Seadrill Limited · NYSE:SDRL

Seadrill — Q1 2010 Earnings Presentation

21 slides from Seadrill's earnings presentation, May 27, 2010

  1. Slide 1: Conference call 1Q 2010 results

    Conference Conferencecall call1Q 1Q2010results 2010 results May May 27,27, 2010 2010

  2. Slide 2: Contents

    Contents ƒ Highlights 1Q 2010 ƒ 1Q 2010 accounts ƒ Operational status and performance ƒ Fleet contract status ƒ Market outlook ƒ Dividend policy ƒ Strategy ƒ Summary 2

  3. Slide 3: Highlights first quarter 2010

    Highlights first quarter 2010 ƒ EBITDA of US$434 million compared to US$486 million in the preceding quarter ƒ Earnings per share of US$0.49 ƒ Regular dividend increased to US$0.60 per share ƒ Takes delivery of the three newbuilds ƒ Awarded new contracts totaling some US$2.7 billion ƒ Acquires a new

  4. Slide 4: EBITDA contribution

    EBITDA contribution US$ MILLION Quarterly EBITDA performance 4

  5. Slide 5: Mobile units

    Seadnill Mobile units Unaudited accounts in USD millions 1Q10 4Q09 Operating revenues 582 617 Reimbursables 8 10 Other revenues 10 11 Total revenues 600 638 Gain on sale of assets 0 50 Vessel and rig operating expenses 195 222 Reimbursable expenses 8 9 Depreciation and amortisation 85 88 General and

  6. Slide 6: Tender rigs

    Tender rigs Unaudited accounts in USD millions 1Q10 4Q09 Operating revenues 89 84 Reimbursables 3 4 Total revenues 92 88 Vessel and rig operating expenses 39 40 Reimbursable expenses 2 3 Depreciation and amortisation 12 10 General and adminstrative expenses 4 5 Total operating expenses 57 58 Operati

  7. Slide 7: Condensed income statement

    Condensed income statement 7

  8. Slide 8: Balance sheet

    Balance sheet Total assets Unaudited accounts in USD million 31.03.10 31.12.09 Current assets Cash (incl restrictive) 449 602 Marketable securities 708 742 Accounts receivables 402 452 Other current assets 611 465 Total current assets 2170 2 261 Non-current assets Investment in associated companies

  9. Slide 9: Balance sheet - Liability and equity

    Balance sheet Liability and equity 9

  10. Slide 10: Worldwide operations

    Worldwide operations 1 drillship newbuild at Samsung, Korea Europe - 5 units - 3 Semis 1 semi new- - 1 Jack-up builds at Jurong, - 1 Drillship Singapore 3+1 jack-up & GoM - 1 unit 1 semi-tender - 1 Semi newbuilds in Singapore Brazil - 4 units Southeast Asia - 2 units - 3 Semis - 2 Semis - 1 Drillshi

  11. Slide 11: Average utilization rate deepwater newbuilds

    Average utilization rate deepwater newbuilds Performance closer to expectations 11

  12. Slide 12: Seven more newbuilds that secure growth

    Seven more newbuilds that secure growth ƒ Deepwater floaters - Drillship West Gemini – 2Q2010 - Semi West Capricorn – 4Q2011 ƒ Tender rigs - Semi-tender West Jaya – 1Q2011 ƒ Benign environment Jack-ups - West Leda – 3Q2010 - West Callisto – 3Q2010 - West Juno – 4Q2010 ƒ Harsh environment Jack-up - C

  13. Slide 13: Investment in new harsh environment jack-up rig

    Investment in new harsh environment jack-up rig ƒ Gusto MSC CJ70 X150A design ƒ 150 meter water depth capacity ƒ Ultra-large harsh environment jack-up ƒ Yard price approximately US$356 million ƒ Delivery scheduled end of 2Q2011 ƒ 5-year contract awarded by Statoil for operations in Norway ƒ Dayrate

  14. Slide 14: Deepwater market outlook

    Deepwater market outlook ƒ Long-term market drivers intact as global oil basins mature and decline rates steepening Historical dayrates for ultra-deepwater rigs 700 ƒ Exploration for larger reserves taking 600 place in more challenging and rig 500 intensive deepwater markets USDk/day 400 300 ƒ Brazi

  15. Slide 15: Contract backlog

    Contract backlog Strongest growth in backlog in our peer group 15

  16. Slide 16: US$9.5 billion contract backlog - Floaters

    US$9.5 billion contract backlog - Floaters Superb earnings visibility 16

  17. Slide 17: US$1.3 billion contract backlog - Jack-ups

    US$1.3 billion contract backlog - Jack-ups Improved market outlook 17

  18. Slide 18: US$1.5 billion contract backlog - Tender rigs

    US$1.5 billion contract backlog - Tender rigs Balanced contract portfolio 18

  19. Slide 19: Dividend distribution and policy

    Dividend distribution and policy ƒ Dividend resolved at US$0.60 per share, up from US$0.55 ƒ Increase reflects significant improvement in earnings visibility and more favorable debt markets related to financing of our operations ƒ Future dividend depends on: ƒ Debt leverage ƒ Contract coverage ƒ Cap

  20. Slide 20: Strategy

    Strategy ƒ Ambition to grow in fleet of premium assets ƒ Focus on operations with operation excellence ƒ Maintain financial leverage ƒ Distribution of cash dividends ƒ Develop current shareholdings ƒ Entertain further consolidation through M&A activities Grow our Company …. build shareholder value 2

  21. Slide 21: Strong platform for growth

    Strong platform for growth 21

Seadrill — Q1 2010 Earnings Presentation on 6ix