Slide 1: Q1 2017 Results
Q1 2017 Results May 24, 2017 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: Operations, Commercial, Costs, Newbuilds
Operations Seadrill Limited economic utilisation of 98% Commercial Active spot market $900 million net backlog increase Costs Headcount reduced 26% from year end 2015 Newbuilds West Mira arbitration settlement concluded Ongoing constructive dialogue to further defer deliveries 4
Slide 5: Operational highlights: Q1 2017
Operational highlights: Q1 2017 Current backlog 2,000.00 1,500.00 Current order backlog of $3.4 billion $ million $7.1 billion for Seadrill Group 1,000.00 500.00 - 2017 2018 2019+ Economic utilization (floater fleet) 100 95 Safe and efficient operations Utilization % 90 85 98 99 97% economic
Slide 6: Financial Performance
Seadnill Financial Performance
Slide 7: Revenue & EBITDA bridge
Revenue & EBITDA* bridge Revenue • Volume: Full quarter of operations 750 on the West Castor and the West 725 Phoenix commenced operations 700 675 650 • Dayrates: No change 625 600 575 • Utilization: Decreased uptime 550 525 500 • Idle units: The West Saturn became 475 idle during the quarter and we
Slide 8: Balance sheet main movements
Balance sheet main movements Quarter over quarter Mai March 31, December 31, Change 2017 2016 Marketable securities 94 110 (16) Accounts receivables 377 462 (85) Amount due from related party – current 327 376 (49) Other current assets 285 495 (210) Other current liabilities 1,215 1,352 (137) Total
Slide 9: Restructuring update
Restructuring update Long stop date extended to July 31 New money proposal received Certain bondholders have become restricted again Likely requirement to convert bonds to equity Shareholders likely to receive minimal recovery for existing shares Implementation via C11 or schemes of arra
Slide 10: Q2 2017 guidance
Q2 2017 guidance EBITDA* is forecasted to be around $240 million, based on forecasted Operating Income of around $40 million. 10
Slide 11: Market Outlook
Seadnill a CCEA NEPTUNE 11
Slide 12: Summary: strong operating quarter, growing backlog, restructuring progress
Strong operating quarter Growing backlog Progress on restructuring plan 12
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Slide 14: Appendix: Seadrill Limited Financials
Appendix: Seadrill Limited Financials 14
Slide 15: Appendix – Non-GAAP Financial Measures
Appendix – Non-GAAP Financial Measures * EBITDA is defined as 'Earnings Before Interest, Tax, Depreciation and Amortization' and has been calculated by taking operating income plus depreciation and amortization, but excluding gains or losses on disposals and impairment charges against long-lived ass
Slide 16: Financial Performance Highlights
Financial Performance Highlights Unaudited accounts in USD millions Q1 2017 Q4 2016 Change % Change Total operating revenue 569 667 (98) (15%) Contingent consideration realized 5 6 (1) (17%) Total operating expenses 491 586 (95) (16%) Net operating income 83 87 (4) (5%) EBITDA 291 354 (63) (18%) 16
Slide 17: Balance Sheet Summary
Balance Sheet Summary Unaudited accounts in USD millions March 31, December 31, Change %Change 2017 2016 • Total assets of Total current assets 2,640 2,886 (246) (9%) $21,305 million as at Non-current assets March 31, 2017 Investment in associated companies 2,230 2,168 62 3% Newbuildings 1,543 1,531
Slide 18: Operating Income - 1Q17
Operating Income - 1Q17 Unaudited accounts in USD millions Total Floaters Jack-ups Other Contract revenues 510 333 177 — Reimbursable revenues 13 10 3 — Other revenues 46 26 1 19 Total operating revenues 569 369 181 19 Contingent consideration realized 5 5 — — Vessel and rig operating expenses 211 1
Slide 19: Operating Income - Floaters
Operating Income - Floaters Unaudited accounts in USD millions 1Q17 4Q16 3Q16 2Q16 Total operating revenues 369 458 528 610 Contingent consideration realized 5 6 5 5 Vessel and rig operating expenses 123 133 161 152 Reimbursable expenses 9 14 10 13 Depreciation and amortization 153 167 143 142 Gener
Slide 20: Operating Income – Jack-up Rigs
Operating Income – Jack-up Rigs Unaudited accounts in USD millions 1Q17 4Q16 3Q16 2Q16 Total operating revenues 181 186 199 234 Vessel and rig operating expenses 70 81 69 75 Reimbursable expenses 2 2 3 1 Depreciation and amortization 55 56 51 51 General and administrative expenses 21 20 14 15 Total
Slide 21: Operating Income – Total Seadrill Limited
Operating Income – Total Seadrill Limited Unaudited accounts in USD millions 1Q17 4Q16 3Q16 2Q16 Total operating revenues 569 667 743 868 Contingent consideration realized 5 6 5 5 Vessel and rig operating expenses 211 234 243 248 Reimbursable expenses 11 16 13 14 Depreciation and amortization 208 22
Slide 22: Net Income – Total Seadrill Limited
Net Income – Total Seadrill Limited Unaudited accounts in USD millions 1Q17 4Q16 3Q16 2Q16 Net operating income 83 87 247 364 Financial items and other income Interest income 20 13 17 16 Interest expense (99) (107) (98) (105) Loss on impairment of investments — — (882) — Share in results from associ
Slide 23: Balance Sheet - Assets
Balance Sheet - Assets Unaudited accounts in USD millions March 31, December 31, December 31, 2017 2016 2015 Current assets Cash and cash equivalents 1,462 1,368 1,044 Restricted cash 95 75 50 Marketable securities 94 110 96 Accounts receivables, net 377 462 718 Other current assets 612 871 1,034 To
Slide 24: Balance Sheet – Liabilities & Equity
Balance Sheet – Liabilities & Equity Unaudited accounts in USD millions March 31, December 31, December 31, 2017 2016 2015 Current liabilities Debt due within one year 3,364 3,195 1,489 Trade accounts payable 97 93 141 Other current liabilities 1,271 1,435 1,712 Total current liabilities 4,732 4,723