SeaDrill Limited (NYSE:SDRL) Q2 2019 Earnings Conference Call Transcript

Aug 20, 2019 • 09:00 am ET

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SeaDrill Limited (NYSE:SDRL) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning and welcome to the Seadrill Limited Quarter Two 2019 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Ms. Emma Li, Head of Investor Relations. Please go ahead.

Executive
Emma Li

Thank you. And welcome to Seadrill Limited's Q2 2019 Quarterly Conference Call. Before we get started, I'd like to remind everyone that much of the discussion today will not be based on historical fact, but rather consist of forward-looking statements that are subject to uncertainty. Included on Page 2 of the presentation is a comprehensive list covering forward-looking statements. For additional information and to review our SEC filings, please visit our website at www.seadrill.com.

So moving on to the agenda. With us in the room today are Anton Dibowitz, our CEO; Stuart Jackson, our CFO, also Matt Lyne, our Chief Commercial Officer and Leif Nelson, our Chief Operating Officer. In our prepared remarks, you'll hear from Anton and Stuart. Anton will cover all the highlights for the quarter and provide you with all of our views on the market and Stuart will then provide you the review of the financial performance of the quarter and then we'll open up the lines and you can take some questions from the entire team.

And with that, I'd like to turn the call over to Anton.

Executive
Anton Dibowitz

Thanks, Emma. And welcome, everyone to our second quarter 2019 earnings call. Before I begin, I'd like to take the opportunity to welcome our CFO, Stuart Jackson to his first quarter call on the Seadrill team, who brought with in deep experience with listed companies in the offshore and oilfield services space, and we are extremely pleased to have him on board. He's quickly come up to speed on our business. Welcome to the team, Stuart.

Executive
Stuart Jackson

Thank you.

Executive
Anton Dibowitz

To start, I'd like to reiterate some key messages that you've heard from me in the past. While the market is presenting some challenges, a belief in the fundamentals of our business remain unwavering. In particular, the offshore barrel is important to meet market demand. Oil prices remain well within the zone where offshore projects are profitable, and we expect this to translate into increasing amounts of capital being deployed into offshore exploration and development. And while this is not yet a healthy market, day rates in all segments are recovering and we continue to see the leading indicators pointing in the right direction.

Today, our industry and the broader macro market are dealing with a setback, similar to what we faced in the fourth quarter of last year. As always, we remain focused on managing the factors that we control and being as prepared as we can for the factors that we don't. You've seen us reduce our senior secured notes with a tender offer and we continue to be focused on taking out the rest of this funding that was put in place as part of our restructuring. We have already taken a considerable amount of cost out of our business and