Seadrill Limited · NYSE:SDRL
Seadrill — Q1 2015 Earnings Presentation
19 slides from Seadrill's earnings presentation, May 28, 2015
Slide 1: Conference Call – 1Q 2015 Results
Conference Call – 1Q 2015 Results May 28, 2015
Slide 2: Forward Looking Statements
Forward Looking Statements This news release 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 Q1 2015 2 Financial Performance Highlights 3 Market Outlook 4 Appendix: Seadrill Limited Financials 3
Slide 4: Company Highlights – Q1 2015
Company Highlights – Q1 2015 Quarterly EBITDA 900 Seadrill generated EBITDA of $711 million for 800 the first quarter 2015 711 700 672 624 641 635 600 Seadrill achieves 93% economic utilization for its US$ Millions 500 floaters and 98% percent for its jack-ups 400 $8.9 billion current orderbacklog (
Slide 5: Financial Performance Highlights
Financial performance highlights Financial Performance Highlights 5
Slide 6: Financial Performance Highlights
Financial Performance Highlights Q1 2015 Q4 2014 Q1 2014 Total Operating Revenue $1,244 $1,261 $1,221 Gain on sale of assets $190 $192 $440 Total Operating Expenses* $731 $1,001 $771 Net Operating Income $703 $452 $890 EBITDA $711 $672 $624 * Loss on impairment included 4Q14 operating expenses 6
Slide 7: Balance Sheet Summary
Balance Sheet Summary March December 31, 2015 31, 2014 Total Current Assets 3,022 3,415 Non-current assets Newbuildings 2,482 2,030 Drilling units 15,071 15,145 Other 5,244 5,916 Total non-current assets 22,797 23,091 TOTAL ASSETS 25,819 26,506 Current Liabilities Current portion of long-term debt 1
Slide 8: Seamex Highlights
Seamex Highlights Transaction Details Summary Financial Impact* Total Consideration: $1.17 billion Net Asset Disposal: $1.15 billion Net Cash: $586 million Paid down $522 million in debt Sellers Credit: $250 million (due 2019) Gain on Sale: $186 million Related Party Receivable: $185 m
Slide 9: Manageable Funding Requirements
Manageable Funding Requirements Unaudited accounts in USD millions Through 2016 Debt Maturities 1,300 Yard Instalments 3,500 Total Funding Requirement 4,800 Debt Amortization 1,800 • US$1.3 billion in debt maturing in 2015 and 2016 • US$3.5 billion in yard instalments until the end of 2016. • In the
Slide 10: Market Outlook
Financial performance highlights Market Outlook 10
Slide 11: Seadrill Group US$15.4 Billion Contract Backlog
Seadrill Group US$15.4 Billion Contract Backlog 2015 2016 2017 2018 Unit Customer 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q West Navigator - West Draco - Newbuild West Dorado - Newbuild West Aquila - Newbuild West Libra - Newbuild West Saturn ExxonMobil $633,750 Drillships West Capella ExxonMobil
Slide 12: Group Assets
Group Assets • 32 6th generation ultra-deepwater units • 2 Midwater harsh environment semi- submersible rigs • 29 High-specification jack-ups • 3 Harsh environment jack-ups • 3 Tender rigs Financial Investments 8.18% of SapuraKencana – Market Value ~$352mm 50.11% of Sevan Drilling – Market Value ~$2
Slide 13: Appendix: Seadrill Limited Financials
Appendix: Seadrill Limited Financials 14
Slide 14: Operating Income - Floaters
Operating Income - Floaters Unaudited accounts in USD millions 1Q15 4Q14 3Q14 2Q14 Total operating revenues 832 801 842 852 Gain on Sale* 4 192 - - Vessel and rig operating expenses (253) (268) (298) (263) Reimbursable expenses (19) (12) (39) (58) Depreciation and amortisation (141) (132) (128) (121
Slide 15: Operating Income – Jack-up Rigs
Operating Income – Jack-up Rigs Unaudited accounts in USD millions 1Q15 4Q14 3Q14 2Q14 Total operating revenues 377 420 408 335 Gain on sale* 186 - - - Vessel and rig operating expenses (160) (184) (184) (142) Reimbursable expenses (3) (4) (14) (11) Depreciation and amortisation (57) (48) (46) (44)
Slide 16: Operating Income – Total Seadrill Limited
Operating Income – Total Seadrill Limited Unaudited accounts in USD millions 1Q15 4Q14 3Q14 2Q14 Total operating revenues 1,244 1,261 1,293 1,222 Gain on sale of assets* 190 192 - - Vessel and rig operating expenses (446) 488 521 437 Reimbursable expenses (22) 18 53 69 Depreciation and amortisation
Slide 17: Net Income – Total Seadrill Limited
Net Income – Total Seadrill Limited Unaudited accounts in USD millions 1Q15 4Q14 3Q14 2Q14 Net operating income 703 452 461 476 Financial items and other income Interest income 17 18 2 32 Interest expense (112) (122) (114) (124) Share in results from associated companies 32 41 (26) 54 (Loss)/Gain in
Slide 18: Balance Sheet - Assets
Balance Sheet - Assets March December September Unaudited accounts in USD millions 31, 2015 31, 2014 30, 2014 Current assets Cash and cash equivalents 903 831 638 Restricted cash 72 268 279 Marketable securities 309 426 878 Accounts receivables, net 956 1,017 797 Other current assets 782 873 830 Tot
Slide 19: Balance Sheet – Liabilities & Shareholder’s Equity
Balance Sheet – Liabilities & Shareholder’s Equity March December September Unaudited accounts in USD millions 31, 2015 31, 2014 30, 2014 Current liabilities Current portion of long-term debt 1,427 2,309 1,689 Trade accounts payable 96 84 90 Other current liabilities 1,847 2,181 1,830 Total current