Slide 1: Conference call – 2Q 2012 results
Conference call – 2Q 2012 results August 27, 2012
Slide 2: Contents
Contents • Highlights 2Q 2012 • Market outlook – Floaters – Jack-ups – Tender rigs • Contract backlog • 2Q 2012 accounts – Seadrill – North Atlantic Drilling • Q&A session
Slide 3: Highlights – Second quarter 2012
Highlights – Second quarter 2012 Quarterly EBITDA § Seadrill generates second quarter 2012 EBITDA of US$634 million § Seadrill reports second quarter 2012 net income of US$554 million and earnings per share of US$1.12 § Continued strong operational performance § Since 1st quarter reporting, Sead
Slide 4: Global Operational Footprint
Global Operational Footprint Americas North Atlantic 8 units (-2) 6 units - 3 Semis Gulf of Mexico - 2 Jack-ups - 3 Semis - 1 Drillship South America - 3 Semis - 1 Jack-up - 1 Semi-tender Africa-Middle Asia Pacific East 24 units * 10 units (+2) (+2-2) - 3 Drillships - 2 Semis - 1 semi - 4 Semi-tende
Slide 5: Market outlook Floaters
Market outlook Floaters Historical daily rates for ultra-deepwater rigs § Market more or less sold out for 2013, limited Historical dayrates for Ultra-deepwater rigs availability in 2014 700 600 500 § Daily rates are approaching the previous high USDk/day 400 level seen in 2008 300 200 § More cus
Slide 6: Market development - Jack-ups
Market development - Jack-ups § Daily rates improving § Near term availability decreasing § Bifuraction between premium and standard jack-ups continuing § Strong demand from Middle East and SE Asia § Slight increase in newbuild prices and reduction in newbuild orders § Decrease in number of st
Slide 7: Tender rig market development
Tender rig market development § Daily rates improving with long-term contracts § West Africa is increasingly attracted to this concept § New rigs replacing an ageing fleet § Seadrill has 54% of the market, customers increasingly value track-record § Seadrill is driving the market and has the te
Slide 8: Floaters - US$15.5 billion contract backlog
Floaters - US$15.5 billion contract backlog 2012 2013 2014 2015 2016 Unit Customer 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q West Tellus -‐ Newbuild West Neptune -‐ Newbuild West Saturn -‐ Newbuild West Navigator 1, 4 Shell US$609,000 US$590,000 Drillships West Jupiter -‐ Newbu
Slide 9: Jack-ups - US$2.6 billion contract backlog
Jack-ups - US$2.6 billion contract backlog 2012 2013 2014 2015 Unit Customer 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q HE Jack-‐ups West Epsilon 1,2 Statoil US$286,500 US$286,500 12.2016 West Elara 1,2 Statoil US$362,000 03.2017 West Linus 1,2 ConocoPhillips Newbuild Transit US$365,000 04.201
Slide 10: Tender rigs - US$2.2 billion contract backlog
Tender rigs - US$2.2 billion contract backlog 2012 2013 2014 2015 2016 Unit Customer 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q T7 Chevron US$88,000 T4 Chevron US$104,500 Tender barges T12 Chevron US$120,000 US$120,000 T11 Chevron US$135,000 US$127,500 05.2017 T15 Chevron Newbuild U
Slide 11: US$20.3 billion contract backlog
US$20.3 billion contract backlog 26% BP Total 13% Exxon 12% Petrobras 11% Statoil 10% Chevron 7% Shell 5% Others 16% Quality customers …. superb visibility Attractive backlog…..quality customers…superb visibility 11
Slide 12: Seadrill in pole position
Seadrill in pole position • Strong operational performance • Record high revenue backlog and earnings visibility • US$6 billion investment program in the best market seen in the last 10 years • US$4 billion EBITDA target still remains • Advanced discussions to fund the newbuilding program, ECA finac
Slide 13: Financial performance highlights
Financial performance highlights 13
Slide 14: Financial performance highlights
Financial performance highlights This quarter Previous quarter EBITDA US$634 m US$595 m Earnings per share US$1.12 US$0.89 Operating profit US$483 m US$456 m Financial items US$114 m US$24 m Cash flow from operating activities US$482 m US$454 m Dividend declared per share US$0.84 US$0.82 Extraordina
Slide 15: EBITDA contribution
EBITDA contribution Seadnill USS millions 800 5 700 + 600 500 400 300 200 100 1008 2008 3Q08 4208 1209 2009 3009 4Q09 1Q10 2010 3Q10 4Q10 1011 2Q11 3Q11 4Q11 1Q12 Floaters Jack-up Tender 2Q12 rigs rigs Gain from sale of assets 15
Slide 16: Operating Income - Floaters
Operating Income - Floaters Unaudited accounts in USD millions 2Q12 1Q12 4Q11 3Q11 Operating revenues 718 656 674 673 Reimbursables 11 9 14 18 Other revenues 0 0 2 2 Total operating revenues 728 665 690 693 Gain on sale of assets - - - - Vessel and rig operating expenses 247 212 218 205 Reimbursable
