Slide 1: Conference Call — 2Q 2015 Results
Conference Call — 2Q 2015 Results August 27,2015 Seadril
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation includes forward looking statements. Such statements are generally not historical in nature, and specifically include statements about the Company’s plans, strategies, business prospects, changes and trends in its business and the markets in which it oper
Slide 3: Agenda
Agenda 6 Highlights 2Q 2015 2 ] Financial Performance Highlights @ Market Outlook 4 ] Summary and Q&A Appendix: Seadrill Limited Financials Seadnill
Slide 4: Highlights: Second Quarter 2015
Highlights: Second Quarter 2015 EBITDA EBITDA of $651 million 700 $ million Realizing benefits of cost management program 600 711 672 651 641 635 Safe and efficient operations 500 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 92% economic utilization for floater fleet and 97% for jack-up fleet Economic util
Slide 5: Financial Performance Highlights
Seadnill Financial Performance Highlights ME age TS
Slide 6: Financial Performance Highlights
Financial Performance Highlights • Delivered a resilient performance with revenue of $1,147 million and EBITDA of $651 million 2Q 2015 1Q 2015 2Q 2014 • 2Q net operating income impacted by Total Operating loss on sale of the West Polaris to $1,147 $1,244 $1,222 Revenue Seadrill Partners (Loss)/gain
Slide 7: Balance Sheet Summary
Balance Sheet Summary June 30, March 31, 2015 2015 Total Current Assets $3,188 $2,981 Non-current assets • Total assets of $25,144 million as at Newbuildings $1,920 $2,482 June 30, 2015 Drilling units $15,086 $15,071 Other $4,950 $5,139 Total non-current assets $21,956 $22,692 • Total non-current as
Slide 8: Funding, covenant waiver and deferred rig deliveries
• The Seadrill group1 successfully completed $2.15 billion of new funding in 2015 to date • Completed leverage ratio waiver with banking group • Deferred delivery for two floaters and eight jack-ups with two shipyards • Two floaters deferred to 2Q 2017 • One jack-up deferred to 4Q 2015, five to 2016
Slide 9: Market Outlook
Market Outlook 9
Slide 10: Summary and market outlook
Strong operating performance Underpinned by safe and efficient operations Realizing the benefits of the cost management Targeting an increased level of cost savings for 2015 Continuing to be proactive Contract renegotiations with our customers are progressing Managing our delivery sche
Slide 11: Appendix: Seadrill Limited Financials
Appendix ll Lim ials ted Financi Seadri
Slide 12: Operating Income - Floaters
Operating Income - Floaters Unaudited accounts in USD millions 2Q15 1Q15 (1) 4Q14 3Q14 Total operating revenues 786 846 801 842 (Loss)/gain on disposals* (75) — 192 — Contingent consideration realized 6 4 — — Vessel and rig operating expenses 265 267 268 298 Reimbursable expenses 12 19 12 39 Depreci
Slide 13: Operating Income – Jack-up Rigs
Operating Income – Jack-up Rigs Unaudited accounts in USD millions 2Q15 1Q15 (1) 4Q14 3Q14 Total operating revenues 328 385 420 408 (Loss)/gain on disposals* — 186 — — Contingent consideration realized — — — — Vessel and rig operating expenses 128 168 184 184 Reimbursable expenses 7 3 4 14 Depreciat
Slide 14: Operating Income – Total Seadrill Limited
Operating Income – Total Seadrill Limited Unaudited accounts in USD millions 2Q15 1Q15 4Q14 3Q14 Total operating revenues 1,147 1,244 1,261 1,293 (Loss)/gain on sale of assets* (75) 186 192 — Contingent consideration realized 6 4 — — Vessel and rig operating expenses 422 446 488 521 Reimbursable exp
Slide 15: Net Income – Total Seadrill Limited
Net Income – Total Seadrill Limited Unaudited accounts in USD millions 2Q15 1Q15 4Q14 3Q14 Net operating income 384 703 452 461 Financial items and other income Interest income 17 17 18 2 Interest expense (100) (112) (122) (114) Share in results from associated companies 115 32 41 (26) Gain/(loss) o
Slide 16: Balance Sheet - Assets
Balance Sheet - Assets Unaudited accounts in USD millions June 30, March 31, December 31, 2015 2015 2014 Current assets Cash and cash equivalents 918 903 831 Restricted cash 71 72 268 Marketable securities 324 309 426 Accounts receivables, net 837 956 1,017 Other current assets 1,038 741 767 Total c
Slide 17: Balance Sheet – Liabilities & Shareholder’s Equity
Balance Sheet – Liabilities & Shareholder’s Equity Unaudited accounts in USD millions June 30, March 31, December 31, 2015 2015 2014 Current liabilities Current portion of long-term debt 1,662 1,386 2,267 Trade accounts payable 56 96 84 Other current liabilities 1,733 1,847 2,181 Total current liabi