Seadrill Limited · NYSE:SDRL
Seadrill — Seawell — Investor Presentation (September 2007)
26 slides from Seadrill's investor presentation, Sep 21, 2007
Slide 1: Seawell Ltd Private placement of shares
Seawell Ltd Private placement of shares NOKm 275 21 September 2007 Solely for review in connection with the Equity Offering – not for reproduction or distribution The information contained herein may be subject to change without prior notice Please note that this is not an offering document
Slide 2: Disclaimer
Confidential Disclaimer This Presentation has been produced by Seawell Ltd. (the “Company” or “Seawell”) with assistance from Carnegie ASA and Pareto Securities ASA, solely for use at the presentation to investors held in connection with the proposed offering of shares by the Company and may not be
Slide 3: Risk factors
Risk factors All equity investments involve elements of risk. In the following a selection of the various risk elements that are considered particularly relevant tp Seawell Ltd. (“Seawelll” or the “Company”) are presented. The description is not necessarily exhaustive, and factors not discussed may
Slide 4: Transaction summary
Transaction summary Private placement Timetable & key conditions Private placement of 20 million new shares Subscription period: 21 September 2007 16:30 Price: NOK 13.75 per share CET – 24 September 2007 08:30 CET 100 million shares outstanding after private Book may be closed earlier at t
Slide 5: Investment highlights
Confidential Investment highlights Well services – late cycle oil and gas production exposure Mature assets will require increased well services Oil companies fighting declining production with increased oil recovery initiatives Growing number of subsea wells will require extensive well serv
Slide 6: Why create a separate well services company?
Why create a separate well services company? The well services market is changing and growing. This requires dedicated focus Maturing assets combined with a growing number of subsea wells creates strong demand for services Platform drilling business provides excellent position to channel other
Slide 7: What we do
What we do Seawell offers services within two divisions: Platform drilling and engineering involves delivering production drilling and well maintenance services on 21 platforms, as well as engineering services Approximately 1,600 experienced employees Operation and maintenance of the drilling fa
Slide 8: A late cyclical company
A late cyclical company Drilling Operations Fabric. & Decommis- Seismic Pre-eng. and (E & D) Installation sioning maintenance Mature assets will require increased well services in order to maintain oil production rates A growing number of subsea wells will require extensive well services On th
Slide 9: Seawell to follow Seadrill’s international expansion
Seawell to follow Seadrill’s international expansion Seawell operations Seadrill operations Management and Engineering Norway - 4 units • Drilling UK (10 platforms) 2 Semis • Drilling Norway (11 platforms) 1 Jack-up 1 Drillship Well Services activities • Wireline Norway and Denmark Current Previous
Slide 10: Seawell 5-year strategy
Seawell 5-year strategy Platform Drilling & Engineering Well Intervention Continue to provide fully integrated Total well intervention contractor with services on fixed installations wireline conveying, tractor, plug and sub sea capabilities incl. well Drilling engineering and modification int
Slide 11: Company overview
Company overview Seawell Ltd (Bermuda) Seawell Holding Seawell UK Ltd Management AS Platform Drilling Well Intervention & Engineering 1,600 people in the 200 people in Norway North Sea and Denmark Legal entity Operational division 11
Slide 12: Oil companies need to improve recovery rates
Oil companies need to improve recovery rates Increasing need for well Trend in organic reserve replacement ratios services/well intervention Major oil companies indicate Oil and gas reserves (organic growth) that 10 - 30% of their subsea 6% 2% wells require intervention each 4% 1% year 2% 0% 0%
Slide 13: Well services creates significant added value
Well services creates significant added value Business rationale Impact on production and economics Increased oil recovery (IOR) critical to Schematic overview of oil field mitigate declining production production profile scenarios Oil recovery ratio from platform/dry wells is significantly high
