Slide 1: Conference call – Q3 2011 results
Conference call – Q3 2011 results November 30, 2011
Slide 2: Contents
Contents Highlights 3Q 2011 New contracts and fleet status New bank debt Market Outlook 3Q 2011 accounts Seadrill North Atlantic Drilling Q&A session 6th gen. semi-submersible rig West Capricorn 2
Slide 3: Highlights – Third quarter 2011
Highlights – Third quarter 2011 Seadrill generates third quarter 2011 EBITDA of US$612 million Strong economic utilization of rig fleet maintained Earnings adversely impacted by loss on interest rate swaps following drop in interest rate levels Seadrill reports third quarter 2011 net income
Slide 4: Market fundamentals
Market fundamentals Oil prices remain at historically high 160 Brent Spot Price levels 140 120 U S $ p er b arre l 100 Higher growth in E&P spending 80 60 40 Industry focused on new equipment 20 0 continues in all markets segments M -04 M -05 M -06 M -07 M -08 M -09 M -10 M -11 Ja 0 4 Ja 0 5 J
Slide 5: Highlights – New ultra deepwater contracts
Highlights – New ultra deepwater contracts West Hercules West Capricorn West Leo West Aquarius Dayrate US$500,000 US$487,500 US$510,000- US$530,000 561,000 Contract term 4+1 years 5+2 years 1 year 2+2 years Rig type Semi Semi Semi Semi Area Norway US GoM Ghana Canada Customer Statoil TBA Tullow Exxo
Slide 6: US$9.3 billion contract backlog - Floaters
US$9.3 billion contract backlog - Floaters Staggered contract portfolio offers flexibility 6
Slide 7: Highlights - Jack-up contracts
Highlights - Jack-up contracts West Ariel West Callisto West Prospero Dayrate US$129,000 US$135,000 US$129,000 Contract term 1 year 5 months 1 year Area Vietnam Andaman Sea Vietnam Customer VSP Total VSP Sound demand for premium jack-ups 7
Slide 8: US$2.5 billion contract backlog - Jack-ups
US$2.5 billion contract backlog - Jack-ups A strong mix of short and long-term contracts 8
Slide 9: US$1.7 billion contract backlog - Tender rigs
US$1.7 billion contract backlog - Tender rigs Effective units … support strong EBITDA margins 9
Slide 10: US$950 million senior secured bank facilities
US$950 million senior secured bank facilities New West Capricorn facility New Jack-up facility Loan amount: US$550 mill. Loan amount: US$400 mill. Tenor: 5 years Tenor: 5 years Profile: 10 years Profile: 10 years Security: UDW rig West Capricorn Security: 4 jack-ups Margin: In line
Slide 11: Seadrill is uniquely positioned
Seadrill is uniquely positioned Diverse versatile fleet of brand new rigs Strong and steady operational performance Significant improved market conditions for ultra-deepwater units Operations expanding to new countries and geographical regions Record high order backlog and earnings visibil
Slide 12: Financial performance highlights
Financial performance highlights 12
Slide 13: EBITDA contribution
Seadrill EBITDA contribution USD millions 700 —- —_ 612 600 + 11-7) 6 560 573 579 mo 500 + 497 486 a5 438 434 347 300 + 246 234 924 200 -- [| 159 100 -- 1Q08 | 2Q08 | 3Q08 | 4Q08 | 1Q09 | 2Q09 | 3Q09 | 4Q09 | 1Q10 | 2Q10 | 3Q10| 4Q10| 1Q11 | 2Q11 |Floaters| Jack-up| Tender} 3Q11 rigs rigs _ Gain fro
Slide 14: Operating Income
Seadnill Operating [ncome Total Seadrill Unaudited accounts in USD millions 3Q11 2Q11 1Q11 4Q10 Operating revenues 1 007 968 1081 1105 Reimbursables 24 24 26 60 Other revenues -2 3 3 4 Total operating revenues 1 029 995 1110 1 169 Gain on sale of assets 23 0 0 26 Vessel and rig operating expenses 36
Slide 15: Net Income
15 Net |[ncome Total Seadrill Unaudited accounts in USD millions 3Q1 1 201 1 1 Q1 1 4Q1 0 Net operating income 480 430 430 479 Financial items Interest income 8) 5 6 6 Interest expense -64 -80 -77 -109 Share in results from associated companies 26 17 19 10 Gain on derivatives -330 -90 41 77 Other fi
Slide 16: Operating Income - Floaters
Operating Income - Floaters 16
Slide 17: Operating Income – Jack-up rigs
Operating Income – Jack-up rigs 17
Slide 18: Operating Income – Tender rigs
Operating Income – Tender rigs 18
Slide 19: Seadrill Balance Sheet
19 Seadrill Balance Sheet Assets Unaudited accounts in USD millions 30.09.11 30.06.11 Current assets Cash (incl restrictive) 705 658 Marketable securities 32 40 Accounts receivable 692 759 Other current assets 454 508 Total current assets 1 883 1 965 Non-current assets Investments in associated comp
Slide 20: Seadrill Balance Sheet
20 Seadrill Balance Sheet Liabilities and Shareholders Equity Unaudited accounts in USD millions 30.09.11 30.06.11 Current liabilities Current portion of long-term debt 1 047 977 Other current liabilities 1412 1 089 Total current assets 2459 2 066 Non-current liabilities Long-term interest bearing d
Slide 21: Financial reporting highlights
North Atlantic Drilling Financial reporting highlights 21
Slide 22: Operating Income
North Atlantic Drilling Operating Income 22
Slide 23: Net Income
North Atlantic Drilling Net Income 23
Slide 24: Balance Sheet
North Atlantic Drilling Balance Sheet 24
Slide 25: Balance Sheet
North Atlantic Drilling Balance Sheet 25
Slide 26: Relevant Tax events
North Atlantic Drilling Relevant Tax events Increase in corporate income tax rate for Svalbard from 16% to 28% Transfer of remaining two rigs out of Svalbard in 2011 Acceleration of deferred income tax in 2010 and 2011 tax filings US$167 million in capital gains taxes payable in 2011 and 201
Slide 27: Asset portfolio
Asset portfolio Core fleet – 50 units built after Y2000 10 built before Y2 000 17 Ultra-Deepwater Units + 1 Mid-water semi 1 Mid-water Semi 20 High Specification Jack-ups 2 Jack-ups 13 Tender Rigs 7 Tender Rigs Shareholdings 3.5% of Ensco (MV - US$387m) 39.9% of Archer (MV - US$452m) 23.6% of Sapura