90 |
Drilling units |
|
2,792 |
|
2,858 |
Deferred tax assets |
|
55 |
|
46 |
Equipment |
|
8 |
|
10 |
Other non-current assets |
|
88 |
|
56 |
Total non-current assets |
|
3,009 |
|
3,060 |
Total assets |
|
4,297 |
|
4,218 |
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
Current liabilities |
|
|
|
|
Trade accounts payable |
|
80 |
|
53 |
Other current liabilities |
|
324 |
|
336 |
Total current liabilities |
|
404 |
|
389 |
Non-current liabilities |
|
|
|
|
Long-term debt |
|
609 |
|
608 |
Deferred tax liabilities |
|
9 |
|
9 |
Other non-current liabilities |
|
216 |
|
229 |
Total non-current liabilities |
|
834 |
|
846 |
Commitments and contingencies |
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
|
Common shares of par value |
|
1 |
|
1 |
Additional paid-in capital |
|
2,243 |
|
2,480 |
Accumulated other comprehensive income |
|
1 |
|
1 |
Retained earnings |
|
814 |
|
501 |
Total shareholders' equity |
|
3,059 |
|
2,983 |
Total liabilities and shareholders' equity |
|
4,297 |
|
4,218 |
Seadrill Limited
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
Six months ended June 30, |
||||
(In $ millions) |
|
2024 |
|
|
2023 |
|
Cash Flows from Operating Activities |
|
|
|
|
||
Net income |
|
313 |
|
|
137 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||
Depreciation and amortization |
|
81 |
|
|
73 |
|
Gain on disposal of assets |
|
(203 |
) |
|
(7 |
) |
Share in results from associated companies (net of tax) |
|
11 |
|
|
(14 |
) |
Deferred tax (benefit)/expense |
|
(7 |
) |
|
4 |
|
Unrealized loss/(gain) on foreign exchange |
|
5 |
|
|
(5 |
) |
Amortization of discount on debt |
|
2 |
|
|
— |
|
Share based incentive compensation |
|
7 |
|
|
— |
|
Other cash movements in operating activities |
|
|
|
|
||
Payments for long-term maintenance |
|
(89 |
) |
|
(33 |
) |
Changes in operating assets and liabilities, net of effect of acquisitions and disposals |
|
|
|
|
||
Trade accounts receivable |
|
37 |
|
|
(20 |
) |
Trade accounts payable |
|
27 |
|
|
(38 |
) |
Prepaid expenses/accrued revenue |
|
(12 |
) |
|
(3 |
) |
Deferred revenue |
|
21 |
|
|
7 |
|
Deferred mobilization costs |
|
(23 |
) |
|
5 |
|
Related party receivables |
|
(22 |
) |
|
20 |
|
Other assets |
|
(3 |
) |
|
(10 |
) |
Other liabilities |
|
(37 |
) |
|
(81 |
) |
Net cash flows provided by operating activities |
|
108 |
|
|
35 |
|
Cash Flows from Investing Activities |
|
|
|
|
||
Additions to drilling units and equipment |
|
(66 |
) |
|
(25 |
) |
Proceeds from disposal of assets |
|
338 |
|
|
7 |
|
Sale of investment in PES |
|
— |
|
|
43 |
|
Acquisition of subsidiary |
|
— |
|
|
24 |
|
Deposit received on Tender-Assist Units sale |
|
— |
|
|
17 |
|
Net cash flows provided by investing activities |
|
272 |
|
|
66 |
|
Cash Flows from Financing Activities |
|
|
|
|
||
Share repurchases |
|
(241 |
) |
|
— |
|
Repayments of secured credit facilities |
|
— |
|
|
(163 |
) |
Share issuance costs |
|
— |
|
|
(4 |
) |
Net cash used in financing activities |
|
(241 |
) |
|
(167 |
) |
Effect of exchange rate changes on cash |
|
(5 |
) |
|
7 |
|
Net increase/(decrease) in cash and cash equivalents, including restricted cash |
|
134 |
|
|
(59 |
) |
Cash and cash equivalents, including restricted cash, at beginning of the period |
|
728 |
|
|
598 |
|
Cash and cash equivalents, including restricted cash, at the end of period |
862 |
|
|
539 |
Appendix I - Reconciliation of Operating Profit to Adjusted EBITDA (Unaudited)
Adjusted EBITDA represents operating profit before depreciation, amortization and similar non-cash charges. Additionally, in any given period, the Company may have significant, unusual or non-recurring items which may be excluded from Adjusted EBITDA for that period. When applicable, these items are fully disclosed and incorporated into the reconciliation provided below. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of Total operating revenues. Adjusted EBITDA excluding Reimbursables, represents Adjusted EBITDA, excluding Reimbursable revenues and Reimbursable expenses. Adjusted EBITDA Margin excluding Reimbursables represents Adjusted EBITDA excluding Reimbursables as a percentage of Total operating revenues excluding Reimbursable revenues.
Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA excluding Reimbursables and Adjusted EBITDA Margin excluding Reimbursables are non-GAAP financial measures. The Company believes that the aforementioned non-GAAP financial measures assist investors by excluding the potentially disparate effects between periods of interest, other financial items, taxes and depreciation and amortization, which are affected by various and possibly changing financing methods, capital structure and historical cost basis and which may significantly affect operating profit between periods.
Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA excluding Reimbursables and Adjusted EBITDA Margin excluding Reimbursables should not be considered as alternatives to operating profit or any other indicator of Seadrill Limited’s performance calculated in accordance with US GAAP.
The tables below reconcile operating profit to Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA excluding Reimbursables and Adjusted EBITDA Margin excluding Reimbursables.
Figures in USD million, unless otherwise indicated |
Three months ended June 30, 2024 |
|
Three months ended March 31, 2024 |
||
Operating profit |
288 |
|
|
80 |
|
Depreciation and amortization |
43 |
|
|
38 |
|
Merger and integration related expenses |
3 |
|
|
2 |
|
Gain on disposal |
(203 |
) |
|
— |
|
Other adjustments (1) |
2 |
|
|
4 |
|
Adjusted EBITDA (a) |
133 |
|
|
124 |
|
Total operating revenues (b) |
375 |
|
|
367 |
|
Adjusted EBITDA margin (a)/(b) |
35.5 |
% |
|
33.8 |
% |
Figures in USD million, unless otherwise indicated |
Three months ended June 30, 2024 |
|
Three months ended March 31, 2024 |
||
Adjusted EBITDA (a) |
133 |
|
|
124 |
|
Reimbursable revenues |
(15 |
) |
|
(20 |
) |
Reimbursable expenses |
14 |
|
|
20 |
|
Adjusted EBITDA excluding Reimbursables (c) |
132 |
|
|
124 |
|
Total operating revenues (b) |
375 |
|
|
367 |
|
Reimbursable revenues |
(15 |
) |
|
(20 |
) |
Total operating revenues excluding Reimbursable revenues (d) |
360 |
|
|
347 |
|
Adjusted EBITDA margin excluding Reimbursables (c)/(d) |
36.7 |
% |
|
35.7 |
% |
The table below reconciles operating profit to Adjusted EBITDA for the 2024 guidance numbers presented in the "Outlook" section:
|
2024 Guidance |
||||
Figures in USD million, unless otherwise indicated |
Low end of the range |
|
High end of the range |
||
Operating profit |
322 |
|
|
372 |
|
Depreciation and amortization |
173 |
|
|
173 |
|
Merger and integration related expenses |
15 |
|
|
15 |
|
Gain on sale of assets |
(203 |
) |
|
(203 |
) |
Other adjustments (1) |
8 |
|
|
8 |
|
Adjusted EBITDA (a) |
315 |
|
|
365 |
|
Total operating revenues (b) |
1,355 |
|
|
1,405 |
|
Adjusted EBITDA margin (a)/(b) |
23.2 |
% |
|
26.0 |
% |
(1) Primarily related to costs associated with the closure of the Company's
Appendix II - Contract Revenues Supporting Information (Unaudited)
Contract Revenues Supporting Information(1) |
Three months ended June 30, 2024 |
|
Three months ended March 31, 2024 |
|||
Average number of rigs on contract(2) |
10 |
|
|
10 |
|
|
Average contractual dayrates(3) (in $ thousands) |
289 |
|
|
300 |
|
|
Economic utilization(4) |
93.9 |
% |
|
97.1 |
% |
(1) Excludes three drillships managed on behalf of Sonadrill (West Gemini, Sonangol Quenguela, Sonangol Libongos); and excludes rigs bareboat chartered to Sonadrill (West Gemini) and Gulfdrill, before disposal in June 2024 (West Telesto, West Castor, West Tucana).
(2) The average number of rigs on contract is calculated by dividing the aggregate days the Company's rigs were on contract during the reporting period by the number of days in that reporting period.
(3) The average contractual dayrate is calculated by dividing the aggregate contractual dayrates during a reporting period by the aggregate number of days for the reporting period.
(4) Economic utilization is defined as dayrate revenue earned during the period, excluding bonuses, divided by the contractual operating dayrate, multiplied by the number of days on contract in the period. If a drilling unit earns its full operating dayrate throughout a reporting period, its economic utilization would be
Appendix III - Reconciliation of Net cash flows provided by operating activities to Free Cash Flow (Unaudited)
The Company also presents Free Cash Flow as a non-GAAP liquidity measure. Free Cash Flow is calculated as Net cash provided by operating activities less cash paid for additions to drilling units and equipment. The table below reconciles Net cash flows provided by operating activities to Free Cash Flow for the three months ended June 30, 2024, and March 31, 2024.
Figures in USD million |
Three months ended June 30, 2024 |
|
Three months ended March 31, 2024 |
|||
Net cash flows provided by operating activities |
79 |
|
|
29 |
|
|
Additions to drilling units and equipment |
(43 |
) |
|
(23 |
) |
|
Free Cash Flow |
36 |
|
|
6 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240805943310/en/
Lydia Brantley Mabry
Director of Investor Relations
ir@seadrill.com
Source: Seadrill Limited
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