Seadrill Limited - Earnings Release 2019

SDRL - Seadrill Limited Announces Fourth Quarter 2019 Results

Highlights

· Revenue up 8% at $398 million with higher proportion of reimbursable

revenues

· Technical utilization of 97% and economic utilization of 93%

· Operating Loss of $93 million

· Adjusted EBITDA of $39 million, in line with guidance of $40 million

· Net loss of $199 million equivalent to net loss per share of $1.99

· Strong order intake of $1.0 billion, resulting in total backlog of $2.5

billion at year end.

· Closing cash of $1.4 billion

Subsequent Events

· Continued productive discussions with banking group regarding capital

structure.

· Continued progress in the independently assessed Carbon Disclosure Project

· In a separate announcement Eugene I. Davis and Scott D. Vogel have stepped

down from their current positions and will be replaced by Herman R. Flinder and

Birgit Aagaard-Svendsen effective February 27, 2020.

Anton Dibowitz, CEO, commented:

"We close 2019 maintaining our strong operating track record, adding in excess

of $1bn to backlog during the quarter and making continued progress in our ESG

focus. I am particularly pleased that we finished 2019 with an improved rating

of Seadrill's activities by the independently assessed Carbon Disclosure Project

and that we achieved a world first in respect of DNV Battery (Power) class

notation on the West Mira.

We have seen a broad-based market recovery through 2019, led by the harsh

environment segment, followed by the high specification jack-up and the benign

environment ultra-deepwater segments. The pace of the recovery has slowed as we

enter 2020, however we expect to see continued improvement as the year

progresses.

Our first bank maturities do not fall due until Q2 2022, however we took the

initiative to engage in a dialogue with our banks at an early stage to address

capital structure challenges relative to current trading conditions. We have

been engaged in a productive dialogue with the lead banks throughout the fourth

quarter and into 2020 and we expect to provide a fuller update at the

appropriate time."

This information is subject to the disclosure requirements pursuant to Section 5

-12 the Norwegian Securities Trading Act.

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