Seadrill q1 operating loss at $1,284 million

Q1 revenue down 19% at $321 million with lower proportion of reimbursable revenues.q1 operating loss of $1,284 million after making material asset impairments.q1 operating loss of $1,284 million after making material asset impairments.q1 adjusted ebitda of $55 million, representing 17.1% margin.industry has two fundamental challenges which are emphasized by recent events - there are too many rigs carrying too much debt.in quarter we took an impairment of $1.2 billion as we recognize, along with others in sector, that a number of our assets are increasingly unlikely to return to market and need to be scrapped.assets across industry also carry debt levels which are unlikely to be sustainable.we should expect to see substantial indebtedness being converted to equity.current market conditions compounded by the covid-19 pandemic has resulted in a significant oversupply of oil amid a global economic decline.consequently, we have seen operators take several measures including significant 2020 capex cuts impacting offshore activity.we expect a reduction in exploration programs and delays in the sanctioning of development programs resulting in cancelled or deferred tenders, contract terminations and renegotiation of existing contracts.in turn, this will impact supply and demand dynamics, putting pressure on dayrates and driving down utilization for all asset types in the coming quarters..
SDRL Ratings Summary
SDRL Quant Ranking