Good day, ladies and gentlemen, and welcome to the Q4 2014 Seadrill Limited earnings conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. John Roche, Head of Investor Relations. Please go ahead, sir.

Thanks, Ann. Good afternoon and good morning to everyone on the call today. Welcome to Seadrill Limited's fourth quarter earnings conference call. With us today, we have Per Wullf, our Chief Executive Officer; and Rune Magnus Lundetræ, our CFO; and Anton Dibowitz, our Chief Commercial Officer. Before we do get started, I'd like to remind everyone that much of the discussion today will not be based on historical fact, but rather consist of forward-looking statements and are subject to uncertainty. We articulate some of the key items on Page 2 of the presentation today. For additional information and to view our SEC filings, please visit our website at www.seadrill.com. To begin the discussion today, Per will take us through our fourth quarter highlights and some of his thoughts on Seadrill and the company's position in the current market environment. Rune will then address our financial highlights and near-term funding requirements. And lastly, Anton will offer some color on the overall market and recent developments for Seadrill on the commercial side of the business. With that, I'd like to turn over the call to our CEO, Per Wullf. Per?

Good afternoon, everybody. Seadrill has had a successful year in 2014 in a very challenging market. I'm pleased that we are able to deliver operationally and achieve economic utilization of 94% for the year. In the fourth quarter, we took delivery of three drillships. They are all into service. It's West Jupiter, West Saturn and West Neptune. This was a first for us, and I am pleased with the focus on safety and efficiency that has come to define Seadrill's operational principles. Operational excellence is our bread and butter. It is quite an accomplishment to be able to take three drillships directly from the yard and into service on-time and deliver high operational utilization right from day one. In the case of West Jupiter, we started our well in Nigeria in December and completed the well safely, ahead of schedule and with 98% technical utilization. This is a testament to Seadrill's standardization program, our ability to apply lessons learned and the quality of our workforce. Within our ongoing operations, this quarter, our deepwater unit West Pegasus, which has been operating in Mexico since delivery from the yard has achieved four years without any loss time incident, which is a great accomplishment. I would personally like to give a very big congratulation to all our employees on and offshore, who played a part in these achievements. In addition to executing operationally, we were able to take a number of steps to ensure that Seadrill is able to manage through the market challenges, and believe these steps will provide us with a flexibility to emerge from the industry downturn in a stronger position. In November, we made the difficult decision to suspend the dividend. However, standing behind that decision is events that transpired since that time have made us more comfortable that…

Thanks, Rune, and good morning and afternoon, everybody. Today I'm going to start off by addressing some of the recent developments around backlog, talk a bit about sanctity of contract. And lastly, add a few comments about the state of the market in general. During November 2014, we received notification from Petrobras of their approval of contract extensions for the West Taurus and the West Eminence, which was a material and disposable event. In the time between receiving the Petrobras approval and concluding the final contract with the BMS-9 and BMS-11 field consortiums, it became apparent to us that the timeframe for signing the contracts on commercial terms would not be in line with the guidance originally provided to the market, and consequently we made additional disclosure. Today, we continue to have commercial discussions with Petrobras on behalf of the consortium for the employment of both of these units. I would differentiate this from the case of West Tellus and Carina, which are now signed firm contracts. The rigs are mobilizing or will be eminently mobilizing to Brazil, and we continue to expect startup during the second quarter. These awards are prime examples of how our operational history in Brazil, relationship with Petrobras and being able to deliver premium assets as part of a total solution, which included managed pressure drilling technology, allowed us to secure key fixtures. In the case of the West Tellus, it also illustrates our ability to wait for the right opportunity to fix units on follow-up work, rather than having to chase suboptimal jobs to keep the rig working. With respect to contract renegotiations, we have indeed been approached by some of our customers, seeking price adjustments under existing contracts in light of the current oil price environment. To date, I would characterize these discussions…

Overall, we believe that the current downturn will ultimately result in a more healthy industry in the long run. Seadrill's business has been eye towards to generating returns to the cycle and has the capability to face today's challenges. We believe the company is well-positioned to take advantage of this downturn and to come out stronger. Finally, Seadrill's favorable positioning should allow the company to act as a consolidator when the time is right. Current evaluations do not yet justify acquiring companies, many of which have significant uncontracted rig capacity available. Seadrill's primary focus will continue to be on cash and commitment management, until we have a view on the shape of the recovery. Thank you.

