Slide 1: Q4 2015 Results
Q4 2015 Results February 25, 2016 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: Financial Performance, Market Outlook, Summary and Q&A
6 Financial Performance 6 Market Outlook 6 Summary and Q&A Seadnill
Slide 4: Q4 results underpinned by strong operational performance
Q4 results underpinned by strong operational performance Strong operational uptime Seadrill Group economic utilisation of 95% Cash savings Headcount reduced by approximately 25% Seadrill Group achieved cash savings of $832 million during 2015 Yard update Standstill and subsequent JV
Slide 5: Operational highlights: Q4 2015
Operational highlights: Q4 2015 Current backlog 3000 2000 Current order backlog of $5.1 billion $ million $10.7 billion for Seadrill Group 1000 0 2016 2017 2018 2019+ Economic utilization (floater fleet) 100 95 90 Safe and efficient operations Utilization % 85 91% economic utilization for fl
Slide 6: Financial Performance
Seadnill Financial Performance
Slide 7: Revenue & EBITDA bridge
Revenue & EBITDA bridge Revenue 1025 • Volume: No change 1000 975 • Dayrates: West Mischief new contract at lower dayrate 950 925 • Utilization: Up 1%, good 900 operating quarter 875 850 • Idle units: Full quarter idle 3Q15 Volume Dayrates Utilization Idle units Other 4Q15 time on the West Venture,
Slide 8: Balance sheet main movements
Balance sheet main movements Mai over quarter Quarter December 31, September 30, %Change 2015 2015 Newbuildings $1,479 $1,659 (11%) Assets held for sale – non current 128 - 100% Short term marketable securities $96 $247 (61%) Total assets 23,470 23,684 (1%) Total liabilities 13,495 13,857 (3%) Total
Slide 9: Liquidity in 2016
Liquidity in 2016 Cash and cash equivalents in excess of $1 billion currently Operations continue to generate good cashflow 2016 contracted revenue of $2.3 billion $260 million further cost savings: Majority of 2016 planned savings will be sustainable Targeting Opex and G&A areas such
Slide 10: 2016 Financing
2016 Financing Objective Bridge to a recovery in the market Ensure we remain competitive Protect the value of the business Plan Address liquidity and capital structure through the downturn Address: • Maturities & amortizations • Covenants • MVC prepayment risk • Funding requirements throug
Slide 11: Q1 2016 guidance
Q1 2016 guidance EBITDA is forecasted to be around $450 million 11
Slide 12: Market Outlook
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Slide 13: Summary: Financing will be addressed in H1-2016
Financing will be addressed in H1-2016 and we will communicate to the market when ready $260 million further cash savings expected in 2016 Managing yard commitments No newbuild deliveries planned in 2016 13
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Slide 15: Appendix: Seadrill Limited Financials
Appendix: Seadrill Limited Financials 13
Slide 16: Operating Income - 4Q15
Operating Income - 4Q15 Unaudited accounts in USD millions Total Floaters Jack-ups Other Contract revenues 853 575 278 — Reimbursable revenues 37 37 — — Other revenues 69 32 4 33 Total operating revenues 959 644 282 33 (Loss)/gain on disposals* (93) (89) (4) — Contingent consideration realized 19 19
Slide 17: Operating Income - Floaters
Operating Income - Floaters Unaudited accounts in USD millions 4Q15 3Q15 2Q15 1Q15(1) Total operating revenues 644 647 786 846 (Loss)/gain on disposals* (89) (80) (75) — Contingent consideration realized 19 19 6 4 Vessel and rig operating expenses 235 233 265 267 Reimbursable expenses 29 24 12 19 De
Slide 18: Operating Income – Jack-up Rigs
Operating Income – Jack-up Rigs Unaudited accounts in USD millions 4Q15 3Q15 2Q15 1Q15(1) Total operating revenues 282 306 328 385 (Loss)/gain on disposals* (4) (3) — 186 Contingent consideration realized — — — — Vessel and rig operating expenses 107 117 128 168 Reimbursable expenses — 4 7 3 Depreci
Slide 19: Operating Income – Total Seadrill Limited
Operating Income – Total Seadrill Limited Unaudited accounts in USD millions 4Q15 3Q15 2Q15 1Q15 Total operating revenues 959 985 1,147 1,244 (Loss)/gain on sale of assets* (93) (82) (75) 186 Contingent consideration realized 19 19 6 4 Vessel and rig operating expenses 369 374 422 446 Reimbursable e
Slide 20: Net Income – Total Seadrill Limited
Net Income – Total Seadrill Limited Unaudited accounts in USD millions 4Q15 3Q15 2Q15 1Q15 Net operating income/(loss) 223 (291) 384 703 Financial items and other income Interest income 18 15 17 17 Interest expense (98) (105) (100) (112) Loss on impairment of investments — (1,274) — — Share in resul
Slide 21: Balance Sheet - Assets
Balance Sheet - Assets Unaudited accounts in USD millions December 31, September 30, December 31, 2015 2015 2014 Current assets Cash and cash equivalents 1,044 1,181 831 Restricted cash 50 71 268 Marketable securities 96 247 426 Accounts receivables, net 718 729 1,017 Other current assets 1,034 880
Slide 22: Balance Sheet – Liabilities & Shareholder’s Equity
Balance Sheet – Liabilities & Shareholder’s Equity Unaudited accounts in USD millions December 31, September 30, December 31, 2015 2015 2014 Current liabilities Current portion of long-term debt 1,489 1,645 2,267 Trade accounts payable 141 116 84 Other current liabilities 1,836 1,805 2,181 Total cur