Q Financial Presentation. DOF Subsea AS

Transcription

1 Q Financial Presentation DOF Subsea AS

2 Agenda Highlights Events last 4 months Group overview Contract coverage Financials Outlook DOF Subsea

3 DOF Subsea Group Highlights Fleet One of the largest subsea vessel owners in the world Operates a fleet of 25 vessels with a total market value of NOK16.4 billion Operates 53 ROVs, including 5 newbuilds Global organization Head office in Bergen Regional offices in Australia, Singapore, Norway, UK, Angola, US, Canada and Brazil Total of 2,336 employees Subsea employees: 1,336 Of which offshore engineers and project staff: 900 Marine crew: 1,000 Norway Brazil Canada US UK Asia Pacific Angola DOF Subsea 3

4 DOF Subsea Group Highlights Key Figures (NOK 000) Q Q Proforma 2010 Operating revenue 1,222, ,727 4,285,571 3,589,959 EBITDA 410, ,026 1,341,628 1,094,687 EBITDA-margin 33.6 % 26.8 % 31.3 % 30.5 % Total Assets 19,238,325 17,349,125 19,248,481 17,528,458 Strong back-log and rising market values of vessels Back-log incl. options: NOK 15.3 billion Market value of fleet: NOK 16.4 billion Number of shares: 119,733,714 Total Per Share Book equity: NOK 5.0 billion NOK Value adj. equity: NOK 7.4 billion NOK Book equity ratio: 25.8 % Value adj. equity ratio: 33.8 % DOF Subsea 4

5 Events Last 4 months Vessels Sold a subsea newbuilding contract with delivery of vessel May 2012 Signed a high-end OSCV newbuild contract with delivery May 2013 Skandi Hawk delivered operated in the Asia Pacific region The vessel is chartered by DOF Subsea from DOF ASA and has already been awarded several contracts in the region Purchased 6 new Triton XLX ROVs with LARS Delivered by Perry Slingsby during 2012 Geosea finishied rebuild to RSV in Norway, onhire to Petrobras DOF Subsea 5

6 Events Last 4 months Contracts New contract on Skandi Skansen with Subsea 7 - firm until July 2013 Subsea 7 exercised 1 year option on Skandi Seven New contracts on Skandi Hawk Several subsea contracts in the Far East Skandi Singapore Skandi Hercules Geobay New contract on Skandi Skolten with Conoco Phillips Fugro extended contract on Skandi Carla firm until July 2017 DOF Subsea 6

7 Events Last 4 months Financing Established a ROV facility of USD 25 million Bond transactions Completed several bond transactions in January and February with a net financing effect of NOK million DOF Subsea 7

8 NB 776 to be delivered in May 2013 High end OSCV vessel ROV UHD62 & ROV HD05, rated for 3000/4000 m ROV and WORK Moonpool LOA: 120,8 m Beam: 22 m Deck area: 1100 m t Crane Suitable for Arctic operations, DNV ICE-1B & DEICE notation Accommodation: 100 persons Helideck All specifications are subject to changes without prior notice. Please contact us for details and verifications. DOF Subsea 8

9 DOF Subsea Group overview

10 Ownership structure DOF ASA FIRST RESERVE CORPORATION 51% 49% DOF SUBSEA HOLDING AS 100% Modern high-end fleet and equipment DOF SUBSEA AS 25 subsea and AHTS vessels in operation Delivery of newbuild TBN in May ROVs, 1 ROTV and 1 AUV in operation Delivery of 5 new ROVs during 2012 Leading subsea contractor DOF Subsea 10

11 DOF Subsea Group structure DOF Subsea AS DOF Subsea Asia Pacific DOF Subsea Atlantic DOF Subsea Brazil Survey & Positioning Engineering Companies Ship Owning Companies Management Companies Singapore Norway UK CSL DOF Subsea Rederi DOF Management (34%) Australia UK US Semar (50%) DOF Subsea Rederi II Marin IT (35%) Indonesia US Canada DOF Installer Mashhor DOF Subsea (50%) Brunei Canada DOFTECH Angola/Congo TECHDOF Arctic (49%) Russia DOF Subsea divided into regions, engineering companies and ship-owning companies Regions, engineering companies and ship-owning companies are profit centers Head office in Bergen DOF Subsea 11

12 A Global Subsea Player Bergen (238) Houston (60) St. Johns (37) Aberdeen (314) Cairo Moscow Singapore (55) Jakarta (3) Manila (0) Brunei Macaé Angola (20) Perth (307) Rio de Janeiro (302) Buenos Aires GEOGRAPHICAL FOCUS AREAS 12

