Pareto Oil & Offshore Conference CEO and President Alf C Thorkildsen September 12, 2012
Contents Company profile Developments last 12 months Market outlook Rig fleet Financials Value creation Summary 3
Company profile Most modern fleet of all major offshore drillers Diverse asset base of 66 units Enterprise value * - 24 drillships & semi-submersibles - 21 jack-up rigs - 21 tender rigs Global reach including harsh environment…
Business strategy Building a fleet of modern high-spec units through organic growth and selective M&A 5
Key Steps in Developing Seadrill Operational excellence.delivering growth *Includes five tender rigs owned by Varia Perdana 6
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…
Development last three years Sep. 2010 Sep. 2011 Sep. 2012 SDRL share price US25 US31 US41 Dividend per share* US2.26 US3.03 US3.37 Brent oil price US75 US105 US109 Deepwater dayrates US430,000 US500,000 US550,000 ++ Premium…
Highlights last twelve months Investments US3.5 billion Contracts US9.6 billion 3 Ultra-deepwater drillships at Samsung Orderbacklog totals US19.7 billion US600 million per unit Average contract duration for floaters increased 2…
Asset Base & Market Outlook A diverse portfolio of modern quality rigs for all waters and weather 10
Second Largest Ultra-deepwater Player Existing rigs Deepwater units Newbuilds Deepwater units 50% growth in fleet .Cost of ageing underestimated Source: ODS Petrodata 11
Markets trends in ultra-deepwater Growing market for deepwater rigs Significant exploration successes in ultra-deepwater areas GoM, Brazil and Africa continue to be the main drivers for demand Percent of fleet performing…
Market trends in ultra-deepwater Historical UDW dayrates Newbuild prices stable daily rates improving in 700 conjunction with duration 600 500 USDk/day 400 Oil companies securing capacity early, and 300 contracts with…
Floaters - US15.1 billion contract backlog 2012 2013 2014 2015 2016 2017 Unit Customer 3Q 4Q 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 Jupiter…
Largest Operator of Premium Jack-Ups Existing rigs Jack-ups 5 5 Newbuilds Jack-ups New fleet to meet future drilling challenges Source: ODS Petrodata 15
Market development - Jack-ups Daily rates are improving Utilization for jack-up rigs 95% Near-term availability decreasing 78% Bifurcation between premium and standard jack-ups continuing Strong demand from Middle East and SE…
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…
US19.7 bn - Revenue Backlog units Average Average Current term dayrate market rate Floaters 24 3.2Y US552,000 US550,000++ HE Jack-up rigs 3 4.1Y US344,000 US360,000 Jack-up rigs 18 1.1Y US143,000 US140,000+ Semi-tenders 8 1.9Y…
Newbuilds and Growth Seadrill offers attractive growth through its newbuild program and open market positions 22
Rig Investment Economics I UDW floaters Jack-ups Tender rigs Dayrate US550,000 US150,000 US170,000 Opex incl. G&A US170,000 US60,000 US60,000 Tax (of revenues) 4.0% 4.0% 4.0% 5Y cash-flow US605 m US140 m US223 m Investment US600…
Rig investment economics II High dayrates Low capital cost Low newbuild prices combined with high day rates creates unique opportunities for investments 24
Newbuild program EBITDA growth US Millions 18 rigs under construction US6.9 bn newbuild program US1.4 bn already paid 8 newbuilds have contracts with US Millions 2012 2013 2014 2015 2016 an estimated revenue potential…
EBITDA* Potential Development EBITDA Second upturn cycle.US4 billion in 2016 * EBITDA earnings before interest, tax, depreciation and amortization ** Assumes daily rates of 550,000 for floaters, 170,000 for semi-tenders, 120,000…
Financial Profile Financial profile mirrors the revenue backlog, modern assets and strong cycle 27
Financial gearing Net debt development Rigs re-contracted at latest market dayrate UDW floaters 550 BE Jack-ups 140 Semi-tenders 170 Tender barges 120 Net debt per UDW equivalent unit Debt refinanced at existing terms No…
Share price development 29% Seadrill Last 12 months 19% Ensco 17% Noble 4% Diamond 1% Rowan -12% Transocean 133% Seadrill Last 3 years 70% Rowan 53% Ensco 9% Noble -25% Diamond -36% Transocean 2009 2010…
Dividend Policy and Track-record Quarterly cash dividend is a key objective Strong operational performance, record- high orderbacklog, and positive market outlook have supported higher dividend Last quarters regular dividend is…
Seadrill Summary Strong operational performance Record high revenue backlog and earnings visibility US6 billion investment program in a historic strong cycle US4 billion EBITDA target still remains Funding through the newbuilding…
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