Material impairments on assets [and investments] and a
focus on restructuring
OSLO, Norway, June 2, 2020 /PRNewswire/ --
Highlights
- Revenue down 19% at $321 million
with lower proportion of reimbursable revenues
- Technical utilization of 95% and economic utilization of
93%
- Operating Loss of $1,284 million
after making material asset impairments
- Adjusted EBITDA of $55
million, representing 17.1% margin
- Net loss attributable to shareholder of $1,564 million equivalent to net loss per share
of $15.59
- During the quarter we added $77
million in backlog, maintaining a total backlog figure of
$2.5 billion
- Closing cash of $1.2
billion
Subsequent Events
- Significant market challenges arising from the sharp decline in
the oil price
- Additional operational and logistic challenges arising through
COVID-19 pandemic restrictions
- Financial and legal advisors appointed to evaluate
comprehensive restructuring alternatives to reduce debt service
costs and overall indebtedness
- Announced on June 1, 2020,
decision to delist from NYSE and maintain a single listing on the
Oslo Stock Exchange
Anton Dibowitz, President and
CEO, commented:
"First and foremost, we need to recognize the way in which
the whole Seadrill community has risen to the operational and
logistical challenges arising because of COVID-19. We have
continued our record of strong operational delivery in the quarter,
working across 28 locations with over 4,000 employees from 57
different countries. Whilst our onshore personnel get used to a new
mode of working, we have many offshore personnel whose continuous
time working to maintain safe operations for our customers is now
measured in terms of months rather than weeks. I continue to be
humbled by the dedication of our people who deliver safe and
efficient operations during this trying time, including some of
whom will be leaving us as we maintain our focus on our cost
competitiveness and adjust staffing levels to account for lower
activity levels."
"This industry has two fundamental challenges which are
emphasized by recent events - there are too many rigs carrying too
much debt. In the quarter we took an impairment of $1.2 billion as we recognize, along with others
in the sector, that a number of our assets are increasingly
unlikely to return to the market and need to be scrapped. Assets
across the industry also carry debt levels which are unlikely to be
sustainable and consequently we should expect to see substantial
indebtedness being converted to equity. Only when the industry
addresses both of these issues will we be in a position where the
balance of market supply and demand can deliver reasonable
investment returns to stakeholders."
This information is subject to the disclosure requirements
pursuant to Section 5-12 the Norwegian Securities Trading
Act.
CONTACT:
seadrill@hawthornadvisors.com
This information was brought to you by Cision
http://news.cision.com
https://news.cision.com/seadrill-limited/r/seadrill-limited--sdrl----first-quarter-2020-results,c3125765
The following files are available for download:
https://mb.cision.com/Main/18925/3125765/1257655.pdf
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Seadrill Limited Q1
2020
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https://mb.cision.com/Public/18925/3125765/8af168d18c65b057.pdf
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Seadrill Q1 2020
Fleet Status
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