13 DOF Subsea Company history DOF Subsea was incorporated on the 24 th of May 2005 after DOF ASA acquired GEO Group AS and its subsidiary Geoconsult AS DOF Subsea was established by DOF ASA in order to create a more effective organization with the aim of establishing a leading subsea services company In connection with the acquisition, DOF ASA transferred its multipurpose/rov vessels to DOF Subsea, constituting four vessels and one newbuild DOF Subsea is headquartered in Bergen, Norway Number of vessels DOF Subsea fleet evolution MV of fleet On Time Charter to 3rd Parties (current contracts) (left axsis) MV fleet in Bn NOK DOF Subsea Operated Vessels (left axsis) Fleet: 11 vessels Fleet: 11 vessels Fleet: 13 vessels Fleet: 16 vessels Fleet: 18 vessels Fleet: 21 vessels Fleet: 24 vessels Fleet: 25 vessels May: DOF acquired Geoconsult and established GEO (now DOF Subsea) May: Private placement of shares of NOK 715 mill Nov: Listed on Oslo Stock Exchange Nov: Acquisition of Century Subsea Feb: Acquisition of Covus Corp May: Set up of Geo do Brazil Aug: Established 50/50 JV in Brunei Jan: Acquired 50% of SEMAR Jan: Acquired 100% of DOFCON Mar: Establishment of Aker Oilfield Services Mar: Name change to DOF Subsea Apr: Acquisition of CSL Aug: Merger of Mgmt company with DOF Management AS Feb: Delivery of Geograph Jul: Delivery of Skandi Acergy Nov: Delivery of Skandi Seven and sale of Geofjord Dec: DOF Subsea acquired by DOF ASA and First Reserve JV with Technip Feb: Delivery of Skandi Salvador Mar: Delivery of Skandi Arctic Dec: Delivery of Skandi Santos Jan: Delivery of Skandi Aker Feb: Sale of Geo Challenger Jun: Acquisition of SWG Jul: Delivery of Skandi Vitoria and Skandi Skolten Dec: Delivery of Skandi Hercules JV with Technip Feb: Delivery of Skandi Niteroi May: Sale of Geosounder Jun: Acqusition Skandi Constructor Jul: Delivery of Skandi Skansen Sep: Delivery of Skandi Singapore Mar: Sale of OSCV newbuild. Mar: Signed OSCV newbuild contract with delivery May

14 A full-scale subsea service provider Services overview Typical tasks Pipeline route and site surveys Pipelay support New developments Flowline and manifold installation Construction Brownfield enhancements Abandonment Subsea tie-in Touch down monitoring Vessels are equipped with comprehensive systems, incl. Crane, Winch, ROV and Diving Equipment Umbilical / cable laying and trenching Subsea commissioning Subsea excavation / dredging Inspection Repair and Maintenance Subsea inspections of pipelines, jackets and subsea installations ROV Operations Survey Operations Diving Operations Inspection of pipelines, well heads and cables Structure inspection Valve change-out Pipeline repair Inspection Engineering Wreck- and debris inspection Survey Produces maps and reports giving graphic and digital presentations of the seabed Route surveys projecting efficient and safe routes for oil/gas pipelines and cables Examine topography of seafloor to support engineers to identify optimum routes Hydrographic mapping Data processing / interpreting Cable / pipelines route surveys Precision positioning services Harbour mapping / land surveying Tidal and current measurements 14

15 Level of industry barriers to entry DSV Complexity and size of operations Increased system requirement Complex subsea operations Marine transport/ services OSCV ROV AHTS PSV Level of barriers to entry Increased engineering requirement DOF Subsea s main presence is in segments with medium to high barriers to entry and high complexity of operations Higher margins and earnings beyond the time charter rates 15

16 Business management Global business management system accredited by DNV to: Business Management System ISO 9001: 2008 Health and Safety System OHSAS 18001:2007 Environmental Management System ISO 14001:

17 HSEQ LTI frequencies for 2011 was 0.9, YTD 2012 has been 0.6 LTI and Recordable Incident Frequencies per million working hours DOF Subsea - LTI frequency IMCA - LTI frequency DOF Subsea - recordable Incident frequency IMCA - Recordable frequency YTD 2012 High reporting of safety operations shows commitment to HSEQ 1,200 1, Safety Observations last 12 months

18 DOF Subsea In a unique position New, high-end fleet provides safe collateral Value added services provide increased earnings potential Spare leveraging capacity on existing fleet Strong back-log provides safe earnings Liquidity buffer of above NOK 1 billion Diversified bluechip customers reduce counterparty risk DOF Subsea Strong banking and investor relationships provide access to credit 18

