Seadrill Limited — Earnings Release 2020

Nov 20, 2020

Seadrill Limited (SDRL) - Third Quarter 2020 Trading Update

Seadrill Limited (SDRL) - Third Quarter 2020 Trading Update

Highlights

· Technical utilization[1] of 94% and economic utilization[2] of 92%

· Total backlog stands at $2.1 billion

· Cash and cash equivalents as at September 30, 2020 was $851m

· Stuart Jackson appointed Chief Executive Officer

· The role and responsibilities of the Chief Financial Officer are now divided

into two new roles: Grant Creed is Chief Restructuring Officer and Neil Gilliver

is Chief Accounting Officer

Subsequent Events

· Following quarter end, approximately $52 million of backlog added:

· The Sevan Louisiana was awarded a one firm, plus one optional, well

contract with Walter Oil & Gas in US Gulf of Mexico adding $17m backlog over the

firm term

· The West Neptune has been awarded a one firm well contract with Kosmos

Energy in US-Gulf of Mexico, adding $9m backlog

· Equinor exercised additional wells on the West Hercules in Norway adding

$26m in backlog

· Total Angola released the West Gemini from its obligations under the

contract. Seadrill is entitled to compensation in the form of a lump sum fee

Stuart Jackson, CEO, commented:

"Seadrill continues to play its part in establishing a more viable market

environment - taking action on scrapping rigs, reducing the cost of operation

and support activities, and addressing our capital structure.  In doing so, we

remain committed to the delivery of safe and efficient operations for our

customers.

"We continue to address the industry issue of too many rigs and too much debt.

Managing our rig count is the necessary balance to bringing down our debt

burden and we are progressing plans to safely recycle some of our rigs, subject

to the approval of our lenders. We are engaged in constructive discussions with

our financial stakeholders as we look to carry out a comprehensive restructuring

of our balance sheet and our cash balance provides us with the necessary

flexibility to manage this process."

It should be noted that on conclusion of a comprehensive restructuring there is

a high probability that the current value of equity will be reduced

significantly or to zero value.

--------------------------------------

[1    ] Technical utilization is calculated as the total hours available for

work, excluding planned maintenance, divided by the total number of hours in the

period.

[2     ]Economic utilization is calculated as total revenue, excluding bonuses,

for the period as a proportion of the full operating dayrate multiplied by the

number of days on contract in the period.

seadrill@hawthornadvisors.com

020 3745 4960