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Highlights 3Q 2011 New contracts and fleet status New bank debt Market Outlook 3Q 2011 accounts Seadrill North Atlantic Drilling Q&A session
Contents
6th gen. semi-submersible rig West Capricorn
Conference call Q3 2 0 1 1 results November 30, 2011 Contents - - PowerPoint PPT Presentation
Conference call Q3 2 0 1 1 results November 30, 2011 Contents - - PowerPoint PPT Presentation
Conference call Q3 2 0 1 1 results November 30, 2011 Contents Highlights 3Q 2011 New contracts and fleet status New bank debt Market Outlook 3Q 2011 accounts Seadrill North Atlantic Drilling Q&A session 6
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Highlights – Third quarter 2 0 1 1
- Seadrill generates third
quarter 2011 EBITDA of US$612 million
- Strong economic utilization of
rig fleet maintained
- Earnings adversely impacted
by loss on interest rate swaps following drop in interest rate levels
- Seadrill reports third quarter
2011 net income of US$58 million and earnings per share
- f US$0.07
- Seadrill resolves quarterly
cash dividend per share of US$0.76
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- Oil prices remain at historically high
levels
- Higher growth in E&P spending
- Industry focused on new equipment
continues in all markets segments
- Utilization is increasing for all asset
classes
- Significant increase in tenders and
requests from customers
- Market poised to see higher daily
rates for ultra-deepwater units
Market fundam entals
Strong dem and for quality equipm ent
Brent Spot Price
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1 U S $ p e r b a r re l Low/ High range Average Historical dayrates for Ultra- deepw ater rigs 100 200 300 400 500 600 700 J a n
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1 USDk/ day Low/ High range Av erage
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Daily rates reflecting a tighter m arket
Highlights – New ultra deepw ater contracts
W est Hercules W est Leo W est Capricorn
Dayrate US$500,000 US$487,500 US$510,000- US$530,000 561,000 Contract term 4+ 1 years 5+ 2 years 1 year 2+ 2 years Rig type Semi Semi Semi Semi Area Norway US GoM Ghana Canada Customer Statoil TBA Tullow ExxonMobil
W est Aquarius
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US$ 9 .3 billion contract backlog - Floaters
Staggered contract portfolio offers flexibility
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Highlights - Jack-up contracts
Sound dem and for prem ium jack-ups
W est Ariel W est Prospero W est Callisto
Dayrate US$129,000 US$135,000 US$129,000 Contract term 1 year 5 months 1 year Area Vietnam Andaman Sea Vietnam Customer VSP Total VSP
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US$ 2 .5 billion contract backlog - Jack-ups
A strong m ix of short and long-term contracts
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US$ 1 .7 billion contract backlog - Tender rigs
Effective units … support strong EBI TDA m argins
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US$ 9 5 0 m illion senior secured bank facilities
New W est Capricorn facility
- Loan amount: US$550 mill.
- Tenor: 5 years
- Profile: 10 years
- Security: UDW rig West Capricorn
- Margin: In line with previous credit
facilities
- Covenants: In line with previous
credit facilities New Jack-up facility
- Loan amount: US$400 mill.
- Tenor: 5 years
- Profile: 10 years
- Security: 4 jack-ups
- Margin: In line with
previous credit facilities
- Covenants: In line with
previous credit facilities Attractive long term financing in place
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Seadrill is uniquely positioned
Earnings visibility supports paym ent of cash dividends
- Diverse versatile fleet of brand new rigs
- Strong and steady operational performance
- Significant improved market conditions for
ultra-deepwater units
- Operations expanding to new countries and
geographical regions
- Record high order backlog and earnings
visibility
- Debt financing for premium assets is available
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Financial perform ance highlights
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EBI TDA contribution
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Operating I ncom e
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Net I ncom e
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Operating I ncom e - Floaters
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Operating I ncom e – Jack-up rigs
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Operating I ncom e – Tender rigs
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Seadrill Balance Sheet
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Seadrill Balance Sheet
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North Atlantic Drilling
Financial reporting highlights
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North Atlantic Drilling
Operating I ncom e
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North Atlantic Drilling
Net I ncom e
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North Atlantic Drilling
Balance Sheet
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North Atlantic Drilling
Balance Sheet
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North Atlantic Drilling
Relevant Tax events
- I ncrease in corporate incom e tax rate for Svalbard from 1 6 % to 2 8 %
- Transfer of remaining two rigs out of Svalbard in 2011
- Acceleration of deferred income tax in 2010 and 2011 tax filings
US$167 million in capital gains taxes payable in 2011 and 2012 amortized in the P/L over the remaining lifetime of the rigs
- These actions save the Company some US$448 million in future tax on operating income
- Tax claim from Norw egian Tax Office ( tax audit in 2 0 0 9 )
- The tax claim mainly related to capital gains in connection with subsidiaries which relocated to
Svalbard in 2007
- Disclosed in Seadrill’s 20F, April 2011. Also referred to in the presentations in February 2011
- Net maximum exposure increased from US$190 million to a total of US$263 million due to Tax
Office’s most recent claim that relocation did not happen until “year end 2008”
- The Company maintains its previous position that the Tax Office’s claims are unjustified and will
vigorously appeal against the position of the Tax Office in the applicable courts
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1 Mid-water Semi 2 Jack-ups 7 Tender Rigs
Asset portfolio
17 Ultra-Deepwater Units + 1 Mid-water semi 20 High Specification Jack-ups 13 Tender Rigs
3.5% of Ensco (MV - US$387m) 23.6% of Sapura Crest (MV - US$392m) 39.9% of Archer (MV - US$452m) 33.75% of AOD (MV - US$62m)