19 DOF Subsea Contract status

20 Contract coverage (vessels) DOF Subsea A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D Geograph Ocean Protector Skandi Seven Skandi Salvadore Skandi Vitoria Skandi Aker Skandi Santos Skandi Patagonia Skandi Carla Skandi Neptune Skandi Achiever Skandi Acergy CSV Skandi Arctic Skandi Geosea Niteroi Skandi Skansen Skandi Inspector Skandi Constructor Skandi Singapore Skandi Hercules Skandi Skolten Geobay Geosund Geoholm Skandi Hawk 1 1 FIRM CONTRACTS OPTIONAL PERIOD UNDER CONSTRUCTION NB DOF Subsea 20

21 DOF Subsea Financials

22 DOF Subsea AS Consolidated profit & loss FINANCIAL STATEMENTS YTD March 31, 2012 (NOK 000) Q Q Proforma Operating revenue 1,222, ,727 4,285,571 3,589,959 2,838,367 2,569,955 Profit from sale of non-current assets ,409-12, ,384 Wages and salaries 344, ,068 1,012, , ,412 1,093,203 Operating expenses 467, ,633 1,931,194 1,665,288 1,347, ,500 EBITDA 410, ,026 1,341,628 1,094, , ,636 Depreciation 167, , , , , ,578 Write down - 6,500 6, , ,000 EBIT 243,639 72, , , , ,058 Net Interest -182, , , , , ,755 Other financial items 192,438-22, ,812 9, , ,361 Taxes -41,256 16, ,040-28,075 4, ,247 Profit from disc. Operations Net result 212,678-86, ,629-54, ,907-49,811 Minority interest 3,013-2,627 4, ,652 Operating revenue increased from NOK million in Q to NOK 1,222.8 million in Q (increase of 35.9%) EBITDA increased from NOK 241 million in Q to NOK million in Q (increase of 70.4%) EBIT increased from NOK 72.2 million in Q to NOK million in Q (increase of %) 22

23 DOF Subsea AS Consolidated balance sheet FINANCIAL STATEMENTS YTD March 31, 2012 (NOK 1000) (NOK 1000) Intangible fixed assets 536, , ,483 Subscribed equity 4,069,262 4,069,262 4,069,262 Tangible fixed assets 15,629,192 15,557,797 13,450,206 Retained earnings 706, , ,944 Financial fixed assets 290, , ,082 Minority interest 194, , ,983 Total fixed assets 16,455,649 16,409,304 14,192,770 Total Equity 4,970,900 4,816,544 5,206,189 Provisions for commitments 274, , ,363 Other long term liabilities 11,449,121 11,525,992 9,977,089 Bunkers & Provisions 43,135 40,928 21,026 Total Long Term Liabilities 11,723,566 11,807,312 10,152,452 Receivables 1,324,747 1,435,860 1,326,036 Debt to credit institutions 1,288,368 1,408,873 1,177,176 Cash and cash equivalents 1,414,794 1,362,389 1,988,626 Other current liabilities 1,255,491 1,215, ,641 Total current assets 2,782,676 2,839,177 3,335,688 Total Short Term Liabilities 2,543,859 2,624,626 2,169,817 Total Liabilities 14,267,426 14,431,938 12,322,269 Total assets 19,238,325 19,248,481 17,528,458 Total Equity and Liabilities 19,238,325 19,248,481 17,528,458 Total fixed assets has increased from NOK 16.4 billion end of 2011 to NOK 16.5 billion end of Q During Q current assets has decreased from NOK 2.84 billion to NOK 2.78 billion. Total liabilities as per end of Q of NOK 14.3 billion. Net interest bearing debt of NOK 11.1 billion as per 31 st March Book Equity of NOK 5.0 billion giving a ratio of 25.8 % to total assets as per 31 st March Value Adjusted Equity of NOK 7.4 billion giving a ratio of 33.8 % as per 31 st March

24 Quarterly Performance (excl. Asset Sales) 1,400 1,200 Operating Revenue EBITDA EBITDA Margin 40 % 35 % 1, % MNOK % 20 % 15 % 10 % % - Q Q Q Q Q Q Q Q Q Q Q Q Q % Mill. NOK Q Q Q Q Q Q Q Q Q Q Q Q Q Operating Revenue , ,028 1,152 1,246 1,223 EBITDA EBITDA Margin 19.4% 29.2% 31.4% 22.6% 25.4% 32.4% 33.2% 29.7% 26.8% 31.6% 32.1% 32.6% 33.6% Current assets 2,194 2,492 2,380 2,670 2,467 2,919 3,192 3,366 2,829 3,003 2,938 2,923 2,782 Fixed Assets 9,727 10,106 10,149 10,933 11,738 12,499 13,325 14,179 14,520 15,089 16,178 16,305 16,455 Total Assets 11,922 12,598 12,530 13,603 14,205 15,418 16,517 17,545 17,349 18,092 19,117 19,228 19,238 Short Term Liability 2,240 1,618 1,286 1,489 2,035 2,496 2,942 2,167 2,311 2,458 2,640 2,637 2,543 Long Term Liability 6,236 7,251 7,383 8,279 8,350 8,867 9,109 10,154 9,946 10,542 11,694 11,759 11,723 Equity 3,418 3,728 3,860 3,833 3,819 4,054 4,466 5,224 5,091 5,092 4,782 4,832 4,970 DOF Subsea 24

