Seadrill Limited announces sale of shareholding in Paratus Energy Services Limited

Rhea-AI Summary

Seadrill Limited (NYSE: SDRL) has announced the binding Share Purchase Agreements for the sale of its 35% stake in Paratus Energy Services Limited. This move includes other interests held through Paratus, related to companies like SeaMex Group and Archer Ltd. The transaction is subject to standard closing conditions, including competition authority approvals, and is expected to finalize in Q4 2022 or early 2023. Seadrill continues to leverage advanced technologies in offshore drilling operations worldwide.

Positive

• Strategic divestiture of a 35% stake in Paratus Energy Services may enhance capital allocation.
• Transaction includes interests in multiple companies, potentially streamlining Seadrill's investment focus.

Negative

• Dependence on regulatory approvals could delay the completion of the sale.
• Selling shares may indicate a shift in company strategy, potentially impacting investor confidence.

HAMILTON, Bermuda, Oct. 21, 2022 /PRNewswire/ -- Seadrill Limited ("Seadrill" or the "Company") (NYSE: SDRL) (XOAS: SDRL) announces today that it has entered into binding Share Purchase Agreements ("SPAs") under which it will sell its entire 35% shareholding in Paratus Energy Services Limited (formerly Seadrill New Finance Limited) and certain other interests ("Sale").  Paratus Energy Services Limited is the entity through which investments in SeaMex Group, Seabras Sapura and Archer Ltd are held.

Completion of the Sale is subject to customary closing conditions, including approval of competition authorities in relevant jurisdictions, and is anticipated to occur within the fourth quarter of 2022 or early 2023.

Seadrill Contact Information:

David Warwick
Director of Investor Relations
David.Warwick@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-deep-water environments.

Forward-Looking Statements

This news release includes forward-looking statements. Such statements are generally not historical in nature, and specifically include statements about the Sale of Company's shareholding in Paratus Energy Services, as well as the Company's plans, strategies, business prospects, changes and trends in its business and the markets in which it operates.

These statements are made based upon 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, dayrates, fluctuations in the price of oil, international financial market conditions, changes in governmental regulations that affect the Company or the operations of the Company's fleet, the review of competition authorities and other factors listed in our public filings. 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 the Company to predict all of these factors. Further, the Company cannot assess the impact of each such factor 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. 

Consequently, no forward-looking statement can be guaranteed. When considering these forward-looking statements, you should also keep in mind the risks described from time to time in the Company's filings with the SEC, including its Annual Report on Form 20-F for the year ended December 31, 2021, filed with the SEC on April 29, 2022 (File No. 001-39327).

This information is subject to the disclosure requirements pursuant to article 19 of the Regulation EU 596/2014 (the EU Market Abuse Regulation) and section 5-12 of the Norwegian Securities Trading Act.

View original content:https://www.prnewswire.com/news-releases/seadrill-limited-announces-sale-of-shareholding-in-paratus-energy-services-limited-301655768.html

SOURCE Seadrill Limited

FAQ

What is the recent announcement by Seadrill Limited regarding Paratus Energy Services Limited?

Seadrill announced it will sell its entire 35% stake in Paratus Energy Services Limited as part of binding Share Purchase Agreements.

When is the sale of Seadrill's stake in Paratus Energy Services Limited expected to complete?

The sale is expected to complete within the fourth quarter of 2022 or early 2023, pending regulatory approvals.

How might the sale of Paratus Energy Services Limited affect Seadrill's business?

The sale may improve Seadrill's capital allocation strategy but could also signal a shift in its investment focus.

What does the sale of Seadrill's stake indicate about its financial strategy?

The sale indicates a possible restructuring of Seadrill's investment portfolio, aiming for enhanced focus and capital efficiency.