Slide 1: Conference call – Q4 2011 results
Conference call – Q4 2011 results February 29, 2012
Slide 2: Contents
Contents Highlights 4Q 2011 Market prospects New investments Contract backlog 4Q 2011 accounts Seadrill North Atlantic Drilling Q&A session 6th gen. semi-submersible rig West Leo 2
Slide 3: Highlights – Full year 2011
Highlights – Full year 2011 Seadrill generates 2011 EBITDA of US$2,337 million Earnings per share of US$3.09 US$3.06 per share in cash dividends to shareholders Record uptime performance for rig fleet Added 8 newbuilds and increased our investment program by US$2.9 billion Increased contract backlog
Slide 4: Highlights – Fourth quarter 2011
Highlights – Fourth quarter 2011 Seadrill generates fourth quarter 2011 EBITDA of US$575 million Continued sound operation of a growing rig fleet Seadrill reports fourth quarter 2011 net loss of US$82million and loss per share of US$0.23 Earnings adversely impacted by US$463 million mark-to-market i
Slide 5: Highlights – Recent contracts
Highlights – Recent contracts West Offshore Offshore West West Leda Defender Mischief Navigator Esperanza Dayrate US$133,500 US$130,000 US$172,000 US$595,000 US$235,000 Contract term 1.5 years 4 years 6 months 1.5 years 1.5 years Rig type Jack-up Jack-up Jack-up Drillship Semi-tender Area Malaysia B
Slide 6: Highlights - Market trends
Highlights - Market trends Ultra-deepwater international Limited rig availability the next two years Significant exploration success Strong increase in demand for new equipment absorbing newbuilds Daily rates continuing higher - expected to exceed US$600,000 Newbuild price development is flat Harsh
Slide 7: Highlights – Two new drillships ordered at Samsung
Highlights – Two new drillships ordered at Samsung 2 ultra-deepwater units Samsung design 12,000ft water depth capacity Total project cost per rig US$600 million Deliveries scheduled in 2Q and 3Q/2014 Technical specifications Water depth - 12,000ft Riser - 10,000ft Top-drive / Hook load - 1,250 st C
Slide 8: Floaters - US$9.0 billion contract backlog
Floaters - US$9.0 billion contract backlog Significant exposure to strong prospects 8
Slide 9: Jack-ups - US$2.7 billion contract backlog
Jack-ups - US$2.7 billion contract backlog A strong blend of short and long-term contracts 9
Slide 10: Tender rigs - US$1.7 billion contract backlog
Tender rigs - US$1.7 billion contract backlog Rig demand pushes EBIDA margins higher 10
Slide 11: Seadrill considers a separate listing of its Brazilian deepwater operations
Seadrill considers a separate listing of its Brazilian deepwater operations Seabras would be a Brazilian listed company majority owned by Seadrill Initial fleet to include: 3 ultra-deepwater rigs Rationale for listing: National player in the single largest UDW market Separate funding vehicle for gro
Slide 12: Seadrill in pole position
Seadrill in pole position Versatile fleet of brand new rigs Global footprint and critical mass in all important regions Strong operational performance Record high revenue backlog and earnings visibility Significantly improved market conditions for ultra-deepwater units and tender rigs Debt financing
Slide 13: Financial performance highlights
Financial performance highlights 13
Slide 14: EBITDA contribution
EBITDA contribution USD millions 700 618 612 600 — 573 579 -10 011 575 500 —- 400 —- 300 — 246 234 594 200 -- 159 100 -- 1Q08 2008 | 3Q08 | 4008 | 1009 | 2009 | 3Q09 | 4009 | 1Q10 | 2Q10 | 3Q10| 4Q10} 1011 | 2Q11 | 3Q11 | Floaters} Jack-up | Tender | 4Q11 rigs rigs Gain from sale of assets 14 Seadii
Slide 15: Operating Income
Seadnill Operating Income OPERATING INCOME TOTAL SEADRILL LIMITED Unaudited accounts in USD millions 4Q11 3Q11 2Q11 1Q11 Contract revenues 1040 1007 968 1081 Reimbursables 22 24 24 26 Other revenues (3) (2) 3 3 Total operating revenues 1059 1029 995 1110 Gain on sale of assets (1) 23 ) 0 Vessel and
Slide 16: Net Income
Seadnill Net Income NET INCOME TOTAL SEADRILL LIMITED Unaudited accounts in USD mitions 4Q11 3Q11 2Q11 1Q11 Net operating income 436 480 430 430 Financial items Interest income 4 5 5 6 Interest expense (75) (64) (80) (77) Share in results from associated companies (482) 26 17 19 Gain/ (Loss) on fina
Slide 17: Operating Income - Floaters
Operating Income - Floaters 17
Slide 18: Operating Income – Jack-up rigs
Operating Income – Jack-up rigs 18
Slide 19: Operating Income – Tender rigs
Operating Income – Tender rigs 19
Slide 20: Seadrill Balance Sheet
20 Seadrill Balance Sheet BALANCE SHEET Assets Unaudited accounts in USD millions 31.12.2011 30.09.11 Current assets Cash and cash equivalents 483 464 Restricted cash 232 241 Marketable securities 24 32 Accounts receivables, net 720 692 Amount due from related party 185 176 Other current assets 320
Slide 21: Seadrill Balance Sheet
Seadnill Seadrill Balance Sheet Liabilities and Shareholders’ Equity Unauoited accounts in USD mitions 31.12.2011 30.09.11 Current liabilities Current portion of long term debt 1419 1047 Trade accounts payable 38 42 Other current liabilities 1251 1370 Total current liabilities 2708 2459 Non-current
Slide 22: Financial reporting highlights
North Atlantic Drilling Financial reporting highlights 22
Slide 23: US Listing
North Atlantic Drilling US Listing Rationale for a US listing Stock liquidity and to attract yield investors - strategy has served Seadrill well US investors’ competence of the offshore drilling business is generally high Preliminary investor feedback tells us that a North Atlantic US listing will b
Slide 24: Asset portfolio
Asset portfolio Core fleet – 52 units built after Y2000 10 built before Y2000 19 Ultra-Deepwater Units + 1 Mid-water semi 1 Mid-water Semi 19 High Specification Jack-ups 2 Jack-ups 13 Tender Rigs 7 Tender Rigs Shareholdings 23.6% of Sapura Crest (MV - US$496m) 39.9% of Archer (MV - US$385m) 33.75% o