Seadrill Limited (SDRL) - Second Quarter 2020 Results
Seadrill Limited (OTCQX: SDRLF) reported second quarter 2020 results with revenue down 14% to $277 million, primarily due to reduced management contract revenues. The company faced an operating loss of $88 million and a net loss attributable to shareholders of $181 million, equating to a loss per share of $1.80. Despite the challenging market, Seadrill added $41 million to its backlog, totaling $2.3 billion. The company ended the quarter with $1 billion in cash, focusing on cash preservation amidst industry difficulties exacerbated by COVID-19.
- Total backlog increased by $41 million, now totaling $2.3 billion.
- Closing cash balance stands at $1 billion, providing flexibility.
- Revenue decreased by 14% to $277 million.
- Operating loss of $88 million for the quarter.
- Net loss attributable to shareholders of $181 million.
- Adjusted EBITDA down 36% to $35 million, with a margin of 12.6%.
- Continued evaluation of capital structure may lead to minimal recovery for shareholders.
HAMILTON, Bermuda, Aug. 25, 2020 /PRNewswire/ -- Seadrill Limited ("Seadrill" or "the Company") (OS: SDRL) (OTCQX: SDRLF), a world leader in offshore drilling, announces its second quarter results for the period ended June 30, 2020.
Highlights
- Technical utilization of
97% and economic utilization of91% - Revenue down
14% at$277 million due to lower management contract revenues - Operating Loss of
$88 million - Adjusted EBITDA of
$35 million , representing12.6% margin - Net loss attributable to shareholders of
$181 million , equivalent to net loss per share of$1.80 - During the quarter we added
$41 million in backlog, total backlog now stands at$2 .3 billion - Closing cash of
$1 .0 billion
Financial Highlights |
Seadrill Limited | |||||
Figures in USD million, unless otherwise indicated |
Q2 2020 | Q1 2020 | % Change | |||
Total Operating Revenue |
277 |
321 | (14) | % | ||
Adjusted EBITDA |
35 |
55 | (36) | % | ||
Adjusted EBITDA Margin (%) |
12.6 |
% |
17.1 |
% |
(5) |
% |
Operating Loss |
(88) |
(1,284) | 93 |
% | ||
Net loss |
(183) |
(1,565) |
88 |
% | ||
Net Loss attributable to shareholder |
(181) |
(1,564) |
88 | % | ||
Net Loss per Share |
(1.80) |
(15.59) | 88 |
% | ||
Subsequent Events
- West Phoenix obtained an extension of work in Norway
- We continue to evaluate capital structure proposals from our financial stakeholders; whilst no agreement has been reached at this point it is expected that potential solutions will lead to significant equitization of debt which is likely to result in minimal or no recovery for current shareholders
Anton Dibowitz, CEO, commented:
"Global market sentiment for the quarter has been poor, as the real impacts of COVID-19 and reduced demand have begun to crystallize. While the industry-wide demand deficiencies remain outside our control, we have been concentrating our efforts on what we can influence, namely, our day-to-day operations and our capital structure. Despite the weak market outlook, we are pleased to be adding to our backlog and above all, delivering for our customers including through extended work programs on our rigs.
"We will be prioritizing our cash preservation and efficiency plan to prepare ourselves for the challenges that our industry faces in the short to medium-term. From a capital structure perspective, we continue to engage with our financial stakeholders to ensure we create a debt structure appropriate for the new market environment. Our
"I'd like to commend every member of the Seadrill community for their contributions during this time. We have seen how our onshore and offshore employees have adjusted and grown accustomed to the new ways of working during COVID-19, the effectiveness with which they have done so has galvanized our entire organization and motivated us to persevere through these challenging times."
For more information, please contact:
seadrill@hawthornadvisors.com
+44 (0)20-8811-4700
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The following files are available for download:
Seadrill Limited (SDRL) - Second Quarter Results 2020 | |
https://mb.cision.com/Public/18925/3180439/882436cb96226b74.pdf | Seadrill Consolidated - Fleet Status - Q2-20 |
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SOURCE Seadrill Limited
