Seadrill Limited

Thank you for standing by. My name is Gil and I will be a conference operator today. At this time, I would like to welcome everyone to the C-drill second quarter 225 earnings call. All lines have been phased and used to prevent any background noise. After the speakers remarks, there will be a question and answer session. If you would like to ask questions during that time, simply press star followed by the number one on your telephone keypad. If you would like to read their question, can the press star one again? It is now my pleasure to turn today's call over to Mr. Kevin Smith, Vice President of Corporate Finance and Investor Relations. Please go ahead.

Welcome to C-drill second quarter, 2025 earnings call. I'm Kevin Smith, Vice President of Corporate Finance and Investor Relations. And I'm joined today by Simon Johnson, President and Chief Executive Officer, Samira Lee, Executive Vice President and Chief Commercial Officer, and Grant Creed, Executive Vice President and Chief Financial Officer. Our call will include forward-looking statements that involve risks and uncertainty. Actual results may differ materially. No one should assume these forward-looking statements remain valid later in the quarter or year, and we assume no obligation to update them except as required by securities law. Our filings with the US Securities Exchange Commission provide a more detailed discussion of our forward-looking statements and the risk factors affecting our business. During the call, we will also reference non-GAAP measures. Our earnings release furnished to the SEC and available on our website includes reconciliations with the nearest corresponding GAAP measures. Our use of the term EBITDA on today's call corresponds with the term adjusted EBITDA as defined in our earnings release. I'll now turn the call over to Simon.

Hello, and thank you for joining us on our call. Today, I'll touch on our quarterly performance before moving to contracting updates, some company updates and the market. Samir will then discuss our commercial outlook in detail and Grant will review our quarterly financial results and full year guidance. In the second quarter, CEDA will deliver an adjusted EBITDA of $106 million and an adjusted EBITDA margin, excluding reimbursables of 29%. Two of the active customer dialogues discussed on the previous earnings call are being successfully converted into new contracts. These fixtures underscore the strength of our commercial team in a competitive environment. The West Valor was awarded a two-well contract with Talos Energy beginning mid-November with an estimated term of 90 days and the Savon, Louisiana commenced a well intervention contract with Murphy Oil in early August and is expected to work into November. This will be our first campaign for Murphy and we are thankful that they've entrusted the work to us. Importantly, these fixtures commence in the second half of 2025, thereby minimizing costly gaps between contracts. Discussions around the three rigs in our Sonar drill joint venture in Angola, the Sonongole-Libongos, Sonongole-Quingala and West Gemini remain very positive and we expect material progress on contract fixtures in the near future. In all areas where we operate, our unwavering commitment to operational excellence is what enables us to deliver -in-class service to our valued customers resulting in long-term partnerships. The second quarter of 2025 marked an extraordinary 15 years of operation for the West Gemini in Angola, during which the rig work primarily for Total Energies. Throughout this time, we've consistently set the standard by delivering sustained operational and safety performance, achieving 97% uptime and a TRIR of 0.13 over the last decade. Total remains a critically important customer and we thank them for their long contractual commitment to the rig. Driven by our commitment to leading edge innovation and continuous improvement, Cedral has established the West Minerva real-time operation centre at our office in Houston. This cutting edge facility utilises advanced analytics and real-time data integration to enhance situational awareness, improve decision-making and streamline communication across our offshore drilling operations. The positive feedback received from clients of two of the West Minerva reinforces its significant value proposition. Complementing the capabilities of the West Minerva, our Cedral Academy plays a pivotal role in strengthening Cedral's performance through world-class training and development. As part of the Cedral Academy, the West Inspiration, our DrillSIM 6000 Simulator, provides immersive scenario-based training in drilling and well control. Within the Cedral Academy, we've successfully developed and implemented a comprehensive managed pressure drilling training course, drawing our experience from drilling over 100 MPD wells, this in-house programme is specifically designed to provide crews assigned to our eight MPD-equipped drill ships with the knowledge and hands-on skills to continue to set the standard in MPD. This commitment to training and development is a cornerstone of the Cedral culture. Together, the West Minerva and Cedral Academy reflect Cedral's integrated approach to technology, training and performance, a winning model of continuous improvement that both we and our clients are proud of and believe in. Shifting to the broader market outlook, we view the current environment as fleeting. Five key themes point towards a market recovery in late 2026 as widely commented on by us and our peers. Firstly, customers are focusing on exploration. At a recent conference, Total Energy has reiterated its commitment to drill 15 to 20 exploration wells per year going forward. Meanwhile, BP confirmed increased investment in exploration with a plan to drill 40 wells over the next three years as part of a renewed focus on its core upstream business. This week, an exploration well in the Boomerang Boch in Brazil's Santos Basin revealed BP's largest hydrocarbon discovery in 25 years. This significant find will trigger appraisal activities and underscores the potential within legacy basins. Brazil's fifth licensing round held in June highlighted a growing interest in frontier exploration and a significant re-engagement of the super majors. Notably, 19 of the 34 blocks awarded were situated on the under-explored Equatorium Margin Play, where Exxon and Petrobras have jointly acquired 10 blocks. Chevron, in partnership with CNPC, secured nine blocks signalling Chevron's re-entry into Brazil after an 11-year absence. The US Gulf is set for increased exploration activity with the Bureau of Ocean Energy Management holding lease sale 262 later this year, the first since December 2023. Recent legislation mandates at least two sales annually, from 2026 through 2039, an increase from the prior mandate, which only required three sales over five years. This expansion is expected to drive more exploration drilling and increased rig demand. Secondly, despite commodity price uncertainty, operators are moving forward with offshore project FIDs. Wood & McKenzie forecast a substantial increase in FIDs from $91 billion in 2025 to $164 billion in 2026 and $133 billion in 2027. These figures represent the highest levels in over a decade and underpin our belief in a market recovery. Thirdly, we're encouraged by recent tendering activity and the opportunities we see developing in coming months, which Samir will cover in more detail. Fourthly, there have been seven multi-year deepwater rig contracts awarded since March with start dates in the second half of 2026 or 2027. These contracts demonstrate customers' long-term commitment to deepwater, even in an uncertain macro environment. And finally, recent transactions leave only one competitive ultra-deepwater drill ship undelivered in the shipyard. Active drill ship supply currently sits at 77 rigs with contracting of just six units needed to reach 95% utilization. The stranded assets are being sold or delivered and most of the cold stack drill ships cannot be economically reactivated by a rational contractor. And with that, I'll turn the call over to Samir.