Thanks, Per. And with that, I'd like to turn over the call to the operator to assemble the queue for questions. I would like to remind everyone to limit questions to one question and one follow-up given that the number of callers we have today. So over to you, Ann.

[Operator Instructions] We will now take our first question from Jacob Ng from Morgan Stanley.

Obviously, a lot of noise out of Brazil these days. Could you please shed some light on what's going on with [ph] Sanchez? And on the notice, progress on your three JV rigs still going as planned. I wonder if there could be an opportunity for you to step-in and substitute part of the intended three nine rig package through some of your delayed newbuilds, as we get to 2017.

Yes, I can comment a little bit on that one. As you know, we have committed together decided to build three drillships. We have 30% stake in these three drillships. And it's three times 15-year contracts. And we are building these drillships together with Jurong, we also make sure that they're actually being built and that is continuing as we speak. But always, obviously, we will see how it's going with contracting of our own units down there as well. But obviously, we are well-positioned to take further commitment together with Sanchez, because we are one of the few ones left there. And you could see a more units together with Sanchez going forward, based on where we have a stake in the units going forward and that could be some of the semis and some of the drillships, maybe being built down them.

Now, I also want to touch on the possibility of share buybacks in lieu of your suspended dividend. Would you be able to share a roadmap with some milestones that would dictate a go or no-go share repurchases down the road. Rune Magnus Lundetræ: I don't want to comment on the timeline. What we opened up for in Q3 was the possibility of that happening. I think the focus now is on preserving cash.

We will now take our next question from [ph] Andrew Bergland from Platou Markets.

Just a couple of question, first on Brazil and then on Mexico. Can you give some insight to where your negotiation for an extension on the Orion? And secondly, clarify something on the PEMEX contracts. Are you exposed to the 30-day cancellation at all on the jack-ups and also on the Pegasus?

I believe your first question was about Brazil. Petrobras is a very systematic process as they go through their extension discussions. They're rolling off contract first and engaging those discussions and we just simply not at a point with Petrobras discussing the Orion extension at this point. With regards to the question about PEMEX and termination rates, obviously all contracts are bound by confidentiality, so I'm not going to get into the specifics of discussing any particular contract. But I would point you to the comments that we put in the quarter, and also the comments in my prepared statements that based on the language that we have in our contracts with PEMEX, we are confident that those contracts and the backlog there is absolutely secure.

We will now take our next question from Mukhtar Garadaghi from Citi.

Just in terms of you delaying some of the new builds. Could you please discuss the four drillships you have due, which I understand you pushback to the middle of 2016. How much flexibility you have to pushback those even more? And does it coming any cost? And then I have one follow-up.

Well, as you know we are building two drillships at DSME and we are building a couple of drillships at Samsung. Of course, we are part of the Fredriksen Group and the Fredriksen Group of building a lot of units out in the Far East. And we are close dialog with the yards all the time in order to adjust this. I cannot give you a specific time, but I can tell you we will not go and deliver -- and take delivery of any units in 2015. And then we have to give another couple of quarters, before I can guide you more on when in '16 or in '17 you will take delivery. That is the closest I can do right now.

And just as a follow-up, I mean in terms of financing, your options on financing, if you were to take these rigs in 2016, could you please discuss your option to finance them if they are no contracts given your announcement expecting the weakness to last into '16? I think you've talked it about Carina. Can you just elaborate a bit more? Rune Magnus Lundetræ: So first of all, I'll just remind you that, we have paid down 30% and 20% respectively of these rigs, so the final installment is between $350 million and $400 million of this year. Secondly, I think you should expect those to structure the financing as we did with Carina and where you have steel element, meaning that there is a non-contractual element that would be expected to be between $350 million and $375 million per unit. That's the discussions we have with the banking group. And as we also said in our report, there is still great support from our main banks and they would be willing to look at structure like that. And then you would have stag or a step-up depending on what the comp tracks backlog and dayrate level you were able to obtain. So that would be the way to structure the funding in case you take delivery without contract.

Rune, just quickly, and the way the banks value these rigs, is it still likely sort of right around $600 million range or has that change in the last month? Rune Magnus Lundetræ: What we do is we have every six months we get to independent brokers to value our rigs. And it has decreased from June through December. And that decrease has been approximately 10% on the fleet in total.

That will conclude today's question-and-answer session. I would now like to hand back to Mr. John Roche for any closing remarks. End of Q&A

Thanks, Ann. And thank you for everyone on the call today. This concludes Seadrill's fourth quarter conference call. Thank you.