Seadrill Limited — Earnings Release 2021

Feb 22, 2022

Seadrill Limited (SDRL) - Second Half 2021 Results

Seadrill Limited (SDRL) - Second Half 2021 Results

Hamilton, Bermuda, February 23, 2022 - Seadrill Limited ("Seadrill" or "the

Company") (OSE:SDRL, OTCPK:SDRLF), a leader in offshore drilling, provides

financial results for the six-month period ended December 31, 2021.

2H 2021 Highlights[1]

· Strong operational performance  in 2H, 2021, resulting in 95% technical

utilization.

· Leading safety performance with TRIR of 0.24 in 2H 2021, better than the

industry average of 0.30.

· 23% increase in Operating Revenues to $556m driven by a number of rigs

commencing new contracts after a period of inactivity.

· Adjusted EBITDA increased to $118m, representing 21.2% EBITDA margin.

· Cash and cash equivalents as at December 31, 2021 of  $535 million of which

$312 million was unrestricted cash.

· Backlog of $2.2bn, with over 8 years of term added in Brazil.

Financial Highlights

Figures in USD million, 2H21 1H21 % Change

unless otherwise

indicated

Total Operating Revenue             556             452 23 %

Adjusted EBITDA             118               20 490 %

Adjusted EBITDA Margin            21.2              4.4 382 %

(%)

Operating Profit/(Loss)               95            (252) 138 %

Net profit/(loss)               18            (605) 103 %

Restructuring Update

· Seadrill concluded its comprehensive restructuring process and emerged from

Chapter 11 bankruptcy on February 22, 2022.

· Seadrill New Finance Limited (renamed to Paratus Energy Services), emerged

from Chapter 11 on January 20, 2022. Seadrill Limited retained a 35% interest as

a result of the restructuring. Going forward, financial information relevant to

Paratus will be made available at www.paratus-energy.com.

Stuart Jackson, CEO, commented:

"Seadrill has finished 2021 strongly, evidenced by our top-line financial

highlights underpinned by our operational excellence and continued commercial

success. The formidable progress made over the course of 2021 is attributable to

the tremendous effort our workforce made overcoming difficult economic and

logistical challenges.  I am proud of what they achieve on a daily basis.

We have just emerged from a series of Chapter 11 processes across our complex

organization involving not just the emergence of Seadrill Limited yesterday but

also the restructurings that were completed in other parts of our business.  Our

emergence completes the second stage of our industry's rehabilitation.  As a

sector we have taken out nonperforming rigs, we have reduced our collective debt

burdens and now we need to reshape an industry that warrants investment to

sustain our contribution to the evolving global energy mix.  The operational and

safety track record of Seadrill, together with our strong customer partnerships,

puts us in a leadership position as we complete this industry realignment."

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[1]            The financial information presented excludes the impact for our

discontinued operations held for sale, representing Seadrill New Finance Limited

("NSNCo") and its wholly owned subsidiaries.

Forward-Looking Statements

This news release includes forward-looking statements. Such statements are

generally not historical in nature, and specifically include statements about

the Company's plans, strategies, business prospects, changes and trends in its

business and the markets in which it operates. These statements are made based

on management's current plans, expectations, assumptions and beliefs concerning

future events impacting the Company and therefore involve a number of risks,

uncertainties and assumptions that could cause actual results to differ

materially from those expressed or implied in the forward-looking statements,

which speak only as of the date of this news release. Important factors that

could cause actual results to differ materially from those in the forward

-looking statements include, but are not limited to offshore drilling market

conditions including supply and demand, day rates, customer drilling programs

and effects of new rigs on the market, contract awards and rig mobilizations,

contract backlog, dry-docking and other costs of maintenance of the drilling

rigs in the Company's fleet, the cost and timing of shipyard and other capital

projects, the performance of the drilling rigs in the Company's fleet, delay in

payment or disputes with customers, Seadrill's ability to successfully employ

its drilling units, procure or have access to financing, ability to comply with

loan covenants, liquidity and adequacy of cash flow from operations,

fluctuations in the international price of oil, international financial market

conditions, changes in governmental regulations that affect the Company or the

operations of the Company's fleet, increased competition in the offshore

drilling industry, the impact of global economic conditions and global health

threats and the impact of future negotiations with its lenders to obtain

amendments to credit facilities and any related contingency planning efforts,

the impact of active negotiations, contingency planning efforts, rulings and

outcomes with respect to a comprehensive restructuring of our debt under Chapter

11 Proceedings with the U.S. Bankruptcy Court for Southern District of Texas,

the outcome of which is uncertain, our ability to maintain relationships with

suppliers, customers, employees and other third parties as a result of our

Chapter 11 filing and the related increased performance and credit risks

associated with our constrained liquidity position and capital structure, our

ability to maintain and obtain adequate financing to support our business plans

post-emergence from Chapter 11, the length of time that we will operate under

Chapter 11 protection, risks associated with third-party motions in the Chapter

11 Proceedings that may interfere with the solicitation and ability to confirm

and consummate a plan of reorganization, the dispute over production levels

among members of the Organization of Petroleum Exporting Countries and other oil

and gas producing nations, downtime and other risks associated with offshore rig

operations and ability to successfully employ our drilling units, our expected

debt levels, the ability of our affiliated or related companies to service their

debt requirements, credit risks of our key customers, the concentration of our

revenues in certain geographical jurisdictions, limitations on insurance

coverage, such as war risk coverage, in certain regions, any inability to

repatriate income or capital, import-export quotas, wage and price controls and

the imposition of trade barriers, our ability to attract and retain skilled

personnel on commercially reasonable terms, whether due to labor regulations,

unionization, or otherwise, or to retain employees, customers or suppliers as a

result of our financial condition generally or as a result of the Chapter 11

Proceedings, internal control risk due to significant employee reductions, tax

matters, changes in tax laws, treaties and regulations, tax assessments and

liabilities for tax issues, including those associated with our activities in

Bermuda, Brazil, Norway, the United Kingdom, Nigeria, Mexico and the United

States, customs and environmental matters and potential impacts on our business

resulting from climate-change or greenhouse gas legislation or regulations, and

the impact on our business from climate-change related physical changes or

changes in weather pattern, the occurrence of cybersecurity incidents, attacks

or other breaches to our information technology systems, including our rig

operating systems and other important factors described from time to time in the

reports filed or furnished by us with the SEC. Consequently, no forward-looking

statement can be guaranteed. When considering these forward-looking statements,

you should keep in mind the risks described from time to time in the Company's

filings with the SEC, including its 2020 Annual Report on Form 20-F (File No.

333-224459)

The Company undertakes no obligation to update any forward-looking statements to

reflect events or circumstances after the date on which such statement is made

or to reflect the occurrence of unanticipated events. New factors emerge from

time to time, and it is not possible for us to predict all of these factors.

Further, the Company cannot assess the impact of each such factors on its

business or the extent to which any factor, or combination of factors, may cause

actual results to be materially different from those contained in any forward

-looking statement.

February 23, 2022

The Board of Directors

Seadrill Limited

Hamilton, Bermuda

Questions should be directed to Seadrill Management Ltd. represented by:

Stuart Jackson                                     Chief Executive Officer

Media questions should be directed to:

Sara Dunne                                         Director of Communications

+1 (281) 630-7064

Analyst and investor questions should be directed to:

Hawthorn Advisors

seadrill@hawthornadvisors.com                         +44 (0) 203 7454960