Seadrill Limited — Earnings Release 2022

Nov 30, 2022

Seadrill Limited (SDRL) - Third Quarter 2022 Results

Seadrill Limited (SDRL) - Third Quarter 2022 Results

Hamilton, Bermuda, November 30, 2022 - Seadrill Limited ("Seadrill" or the

"Company") (NYSE & OSE: SDRL), a leader in offshore drilling, provides financial

results for the three months ended September 30, 2022.

3Q 2022 Highlights

· Strong operational performance in 3Q 2022, resulting in 98% technical

utilization.

· Total operating revenues of $269 million, operating profit of $20 million

and Total Adjusted EBITDA of $71 million, representing 23% Total Adjusted EBITDA

margin.

· Cash and cash equivalents of $349 million as at September 30, 2022, of which

$224 million was unrestricted cash.

· A share purchase agreement was signed on September 01, 2022, agreeing to

sell 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.

· Share purchase agreements were signed on September 30, 2022, to sell

Seadrill's entire 35% shareholding in Paratus Energy Services Limited. The

closing        is expected to occur in December 2022 or early 2023.

· Seadrill added $91 million of Order Backlog, bringing the total as at

September 30, 2022 to approximately $3.0 billion, of which $718 million related

to seven jackup rigs contracted in the Kingdom of Saudi Arabia that were sold in

October.

Subsequent Events

· Seadrill received approval to relist its common shares on the New York Stock

Exchange, with trading commencing on October 14, 2022. Subsequently, Seadrill's

status on the Euronext Expand changed from a primary listing to a secondary

listing.

· Seadrill completed the sale 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 on October 18, 2022 (the "Jackup

Sale"). The Jackup Sale triggered a mandatory payment of $204 million (inclusive

of principal, accrued interest and exit fee) under Seadrill's second lien debt

facility.

· On November 14, 2022, Seadrill made a voluntary payment of $269 million

(inclusive of principal, accrued interest and exit fee) under its second lien

debt facility. As such, in total, Seadrill made payments under its second lien

debt facility of $473 million.

· Seadrill received approval to uplist its common shares from the Euronext

Expand to the main list of the Oslo Stock Exchange, with the first day of

trading being November 17, 2022.

Financial Highlights Change*

Figures in USD million, 3Q22 2Q22 %

unless otherwise

indicated

Total Operating Revenues                                   253    6 %

269

Total Adjusted EBITDA                                     75    (5) %

71

Total Adjusted EBITDA 23.4 % 26.4 % (11) %

Margin

Operating Profit                                     25    (20) %

20

Simon Johnson, CEO, commented:

"Third quarter results reaffirmed Seadrill's consistent and solid performance

this year, with once again high levels of utilization during the quarter, driven

by our operational excellence. Total Adjusted EBITDA was $71 million, in line

with Management's expectations.

The West Saturn and West Carina have recently commenced operations in Brazil for

their long-term contracts and we look forward to the West Tellus and West

Jupiter commencing operations in the coming weeks, solidifying our position as

the number one international driller in Brazil.

The sale of 7 jackups to ADES and our stake in Paratus Energy Services are

transformative transactions as they enable us to considerably deleverage our

balance sheet and materially reduce our cost of debt, driving value for our

shareholders and making Seadrill a simpler business to understand for investors.

Furthermore, Seadrill reached the significant milestone of being dual listed on

two major stock exchanges, after we re-listed on the New York Stock Exchange and

up-listed to the main market of the Oslo Stock Exchange. We remain in a strong

position to continue delivering for all our stakeholders and to capitalize on

market opportunities. We are focused on ensuring our fleet is one of the

youngest and most-technologically advanced in the offshore drilling business and

expect to be at the forefront of the sector's recovery as it continues to be

buoyed by strong fundamentals."

seadrill@hawthornadvisors.com