Seadrill Partners LLC : Aquadrill March 31, 2022 Financial Package

Index to Consolidated Financial Statements of Aquadrill LLC

Consolidated Statements of Operations for three months ended March 31, 2022 and 2021

F- 2

Consolidated Balance Sheets as of March 31, 2022 (Unaudited), and December 31, 2021.

F- 3

Consolidated Statements of Cash Flows for three months ended March 31, 2022 and 2021.

F- 4

Consolidated Statements of Changes in Members' Capital for three months ended March 31, 2022 and 2021.

F- 5

Three Months Ended March 31,

2022

2021

(Successor)

(Predecessor)

Operating revenues

Contract revenues

$

40.6

$

33.9

Reimbursable revenues

0.7

0.7

Total operating revenues

41.3

34.6

Operating expenses

Vessel and rig operating expenses

62.1

37.9

Depreciation

2.5

5.7

Reimbursable expenses

0.6

0.6

Selling, general and administrative expenses

2.2

8.5

Total operating expenses

67.4

52.7

Other operating items

Gain on sale of assets

6.0

-

Total other operating items

6.0

-

Operating loss

(20.1)

(18.1)

Financial and other items

Foreign currency exchange loss

(0.3)

(0.6)

Reorganization items, net

-

(18.4)

Restructuring and other expenses

(0.3)

-

Other financial expenses

(0.1)

(0.1)

Total financial items, net

(0.7)

(19.1)

Loss before income taxes

(20.8)

(37.2)

Income tax expense

(3.5)

(4.2)

Net loss

$

(24.3)

$

(41.4)

March 31, 2022

December 31, 2021

ASSETS

Cash and cash equivalents

$

178.7

$

203.2

Restricted cash

15.3

24.7

Accounts receivable, net

38.7

35.0

Other current assets

45.7

55.8

Total current assets

278.4

318.7

Non-current assets

Drilling units, net

306.2

294.4

Deferred tax assets

7.8

7.7

Other non-current assets

5.9

6.3

Total non-current assets

319.9

308.4

Total assets

598.3

627.1

LIABILITIES AND MEMBERS' CAPITAL

Trade accounts payable and accruals

28.6

21.8

Other current liabilities

40.8

52.4

Total current liabilities

69.4

74.2

Deferred tax liability

0.6

0.6

Other non-current liabilities

48.5

48.5

Total long-term liabilities

49.1

49.1

Commitments and contingencies

Members' Capital

Accumulated Deficit

(85.6)

(61.3)

Common unitholders (20,000,000 units at March 31, 2022)

565.4

565.1

Total members' capital

479.8

503.8

Total liabilities and equity

$

598.3

$

627.1

Three Months Ended March 31,

2022

2021

(Successor)

(Predecessor)

Cash Flows from Operating Activities

Net loss

$

(24.3)

$

(41.4)

Adjustments to reconcile net loss to net cash (used in)/provided by operating activities:

Depreciation

2.5

5.7

Payment for long term maintenance

(1.6)

(3.7)

Deferred and other taxes

(0.1)

2.7

Share based compensation

0.3

-

Gain on sale of assets

(6.0)

-

Changes in operating assets and liabilities, net of effect of acquisitions

Trade accounts receivable

(3.7)

30.0

Prepaid expenses and accrued income

2.2

3.6

Trade accounts payable

6.8

3.1

Related party balances

-

16.2

Other assets

0.3

1.2

Other liabilities

(17.2)

(1.8)

Changes in deferred revenue

5.6

-

Net cash (used in)/provided by operating activities

(35.2)

15.6

Cash Flows from Investing Activities

Additions to drilling units

(12.7)

(1.3)

Sale of rigs and equipment

14.0

-

Net cash provided by/(used in) investing activities

1.3

(1.3)

Cash Flows from Financing Activities

Net cash used in financing activities

-

-

Net (decrease)/increase in cash and cash equivalents

(33.9)

14.3

Cash and cash equivalents at beginning of the period

227.9

378.4

Cash and cash equivalents, including restricted cash, at the end of period

$

194.0

$

392.7