Seadrill Limited — Earnings Release 2014

May 28, 2014

Sevan Drilling ASA: Sevan announces first quarter 2014 results

Sevan Drilling ASA: Sevan announces first quarter 2014 results

Highlights - First Quarter 2014

* Operating revenue amounted to USD 60.1 million in the first quarter 2014 (Q1

2013 - USD 55.9 million) reflecting increased operational utilization of

Sevan Driller.

* Sevan Driller achieved 93.8 percent technical utilization (Q1 2013 - 72.7

percent) and 87.5 percent economic utilization (Q1 2013 - 67.7 percent).

* Sevan Brasil achieved 89.9 percent technical utilization (Q1 2013 - 92.4

percent) and 86.0 percent economic utilization (Q1 2013 - 92.3 percent).

* EBITDA was USD 15.7 million, representing a significant increase (70.7

percent) from the first quarter of 2013, mainly due to higher operating

efficiency following the transfer of management functions to Seadrill.

* Sevan Louisiana was mobilized to the US Gulf of Mexico in accordance with

plans and budgets.

Financial performance summary

Operating revenue

Sevan Drilling reports operating revenue of USD 60.1 million in the first

quarter of 2014 compared to USD 55.9 million in the first quarter of 2013.

Operating revenue consist of earnings from Sevan Driller and Sevan Brasil. The

revenue increase is explained by significantly improved operational utilization

of Sevan Driller, slightly offset by downtime on Sevan Brasil.

Operating expenses

Total operating expenses were USD 59.3 million in the first quarter of 2014

compared to USD 61.7 million in the first quarter of 2013.

The decrease is explained by improved operational efficiencies as a consequence

of the benefit of the transfer of management function to Seadrill taking

effect.  The cost reduction was achieved through reducing rental equipment

expenses, adopting continuous repair and maintenance routines, eliminating end

of well services and improving supply chain efficiencies.

General and administrative expenses were reduced by USD 0.9 million compared to

the first quarter of 2013 following workforce reductions (offset by one-time

costs of USD 1.5 million relevant to the integration with Seadrill's management

systems).

Restructuring expenses of USD 2.2 million relate to employee severance costs.

Workforce reductions onshore continue to progress as planned, and will be

concluded in May.

The foreign exchange loss of USD 2.4 million is a consequence of the change in

the exchange rate between USD and Brazilian Real.

Net financial items

Net financial items amounted to USD 11.5 million compared to USD 18.4 million in

the first quarter of 2013, reflecting lower financing and foreign exchange

costs.

Amortisation of deferred finance cost was USD 5.3 million less than in the first

quarter of 2013 due to one-time fees associated with the debt restructuring in

the first quarter of 2013 and commitment and guarantee fees.  Interest expense

was USD 2.9 million less in the first quarter of 2014 than in the same period in

the preceding year. This was caused by a lower interest rate on the new facility

and a larger amount of interest capitalized, offset by a higher amount of debt.

The net financial items in the first quarter of 2013 furthermore included a non-

recurring gain of USD 4.4 million of interest rate swaps. No swaps were held in

the first quarter of 2014.

Balance sheet

Cash and cash equivalents amounted to USD 45.8 million as of 31 March 2014 (USD

128.7 million as of 31 December 2013).  In the first quarter of 2014, Sevan

completed two payments of interest and principal (USD 20.6 million and USD 70.0

million, respectively) under its bank facility and funded construction and

mobilization costs for two rigs with available cash and a drawdown on the

revolving credit facility provided by Seadrill .

Financing

The cash position at the end of the first quarter, the flexibility of the

revolving credit facility provided by Seadrill, and Sevan Louisiana's

commence­ment of operations will provide adequate support of the Group's

existing operations going forward.  Liquidity will, however, remain sensitive to

the performance of the rigs under their contracts.

For further information, please contact:

Scott McReaken, CEO, Sevan Drilling ASA

+47 91194651 mobile

About Sevan Drilling:

Sevan Drilling ASA is an international offshore drilling contractor specializing

in the ultra deepwater segment. Sevan Drilling ASA is listed on Oslo Børs.

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

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