25 DOF Subsea AS Debt maturity profile Debt maturity profile DOF Subsea AS Level 2012E 2016E (Mill. NOK)* 4,000 DOFSUB03 PRO 3,500 - NOK 500 million 3,000 - Maturity July Net NOK 168 million 2,500 2,000 DOFSUB04 - NOK 750 million - Maturity April Net NOK 601 million 1,500 1, DOFSUB 03 DOFSUB 04 DOFSUB06 DOFSUB E 2013E 2014E 2015E 2016E After DOFSUB05 - NOK 750 million - Maturity April 2016 DOFSUB06 - NOK 700 million - Maturity Oct Net NOK 500 million Bond Loan Bank Debt Balloons The figures reflects amortization and balloon payments on debt drawn as pr 31 st March 2012 * Debt maturity profile excludes approx NOK 0.7 billion in payments to Eksportfinans which is serviced by corresponding amount of restricted cash. 25

26 Stable asset values over the last year Fair market values of DOF Subsea fleet have been stable in 2011 and increased by 2.3 % in Q All vessels are currently valued higher than the original capex Market value development MNOK Q Skandi Seven Ocean Protector Geoholm Skandi Patagonia 26

27 DOF Subsea Group AS Asset coverage Combined market value DOF Subsea s fleet is NOK 16,4 billion Asset-level gearing on the existing fleet is 59%, decreasing to 47% in 2014 Provides a significant equity cushion on top of the existing vessellevel financing Significant gearing reduction forecasted upon completion of the current newbuild program Gearing forecast summary Total Fleet Market value* 100 % 80 % 60 % 40 % 20 % 0 % 41 % 44 % 50 % 57 % 70 % 79 % 59 % 56 % 50 % 43 % 30 % 21 % Q E 2013E 2014E 2015E 2016E Vessels NOK 16,419 Other Equipment (a) NOK 1,370 Total Fleet NOK 17,789 Note: Vessel values as pr 31 March 2012 (a) Includes ROVs, AUV, diving systems, other equipment * Mill. NOK Fleet Level Gearing Market Value Cushion * The figure reflects amortization and balloon payments on debt drawn as pr 31 March

28 DOF Subsea Outlook

29 Outlook Healthy fundamentals for offshore activity Demand High oil price Increased E&P spending Increased deep water spending Increased infrastructure spending High tendering activity Strongest growth expected in Brazil, West Africa and Asia Pacific Increased focus on newer, larger and more technologically advanced vessels DOF Subsea owns the world s most sophisticated fleet Skandi Skansen 29

30 Outlook Healthy fundamentals for offshore activity Supply Limited number of high-end newbuilds 20% of the total subsea fleet >25 years old Only about 12% of the subsea fleet on order Increased demand Stable supply Skandi Skansen Improved market conditions 30

31 Thank you

32 Disclaimer This presentation by DOF Subsea AS ( DOF Subsea or the Company ) is designed to provide a high level overview of aspects of the operations of DOF Subsea and the DOF Subsea group. The material set out in the presentation is current as at 31th May This presentation contains forward looking statements relating to operations of DOF Subsea and the DOF Subsea Group that are based on management s own current expectations, estimates and projections about matters relevant to DOF Subsea s future financial performance. Words such as likely, aims, looking forward, potential, anticipates, expects, predicts, plans, targets, believes and estimates and similar expressions are intended to identify forward looking statements. References in the presentation to assumptions, estimates and outcomes and forward looking statements about assumptions, estimates and outcomes, which are based on internal business data and external sources, are uncertain given the nature of the industry, business risks, and other factors. Also, they may be affected by internal and external factors that may have a material effect on future business performance and results. No assurance or guarantee is, or should be taken to be, given in relation to the future business performance or results of DOF Subsea or the DOF Subsea Group or the likelihood that the assumptions, estimates or outcomes will be achieved. While management has taken every effort to ensure the accuracy of the material in the presentation, the presentation is provided for information only. DOF Subsea, its officers and management exclude and disclaim any liability in respect of anything done in reliance on the presentation. All forward looking statements made in this presentation are based on information presently available to management and DOF Subsea assumes no obligation to update any forward looking statements. Nothing in this presentation constitutes investment advice and this presentation shall not constitute an offer to sell or the solicitation of any offer to buy any securities or otherwise engage in any investment activity.