Seadrill posted a net loss of $206 million in the second quarter of 2019, compared to a net loss of $432 million in the second quarter of 2018.
• Solid operational performance in the quarter with 96% economic utilization
• Revenue up 6% at $321 million with increasing reimbursable revenues
• Operating Loss of $73 million
• Adjusted EBITDA of $69 million
• Reported net loss of $206 million equivalent to net loss per share of $2.03
• Total cash of $1.5 billion following completion of the Senior Secured Notes tender offer
• Order backlog of $1.9 billion as at 30 June 2019
Since the end of the second quarter, Seadrill and GDI entered into a 50:50 joint venture, Gulfdrill, which will initially manage and operate five premium jack-ups in Qatar with Qatar Petroleum. The five contracts will commence during 2020 and run into 2023 & 2024. The total contract value is expected to be $656 million (including mobilization fees). The contracts have options which could add up to $700 million in additional total contract value. Gulfdrill will initially bareboat charter the West Telesto and West Castor from Seadrill and has secured bareboat charters for three additional units from a third-party shipyard.
Anton Dibowitz, CEO, commented:
“Operationally we performed well for our customers in the quarter, maintaining a high level of utilization across the active fleet and ensuring a safe operating environment for our people.
From a market perspective we continue to see increased tendering activity and a favorable shift in contract terms. While the spot market for short term work remains competitive, rates for longer term work are improving and there are pockets of strength in the harsh environment, high-end ultra deepwater and premium jack-up markets.
We are excited to partner with GDI and grow our presence in an important jack-up market. Gulfdrill will give us the opportunity to improve our access to a significant premium jack-up market and strengthen our relationship with Qatar Petroleum.”