Slide 1: Q4 2016 Results
Q4 2016 Results February 28, 2017
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 2 Financial Performance 3 Market Outlook 4 Summary and Q&A 3
Slide 4: Summary: Q4 2016
Summary: Q4 2016 Operations Seadrill Limited economic utilisation of 99% Commercial Active spot market Costs Rig and operating costs reduced from $1.61 billion FY15 to $1.02 billion FY16 Newbuilds Ongoing constructive dialogue to further defer deliveries 4
Slide 5: Operational highlights: Q4 2016
Operational highlights: Q4 2016 Current backlog 2000 1500 Current order backlog of $2.5 billion $ million $6.4 billion for Seadrill Group 1000 500 0 2017 2018 2019+ Economic utilization (floater fleet) 100 95 Safe and efficient operations Utilization % 90 85 98 99 99% economic utilization fo
Slide 6: Financial Performance
Financial performance highlights Financial Performance 6
Slide 7: Revenue & EBITDA bridge
Revenue & EBITDA* bridge Revenue • Volume: No impact from new 800 contracts during the quarter 775 750 725 • Dayrates: Reduced dayrate on the 700 West Saturn 675 650 625 • Utilization: Improved uptime 600 575 550 • Idle units: The West Epsilon and 525 West Vigilant became idle during the 500 3Q16 Vo
Slide 8: Balance sheet main movements
Balance sheet main movements Quarter over quarter Mai December 31, September 30, Change 2016 2016* Restricted cash – current 75 117 (42) Marketable securities 110 93 17 Accounts receivables 462 630 (168) Amount due from related party – current 376 493 (117) Trade accounts payable 93 122 (29) Total a
Slide 9: Restructuring update
Restructuring update Strong preference for a consensual solution Additional amendments to the terms of the proposed bank amendments necessary Likely requirement to convert bonds to equity based on feedback 30 April long stop date Contingency plans in progress 9
Slide 10: Guidance
Guidance Q1 2017 guidance EBITDA* is forecasted to be around $250 million, based on forecasted Operating Income of around $50 million. * EBITDA is defined in the Appendix 10
Slide 11: Market Outlook
Financial performance highlights Market Outlook 11
Slide 12: Concluding remarks
Concluding remarks Strong operating quarter Improved bidding activity Progress on restructuring plan 12
Slide 13: Q&A
Q&A 13
Slide 14: Appendix: Seadrill Limited Financials
Appendix: Seadrill Limited Financials 14
Slide 15: Appendix – Non-GAAP Financial Measures
Appendix – Non-GAAP Financial Measures * EBITDA is defined as 'Earnings Before Interest, Tax, Depreciation and Amortization' and has been calculated by taking operating income plus depreciation and amortization, but excluding gains or losses on disposals and impairment charges against goodwill. Cont
Slide 16: Financial Performance Highlights
Financial Performance Highlights Unaudited accounts in USD millions Q4 2016 Q3 2016 Change % Change Total operating revenue 667 743 (76) (10%) Contingent consideration realized 6 5 1 20% Total operating expenses 555 501 54 11% Net operating income 118 247 (129) (52%) EBITDA 354 441 (87) (20%) 16
Slide 17: Balance Sheet Summary
Balance Sheet Summary Unaudited accounts in USD millions December 31, September 30, Change %Change 2016 2016 • Total assets of As Restated $21,703 million as at Total Current Assets 2,716 2,907 (191) (7%) December 31, 2016 Non-current assets Investment in associated 2,161 2,022 139 7% companies • To
Slide 18: Operating Income - 4Q16
Operating Income - 4Q16 Unaudited accounts in USD millions Total Floaters Jack-ups Other Contract revenues 576 403 173 — Reimbursable revenues 17 15 2 — Other revenues 74 40 11 23 Total operating revenues 667 458 186 23 Contingent consideration realized 6 6 — — Vessel and rig operating expenses 234
Slide 19: Operating Income - Floaters
Operating Income - Floaters Unaudited accounts in USD millions 4Q16 3Q16 2Q16 1Q16 Total operating revenues 458 528 610 616 Contingent consideration realized 6 5 5 5 Vessel and rig operating expenses 133 161 152 181 Reimbursable expenses 14 10 13 14 Depreciation and amortization 167 143 142 148 Gene
Slide 20: Operating Income – Jack-up Rigs
Operating Income – Jack-up Rigs Unaudited accounts in USD millions 4Q16 3Q16 2Q16 1Q16 Total operating revenues 186 199 234 246 Vessel and rig operating expenses 81 69 75 88 Reimbursable expenses 2 3 1 4 Depreciation and amortization 56 51 51 52 General and administrative expenses 20 14 15 16 Total
Slide 21: Operating Income – Total Seadrill Limited
Operating Income – Total Seadrill Limited Unaudited accounts in USD millions 4Q16 3Q16 2Q16 1Q16 Total operating revenues 667 743 868 891 Contingent consideration realized 6 5 5 5 Vessel and rig operating expenses 234 243 248 290 Reimbursable expenses 16 13 14 18 Depreciation and amortization 223 19
Slide 22: Balance Sheet - Assets
Balance Sheet - Assets Unaudited accounts in USD millions December 31, September 30, December 31, 2016 2016 2015 As Restated As Restated Current assets Cash and cash equivalents 1,368 1,250 1,044 Restricted cash 75 117 50 Marketable securities 110 93 96 Accounts receivables, net 462 630 718 Other cu
Slide 23: Balance Sheet – Liabilities & Equity
Balance Sheet – Liabilities & Equity Unaudited accounts in USD millions December 31, September 30, December 31, 2016 2016 2015 As Restated As Restated Current liabilities Current portion of long-term debt 3,195 3,136 1,489 Trade accounts payable 93 122 141 Other current liabilities 1,434 1,475 1,712