Seadrill Limited — Earnings Release 2015

Nov 24, 2015

SDRL - Seadrill Limited Announces Third Quarter 2015 Results

SDRL - Seadrill Limited Announces Third Quarter 2015 Results

Highlights

* Revenue of $985 million

* EBITDA1 of US$546 million

* 92% economic utilization2

* Excluding non-recurring items and non-cash mark to market movements on

derivatives, Net Income3 of $136 million and earnings per share of $0.21

* Reported Net loss of $1.9 billion and diluted loss per share of $3.70,

primarily due to $1.8 billion of non-cash impairment charges to investments

and goodwill.  $1.1 billion relates to the write-down to fair value of

investments in Seadrill Partners, the initial recognition of which resulted

in a non-cash gain on deconsolidation of $2.3 billion in January 2014.

* The Seadrill Group4 achieved 93% economic utilization

* Seadrill Group orderbacklog of approximately $12.0 billion

Commenting today, Per Wullf, CEO and President of Seadrill Management Ltd.,

said:

"We have had a strong operating quarter and we continue to make good progress on

our cost savings program.  Our discussions with the shipyards continue to be

constructive regarding deferrals.

We believe that market conditions are likely to remain challenging through 2016

and the coming quarters will provide insight into the 2017 environment.  It is

important to recognize that we are in a cyclical business.  The longer this

downturn lasts, the more robust the recovery will be when it happens.  Seadrill

is in a position to capitalize on the upturn with the the most modern fleet and

world class operations."

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1 EBITDA is defined as 'Earnings Before Interest, Tax, Depreciation and

Amortization'  and has been calculated by taking operating profit plus

depreciation and amortization but excluding gains or losses on disposals and

impairment charges against goodwill. Contingent consideration realized relates

to Seadrill's ongoing residual interest in the West Vela and West Polaris

customer contracts, and has been included within EBITDA.

2 Economic utilization is calculated as total revenue, excluding bonuses, for

the period as a proportion of the full operating dayrate multiplied by the

number of days in the period.

3 Net income excluding non-recurring items and non cash mark to market

investments on derivatives is reconciled to US GAAP net loss in Appendix 1.

4 Seadrill Group is defined as all companies currently consolidated into

Seadrill Limited plus Seadrill Partners and SeaMex.

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1968921]