Seadrill Limited - Earnings Release 2019

SDRL - Seadrill Limited Announces Second Quarter 2019 Results

Highlights

? Solid operational performance in the quarter with 96% economic utilization

? Revenue up 6% at $321 million with increasing reimbursable revenues

? Operating Loss of $73 million

? Adjusted EBITDA of $69 million

? Reported net loss of $206 million equivalent to net loss per share of $2.03

? Total cash of $1.5 billion following completion of the Senior Secured Notes

tender offer

? Order backlog of $1.9 billion as at 30 June 2019

Subsequent Event

Since the end of the second quarter, Seadrill and GDI entered into a 50:50 joint

venture, Gulfdrill, which will initially manage and operate five premium jack-

ups in Qatar with Qatar Petroleum. The five contracts will commence during 2020

and run into 2023 & 2024. The total contract value is expected to be $656

million (including mobilization fees). The contracts have options which could

add up to $700 million in additional total contract value. Gulfdrill will

initially bareboat charter the West Telesto and West Castor from Seadrill and

has secured bareboat charters for three additional units from a third-party

shipyard.

Anton Dibowitz, CEO, commented:

"Operationally we performed well for our customers in the quarter, maintaining a

high level of utilization across the active fleet and ensuring a safe operating

environment for our people.

From a market perspective we continue to see increased tendering activity and a

favorable shift in contract terms. While the spot market for short term work

remains competitive, rates for longer term work are improving and there are

pockets of strength in the harsh environment, high-end ultra deepwater and

premium jack-up markets.

We are excited to partner with GDI and grow our presence in an important jack-up

market. Gulfdrill will give us the opportunity to improve our access to a

significant premium jack-up market and strengthen our relationship with Qatar

Petroleum."

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

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