Seadrill Limited · NYSE:SDRL
Seadrill — Q1 2009 Earnings Presentation
23 slides from Seadrill's earnings presentation, May 26, 2009
Slide 1: Conference call 1Q 2009 results
Conference call 1Q 2009 results May 26, 2009
Slide 2: Disclaimer
Confidential Disclaimer THIS PRESENTATION AND ITS ENCLOSURES AND APPENDICES (HEREINAFTER JOINTLY REFERRED TO AS THE “PRESENTATION” HAS BEEN PREPARED BY SEADRILL LIMITED. (”SDRL” , “SEADRILL or THE ”COMPANY”) EXCLUSIVELY FOR INFORMATION PURPOSES. THIS PRESENTATION HAS NOT BEEN REVIEWED OR REGISTERED
Slide 3: Contents
Contents Highlights 1Q 2009 1Q 2009 accounts Operational status Performance newbuilds Fleet contract status Market outlook Key focus area 2009 Summary 3
Slide 4: Highlights first quarter 2009
Highlights first quarter 2009 Seadrill generates EBITDA of US$347 million up from US$224 million in the preceding quarter Net income of US$243 million equal to income per share of US$0.55 Delivery taken of the last two ultra-deepwater newbuilds of the initial eight rig batch Start-up of new
Slide 5: Condensed income statement
Condensed income statement 5
Slide 6: Mobile units
Mobile units Unaudited accounts in USD millions 1Q09 4Q08 Operating revenues 422,3 294,3 Reimbursables 5,9 6,8 Other revenues 10,7 10,5 Total revenues 438,9 311,6 Vessel and rig operating expenses 140,4 126,8 Reimbursable expenses 5,6 6,0 Depreciation and amortisation 73,5 56,2 General and adminstra
Slide 7: Tender rigs
Tender rigs Unaudited accounts in USD millions 1Q09 4Q08 Operating revenues 98,1 94,0 Reimbursables 5,3 5,6 Other revenues 0,4 1,2 Total revenues 103,8 100,8 Vessel and rig operating expenses 33,7 40,3 Reimbursable expenses 5,0 53 Depreciation and amortisation 10,7 10,7 General and adminstrative exp
Slide 8: Well Services (Seawell Limited)
Well Services (Seawell Limited) * * 100% consolidated numbers (Seadrill owns 74%) 8
Slide 9: Balance Sheet
Balance Sheet Total assets Unaudited accounts in USD millions Seadnill 31.03.09 31.12.08 Current assets Cash and cash equivalents 547,9 657,1 Marketable securities 326,3 134,7 Accounts receivables 479,6 341,1 Other current assets 530,4 530,9 Total current assets 1 884,2 1 663,8 Non-current assets In
Slide 10: Balance Sheet
Balance Sheet Liability and equity 10
Slide 11: Worldwide operations
Worldwide operations 1 drillship newbuild Norway - 5 units at Samsung, Korea 3 Semis 1 Jack-up 1 Drillship 2 semi newbuilds at Jurong, Singapore 2+2 jack-up & 3 tender rig newbuilds in Singapore GOM - 1 Semi Brazil - 1 Ship 2 Semi Africa – 4 unit Southeast Asia - 18 units China/Indonesia 1 Deepwater
Slide 12: Original 2008 deepwater projects completed
Original 2008 deepwater projects completed USA-3Q08 Brazil-4Q08 China-4Q08 Norway-1Q09 Brazil-1Q09 Nigeria-1Q09 Indonesia-1Q09 Brazil-2Q09 12
Slide 13: Average utilization rate deepwater newbuilds
Average utilization rate deepwater newbuilds Start-up experience transferred to sister vessel * 2Q09 number is quarter to date 13
Slide 14: US$10 billion floaters order backlog
14 US$10 billion floaters order backlog 2009 2010 2011 2012 2013 2014 Customer 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Semi-submersibles West Alpha 1 Consortium US$473,000 West Venture 1 StatoilHydro US$248,000 West Phoenix 1 Total US$495,000 US$495,000 West Aquarius
Slide 15: Contract status jack-ups
15 Contract status jack-ups 2009 2010 2011 Customer 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Jack-ups West Epsilon StatoilHydro US$306,000 West Janus PCPPOC US$149,500 West Atlas Coogee US$255,000 West Triton - West Ceres - West Prospero West Larissa VietsoPetro US$126,000 West Ariel VietsoPetro US$194,0
Slide 16: US$2 billion tender rig order backlog
16 US$2 billion tender rig order backlog 2009 2010 2011 2012 2013 2014 Customer 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Tender barges T3 1 PTT US$83,000 T4 Chevron US$101,000 1 T6 Carigali/CTOC US$101,000 T7 Chevron US$58,000 T8 Total US$125,000 1 T9 Exxon US$115,000
Slide 17: Market outlook
Market outlook Jack-up market Uncertain and fragile market short term Continued pricing pressure from operators Signs of more tenders late 2009 and 2010 Increase in oil prices a positive catalyst New efficient quality units should replace vintage units Tender rig market Strong long t
Slide 18: US$12.3bn revenue backlog
US$12.3bn revenue backlog * US$1,000 3 500 3 000 2 500 2 000 1 500 1 000 500 0 2009 2010 2011 2012 2013 2014 2015 2016 Quality contracts with the best credit in the industry * Licence partners –are jointly and severally liable 18
Slide 19: EBITDA growth replacing investments
EBITDA growth replacing investments US$ million 3 000 EBITDA CAGR= 30% 2 500 2 000 1 500 1 000 500 0 2008 2009 2010 2011 2012 EBITDA (DnBNor Markets estimate) Capital Expenditures Newbuilds Majority of EBITDA secured through long term contracts 19
Slide 20: Key focus areas 2009
Key focus areas 2009 Operations HSE Uptime Optimize cost Customer satisfaction Financial flexibility Secure additional financing Develop backlog Opportunities All about delivering on our promises 20
Slide 21: Petromena bond
Petromena bond Seadrill holds 81 percent of the Petromena NOK2 bn bond Bought at approximately 70 percent of face value Secured in the deepwater newbuilds Petrorig 1 (delivered April) and Petrorig 2 (delivery scheduled in September) Yard has initiated sale process for Petrorig 1 Completion
Slide 22: Summary
Summary Sound platform for shaping the future 22
Slide 23: Seadrill working for quality customers
Seadrill =a 2 SHuskyEnergy [Lj PETROBRAS ; ConocoPhillips EAE. StatoilHydro @ & devon = ExonMobil Chevron HESS CORPORATION MURPHY ctieeatn centrica FA NORECO ptt wv stati Seadniil Seadrill working for quality customers