Quarterly presentation Q DOF Subsea Group

Transcription

1 Quarterly presentation Q DOF Subsea Group

2 DOF Subsea Group

3 DOF Subsea Group in brief Fleet One of the largest subsea vessel owners in the world Owns and operates a fleet of 21 vessels, plus 4 newbuilds on order In addition 2 chartered-in vessels The market value of owned vessels in operation is about NOK 16 billion, with a value adjusted age of approx. 5.9 years Operates 62 ROVs and 4 ROVs and 1 AUV on order Global organization Head office in Bergen Regional offices in Australia, Singapore, Norway, UK, Angola, US, Canada and Brazil Total of employees Subsea employees: Of which offshore engineers and project staff: 898 Norway Brazil Canada US UK Asia Pacific Angola

4 DOF Subsea Group in brief Condensed figures 5 last quarters Key figures Back-log incl. options Market value of fleet * According to internal Management reporting Approx. NOK 38 billion Approx. NOK 16 billion 4

5 Recent events Fleet Delivery of first of 4 PLSVs, Skandi Açu Delivered Skandi Protector to the new owners Contracts Several subsea projects awarded in Asia Pacific and Atlantic region during Q Several IMR and subsea projects awarded with a total value in excess of NOK 500 million The awards increase the Group s presence in the Canadian and West-African markets Extension of RSV contract with Petrobras on Geograph by 18 months Finance Refinancing Skandi Achiever, Skandi Neptune, Skandi Patagonia, Geoholm, Geograph and Skandi Hercules Bond repurchase in Q of NOK 62 million Repaid outstanding amount of DOFSUB05 at maturity in April 5

6 Skandi Açu Delivery of first of 4 PLSVs in joint venture with Technip Sea trials on going Skandi Açu Build 2016 Design VARD 3 05 Type Subsea / PLSV LOA m Breadth 30.0 m Draught 8.5 m DWT t Accommodation 120 persons TLS tower 650t 6

7 DOF Subsea Group overview DOF ASA (51%) First Reserve Corporation (49%) DOF Subsea Holding (100%) DOF Subsea 2005 Established NOK million total assets Modern high-end fleet and equipment highly-skilled employees 21 owned subsea vessels 4 vessels on order 2 vessels on charter 62 ROVs, 5 ROVs on order 7

8 Our global footprint Bergen Aberdeen St John s NORTH AMERICA Houston Macaé Rio de Janeiro ATLANTIC 1 Luanda Kuala Lumpur Singapore Jakarta Manila Brunei Darwin Buenos Aires BRAZIL ASIA PACIFIC Perth Melbourne

9 DOF Subsea timeline DOF Subsea fleet evolution DOF Subsea employees Number of operated vessels MV of fleet NOK million Number of employees Owned vessels Chartered vessels MV of owned fleet (r.a.) * As per 31 st March 2016 Employees Fleet: From 11 to 21 vessels Fleet: 24 vessels Fleet: 25 vessels Fleet: 26 vessels Fleet: 28 vessels Fleet: 24 vessels Fleet: 23 vessels DOF Subsea was established in 2005 DOF Subsea was listed on the Oslo Stock Exchange in 2005, and taken private by DOF and FRC in 2008 Established a global footprint, present in all major offshore oil & gas regions Built a global organization through organic growth and acquisitions Developed global Business Management System, and achieved global ISO certification JV with Technip Expanded the fleet by taking delivery of 10 newbuilds Feb: Delivery of Skandi Niteroi May: Sale of Geosounder Jun: Acquisition Skandi Constructor Jul: Delivery of Skandi Skansen Sep: Delivery of Skandi Singapore Mar: Sale of OSCV newbuild Mar: Signed OSCV newbuild contract Mar: Chartered Skandi Hawk Feb: Signed OSCV newbuild contract Feb: Chartered Harvey Deep-Sea Mar: Sale of Geobay Jun: Delivery of Skandi Bergen Aug: Signed newbuild contracts for 4 x PLSVs Nov: Chartered Normand Reach Global ISO recertification Jan: Delivered Skandi Bergen to new owners Mar: Chartered Ross Candies Mar: Chartered Chloe Candies Nov: Delivered Skandi Skolten to new owners Feb: Delivered Skandi Aker to new owners Mar: Delivery of Skandi Africa May: Acquired Skandi Hawk June: Sale of Skandi Arctic Nov: Sale of Skandi Inspector Jan: Delivered Skandi Protector to new owners Apr: Delivery of Skandi Açu 9

10 Modern high-end fleet Majority of the fleet delivered after 2007 Modern fleet with a value adjusted average fleet age of approx. 5.9 High-end vessels capable of a wide scope of worldwide operations 10