Slide 14: Subsea well intervention will be the next big growth market
Subsea well intervention will be the next big growth market Number of subsea wells 6,500 Intervention required after some years of production Typically due to Increased water production 3,500 3,500 Production of sand and solids Gas breakthrough Scaling up of wells 1,800 1,800 600 2002 20
Slide 15: Strong track record lays foundation for future growth
Strong track record lays foundation for future growth Op. revenues, NOKm 1) EBITDA, NOKm 2,500 300 CAGR 2003-2006 250 2,000 Revenues +30% EBITDA +31% 1H06 vs. 1H07 200 Revenues +24% 1,500 EBITDA +32% 150 1,000 100 500 50 0 0 2001 2002 2003 2004 2005 2006 1H06 x2 1H07 x2 Sales EBITDA 1) Excl. purchas
Slide 16: Platform Drilling & Engineering division
Platform Drilling & Engineering division Business content Financial performance Platform Drilling Op. revenues, NOKm 1) EBITDA, NOKm Production drilling 1,800 180 1,300 people in the North Sea 1,600 160 11 active drilling operations 1,400 140 10 platforms in maintenance mode ready to drill 1
Slide 17: Solid contract coverage for Platform Drilling services
Solid contract coverage for Platform Drilling services Unit 2007 2008 2009 2010 2011 2012 Statfjord A, B, C Statoil – Statfjord C since 1981, 2 x 3 years Statfjord A & B since 1987 Gullfaks A, B, C Statoil Statoil – since 2004 2 x 3 years Veslefrikk A, B Statoil – since 1987 Field lifetime BP – Ula
Slide 18: Well Intervention division
Well Intervention division Business content Financial performance Seawell has been involved in wireline Op. revenues, NOKm 1) EBITDA, NOKm business since 1986 250 80 70 Conveying of logging, perforation, zonal 200 60 isolation, well clean-up, fishing etc. 150 50 40 200 people in Norway and Den
Slide 19: Overview of segment earnings
Overview of segment earnings Revenues 1) 2004 2005 2006 Platform Drilling & Engineering NOKm 804 1,304 1,612 Well Intervention " 154 206 231 Total revenues " 958 1,510 1,844 Revenue growth 2004 2005 2006 Platform Drilling & Engineering % 62.2% 23.6% Well Intervention % 33.8% 12.2% Total revenue grow
Slide 20: Key figures 1H06 vs 1H07
Key figures 1H06 vs 1H07 Assumptions going forward P&L 1H06P 1H07P Revenues 1) NOKm 807 1,003 NOKm 1,110 financing through bank EBITDA " 107 142 debt and seller’s credit at NIBOR EBIT " 88 117 +175 bps on average Net interest 2) " (36) (38) Estimated depreciation and Net profit 3) " 38 56 amor
Slide 21: Capitalization and assets to be acquired
Capitalization and assets to be acquired Capitalization NOKm Post private placement Seawell to acquire Seadrill’s Well 2,800 Services division 1,800 employees, including: 200 tool pushers and drillers 2,400 250 mechanics and electricians 200 wire line engineers, field 2,000 supervisors and
Slide 22: Board of Directors – Seawell Ltd.
Board of Directors – Seawell Ltd. Jørgen Rasmussen (48), Chairman Jørgen Rasmussen joins Seawell after 25 years in Schlumberger Oilfield Services. He was Managing Director and Chairman of Schlumberger Norway and Denmark from 1998 to 2001, member of the OLF (The Norwegian Oil Industry Organizatio
Slide 23: Experienced management team in place
Experienced management team in place Alf Ragnar Løvdal (50), CEO Mr Løvdal has been responsible for the operations of the Well Services division in Seadrill since 2002. He has held several managerial positions within well intervention and operations of mobile units. He has 27 years of experience
Slide 24: Investment highlights
Confidential Investment highlights Well services – late cycle oil and gas production exposure Mature assets will require increased well services Oil companies fighting declining production with increased oil recovery initiatives Growing number of subsea wells will require extensive well serv
Slide 25: Appendix
Appendix 25
Slide 26: Incentive program – management structure
Incentive program – management structure Incentive Program Management Structure Seawell has established an incentive Seawell’s board is ultimately responsible program for its directors and employees for the Company’s management Incentives will be provided by way of an Day-to-day management w