Seadrill Limited · NYSE:SDRL
Seadrill — Q2 2019 Earnings Presentation
17 slides from Seadrill's earnings presentation, Aug 20, 2019
Slide 1: Q2 2019 Results
Q2 2019 Results August 20, 2019
Slide 2: Disclaimer
Disclaimer This presentation includes forward looking statements. Such statements are generally not historical in nature, and specifically include statements about the Company’s plans, strategies, business prospects, changes and trends in its business and the markets in which it operates. These stat
Slide 3: Agenda
Agenda 1 Highlights & Market Outlook 2 Financial Performance 3 Q&A
Slide 4: Q2 2019 Highlights
Q2 2019 Highlights ▪ Economic utilization of 96% Economic utilization(1) 100 ▪ Successfully took delivery of 3 rigs in our 95 managed fleet 90 Utilization % 85 96 96 93 ▪ Gulfdrill joint venture 80 75 70 ▪ Total cash of $1.5 billion Q4 18 Q1 19 Q2 19 ▪ Completed $311 million tender offer of Senior S
Slide 5: Commercial
Commercial Backlog1 Backlog Additions $millions 1,000 900 New Contracts 109 800 700 Option Exercise 33 600 $ million 500 Extensions to existing contracts 18 400 300 Total backlog additions in Q2 2019 160 200 100 Additions post Q2 2019 14 - 2019 2020 2021 2022+ Total backlog additions 174 Backlog ▪ T
Slide 6: Gulfdrill
Gulfdrill ▪ Seadrill and GDI have formed Gulfdrill ▪ Gulfdrill will initially operate 5 premium jackups ➢ Seadrill: West Telesto and West Castor ➢ 3 third party newbuilds ▪ 5 long term contracts with Qatar Petroleum 50% 50% aa ➢ Contract Value of $656 million ➢ Option value of $700 million ▪ Attract
Slide 7: Financial Performance
Financial Performance Stuart Jackson, Chief Financial Officer
Slide 8: Revenue and EBITDA Bridge
Revenue and EBITDA Bridge Revenue: 330 320 ▪ Operating Days: Idle time between 310 contracts offset by the West Castor 300 operating for a full quarter 290 280 ▪ Dayrate: West Gemini, West Phoenix, West 270 Hercules and West Telesto moving to a 260 new contract at a higher dayrate 250 240 1Q19 Opera
Slide 9: Abbreviated Income Statement
Abbreviated Income Statement $millions 2Q19 1Q19 Adjusted EBITDA 69 72 Depreciation (104) (108) Amortization of favorable and unfavorable contracts (38) (35) Operating loss (73) (71) Interest expense (122) (132) Share in results from associated companies (23) (42) Loss on derivative financial instru
Slide 10: Abbreviated Cash Flow
Abbreviated Cash Flow $millions 2Q19 1Q19 Operating loss (73) (71) Other operating cashflows (12) (28) Total operating cash flows (85) (99) Total investing activities (13) 2 Total financing activities (339) (4) Effect of exchange rate changes on cash 4 - Net movement in total cash (433) (101) Total
Slide 11: Abbreviated Balance Sheet
Abbreviated Balance Sheet $millions 2Q19 1Q19 Cash and restricted cash 1,469 1,902 Other current assets 644 714 Other non-current assets 7,859 7,931 Total assets 9,972 10,547 Current liabilities 575 811 Non-current liabilities 6,827 6,957 Equity and redeemable non-controlling interest 2,570 2,779 To
Slide 12: Our joint ventures and investment holdings
Our joint ventures and investment holdings Operations Operations ▪ 8 floaters and 3 tender rigs ▪ 5 high-spec jack-ups ▪ Backlog: $697 million ▪ Backlog: $1.0 billion ▪ Revenue: $179 million ▪ Revenue: $60 million ▪ Adjusted EBITDA: $80 million ▪ EBITDA: $34 million Balance Sheet Investments Balance
Slide 13: Capital Structure and Liquidity
Capital Structure and Liquidity ▪ Period end cash was $1.5 billion ▪ No debt amortisation payments until 2020, with Debt Profile (Assuming utilisation of ACE) 3,500 the ability to defer up to 2021 using ACE 3,000 ▪ No debt maturities until June 2022 2,500 2,000 ▪ No financial covenants until 2021, o
Slide 14: Q3 Guidance
Q3 Guidance Adjusted EBITDA 80 70 60 Q3 2019 guidance 50 $millions ▪ Adjusted EBITDA is forecasted to be in the 40 72 69 70-75 range of $70 million to $75 million. 30 20 10 0 Q1 19 Q2 19 Forecast Q3 19
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Slide 16: Appendix: Seadrill Limited Financials
Appendix: Seadrill Limited Financials
Slide 17: Appendix – Non-GAAP Financial Measures
Appendix – Non- GAAP Financial Measures *Adjusted EBITDA represents operating income before depreciation, amortization and similar non-cash charges. Additionally, in any given period we may have significant, unusual or non-recurring items which we may exclude from Adjusted EBITDA for that period. Wh