SeaDrill Limited (NYSE:SDRL) Q1 2020 Earnings Conference Call - Final Transcript

Jun 02, 2020 • 09:00 am ET

Previous

SeaDrill Limited (NYSE:SDRL) Q1 2020 Earnings Conference Call - Final Transcript

Share
Close

Loading Event

Loading Transcript

Presentation
Operator
Operator

Good day and good afternoon, and welcome to the Seadrill Limited Q1 2020 Results for the Quarter Ended March 31, 2020 Conference Call. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

Before we get started, I'd like to remind everyone that much of the discussion today will not be based on historical facts, but rather consist of forward-looking statements that are subject to uncertainties. Included on Page 2 of the presentation is a comprehensive list covering forward-looking statements. For additional information and to view our SEC filings, please visit our website at www.seadrill.com.

I would now like to turn the conference over to Anton Dibowitz, Chief Executive Officer. Please go ahead.

Executive
Anton Dibowitz

Thank you. Good morning, and welcome to Seadrill's earnings call for the quarter ended March 31, 2020. Thank you to those dialing in today to listen. I'm Anton Dibowitz, the Chief Executive.

I will first take you through some of the highlights for the quarter, provide an overview of market conditions and how we're meeting some of the challenges, including navigating the COVID-19 pandemic. I'll then hand over to Stuart Jackson, our CFO, to take you through our financial performance before we open up the line for questions. During the Q&A session, we will also have Leif Nelson, Chief Operating Officer and Matt Lyne, Chief Commercial Officer, available to answer questions.

During Q1, we have continued to deliver for our customers and demonstrated our ability to adapt to the new reality imposed by COVID-19. I particularly would like to express deep gratitude to all of our people who have gone above and beyond to ensure operational continuity for Seadrill and our customers this quarter. I continue to be humbled by their dedication.

Turning now to the results of the quarter, which Stuart will give you more detail on later. Technical utilization for the quarter was a solid 95%. We had adjusted EBITDA of $55 million and we closed the quarter with $1.2 billion in cash on hand.

Operationally, we're monitoring and managing the impacts of COVID-19 and the effect this and the weaker oil price is having on our customers' behavior. Amidst these challenges, we had a solid operational quarter and we continue to receive recognition from our customers during the quarter for excellent operational delivery on both our owned and managed rigs. We remain laser focused on improving the efficiency with which we run our business, which I'll come back to later.

On the commercial side, we added $77 million in backlog during the first quarter and have added another $41 million post-quarter end. We ended the quarter with a backlog position of $2.5 billion. Subsequent to the quarter, Bjarte Boe joined the Board of Directors replacing Birgitte Ringstad Vartdal, effective April 21. I'd like to personally thank Birgitte for her dedication and service to Seadrill. We wish her a good luck in her future endeavors and welcome Bjarte to the Board.

Moving on to