Forward Looking Statements

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Transcription:

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 operates. These statements are made based upon management s current plans, expectations, assumptions and beliefs concerning future events impacting the Company and therefore involve a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, which speak only as of the date of this news release. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to offshore drilling market conditions including supply and demand, day rates, customer drilling programs and effects of new rigs on the market, contract awards and rig mobilizations, contract backlog, dry-docking and other costs of maintenance of the drilling rigs in the Company s fleet, the cost and timing of shipyard and other capital projects, the performance of the drilling rigs in the Company s fleet, delay in payment or disputes with customers, our ability to successfully employ our drilling units, procure or have access to financing, ability to comply with loan covenants, liquidity and adequacy of cash flow from operations, fluctuations in the international price of oil, international financial market conditions changes in governmental regulations that affect the Company or the operations of the Company s fleet, increased competition in the offshore drilling industry, and general economic, political and business conditions globally. Consequently, no forward-looking statement can be guaranteed. When considering these forward-looking statements, you should keep in mind the risks described from time to time in the Company s filings with the SEC, including its Annual Report on Form 20-F. The Company undertakes no obligation to update any forward looking statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for us to predict all of these factors. Further, the Company cannot assess the impact of each such factors on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward looking statement. 2

1 2 3 4 3

Operations Seadrill Limited economic utilisation of 98% Commercial Active spot market $900 million net backlog increase Costs Headcount reduced 26% from year end 2015 Newbuilds West Mira arbitration settlement concluded Ongoing constructive dialogue to further defer deliveries 4

Utilization % $ million Operational highlights: Q1 2017 Current backlog 2,000.00 1,500.00 1,000.00 Current order backlog of $3.4 billion $7.1 billion for Seadrill Group 500.00-2017 2018 2019+ 100 Economic utilization (floater fleet) 95 90 85 80 75 98 94 99 97 Safe and efficient operations 97% economic utilization for floater fleet 98% for jack-up fleet 70 Q2 16 Q3 16 Q4 16 Q1 17 5

6

Revenue & EBITDA* bridge Revenue 750 725 700 675 650 625 600 575 550 525 500 475 450 4Q16 Volume Dayrates Utilization Idle units Other 1Q17 EBITDA 425 400 375 350 325 300 275 250 225 200 175 150 125 4Q16 Volume Dayrates Utilization Idle units Costs Other 1Q17 Volume: Full quarter of operations on the West Castor and the West Phoenix commenced operations Dayrates: No change Utilization: Decreased uptime Idle units: The West Saturn became idle during the quarter and we had a full quarter of idle time on the West Epsilon and West Vigilant Costs: Additional idle units, Lower personnel, IT and restructuring costs Other: Primarily attributable to contract termination fee recognition in the fourth quarter and a decrease in related party revenues 7

Balance sheet main movements Quarter over quarter Mai March 31, 2017 December 31, 2016 Change Marketable securities 94 110 (16) Accounts receivables 377 462 (85) Amount due from related party current 327 376 (49) Other current assets 285 495 (210) Other current liabilities 1,215 1,352 (137) Total assets 21,305 21,666 (2%) Total liabilities 11,205 11,603 (3%) Total equity 10,100 10,063 1% 8

Restructuring update Long stop date extended to July 31 New money proposal received Certain bondholders have become restricted again Likely requirement to convert bonds to equity Shareholders likely to receive minimal recovery for existing shares Implementation via C11 or schemes of arrangement likely. 9

Q2 2017 guidance EBITDA* is forecasted to be around $240 million, based on forecasted Operating Income of around $40 million. 10

Market Outlook 11

Strong operating quarter Growing backlog Progress on restructuring plan 12

13

Appendix: Seadrill Limited Financials 14

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 long-lived assets. Contingent consideration realized relates to Seadrill's ongoing residual interest in the West Vela and West Polaris customer contracts, and has been included within EBITDA. Additionally, in any given period the Company may have significant, unusual or non-recurring gains or losses which it may exclude from its Non GAAP earnings for that period. When applicable, these items would be fully disclosed and incorporated into the required reconciliations from US GAAP to Non GAAP measures. Unaudited accounts in USD millions Q2 2017 guidance Q1 2017 Q4 2016 Net operating income 40 83 87 Depreciation 200 208 223 Loss on impairment of long-lived assets 44 EBITDA 240 291 354 15

Financial Performance Highlights Unaudited accounts in USD millions Q1 2017 Q4 2016 Change % Change Total operating revenue 569 667 (98) (15%) Contingent consideration realized 5 6 (1) (17%) Total operating expenses 491 586 (95) (16%) Net operating income 83 87 (4) (5%) EBITDA 291 354 (63) (18%) 16

