Offshore drilling contractor Seadrill has managed to enhance its operational and financial performance in the first
quarter of 2023. With the offshore drilling upcycle in full swing, the Bermuda-headquartered rig owner believes it
is well-positioned to take advantage of the improvements in the market, aided by its recent acquisition of
Aquadrill.

As the tightening of the offshore drilling market brings further growth opportunities to the surface, all rig owners
are envisioning higher feet utilisation and day rates in the future, as confirmed by Seadrill's rivals: Borr Drilling,
Shelf Drilling, Diamond Offshore, Noble, Transocean, Valaris, Vantage Drilling, and Dolphin Drilling.

With new growth opportunities at its fingertips thanks to the comeback of the oil and gas boom to tackle energy
security concerns, Seadrill added approximately $39 million of order backlog during 1Q 2023, bringing the total to
approximately $2.2 billion. This addition is related to the West Neptune drillship securing a three-month extension
with LLOG Exploration Offshore (LLOG) in the U.S. Gulf of Mexico in direct continuation of the existing term.

The company's total adjusted EBITDA was $85 million in 1Q 2023, a significant increase compared to $39 million
in 4Q 2022, primarily due to higher operating days overall across the fleet, including the firm's four drillships
operating offshore Brazil, and the West Neptune rig working at a higher day rate with LLOG.

Seadrill's total operating revenues increased by 17 per cent in 1Q 2023 to $266 million, compared to $228 million
in 4Q 2022. As a result, the firm claims that it recorded a strong operational performance with technical utilisation
of 96 per cent.

Simon Johnson, President & CEO of Seadrill, commented: “Seadrill has started 2023 strongly, with a near-fully
utilised fleet and the closing of our Aquadrill acquisition in April. We are pleased with our operational and financial
performance as we move through the year, with our technical utilisation at 96 per cent and our operating
revenues and adjusted EBITDA substantially increasing quarter-on-quarter..”

Furthermore, Seadrill made a voluntary payment of $118 million – inclusive of principal, accrued interest and exit
fee – under its secured second lien debt facility in February 2023 and made a further voluntary payment of $44
million in March 2023.

However, February provided to be a busy month for Seadrill, as the company also completed the sale of its 35
per cent shareholding in Paratus Energy Services (PES), formerly Seadrill New Finance, and certain other
interests for total consideration of $44 million. In connection with this sale, the company issued PES and SeaMex
with a termination notice in respect of the master service agreements under which it provides management
services. The terminations will take effect from 12 July 2023, and 10 September 2023, respectively.

On the other hand, the all-stock acquisition of Aquadrill was completed in April 2023, at which point the latter
became a wholly-owned subsidiary of Seadrill. Thanks to this acquisition, the rig owner added $470 million in
order backlog.

Moreover, Gulfdrill LLC, a 50:50 joint venture between Seadrill and Gulf Drilling International, was awarded
contract extensions by an undisclosed operator for three jack-up rigs working in Qatar. In line with this, the West
Castor jack-up rig, which is bareboat chartered to Gulfdrill by Seadrill, received a contract extension, together
with the two jack-up rigs that are bareboat chartered to Gulfdrill by a third-party shipyard.

Seadrill outlines that the total contract value of the three extensions is approximately $343 million and the rigs
will be kept busy until 2026. According to the company, the bareboat charter rates payable in connection with the
associated extension periods represent a significant increase relative to the existing rates. Seadrill's order
backlog as of 23 May 2023 is $2.6 billion.

“We have a confident posture and remain constructive about this developing upcycle. Seadrill has an enhanced
fleet following our acquisition of Aquadrill, which cemented our position as a key player in the offshore drilling
sector, and we are highly focused on maximising the value that it can generate for our shareholders,” concluded
Johnson.