Rogaland på Børs, Stavanger. CFO Esa Ikaheimonen September 7 th, 2011

Transcription

1 Rogaland på Børs, Stavanger CFO Esa Ikaheimonen September 7 th, 2011

2 Contents Seadrill Company update Market outlook Value creation North Atlantic Drilling Company update Market outlook Value creation 6th gen. semi-submersible rig West Pegasus 2

3 Company profile Second largest offshore driller based on Enterprise Value 2 nd largest ultra-deepwater fleet Largest and most modern jack-up and tender rig fleet 2Q/11 EBITDA annualized ~ US$2.3 billion Contract backlog ~ US$12.2 billion Quarterly dividend annualized ~ US$1.4 billion Current market capitalization ~ US$14.8 billion Strong shareholder involvement Presence in all key markets state-of-the-art equipment 3

4 EBITDA* development 4 * EBITDA earnings before interest, tax, depreciation and amortization

5 Leading player in our markets Largest modern fleet in our industry 5

6 Value creation and dividends Consistently outperforming peers top dividend yield globally 6

7 Net interest bearing debt and dividend Rigs re- contracted at latest market dayrate UDW floaters $500 BE Jack- ups $135 Semi- tenders $170 Tender barges $115 Debt refinanced at similar terms No conversion has been assumed for the US$650m convermble bonds Dividend level sustainable 7

8 Company development last 12 months Deepwater (5 rigs, $3bn invested) 3 ultra-deepwater vessels at US$600m per unit ordered 2 Seadragon ultra-deepwater US$600m per unit acquired Shallow water (added 9+3 rigs, sold 3, $1.9 bn invested) 1 x CJ70 harsh environment jack-up US$530 m against a five-year contract 4 benign environment jack-up US@200 m 3 tender US$120 m 1 US$200m 33.75% acquired in the 3+1 jack-up rig company AOD Divested 2 older jack-ups, retired 1 old tender barge and sold 1 new jack-up rig Finance (converted $1.5 bn of CBs and raised $2.7bn in incremental debt) Increased regular quarterly cash dividends from 50 cent to 75 cent per quarter Converted US$1.5bn bn of convertible debt to equity & raised US$2.7bn in incremental new debt Listed our European operation in a separate company called North Atlantic Drilling (NADL) and raised US$425m in equity Growth in modern assets cash dividend 8

9 Market outlook and trends Sound oil price environment Brent Spot Price 120 Strong growth in E&P spending Trend towards more challenging and complex resources continues Industry focused on new equipment continues with bifurcation in jackup, tender rig and floater market US$ per barrel Jan-04 May-04 Sep-04 Jan-05 May-05 Sep-05 Jan-06 May-06 Sep-06 Jan-07 May-07 Sep-07 Low/High range Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10 Jan-11 Average Historical dayrates for Ultra-deepwater rigs May Significant increase in tenders and request from customers USDk/day Recent fixtures suggest tighter market balance Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Low/High range Average Exceptional offshore finds demand for modern rigs 9

10 North Atlantic Drilling Ltd September 7 th, 2011 CFO Esa Ikaheimonen

11 Company profile Leading operator in the North Atlantic Modern fleet of 6+1 harsh environment drilling units 1,050 employees, 40 years of experience in operating in NA Profitable order backlog of US$3.6 bn Dividend yield target of minimum 7% per annum Seadrill owns 75% and provides corporate management and support services OTC listed in Norway targeting Oslo Stock Exchange listing November 2011 Top Class harsh environment drilling contractor 11 11

12 League Table North Sea Drilling 8 Supply side Norway # of units North Atlantic Drilling Maersk Drilling Transocean Songa Fred Olsen Energy COSL Aker Drilling* Odfjell Drilling Floaters Jack Ups Saipem Diamond Offshore Rowan Stena A leading harsh environment fleet and focus 12 Source: ODS-Petrodata, RS Platou Markets Equity Research. *Note: On 15 th August 2011, Transocean announced a voluntary offer for Aker Drilling. 12

