Slide 1: Q3 2015 Results
Q3 2015 Results November 24, 2015 Seadril
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: Financial Performance, Market Outlook, Summary and Q&A
6 Financial Performance 6 Market Outlook 6 Summary and Q&A Seadnill
Slide 4: Q3 results underpinned by strong operational performance
Q3 results underpinned by strong operational performance Strong operational uptime Seadrill Group economic utilisation of 93% Increased cash savings expected during 2015 Cost management programme initiated in 2014 Seadrill Group targeting cash savings of $600 million for 2015 Yard upda
Slide 5: Operational highlights: Q3 2015
Operational highlights: Q3 2015 Current backlog 4000 3000 Current order backlog of $6.0 billion $ million 2000 $12.0 billion for Seadrill Group 1000 0 2015 -16 2017 2018 2019+ Economic utilization (floater fleet) 100 95 90 Safe and efficient operations Utilization % 90% economic utilization
Slide 6: Financial Performance
Seadnill Financial Performance
Slide 7: Impairments
Impairments Loss on impairment of investments SDLP 1,107 SapuraKencana 167 Subtotal 1,274 Loss on impairment of goodwill 563 Total 1,837 7
Slide 8: Revenue & EBITDA bridge
Revenue & EBITDA bridge Revenue 1200 • Volume: Full quarter benefit from West 1150 Tellus and West Tucana and commencement of operations for the 1100 West Carina in Q3, partially offset by the 1050 sale of the West Polaris in Q2 1000 • Dayrates: Dayrate reductions from the 950 West Phoenix, West Peg
Slide 9: Balance sheet main movements
Balance sheet main movements Quarter Mai over quarter September 30, June 30, %Change 2015 2015 Newbuildings $1,659 $1,920 (14%) Goodwill $— $563 (100%) Investment in associated companies $2,488 $3,058 (19%) Other non-current assets $356 $164 117% 9
Slide 10: Q4 EBITDA expected approximately $30 million less than Q3
Q4 EBITDA is expected to be approximately $30 million less than the third quarter driven by: More idle time on the following units relative to the third quarter: o West Venture o West Phoenix o West Vigilant o West Leda o West Telesto Loss of revenue from planned 5-year classing for the West Ori
Slide 11: Market Outlook
Seadnill Market Outlook 11
Slide 12: Market outlook summary
Safe and efficient operating quarter Exceeding $600 million in cash savings Controlling what we can control Managing the challenges of the downcycle Challenging market conditions will remain in 2016 12
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Slide 14: Appendix: Seadrill Limited Financials
Appendix: Seadrill Limited Financials 15
Slide 15: Operating Income - 3Q15
Operating Income - 3Q15 Unaudited accounts in USD millions Floaters Jack-ups Other Total Contract revenues 602 301 — 903 Reimbursable revenues 23 5 — 28 Other revenues 22 — 32 54 Total operating revenues 647 306 32 985 (Loss)/gain on disposals* (80) (3) 1 (82) Contingent consideration realized 19 —
Slide 16: Operating Income - Floaters
Operating Income - Floaters Unaudited accounts in USD millions 3Q15 2Q15 1Q15(1) 4Q14 Total operating revenues 647 786 846 801 (Loss)/gain on disposals* (80) (75) — 192 Contingent consideration realized 19 6 4 — Vessel and rig operating expenses 233 265 267 268 Reimbursable expenses 24 12 19 12 Depr
Slide 17: Operating Income – Jack-up Rigs
Operating Income – Jack-up Rigs Unaudited accounts in USD millions 3Q15 2Q15 1Q15(1) 4Q14 Total operating revenues 306 328 385 420 (Loss)/gain on disposals* (3) — 186 — Contingent consideration realized — — — — Vessel and rig operating expenses 117 128 168 184 Reimbursable expenses 4 7 3 4 Depreciat
Slide 18: Operating Income – Total Seadrill Limited
Operating Income – Total Seadrill Limited Unaudited accounts in USD millions 3Q15 2Q15 1Q15 4Q14 Total operating revenues 985 1,147 1,244 1,261 (Loss)/gain on sale of assets* (82) (75) 186 192 Contingent consideration realized 19 6 4 — Vessel and rig operating expenses 374 422 446 488 Reimbursable e
Slide 19: Net Income – Total Seadrill Limited
Net Income – Total Seadrill Limited Unaudited accounts in USD millions 3Q15 2Q15 1Q15 4Q14 Net operating (loss)/income (291) 384 703 452 Financial items and other income Interest income 15 17 17 18 Interest expense (105) (100) (112) (122) Loss on impairment of investments (1,274) — — — Share in resu
Slide 20: Balance Sheet - Assets
Balance Sheet - Assets Unaudited accounts in USD millions September 30, June 30, 2015 December 31, 2015 2014 Current assets Cash and cash equivalents 1,181 918 831 Restricted cash 71 71 268 Marketable securities 247 324 426 Accounts receivables, net 729 837 1,017 Other current assets 880 1,038 767 T
Slide 21: Balance Sheet – Liabilities & Shareholder’s Equity
Balance Sheet – Liabilities & Shareholder’s Equity Unaudited accounts in USD millions September 30, June 30, 2015 December 31, 2015 2014 Current liabilities Current portion of long-term debt 1,645 1,662 2,267 Trade accounts payable 116 56 84 Other current liabilities 1,805 1,733 2,181 Total current