Seadrill Limited · NYSE:SDRL
Seadrill — Q1 2016 Earnings Presentation
22 slides from Seadrill's earnings presentation, May 26, 2016
Slide 1: Q1 2016 Results
Q1 2016 Results May 26, 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: Agenda
Agenda 1 Highlights 2 Financial Performance 3 Market Outlook 4 Summary and Q&A 3
Slide 4: Summary highlights: Q1 2016
Summary highlights: Q1 2016 Operations Strong operational uptime Seadrill Group economic utilisation of 97% Costs Total operating costs reduced by $79 million during the quarter with no incremental idle units Newbuilds Agreement reached with DSME to defer the delivery of the West Aquil
Slide 5: Operational highlights: Q1 2016
Operational highlights: Q1 2016 Current backlog 2000 1500 Current order backlog of $4.3 billion $ million 1000 $9.1 billion for Seadrill Group 500 0 2016 2017 2018 2019+ Economic utilization (floater fleet) 100 95 90 Safe and efficient operations Utilization % 85 97% economic utilization for
Slide 6: Financial Performance
Financial performance highlights Financial Performance 6
Slide 7: Revenue & EBITDA bridge
Revenue & EBITDA bridge Revenue 1000 • Volume: No change 975 • Dayrates: Dayrate reductions 950 on the West Tellus, Sevan 925 Brasil, West Mischief, AOD I, 900 II, and III 875 850 • Utilization: Improved uptime 825 800 4Q15 Volume Dayrates Utilization Idle units Other 1Q16 • Idle units: Full quarter
Slide 8: Balance sheet main movements
Balance sheet main movements Quarter Mai over quarter March 31, December 31, Change 2016 2015 Restricted cash – current 104 50 54 Restricted cash – non current 35 198 (163) Marketable securities – current 286 96 190 Marketable securities – non current - 228 (228) Current portion of long term debt 1,
Slide 9: Liquidity
Liquidity Q1 liquidity $1.09 billion in cash and cash equivalents at quarter end Operations continue to generate good cashflow Cost benefits coming through Rig operating costs down $79 million quarter over quarter Total cost savings for the year targeted at $305 million No newbuild instal
Slide 10: Financing status
Financing status Three nearest maturing facilities extended Covenants amended in our secured credit facilities Milestones in place Expect to conclude by year end 10
Slide 11: Guidance
Guidance Q2 2016 guidance EBITDA is forecasted to be around $510 million 11
Slide 12: Market Outlook
Financial performance highlights Market Outlook 12
Slide 13: Concluding remarks
Concluding remarks Record operating quarter Step 1 of refinancing completed Managing yard commitments No newbuild deliveries planned in 2016 13
Slide 14: Q&A
Q&A 14
Slide 15: Appendix: Seadrill Limited Financials
Appendix: Seadrill Limited Financials 15
Slide 16: Operating Income - 1Q16
Operating Income - 1Q16 Unaudited accounts in USD millions Total Floaters Jack-ups Other Contract revenues 808 566 242 — Reimbursable revenues 18 14 4 — Other revenues 65 36 — 29 Total operating revenues 891 616 246 29 Contingent consideration realized 5 5 — — Vessel and rig operating expenses 290 1
Slide 17: Operating Income - Floaters
Operating Income - Floaters Unaudited accounts in USD millions 1Q16 4Q15 3Q15 2Q15 Total operating revenues 616 644 647 786 Loss on disposals* — (89) (80) (75) Contingent consideration realized 5 19 19 6 Vessel and rig operating expenses 181 235 233 265 Reimbursable expenses 14 29 24 12 Depreciation
Slide 18: Operating Income – Jack-up Rigs
Operating Income – Jack-up Rigs Unaudited accounts in USD millions 1Q16 4Q15 3Q15 2Q15 Total operating revenues 246 282 306 328 Loss on disposals — (4) (3) — Vessel and rig operating expenses 88 107 117 128 Reimbursable expenses 4 — 4 7 Depreciation and amortization 52 50 51 50 General and administr
Slide 19: Operating Income – Total Seadrill Limited
Operating Income – Total Seadrill Limited Unaudited accounts in USD millions 1Q16 4Q15 3Q15 2Q15 Total operating revenues 891 959 985 1,147 Loss on sale of assets* — (93) (82) (75) Contingent consideration realized 5 19 19 6 Vessel and rig operating expenses 290 369 374 422 Reimbursable expenses 18
Slide 20: Net Income – Total Seadrill Limited
Net Income – Total Seadrill Limited Unaudited accounts in USD millions 1Q16 4Q15 3Q15 2Q15 Net operating income/(loss) 328 223 (291) 384 Financial items and other income Interest income 20 18 15 17 Interest expense (102) (98) (105) (100) Loss on impairment of investments (24) — (1,274) — Share in re
Slide 21: Balance Sheet - Assets
Balance Sheet - Assets Unaudited accounts in USD millions March 31, December 31, September 30, 2016 2015 2015 Current assets Cash and cash equivalents 1,092 1,044 1,181 Restricted cash 104 50 71 Marketable securities 286 96 247 Accounts receivables, net 710 718 729 Other current assets 949 1,034 873
Slide 22: Balance Sheet – Liabilities & Shareholder’s Equity
Balance Sheet – Liabilities & Shareholder’s Equity Unaudited accounts in USD millions March 31, December 31, September 30, 2016 2015 2015 Current liabilities Current portion of long-term debt 1,278 1,489 1,645 Trade accounts payable 152 141 116 Other current liabilities 1,804 1,836 1,805 Total curre