Slide 1: Q1 2019 Results
Q1 2019 Results 23 May 2019 Seadnill
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 3
Slide 4: Q1 2019 Highlights
Q1 2019 Highlights ▪ Economic utilization of 93% ▪ Backlog of $1.9 billion ▪ Total cash of $1.9 billion Economic utilization(1) Backlog 100 1,000 900 95 800 700 Utilization % 90 $ million 600 85 500 98 96 93 400 80 300 75 200 100 70 - Q3 18 Q4 18 Q1 19 2019 2020 2021 2022+ Backlog as at May 2019 Bac
Slide 5: Commercial
Commercial ▪ Since the end of the fourth quarter we added $130 million of backlog: Backlog $millions New Contracts 107 Option Exercise 17 Extensions to existing contracts 6 Total backlog additions since Q4 2018 130 ▪ Total backlog is currently $1.9 billion 5
Slide 6: Financial Performance
Financial Performance Mark Morris, Chief Financial Officer
Slide 7: Revenue and EBITDA Bridge
Revenue and EBITDA Bridge Revenue: 310 300 ▪ Volume: West Carina commencing its 290 contract in the quarter $millions 280 270 ▪ Dayrate: West Callisto moving to a new 260 contract at a lower dayrate 250 240 ▪ Utilization: Unplanned downtime on four 4Q18 Volume Dayrate Utilization Reimbursable 1Q19 f
Slide 8: Balance Sheet Main Movements
Balance Sheet Main Movements $millions 1Q19 4Q18 Change Current assets 2,616 2,767 (5)% Non-current assets 7,931 8,081 (2)% Total assets 10,547 10,848 (3)% Current liabilities 811 464 75% Non-current liabilities 6,957 7,311 (5)% Equity and redeemable non-controlling interest 2,779 3,073 (10)% Total
Slide 9: Our joint ventures and investment holdings
Our joint ventures and investment holdings ▪ Backlog: $757 million ▪ Backlog: $1.0 billion ▪ Revenue: $204 million ▪ Revenue: $55 million ▪ Adjusted EBITDA: $109 million ▪ EBITDA: $32 million ▪ Cash: $773 million ▪ Cash: $105 million ▪ Debt of $3.0 billion ▪ Debt: $676 million comprised of: ‒ $274 m
Slide 10: Financing and Liquidity
Financing and Liquidity ▪ Good liquidity with $1.9 billion of cash at Q1 2019 ▪ No debt amortisation payments until 2020, with the ability to defer up to 2021 ▪ No debt maturities until June 2022 ▪ No financial covenants until 2021, other than minimum liquidity ▪ Net leverage and DSCR covenants in 2
Slide 11: Reducing leverage – Senior Secured Notes
Reducing leverage – Senior Secured Notes Senior Secured Notes Principal Outstanding 1000 +10 (121) 900 (32) +32 (311) 800 700 $millions 600 500 400 880 300 200 458 100 0 Opening Accrued PIK West Rigel PIK PIK Tender 2Q19 Balance from May Proceeds Paydown Offer The above graph does not include cash i
Slide 12: Q2 Guidance
Q2 Guidance Q2 2019 guidance ▪ Adjusted EBITDA* is forecasted to be around $55 million. 12
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Slide 14: Appendix: Seadrill Limited Financials
Appendix: Seadrill Limited Financials
Slide 15: 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