Balance Sheet Summary Unaudited accounts in USD millions March 31, December 31, 2017 2016 Change %Change Total current assets 2,640 2,886 (246) (9%) Non-current assets Investment in associated companies 2,230 2,168 62 3% Newbuildings 1,543 1,531 12 1% Drilling units 14,100 14,276 (176) (1%) Other 792 805 (13) (2%) Total non-current assets 18,665 18,780 (115) (1%) TOTAL ASSETS 21,305 21,666 (361) (2%) Current liabilities Current portion of long-term debt 3,364 3,195 169 5% Other 1,368 1,528 (160) (10%) Total current liabilities 4,732 4,723 9 % Non-current liabilities Total long-term debt 5,948 6,319 (371) (6%) Other 525 561 (36) (6%) Total non-current liabilities 6,473 6,880 (407) (6%) TOTAL LIABILITIES 11,205 11,603 (398) (3%) Equity Total shareholder s equity 10,100 10,063 37 % Total liabilities and shareholder s equity 21,305 21,666 (361) (2%) Total assets of $21,305 million as at March 31, 2017 Total net interest bearing debt decreased to $8,177 million due to repayment of loans 17

Operating Income - 1Q17 Unaudited accounts in USD millions Total Floaters Jack-ups Other Contract revenues 510 333 177 Reimbursable revenues 13 10 3 Other revenues 46 26 1 19 Total operating revenues 569 369 181 19 Contingent consideration realized 5 5 Vessel and rig operating expenses 211 123 70 18 Reimbursable expenses 11 9 2 Depreciation and amortization 208 153 55 General and administrative expenses 61 40 21 Total operating expenses 491 325 148 18 Net operating income 83 49 33 1 18

Operating Income - Floaters Unaudited accounts in USD millions 1Q17 4Q16 3Q16 2Q16 Total operating revenues 369 458 528 610 Contingent consideration realized 5 6 5 5 Vessel and rig operating expenses 123 133 161 152 Reimbursable expenses 9 14 10 13 Depreciation and amortization 153 167 143 142 General and administrative expenses 40 49 37 38 Total operating expenses 325 363 351 345 Net operating income 49 101 182 270 19

Operating Income Jack-up Rigs Unaudited accounts in USD millions 1Q17 4Q16 3Q16 2Q16 Total operating revenues 181 186 199 234 Vessel and rig operating expenses 70 81 69 75 Reimbursable expenses 2 2 3 1 Depreciation and amortization 55 56 51 51 General and administrative expenses 21 20 14 15 Total operating expenses 148 159 137 142 Net operating income 33 27 62 92 20

Operating Income Total Seadrill Limited Unaudited accounts in USD millions 1Q17 4Q16 3Q16 2Q16 Total operating revenues 569 667 743 868 Contingent consideration realized 5 6 5 5 Vessel and rig operating expenses 211 234 243 248 Reimbursable expenses 11 16 13 14 Depreciation and amortization 208 223 194 193 Loss on impairment of long-lived assets 44 General and administrative expenses 61 69 51 54 Total operating expenses 491 586 501 509 Net operating income 83 87 247 364 21

Net Income Total Seadrill Limited Unaudited accounts in USD millions 1Q17 4Q16 3Q16 2Q16 Net operating income 83 87 247 364 Financial items and other income Interest income 20 13 17 16 Interest expense (99) (107) (98) (105) Loss on impairment of investments (882) Share in results from associated companies 1 58 112 63 61 Gain/(loss) on derivative financial instruments 1 8 (16) 59 (72) Gain on debt extinguishment 47 Foreign exchange (loss)/gain (5) 34 (11) 10 Other financial items, net (13) (30) 2 Total financial items and other (expense)/income, net (31) 6 (852) (41) Income/(loss) before income taxes 52 93 (605) 323 Income tax benefit/(expense) 5 (10) (49) (56) Net income/(loss) 57 83 (654) 267 Basic earnings/(loss) per share ($) 0.13 0.18 (1.29) 0.50 1 2Q16 and 3Q16 balances have been restated to correct the counterparty credit risk in the derivative valuations. For further information, please refer to Seadrill Annual Report on Form 20-F. 22

Balance Sheet - Assets Unaudited accounts in USD millions March 31, 2017 Current assets December 31, 2016 December 31, 2015 Cash and cash equivalents 1,462 1,368 1,044 Restricted cash 95 75 50 Marketable securities 94 110 96 Accounts receivables, net 377 462 718 Other current assets 612 871 1,034 Total current assets 2,640 2,886 2,942 Non-current assets Investment in associated companies 2,230 2,168 2,592 Marketable Securities 195 Newbuildings 1,543 1,531 1,479 Drilling units 14,100 14,276 14,930 Assets held for sale non current 128 128 128 Restricted cash 198 Deferred tax assets 12 12 81 Other non-current assets 652 665 894 Total non-current assets 18,665 18,780 20,497 Total assets 21,305 21,666 23,439 23

Balance Sheet Liabilities & Equity Unaudited accounts in USD millions March 31, 2017 Current liabilities December 31, 2016 December 31, 2015 Debt due within one year 3,364 3,195 1,489 Trade accounts payable 97 93 141 Other current liabilities 1,271 1,435 1,712 Total current liabilities 4,732 4,723 3,342 Non-current liabilities Long-term debt 5,948 6,319 9,054 Deferred taxes 109 112 136 Other non-current liabilities 416 449 839 Total non-current liabilities 6,473 6,880 10,029 Equity Total equity 10,100 10,063 10,068 Total liabilities and equity 21,305 21,666 23,439 24