Seadrill Limited — Earnings Release 2013

Feb 25, 2014

SDRL - Seadrill announces fourth quarter 2013 results

SDRL - Seadrill announces fourth quarter 2013 results

Highlights

* Seadrill reports fourth quarter 2013 EBITDA* of US$768 million

* Seadrill reports fourth quarter 2013 net income of US$281 million and

earnings per share of $0.49

* Seadrill increases the ordinary quarterly cash dividend by 3 cents to 98

cents per share

* Economic utilization for floaters was 94% in Q4 2013 in-line with 94% in Q3

2013

* Economic utilization for the jack-up fleet in Q4 2013 was 98% an increase

from 97% in Q3 2013

* Seadrill Partners announces settlement agreement and 18 month contract

extension for the West Aquarius with a total estimated revenue potential of

US$337 million

* Total S.A. exercised their option with Seadrill Partners to convert the

contract extension for the West Capella from 5 years to 3 years.  As a

result of this change in contract terms the dayrate has increased from

US$580,000 per day to US$627,500 per day

* Seadrill executes a one year contract extension for the West Leda with

ExxonMobil in Malaysia with a total estimated revenue potential of US$60

million

* Seadrill Limited sells the tender rig T-16 to Seadrill Partners for US$200

million

* North Atlantic Drilling completes private placement of NOK1.5 billion

unsecured bond issue maturing in 2018

* Seadrill acquires high specification jack-up rig Prospector 3 for US$235

million

* Seadrill enters into a Heads of Agreement with Pemex for 5 potential jack-up

contracts beginning in the first half of 2014.  Cumulative duration of the

contract is more than 30 rig years with a total revenue potential in excess

of US$1.8 billion

* Seadrill Limited sells part of the semi-submersible rigs, West Leo and West

Sirius, to Seadrill Partners financed with a US$456 million equity offering

and intercompany loans

Subsequent events

* North Atlantic Drilling completes private placement of US$600 million

unsecured bond issue maturing 2019

* North Atlantic Drilling completes its initial public offering of 13,513,514

common shares and began trading on January 29, 2014 on the New York Stock

Exchange under the symbol "NADL".

* Seadrill executes contract for four Jack-up units with Pemex in Mexico and

establishes SeaMex, a 50/50 Joint Venture with Fintech Advisory Inc.

* Seadrill Partners completes US$1.8 billion Term Loan B and US$100 million

senior secured revolving loan

* Seadrill is making progress in contract discussion for the West Saturn and

West Jupiter and expects the units to commence attractive medium to long

term contracts immediately after delivery from the yard.

* Orderbacklog excluding the Saturn and Jupiter discussions currently stands

at US$20.2 billion

* From the effect of January 2, 2014, the financial results of Seadrill

Partners LLC is likely to be deconsolidated from the financial results of

Seadrill.

* EBITDA is defined as earnings before interest, depreciation and amortization

equal to operating profit plus depreciation and amortization.

Consolidated financial information

Fourth quarter 2013 results

Consolidated revenues for the fourth quarter of 2013 were US$1,469 million

compared to $1,280 million in the third quarter of 2013.  The increase is

primarily due to the West Tellus, West Auriga, West Vela, West Tucana and AOD

III entering service and an increase in dayrate on the West Gemini.

Operating profit for the quarter was US$568 million compared to US$471 million

in the preceding quarter. The increase is primarily a result of new rigs

entering service and continued solid operational performance.

Net financial and other items for the quarter showed a loss of US$286 million

compared to a loss of US$96 million in the previous quarter. The loss is

primarily related to our share of the losses in the investment in Archer of

US$185 million, which is mainly due to Archer's own non-cash impairment of

goodwill and other long lived assets of US$430 million.

Income taxes for the fourth quarter were US$1 million, a decrease of US$59

million from the previous quarter.

Net income for the quarter was US$281 million representing basic and diluted

earnings per share of $0.49 and $0.49, respectively.

Balance sheet

As of December 31, 2013, total assets were US$26,300 million, an increase of

US$1,321 million compared to September 30, 2013.

Total current assets increased to US$2,834 million from US$2,562 million over

the course of the quarter, primarily driven by an  increase in cash and

marketable securities, offset by a decrease in restricted cash.

Total non-current assets increased to US$23,466 million from US$22,417 million

primarily due to the inclusion of the final yard installments for the West

Tellus, West Castor, and West Oberon and the acquisition of the West Titania

(Prospector 3).

Total current liabilities decreased to US$3,825 million from US$5,639 million

largely due to a decrease in short term debt and other current liabilities.

Long-term interest bearing debt increased to US$11,900 million from US$10,087

million over the course of the quarter and total net interest bearing debt

increased to US$13,874 million from US$12,647 million.  The increase is

primarily due to the new US$1,750 million Sevan credit facility, the re-

financing of the West Eminence and subsequent use of the freed up cash to pay

yard installments.

Total equity increased to US$8,202 million from US$7,766 million as of

December 31, 2013, primarily driven by net income for the quarter, proceeds from

the Seadrill Partners equity offering, and a gain on our SapuraKencana

investment, offset by dividends paid.

Cash flow

As of December 31, 2013, cash and cash equivalents were US$744 million, an

increase of US$193 million compared to the previous quarter.

Net cash from operating activities for the twelve month period ended

December 31, 2013 was US$1,696 million and net cash used in investing activities

for the same period was US$2,964 million.  Net cash provided by financing

activities was US$1,694 million.

Media contact

Rune Magnus Lundetræ

Chief Financial Officer

Seadrill Management Ltd.

+44 (0) 7766 071010

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1764342]