SEB Nordic Seminar CFO - Rune Magnus Lundetrae Copenhagen, January 2014
Seadrill Limited Overview US Billions 25 Most modern fleet of all the major offshore drillers Diverse asset base of 69(1) units 20 34 drillships & semi-submersibles (11 Under Construction) 15 32 jack-up rigs (10 Under…
Financial Performance Highlights Seadrill generated EBITDA of US663 million Quarterly EBITDA for the third quarter 2013 Economic utilization for our floaters was 94 percent and 97 percent for jack-ups Reported third quarter 2013…
Recent Developments Investments Fleet development Fleet has developed significantly over the past few months: Ordered four ultra-deepwater drillships with delivery expected H2 2015 H1 2016 Ordered four jack-ups with delivery…
Key Investment Highlights 6
Key Investment Highlights Global Operational Footprint Modern Fleet with Exposure to Premium Segments Significant Contracted Backlog Providing Dividend Visibility Innovative Capital Structure and Funding Strategy…
Global Operational Footprint North Atlantic 7 units North Atlantic Americas - 4 HE Semis 7 units London - 2 HE Jack-ups - 1 Drillship - 2 Drillships - 4 Semis - 1 jack-up Gulf of Mexico Middle East Asia Pacific Brazil…
Strategic Focus on Premium Asset Classes One of the largest Offshore Drillers with a Modern Fleet and Exposure to Premium Segments Ultra-Deepwater Units Average Floater Age % Ultra-Deepwater of Total Floaters % of Total Floaters…
Longstanding Relationships with Leading Oil & Gas Companies Current backlog US Millions 7,000 5.6 6,000 4.7 5,000 4.1 4,000 3.2 2.9 3,000 2,000 1.4 1,000 0 2014 2015 2016 Remaining 10
Financial Flexibility Dec-2013 Actual 2015 Illustrative 2013 Financing Summary Capex Per Year (US Millions) Floaters Jack-ups 4,000 Unsecured Financing Secured Financing NOK 1,800m bond 3,500 8 new facilities NOK 1,500m bond…
Dividend Growth Continues to be a Priority Key objective to grow quarterly dividends Quarterly cash dividend raised from 91 cents to 95 cents per share in Q3 Increase reflects improved free cash flow and newbuilds commencing…
while Maintaining Growth Profile 4.5 Billion in 2016 Annualized EBITDA 13
Culture of Safe & Efficient Operations Recognized for providing highest quality operations, in the most challenging sectors of offshore drilling Quality of Key focus on procedures to control, measure and improve performance and risk…
Upstream Market Outlook Market Outlook 15
Increased Service Intensity 25 700 Number of Rigs Contracted Million Barrels per Day 24 600 23 500 22 400 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Offshore Production Total Offshore Rigs More Rigs…
Recent Discoveries to Become Produced Volumes Discovered resources 1980 to 2013 (Billion boe) 140 120 100 80 60 40 20 - 1980 1985 1990 1995 2000 2005 2013 Shelf Deep Water Ultra deepwater Resources discovered and produced…
Ultra-Deepwater Production Growth Accelerating Global liquids production, by Global offshore production land and water depth by water depth 1960 - 2040 Million bbl/d 2012-2030 Thousand boe/d Replacement CAGR = 1.3% 80000…
The Golden Triangle lives on Source: Pareto 19
Drilling Market Outlook 20
Global Rig Supply & Demand Imbalance Favors Contractors Significant Newbuilds Required to Bridge Expected Demand Gap 500 450 400 Supply 350 Demand 189 300 (50) 60 250 455 200 150 316 256 100 50 0 Current Fleet…
UDW Replacing Aging Deepwater Fleet Newbuild water depth Operating water depth 4500 7500 Greater than 7% 7500 Less than 12% 4500 8% Greater than 4500 7500 7500 54% 85% Less than 4500 34% Total floater…
Robust Jack-up Fundamentals Age Development of Contracted Jack-up Fleet Jack-ups Removed from the Market of rigs of rigs 16 250 232 15 215 220 220 208 14 200 12 12 12 11 10 150 10 9 8 8 8 7 100 90 90 6 6 67 6 51 4 4 4…
New Equipment Commanding Higher Dayrates Ultra-Deepwater Floaters Jack-ups 300 Water Depth Customers Demand Better Performance and Safety of New Equipment Source: ODS Petrodata 24
Conclusion 25
In Excess of 15% EBITDA Growth in Q4 Gain on sale Gain on sale 26
What can you expect from Seadrill Next 2 years Ultra-Deepwater Economic Utilization Dividend distribution per share 27
Core Assets 32 Ultra-deepwater units built after 2000 2 Midwater semi-submersible rigs 29 High-specification jack-up rigs built after 2005 3 Harsh environment Jack-ups 3 Tender Rigs Financial Investments 12% of SapuraKencana…
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