2017 Pareto Conference Bart Heijermans CEO

Transcription

1 2017 Pareto Conference Bart Heijermans CEO

2 Recent DeepOcean presentations at Pareto Conference Navigating through crowded water Weathering the prolonged oil downturn We cannot solve our problems with the same thinking we used when we created them. Albert Einstein DeepOcean is getting ready to thrive in the new normal but light at the end of the tunnel is still dim (except Nordic light that is a bit brighter..)

3 State of the Industries Oil & Gas Offshore Wind and Interconnectors In absence of a global geopolitical event oil will likely trade in the ~$40-$60 range for years to come Continued focus on cost deflation in order for offshore oil to become competitive Market structurally oversupplied with rigs and vessels for many years Still enormous amounts of debt that have to be written off because vessel day rates are not going to return to 2014 levels (not even close ) Contractors with relative lower fixed cost basis have advantage Significant global growth caused by continued technology advancements, productivity gains and cost reductions soon resulting in a phaseout of the need for any subsidies Focus on sustainable sources of renewable energy to reduce CO2 emissions and improve quality of life Energy transition ongoing and likely to accelerate Adequate number of suppliers to drive down LCOE Long term prospect for interconnectors looks promising

4 Size of fleet 14 Number of ROVs 50 Number of trenchers 15 Number of Employees ~1000 Number of Engineers ~200 Lead Shareholder Funds advised by Triton Partners Life of field subsea services

5 Financials Renewables / interconnector Oil & Gas $ m Revenue revenue on par with 12 in NOK terms 17 renewable and interconnector revenue ~ 50% ~ Utilization 86% 87% 80% 82% 83% 79% H17 ~ of vessels DeepOcean is a very effective platform for customers and ship-owners

6 Getting ready to thrive in new normal Find and secure new work Innovation to structurally reduce cost Several initiatives ongoing Unit cost leader Smooth execution Low and flexible cost basis (company and supply chain) High utilization Repetitive nature of work (learning curve) Personnel retention Diversification Oil & gas Renewables Interconnectors CAPEX & OPEX Agile & Nimble & Savvy

7 Fleet rebalancing

8 Not your typical IMR 2 contractor differentiated IMR 2 services Subsea well scale squeeze operations using coiled tubing rig Subsea laser data acquisition and visualization High speed survey ROV Installing flexible risers using a VLS Installation of suction piles Installation of Subsea Trees Strong engineering capabilities and fast response

9 Examples of Innovation

10 Typical OCV Campaign in spot market Race Bank Array Array cables Varg subsea decommissioning Troll B&C riser replacements and wear protection Foinaven riser replacement

11 Walney Extension Project Simultaneous installation and burial of export cables 136 km Installation of interlink cable 23 km # of engineered groundings 10 # of complex 3.5km beach pulls across Morecambe Bay 2

12 Race Bank Project Installation and burial of 91 Array Cables Max. >3 cables per day Variable hard soils, strong currents and sand waves 11

13 Race Bank Project T3200 and T1000 trenchers both worked on this project Unmatched trenching performance T3200 is the industry standard Trenched ~130 km of export cables up to 3m depth of burial in challenging and variable soil conditions including Calcareous rock

14 2x 130 km subsea 1000 MW interconnector cables Belgium UK Getting ready to thrive in new normal 7,000 te. split capacity duel concentric carousel Simultaneously loading 2 x 59km 400kv HVDC XPLE cables Complicated route engineering, preparation in English channel 13

15 Renewable and transmission projects in 2017 Nobelwind Bligh Bank Array Cables Race Bank Export Cables Nemo Interconnector Walney Array Cables Real projects by committed contractor - not just W2W vessel utilization.

16 Searov acquisition Acquired French company Searov Offshore SAS effective 1 July 2017 Company owns 10 ROVS Operations in Congo, Cameroon, Gabon, Ivory Coast Clients Total, ENI, Perenco, Vaalco, etc. Can do attitude and great addition to our platform Part of DeepOcean s strategy to become life of field subsea services contractor in key countries in Africa

17 Our focus Safety of all employees and other stakeholders Finding and contracting new work Operational excellence Continued focus on unit cost reductions (company and supply chain) Innovation to reduce cost Add SAT diving to our service offering Acquire companies and assets in line with our Deep 2020 Vision

18 Q&A Follow DeepOcean Group on Join the discussion on LinkedIn: More than 37,000 followers