Slide 1: Q4 2018 Results
Q4 2018 Results February 26, 2019
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 & Market Outlook 2 Financial Performance 3 Q&A 3
Slide 4: Q4 2018 Highlights
Q4 2018 Highlights Economic utilization of 96% Backlog of $2 billion Total cash of $2 billion Economic utilization(1) Backlog 100 1,200 95 1,000 90 800 Utilization % $ million 85 600 98 96 80 400 75 200 70 - Q3 18 Q4 18 2019 2020 2021 2022+ Backlog as at Feb 2019 Backlog at added since Q3 2018
Slide 5: Market Outlook
Market Outlook Market continues to improve despite decline in oil price in late Q4 Better dayrates, utilization, tendering activity and contract economics Continued consolidation should lead to increased scrapping and a more disciplined market 5
Slide 6: Joint Venture with Sonangol
Joint Venture with Sonangol Seadrill will manage and operate 2 Seadrill drillships and 2 newbuild drillships from Sonangol. Well positioned for new contracting opportunities in high growth Angolan market Opportunity to continue expanding fleet of premium rigs Libongos and 2 Drillships from Que
Slide 7: Financial Performance
Financial performance highlights Financial Performance 7
Slide 8: Revenue & EBITDA Bridge
Revenue & EBITDA* Bridge Revenue Volume: West Phoenix and West 350 Hercules commencing contracts in the 300 quarter. 250 Dayrate: Increased dayrates on the 200 West Elara, West Phoenix and West 150 Hercules 100 Utilization: Downtime on the Sevan 50 Louisiana 0 3Q18 Volume Dayrate Utilization Other 4
Slide 9: Balance Sheet main movements
Balance Sheet main movements $millions 4Q18 3Q18 Change Current assets 2,767 3,036 (9)% Non-current assets 8,081 8,282 (2)% Total assets 10,848 11,318 (4)% Current liabilities 464 597 (22)% Non-current liabilities 7,311 7,282 —% Equity and redeemable non-controlling interest 3,073 3,439 (11)% Total
Slide 10: Our joint ventures and investment holdings
Our joint ventures and investment holdings Backlog: $1.0 billion Backlog: $1.1 billion Revenue: $220 million Revenue: $58 million Adjusted EBITDA: $130 million EBITDA: $37 million Cash: $842 million Cash: $99 million Debt of $3.1 billion Debt: $731 million comprised of: ‒ $333 mi
Slide 11: Financing and liquidity
Financing and liquidity Good liquidity with $2.0 billion of cash at Q4 2018 No debt amortisation payments until 2020, with the ability to defer up to 2021 No debt maturities until June 2022 No financial covenants until 2021, other than minimum liquidity Net leverage and DSCR covenants in 2
Slide 12: Consent Solicitation and Tender Offer
Consent Solicitation and Tender Offer Consent solicitation launched on February 22, 2019 • Various amendments sought to improve flexibility to repurchase the Senior Secured Notes • Consent fee 25 basis points • Required majority of Note holders representing greater than 50% of the principal amount
Slide 13: Q1 2019 Guidance
Q1 2019 Guidance Q1 2019 guidance Adjusted EBITDA* is forecasted to be around $60 million. * Adjusted EBITDA is defined in the Appendix 13
Slide 14: Seadrill
Seadrill | nn Se een 14
Slide 15: Appendix: Seadrill Limited Financials
Appendix: Seadrill Limited Financials 15
Slide 16: Appendix – Non-GAAP Financial Measures
Appendix – Non-GAAP Financial Measures *Adjusted EBITDA represents operating income before depreciation, amortization and similar non-cash charges. Additionally, in any given period we may have significant, unusual or non-recurring items which we may exclude from Adjusted EBITDA for that period. Whe