North Atlantic Drilling Ltd. Fourth quarter 2013 results February 25, 2014 The leading driller in the North Atlantic region
Fourth Quarter Call Agenda Company profile Highlights 4Q 2013 Assets & contract backlog Market overview & outlook Financing & 4Q 2013 financials Summary Q&A The leading driller in the North Atlantic region 3
Company profile Setting the Standard in Harsh Environment Drilling Offers investors opportunity to invest in experienced pure-play harsh environment driller NADL is Seadrills dedicated vehicle for harsh environment and Arctic…
Operational Excellence Recognized for providing high quality operations, in the most challenging sectors of offshore drilling Quality of Business has approximately 1,600 skilled employees with over 40 years of offshore drilling…
Company profile Highlights 4Q 2013 Assets & contract backlog Market overview & outlook Financial performance 4Q 2013 Summary Q&A The leading driller in the North Atlantic region 6
Fourth quarter 2013 highlights and subsequent events Highlights Fourth quarter 2013 EBITDA of US137.6 million Fourth quarter 2013 net income of US48.0 million and EPS of US0.211 Regular quarterly cash dividend increased to US0.23 per…
Company profile Highlights 4Q 2013 Assets & contract backlog Market overview & outlook Financing & 4Q 2013 financials Summary Q&A The leading driller in the North Atlantic region 8
The Assets - Fleet of Premium Harsh Environment Rigs Floaters Jack-ups Newbuild Managed rig Newbuild West West West West West West West West West Phoenix Venture Alpha Navigator Rigel Hercules Epsilon Elara Linus Long-Term…
Strong Contract Coverage As of Q4 2013 Current dayrate Contract status Rig Client (USk/day) 2014 2015 2016 2017 2018 2019 2020 West 5321 5471 Alpha West 441 Venture West 454 Phoenix West 497 497 Hercules West 602…
with US2.6 Bn Backlog to High Quality Customers Strong Contract Backlog Strong contract backlog of US2.6 Bn with A-rated 1,200 customers 1,000 Differentiated by premium harsh environment assets 800 and high operational…
Company profile Highlights 4Q 2013 Assets & contract backlog Market overview & outlook Financing & 4Q 2013 financials Summary Q&A The leading driller in the North Atlantic region 12
Harsh Environment Focus and Young Fleet Pure-Play Harsh Environment Player - HE Units in % of Total Fleet % 100 100 78 78 75 50 50 38 36 27 25 13 9 8 8 5 0 NADL Stena Songa Odfjell Maersk COSL Ocean Rig Saipem Fred Olsen…
Market Situation for Harsh Environment Rigs Strong Growth in HE Rig Demand and Full High Dayrates Utilization USDk/day 750 40 100% 600 Strong Growth in 450 Number of Rigs with CAGR of 14.2% from 300 32 80% 2008 to 2013 150 0…
Significant Arctic Opportunity Arctic region estimated at over 400 billion barrels of oil equivalents 85% of resources expected to be offshore More than 50% expected to be in Russia 30% of global undiscovered natural gas 13% of…
Potential in Russia The Russian offshore harsh environment areas contain 5x the recoverable resources in Norway East Siberian, Chukchi & Laptev Seas: 71Bn boe Kara Sea: 103Bn boe 42 29 Norway: Barents Sea: 47Bn boe 55 Oil…
Company profile Highlights 4Q 2013 Assets & contract backlog Market overview & outlook Financing & 4Q 2013 financials Summary Q&A The leading driller in the North Atlantic region 17
Debt Overview Facility Balance1 Interest Details NOK1,500m Quarterly Maturity in 2018 US245 unsecured bond NIBOR + 4.40% US2,000m Matures with a US1bn balloon in 2017 US1,503m L + 2.00% secured bank facility Seadrill sole…
Financial reporting highlights This quarter Previous quarter EBITDA US138 m US144 m Earnings per share US0.21 US0.30 Operating profit US89 m US93 m Financial items US(30) m US(22) m Cash flow from operating activities US121…
Operating Income - Total 4Q13 3Q13 2Q13 1Q13 Unaudited accounts in USD millions Contract revenues 271 293 280 272 Reimbursables 27 28 95 46 Related party revenues 12 - - - Total operating revenues 310 321 375 318 Vessel and rig…
Net Income - Total 4Q13 3Q13 2Q13 1Q13 Unaudited accounts in USD millions Net operating income 89 93 87 92 Financial items Interest expense (24) (21) (21) (19) Gain / (loss) on derivatives (16) (3) 9 (6) Other financial items 10 2…
Balance Sheet - Assets December September June March 31, 2013 30, 2013 30, 2013 31, 2013 Current assets Cash and cash equivalents 84 116 180 120 Restricted cash 25 19 23 19 Accounts receivables, net 222 256 255 225 Related party…
Balance Sheet Liabilities and Shareholders Equity December September June March 31, 2013 31, 2013 30, 2013 31, 2013 Current liabilities Current portion of long-term debt 167 167 167 167 Related party transaction 13 7 12 11 Tax payable…
Company profile Highlights 4Q 2013 Assets & contract backlog Market overview & outlook Financing & 4Q 2013 financials Summary Q&A The leading driller in the North Atlantic region 24
Summary Strong Growth in HE Rig High-End Assets with Strong Contract Backlog Demand and Full Utilization 40 100% 32 80% 24 60% 16 40% 8 20% 0 0% Total Demand Total Supply Utilization Potential in Russia Long…
Company profile Highlights 4Q 2013 Assets & contract backlog Market overview & outlook Financing & 4Q 2013 financials Summary Q&A The leading driller in the North Atlantic region 26
North Atlantic Drilling Ltd. Fourth quarter 2013 results February 25, 2014 The leading driller in the North Atlantic region
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