(Seadrill, 1.Sep.2022) — Seadrill Limited (XOAS: SDRL), a leader in offshore drilling, provides financial results for the three months ended June 30, 2022.
2Q 2022 Highlights
- Strong operational performance in 2Q 2022, resulting in 98% technical utilization.
- Total operating revenues of $284mn, operating profit of $25mn and adjusted EBITDA[1] of $75mn, representing 26.4% EBITDA margin.
- Cash and cash equivalents of $468mn as at June 30, 2022 of which $336mn was unrestricted cash.
- During the period Seadrill added $940mn of Order Backlog[2], including new three-year firm term contracts for jackups West Ariel, West Cressida and West Leda, and three year extensions for AOD I, AOD III and West Callisto, bringing Order Backlog to $3.1bn as at June 30, 2022.
Subsequent Events
- Seadrill received a non-binding proposal for the acquisition of the legal entities that own and operate seven jackup rigs (AOD I, AOD II, AOD III, West Callisto, West Ariel, West Cressida and West Leda) in the Kingdom of Saudi Arabia.
- The West Gemini contract was novated into the Sonadrill Joint Venture on July 1, 2022.
- The West Neptune secured a six month firm term extension, with a further six month optional period, with LLOG Exploration Offshore, L.L.C in US Gulf of Mexico. Total contract value for the firm-term is approximately $73mn, with an additional $78mn for the optional period.
| Financial Highlights | |||
| Successor | Combined* | Change* | |
| Figures in USD million, unless otherwise indicated | 2Q22 | 1Q22 | % |
| Total Operating Revenues | 284 | 293 | (3) % |
| Adjusted EBITDA1 | 75 | 78 | (4) % |
| Adjusted EBITDA Margin (%)1 | 26.4 | 26.6 | (1) % |
| Operating Profit | 25 | 42 | (40) % |
* Combined non-GAAP results for successor and predecessor period from January 1, 2022 to March 31, 2022. Refer to appendix II for more details.
Simon Johnson, CEO, commented:
“Seadrill has maintained its strong 2022 performance into this quarter, evidenced by an impressive technical utilization across the fleet, which is driven by our safe and successful operational delivery. Seadrill’s customers are the best in the oil and gas sector and we’re proud to partner with them in the world’s leading basins.
We have continued to deliver a strong operational performance whilst undergoing several significant rig reactivation projects. We are in a strong position to carry on creating value for our stakeholders and to take a leading role in the necessary and ongoing realignment within the market. The rig market continues to show strong signs of recovery, with utilization across asset classes and geographies all trending in the right direction.”
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[1] Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures. For a definition of each such measure and a reconciliation to the most comparable GAAP financial measure, please see the Appendices.
[2] For a description of Order Backlog, please see “Commercial Review”.