11 Business management Global business management system accredited by DNV to: Business Management System ISO 9001: 2015 Health and Safety System OHSAS 18001:2007 Environmental Management System ISO 14001:2015 Sustainability reporting according to Global Reporting Initiative G4 implemented Achieved Carbon Disclosure Project reporting result of 99B (report for 2014) IMCA International Contractor membership ISO recertification in

12 HSEQ key statistics Substantial HSE-improvement since 2005 Substantial increase in activity level measured by total man-hours DOF Subsea HSEQ-statistics 12, Frequence: Incident / man-hour 10,0 8,0 6,0 4,0 2, Man-hours LTI TR Man-hours 0 12

13 DOF Subsea Projects DOF Subsea has built a global presence over the last 10 years Operating income by segment DOF Subsea has developed the project business gradually Increased project activity and complexity driving growth IMR focused operations Project business going forward Gradually increase the complexity of work done Build a larger project back-log with focus on IMR Mix between owned and chartered in vessels Subsea projects Chartering of vessels Total Q Q Q Subsea projects Chartering of vessels Total revenue Chartering of vessels Subsea projects * According to internal Management reporting Chartering of vessels Subsea projects 13

14 Contract coverage NOK billion Firm Option * Figures based on remaining back-log from beginning of April 2016 DOF Subsea Group has a good cash flow visibility over the next 3-5 years By end-march 2016 the total back-log (incl. options) was approx. NOK 38 billion Firm contracts counts for approx. NOK 20 billion Options counts for approx. NOK 18 billion 14

15 Financials

16 Condensed profit & loss (IFRS 11) Operating income was NOK million in Q1 2016, down from NOK million in Q EBITDA (excl. gain on sale of assets) was NOK 425 million in Q1 2016, up from NOK 373 million in Q EBIT (excl. gain on sale of assets) was NOK 84 million in Q1 2016, down from NOK 237 million in Q

17 Condensed balance sheet (IFRS 11) From year end 2015 non-current assets has increased to NOK million from NOK million From year end 2015 total receivables has decreased to NOK million from NOK million From year end 2015 cash and cash equivalents has decreased to NOK million from NOK million Total liabilities as per 31 st March 2016 was NOK million The net interest bearing debt as per 31 st March 2016 was NOK million The book equity was NOK million giving a book equity ratio of 33.3 % to total assets as per 31 st March

18 Quarterly performance (excl. asset sales) Operating income EBITDA EBITDA margin 40% 35% 30% NOK million % 20% 15% % 5% - Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q % NOK million Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Operating income EBITDA EBITDA margin 33,6% 34,0% 36,1% 32,4% 26,9% 28,1% 33,0% 29,4% 32,8% 27,7% 29,0% 24,8% 27,7% 26,2% 27,8% 31,4% 32,4% Current assets Non-current assets Total assets Current liabilities Non-current liabilities Equity * According to internal Management reporting 18

19 Debt maturity profile Debt maturity profile DOF Subsea AS level, 2016E 2020E DOFSUB05 (Repaid) - NOK 750 million - Maturity April DOFSUB07 - NOK million - Maturity May E 2017E 2018E 2019E 2020E 2021E Thereafter Bond Loan Bank Debt Balloons The figures reflects amortization and balloon payments on debt drawn. Debt maturity profile excludes approx. NOK 0.4 billion in payments to Eksportfinans which is serviced by a corresponding amount of restricted cash. The bond loan DOFSUB05 was repaid end-april

20 Risk mitigating factors Diversified bluechip customers reduce counterparty risk Value added services provide increased earnings potential Modern, highend fleet provides safe collateral Recent sale of vessels confirm values Strong back-log provides stable earnings Spare leveraging capacity on existing fleet Global presence provide access to more market opportunities Risk mitigating factors Strong bank and investor relationships provide access to credit Weaker subsea market 20

21 Outlook

22 Challenging fundamentals for subsea activity Demand Weak and volatile oil price Continued cost focus by oil companies Reduced offshore E&P spending Uncertain project timing Counterpart risk Increased focus on newer, technologically advanced and flexible vessels and engineering capabilities DOF Subsea owns the world s most sophisticated fleet and has a global organization 22

23 Challenging fundamentals for subsea activity Supply Fleet of subsea vessels increasing Several vessels in lay-up Number of subsea contractors to be reduced Reduced demand Increasing supply Weaker market conditions 23

24 Challenging fundamentals for subsea activity Reduced E&P spending Low and volatile oil price Increased supply of subsea vessels Lower rig activity and delayed field development Improved access to qualified personnel Lower IMR activity globally Weak subsea market and pressure on margins Number of niche subsea players DOF Subsea has mitigated the weaker fundamentals through a global footprint, a diversified portfolio of clients, strengthened balance sheet and a back-log of NOK 38 billion 24

25 Thank you!