13 US$3.6 billion revenue backlog * Unit Customer Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Q 3Q 4Q Q 2Q 3Q 4Q Semi- submersibles West Alpha 1, BG Consortium US$503,000 US$477,500 US$477,500 West Phoenix 1 Total US$547,000 US$445,000 West Venture 1 Statoil US$440,000 Drillships West Navigator 1 Shell US$610,000 HE- Jack- ups West Epsilon 1, 2 Statoil US$284, West Elara 1, 3 Statoil Newbuild Transit US$359, West Linus 1, 4 ConocoPhillips Newbuild Transit US$362, Contract Option Yard plus transit period 1 Dayrate is partly in Norwegian kroner (USD /NOK 5.50). 2 Customer has the option to extend the contract for two years at the current contract terms. 3 Customer has the option to extend the contract for 1x2- year period and 2x1- year periods. The first option is fixed at the current contract terms. 4 Customer has the option to extend the contract for 3x2- years at the current contract terms. Average contract length 3.5 years per rig 13 * Please note that HE Jack-up West Linus is included in the US$3.6 billion backlog. 13

14 Strong earnings visibility EBITDA (US$ million) Contract coverage (%) % % 80 % % % 50 % 40 % 30 % 100 % 100 % 72 % 71 % % 10 % - * % US$3.6 bn contract backlog with quality customers 14 Source: RS Platou Markets Equity Research estimates. * Annualized figures for Please note that the HE Jack-up West Linus is included in the figures. 14

15 Second quarter performance Excellent operational performance and cost control 15 15

16 Major upward trend in uptime ,1 91,9 98,8 97,3 97,1 99,5 99, ,5 81,3 87,5 82, Q Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Tech. Uptime Acc. Uptime Goal 16

17 Arctic areas will be the next frontier Focus Areas: North Sea Norwegian Sea Barents Sea Arctic Russia Greenland North-western Canada Arctic areas estimated to hold 7% of proven oil reserves 17 Source: CARA, USGS, NPD, Statoil, RS Platou Markets. 17

18 Future floaters demand in Norway 35 Contract Status & Expected Demand: Floaters Norway: Existing contracts Options Requirements Possibles Supply Development, W. injection, Workover Updated: Units older than 30 years Units older than 35 years 18 18

19 EV/EBITDA 2012 valuation peer group 9,0x 8,4x 8,0x 7,0x 6,9x 6,5x 6,0x 5,8x 5,5x 5,4x 5,3x 5,0x 4,4x 4,0x 3,0x 2,0x 1,0x 0,0x Seadrill Songa Offshore Ocean Rig North Atlantic Drilling Diamond Offshore Rowan Companies Transocean Fred. Olsen Energy Compelling valuation of NADL 19 Source: RS Platou Markets Equity Research. 19

20 Dividend yield peer group 12,0 % 10,9 % 10,0 % 9,9 % 9,8 % 8,0 % 6,0 % 5,9 % 5,7 % 4,0 % 2,0 % 0,0 % Fred. Olsen Energy Seadrill North Atlantic Drilling Transocean Diamond Offshore 0,0 % 0,0 % 0,0 % Rowan Companies Ocean Rig Songa Offshore NADL offers attractive dividend yield 20 Source: RS Platou Markets Equity Research. Note: Dividend yield calculated using latest announced dividend annualized. 20

21 Net debt development US$ Millions 2,500 US$ Millions 2,500 2,000 2,000 1,500 1,500 1,000 1, Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Net Debt w/ 3.5 cent dividend Net Debt without dividend Strong cashflow reducing debt 21

22 North Atlantic Drilling - Summary Leading operator with pure focus on the North Atlantic Basin Premium harsh-environment fleet Positive market outlook with barriers to entry Excellent contract backlog and earnings visibility Use of leverage supports sound dividends Majority shareowner has a unique track record of accretive investments and M&As NADL already delivering growth and has a structure for more in a vibrant market Attractive assets in an attractive market 22 22