Slide 1: Q3 2018 Results
Q3 2018 Results November 27, 2018
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: Emergence from Chapter 11
Emergence from Chapter 11 Raised $1.08 billion of fresh capital USD 12.6bn $880 million of New Secured Notes $200 million of New Equity Seabras Seadrill Partners $2.1 billion cash as at end of Q3 Seamex Archer $1.6 billion unrestricted USD 7.4bn No Financial covenants until 2021 other th
Slide 5: Strong Operations
Strong Operations Culture of safe and efficient operations Strong operational quarter with economic utilization(1) of 98% for floaters and 97% for Jack-Ups. As at Sept 30, 2018 Floaters Jack-up Total Fleet Operating 6 9 15 Between contracts 1 - 1 Warm stacked 4 1 5 Cold stacked 8 6 14 Total 19 1
Slide 6: New Backlog
New Backlog Since the end of the second quarter we added $297 million in backlog: Backlog $millions New Contracts 50 Option Exercise 154 Extension to existing contracts 57 Total Q3 backlog additions 261 Post Q3 backlog additions 36 Total 297 Total backlog is currently $2.1 billion 6
Slide 7: Market Outlook
Market Outlook More capex into offshore development and exploration Bidding activity increasing Dayrates low but improving Market consolidation continues 7
Slide 8: Positioning ourselves for the recovery
Positioning ourselves for the recovery Recapitalized balance sheet and financial flexibility Large modern fleet with proven operational track record Continued focus on cost Disciplined approach to contracting 8
Slide 9: Financial Performance
Financial performance highlights Financial Performance 9
Slide 10: Fresh Start Accounting
Fresh Start Accounting On emergence from Chapter 11, we were required to: Account for the effects of the reorganization Apply Fresh Start Accounting The company's assets and liabilities have been fair valued in line with distributable value approved by the US Bankruptcy Court. This has result
Slide 11: Revenue & EBITDA
Revenue & EBITDA $millions 3Q18 Total operating revenue 249 Vessel and rig operating expenses (162) Reimbursable expenses (10) General and administrative expenses (31) Adjusted EBITDA 46 Revenue of $249 million generated from 7 floaters working at an average dayrate of $240k/day 9 jackups work
Slide 12: Summary Balance Sheet
Summary Balance Sheet $millions 3Q18 Cash and cash equivalents 1,576 Restricted cash 560 Marketable securities 118 Drilling units 6,716 Investment in Associated Companies 901 Amounts due from related parties 756 Current Debt 165 Long-Term Debt 6,919 Total Assets 11,318 Total Liabilities 7,879 Total
Slide 13: Financing and liquidity
Financing and liquidity Good liquidity with $2.1 billion of cash at Q3 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 14: Our joint ventures and investment holdings
Our joint ventures and investment holdings Backlog: $1.1 billion Backlog: $1.2 billion Revenue: $206 million Revenue: $60 million EBITDA: $130 million EBITDA: $38 million Cash: $882 million Cash: $109 million Debt of $3.1 billion Debt: $708 million comprised of: ‒ $318 million ba
Slide 15: Subsequent Events
Subsequent Events New Secured Notes (NSNs) Redemptions $126 million of West Rigel proceeds redeemed at par Seabras Sapura joint venture Extinguished $486 million of guarantees Received $35 million in loan repayments 15
Slide 16: Q4 Guidance
Q4 Guidance Q4 2018 guidance Adjusted EBITDA* is forecasted to be around $35 million. * Adjusted EBITDA is defined in the Appendix 16
Slide 17: Concluding remarks
Concluding remarks Recapitalized balance sheet and financial flexibility Large modern fleet with proven operational track record Continued focus on cost Significant value in our non-consolidated investments Disciplined approach to contracting 17
Slide 18: Seadrill
Seadrill | nn Se een 18
Slide 19: Appendix: Seadrill Limited Financials
Appendix: Seadrill Limited Financials 19
Slide 20: 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