Slide 17: Operating Income – Jack-up rigs
Operating Income – Jack-up rigs Unaudited accounts in USD millions 2Q12 1Q12 4Q11 3Q11 Operating revenues 186 199 199 188 Reimbursables 16 11 5 4 Other revenues (3) (3) (6) (6) Total operating revenues 199 207 198 186 Gain on sale of assets 0 0 (1) 23 Vessel and rig operating expenses 73 88 114 95 R
Slide 18: Operating Income – Tender rigs
Operating Income – Tender rigs Unaudited accounts in USD millions 2Q12 1Q12 4Q11 3Q11 Operating revenues 183 169 167 146 Reimbursables 10 6 3 2 Other revenues 2 3 0 0 Total operating revenues 195 178 170 148 Gain on sale of assets 0 0 (1) 23 Vessel and rig operating expenses 85 79 74 68 Reimbursable
Slide 19: Operating Income – Total Seadrill Limited
Operating Income – Total Seadrill Limited Unaudited accounts in USD millions 2Q12 1Q12 4Q11 3Q11 Operating revenues 1087 1025 1040 1007 Reimbursables 37 25 22 24 Other revenues (1) 0 (3) (2) Total operating revenues 1122 1050 1059 1029 Gain on sale of assets 0 0 (1) 23 Vessel and rig operating expen
Slide 20: Net Income – Total Seadrill Limited
Net Income – Total Seadrill Limited Unaudited accounts in USD millions 2Q12 1Q12 4Q11 3Q11 Net operating income 483 456 436 480 Financial items Interest income 4 4 4 5 Interest expense (76) (71) (75) (64) Share in results from associated 15 18 (482) 26 companies Gain/(Loss) in financial derivatives
Slide 21: Balance sheet - Assets
Balance sheet - Assets June March Unaudited accounts in USD millions 30, 2012 31, 2012 Current assets Cash and cash equivalents 276 445 Restricted cash 162 134 Marketable securities 227 20 Accounts receivables, net 866 806 Amount due from related party 190 234 Other current assets 251 304 Total curr
Slide 22: Balance Sheet – Liabilities and Shareholder's Equity
Balance Sheet – Liabilities and Shareholdre’s Equity June March 30, 2012 31, 2012 Current liabilities Current portion of long-term debt 1462 1459 Trade accounts payable 55 65 Other current liabilities 1271 1295 Total current liabilities 556 532 Non-current liabilities Long-term interest bearing debt
Slide 23: North Atlantic Drilling: Non-financial highlights
North Atlantic Drilling Non-financial highlights • West Elara completes its first full quarter of operations under 5 year contract with Statoil at close to 100% economical utilization • Two year contract extension for West Alpha with ExxonMobil with an estimated revenue value of US$410 million • Ord
Slide 24: North Atlantic Drilling: Financial reporting highlights
North Atlantic Drilling Financial reporting highlights This quarter Previous quarter EBITDA US$156 m US$123 m Earnings per share US$0.062 US$0.051 Operating profit US$114 m US$86 m Financial items US$(33) m US$(28) m Cash flow from operating activities US$106 m US$102 m Dividend declared per share U
Slide 25: North Atlantic Drilling: Operating Income - Total
North Atlantic Drilling Operating Income - Total Unaudited accounts in USD millions 2Q12 1Q12 4Q11 Operating revenues 251 219 226 Reimbursables 16 14 7 Other revenues 0 0 3 Total operating revenues 267 233 235 Vessel and rig operating expenses 86 86 83 Reimbursable expenses 15 13 6 Depreciation and
Slide 26: North Atlantic Drilling: Net Income - Total
North Atlantic Drilling Net Income - Total Unaudited accounts in USD millions 2Q12 1Q12 4Q11 Net operating income 114 86 99 Financial items Interest expense -20 -22 -23 Gain on derivatives -21 6 -1 Other financial items 8 -13 0 Total financial items -33 -28 -22 Income before income taxes 81 58 77 In
Slide 27: North Atlantic Drilling: Balance Sheet - Assets
North Atlantic Drilling Balance Sheet- Assets June March 30, 2012 31, 2012 Current assets Cash and cash equivalents 107 179 Restricted cash 19 7 Accounts receivables, net 172 167 Related party receivables 175 - Deferred tax assets 10 10 Other current assets 32 53 Total current assets 515 416 Non-cur
Slide 28: North Atlantic Drilling: Balance Sheet - Liabilities and Equity
North Atlantic Drilling Balance Sheet- Liabilities and Shareholders Equity June March 30, 2012 31, 2012 Current liabilities Current portion of long-term debt 167 167 Related party transaction 63 14 Tax payable 145 166 Deferred taxes 11 12 Other current liabilities 171 173 Total current liabilities 5
Slide 29: Seadrill selectively growing its already modern fleet at attractive rig prices
Seadrill Uniquely Positioned Seadrill selectively growing its already modern fleet at attractive rig prices 29