Seadrill Limited — Interim / Quarterly Report 2020

Mar 4, 2021

Seadrill Limited (SDRL) - Second Half 2020 Results

Seadrill Limited (SDRL) - Second Half 2020 Results

Hamilton, Bermuda, March 4, 2021 - Seadrill Limited ("Seadrill" or "the

Company") (OSE:SDRL, OTCQX:SDRLF), a world leader in offshore drilling,

announces a commercial update for the fourth quarter of 2020 and provides

financial results for the six-month period ended December 31, 2020.

Highlights

· Technical utilization[1] of 96% and economic utilization[2] of 94%.

· Total backlog stands at $1.9 billion with approximately $50 million added

during the quarter.

· Cash and cash equivalents as at December 31, 2020 of  $723 million of which

$526 million was unrestricted.

· Non-cash impairment of $2.9 billion.

· $0.5 billion non-cash gain arising on the deconsolidation of certain

subsidiaries of SFL Corporation Limited.

Financial Highlights

Figures in USD million, 2H20 1H20 % Change

unless otherwise

indicated

Total Operating Revenue 461  598  (23) %

Adjusted EBITDA 10  90  (89) %

Adjusted EBITDA Margin 2.2  15.1  (85) %

(%)

Operating Loss (3,110) (1,372) (127) %

Net loss (2,915) (1,748) (67) %

Net Loss attributable to (2,912) (1,747) (67) %

shareholder

Net Loss per Share (29.02) (17.40) (67) %

Subsequent Events

· On February 7, 2021 certain of the Company's wholly owned subsidiaries filed

for bankruptcy protection under Chapter 11 and on February 10, 2021, the Company

and certain of the Company's consolidated subsidiaries filed for Chapter 11

bankruptcy protection in the United States. We would expect the eventual outcome

of this process to lead to a significant reduction or elimination of current

shareholder positions.

Stuart Jackson, CEO, commented:

"Our 2[nd] half 2020 results reflect the impact of executing backlog contracted

during tough market conditions.  As a consequence, we have also taken

significant impairments on our assets as the likelihood of scrapping more assets

increases.  Whilst addressing the asset side of our balance sheet we have also

taken action on the liabilities side and filed certain companies for Chapter 11

protection within the US Bankruptcy Code.  The Chapter 11 process will run for

many months as we seek solutions with our different creditor groups.  However, I

feel confident that we will find a suitable resolution which will see a

financially more robust Seadrill continue delivering safe, efficient operations

for our customers."

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[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