Seadrill Limited (SDRL) - Third Quarter 2020 Trading Update

Subsequent Events Subsequent Events Stuart Jackson, CEO, commented: "Seadrill continues to play its part in establishing a more viable market environment - taking action on scrapping rigs, reducing the cost of operation and support activities, and addressing our capital structure.  In doing so, we remain committed to the delivery of safe and efficient operations for our customers.   "We continue to address the industry issue of too many rigs and too much debt.  Managing our...

Subsequent Events

Stuart Jackson, CEO, commented:

"Seadrill continues to play its part in establishing a more viable market environment - taking action on scrapping rigs, reducing the cost of operation and support activities, and addressing our capital structure.  In doing so, we remain committed to the delivery of safe and efficient operations for our customers.  

"We continue to address the industry issue of too many rigs and too much debt.  Managing our rig count is the necessary balance to bringing down our debt burden and we are progressing plans to safely recycle some of our rigs, subject to the approval of our lenders. We are engaged in constructive discussions with our financial stakeholders as we look to carry out a comprehensive restructuring of our balance sheet and our cash balance provides us with the necessary flexibility to manage this process."

It should be noted that on conclusion of a comprehensive restructuring there is a high probability that the current value of equity will be reduced significantly or to zero value.

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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.

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