Slide 1: Q1 2020 Results
1 2020 Result x, pele oa 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. Q1 2020 Highlights 2. Market Assessment 3. Operational Updates 4. Commercial 5. Financials 6. Q&A 3
Slide 4: Q1 2020 Highlights
Q1 2020 Highlights ▪ Technical utilization of 95% (1) FINANCIALS ▪ Adjusted EBITDA of $55m and closing cash $1.2bn ▪ Impairments of $1.2bn taken against rig assets, leading to a $1.3bn operating loss in the quarter OPERATIONS ▪ Significant logistical challenges emerged as a result of the COVID-19 pa
Slide 5: Market Assessment
Market Assessment § Shocks to supply and demand have led to a significant reduction in the oil price - E&P operators have responded by reducing their CAPEX budgets § Due to a significant reduction in global oil demand, we have reassessed our view as to the future operating capability of certain asse
Slide 6: Operational Updates
Operational Updates ▪ Looking for opportunities to rotate our offshore crews working extended working patterns in locations with border PEOPLE restrictions ▪ Continuing to provide undisrupted support to our offshore operations, as our onshore teams have all adopted new ways of working OPERATIONS ▪ M
Slide 7: Commercial
Commercial $77m of backlog secured in Q1 2020 Total backlog Harsh Environment +$51m Benign UDW +$17m Benign Jack-ups +$9m • $2.5bn backlog delivering $0.6bn in the remainder of 2020 Post Q1: West Saturn awarded +$41m two well contract in Brazil (1)We define contract backlog as the maximum contractua
Slide 8: Results from Associated Companies
Results from Associated Companies Joint Ventures and drilling investments - $70m loss (4Q19: $17m loss) Company Ownership Assets Highlights 8 floaters § 99% utilization ~65% § We recognised impairments of $47m against our direct investments in Seadrill Partners 3 tenders § 98% utilization § Delivere
Slide 9: Revenue and EBITDA Bridge
Revenue and EBITDA Bridge Revenue: Revenue: $321m (4Q19:$398m) ▪ 19% decrease was a result of a reduction in reimbursable revenue for contract preparation and mobilization recharges under our management contracts with Northern Ocean and Sonadrill ▪ A reduction in rig operating days and lower operati
Slide 10: Abbreviated Income Statement
Abbreviated Income Statement $millions 1Q20 4Q19 Adjusted EBITDA 55 39 Depreciation and amortization 1 (100) (132) Expected credit loss provision (9) — Impairment of long-lived assets 2 (1,230) — Operating loss (1,284) (93) Share in results from associated companies 3 (70) (17) Loss on impairment of
Slide 11: Asset Management
Asset Management Impairments ▪ Material changes in the macro environment have led to reassessment of whether the continued cold stacking of assets and the associated reactivation costs produces the investment return stakeholders deserve ▪ Additionally, there is now an expectation that rigs will be i
Slide 12: Abbreviated Cash Flow
Abbreviated Cash Flow $millions 1Q20 4Q19 Net Loss (1,565) (199) Adjustments to reconcile net loss to net cash provided by operating activities 1,532 145 Payments for long-term maintenance (32) (41) Changes in operating assets and liabilities 1 (51) 39 Total operating cash flows (116) (56) 2 Total i
Slide 13: Abbreviated Balance Sheet
Abbreviated Balance Sheet $millions 1Q20 4Q19 Cash and restricted cash 1 1,198 1,357 Other current assets 2 3 495 523 Other non-current assets 4 5 5,804 7,399 Total assets 7,497 9,279 Current liabilities 6 778 770 Non-current liabilities 5 6 6,603 6,659 Equity and redeemable non-controlling interest
Slide 14: Capital Structure
Capital Structure NYSE listing: ▪ Seadrill Limited will move to delist from NYSE in the coming months and focus upon the OSE going forward. As a consequence and in line with reducing costs, Seadrill will move towards half yearly reporting from Q2 2020 going forward Comprehensive Restructuring: ▪ Sin
Slide 15: Q&A
Q&A 15+ years of delivering safe and efficient Young and modern fleet with Innovating and embedding an average age of 9 years1 technology in day-to-day operations operations Founded in 2005 PLATO MPD $2.5bn backlog with a More than 4000 Committed to building premium customer base Sustainable operati
Slide 16: 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. Whe