Quarterly Presentation Q DOF Subsea Group

Transcription

1 Quarterly Presentation Q Group

2 highlights 1 Attractive long-term market fundamentals supporting continued demand for subsea offshore solutions 2 A true global subsea IMR operator with strong project and execution capabilities 3 Unique strategic position providing integrated life-of-field subsea services 4 State-of-the-art subsea vessels, the world s 4 th largest ROV fleet and subsea employees 5 Strong order intake through the down cycle securing tangible near-term growth and highly attractive financial profile 6 Resilient backlog as backbone for stable operating model PLSV contracts in Brazil cementing strategic position 2

3 Group at a glance 2005 established NOK 3.3bn 1) Revenues YTD 17 NOK 16.3bn Firm backlog Q ) Subsea employees worldwide Q3 17 Integrated Supplier of subsea offshore services Modern State-of-the-art asset base 26 3) Subsea vessels 71 4) ROVs 1) Note: According to management reporting 4) Note: Including 2 AUVs 2) Note: Excluding marine crew 3) Note: Including newbuilds Skandi Olinda and Skandi Recife and chartered-in vessels Harvey Deep Sea and Skandi Chieftain 3

4 More than a decade of structural growth and consolidation established following the acquisition of Geoconsult. The Company was listed second half First Reserve acquires 49% of, which in the following is delisted from the Oslo Stock Exchange Large and global organisation following multiple acquisitions from Covus Subsea Century Subsea SWG Offshore CSL SEMAR Awarded four PLSV long-term contracts in joint venture with TechnipFMC Expanding organisation on the back of several large contract awards. Number of employees and vessels peaking at and 27, respectively Focus on consolidation and streamlining of business operations to improve efficiency and competitiveness in weak market Development in number of Subsea Employees 1) Q Development in number of vessels in operation 2) Delivery of two newbuilds entering into long-term contracts Q Owned vessels Chartered-in vessels Total 1) Note: Marine crew not included 2) Note: Newbuilds not included 4 3) Note: Year-end numbers

5 Global footprint Bergen Aberdeen St John s Houston NORTH AMERICA ATLANTIC Kuala Lumpur Singapore Brunei Manila Macaé Rio de Janeiro Luanda Jakarta Darwin Buenos Aires BRAZIL ASIA PACIFIC Perth Melbourne ) Note: Number of employees as at end of Q3 17, excluding marine crew 2) Note: Vessels in operation as at end of Q3 17, including 2 chartered-in vessels (not including newbuilds) 5

6 Several major and attractive contracts commencing in 2017 IMR contract offshore Angola 16 months + 3x4 months options Scope comprising project management, engineering, vessels and ROV services Jan 2017 ENI Angola Long-term contract with Petrobras 18 months + 18 months options On contract with Petrobras since 2010 Vessel owned in joint venture with TechnipFMC First-pipe lay vessel built in Brazil Jan 2017 Skandi Vitoria Apr 2017 Skandi Buzios Long-term contract with Petrobras 8 years + 8 years options Vessel owned in joint venture with TechnipFMC Built in Norway with 650t VLS Jul 2017 Husky Energy Long-term IMR contract offshore Eastern Canada 10 years + 10 years options IMR scope comprising project management, engineering, vessel and ROV services High strategic importance through strengthened presence in the Canadian market Nov 2017 Prelude FLNG Long-term FLNG IMR contract awarded in Australia with Shell 5 years + 4 years options IMR scope comprising project management, engineering, logistics, vessel and ROV services 6

7 Two business segments Group Subsea IMR Projects Long-term Chartering 1) Framework agreements Engineering capabilities Opex spending Long-term charters Vessel capabilities Capex spending Revenues YTD 2) NOK million EBITDA YTD 3) NOK 221 million ~10% margin Firm backlog 4) NOK 3.9bn Revenues YTD 2) NOK million EBITDA YTD 3) NOK 784 million ~77% margin Firm backlog 4) NOK 12.4bn Employees Q vessels in operation 5) Q vessels in operation Q newbuilds Q3 17 1) Note: Long-term chartering comprises 5 PLSVs in operation, 2 PLSVs under construction, Skandi Acergy and Skandi Patagonia 4) Note: Firm backlog as at end of Q ) Note: According to management reporting 3) Note: According to management reporting 5) Note: Including 2 chartered-in vessels

8 Subsea IMR Projects Numerous projects completed worldwide Built a leading subsea projects division for over a decade Subsea project activity established with a global footprint in all key offshore regions High quality asset base leveraging unrivaled subsea and vessel operating competence A clear action plan to pursue further opportunities Continue to increase the scope and complexity of operations Strengthen presence in selected geographies Further build project backlog with core focus on IMR projects Selected IMR projects Last 5 years Selected Mooring projects Last 5 years Goliat Field support ENI (2016) Saipem CRX/Nene (2014) Call-off for Light Construction Services and Seabed Survey Services Statoil ( ) Technip Frame agreement ( ) ConocoPhillips ROV Services (2012 and onwards) Freeport McMoran IMR support ( ) Saipem JSM Export Line support ( ) ROV Support vessel Petrobras (2011 and onwards) Yinson OCTP FPSO Field Dev. ( ) Bongkot Mooring Replacement PTTEP (2017) Raroa Mooring OMV ( ) Gina Krog TMRS Teekay (2016) Catcher Mooring Installation BWO (2016) Goliat FPSO Marine Installation ENI ( ) Lam Son Mooring Installation PTSC (2014) Knarr Mooring Project Teekay ( ) Banff Re-instatement Project Teekay ( ) 8

9 Subsea IMR Projects Selected contracts included in backlog Location Client Scope Commencement Duration Angola ENI Angola IMR months + 12 months Eastern Canada Husky Energy IMR years + 10 years Prelude Australia Shell Australia IMR years + 4 years Brazil Petrobras Inspection year + 1 year Gorgon, Janz and Wheatstone Chevron Australia IMR years + 2 years Malampaya Shell Philippines IMR years + 3 years Brazil Petrobras IMR years + 4 years North Sea Conoco Phillips IMR years + 13 years Asia Pacific North Sea / Atlantic Brazil North America Leading supplier of IMR services in the region Leading supplier of mooring services in the North Sea and West Africa Strong position being one of the major suppliers of IMR services Gradually built up the region, becoming a top three supplier of IMR services in the GoM 9

10 Long-term Chartering provides state-of-the-art vessels to leading players Skandi Acergy Skandi Acu Skandi Africa 7 vessels in operation 2 contracted newbuilds NOK 12.4bn firm backlog per Q3 17 Construction support vessel Construction & pipe laying vessel Construction & pipe laying vessel Operations High-end vessels operating advanced subsea projects for third party EPCI contractors Skandi Niteroi Skandi Patagonia Skandi Vitoria Contracts Strong long-term contract coverage Construction & pipe laying vessel Dive support vessel Construction & pipe laying vessel Remuneration Day-rate based Skandi Buzios Skandi Recife Skandi Olinda Selected clients Construction & pipe laying vessel Construction & pipe laying vessel Construction & pipe laying vessel 10

11 Key financials 1) Revenue EBITDA 2) Backlog (excl. options) NOK million NOK million NOK billion , ,5 18, ) Note: Figures according to management reporting 2) Note: EBITDA excl. profit from sale of non-current assets 11

12 3 rd Quarter 2017

13 Highlights Q Subsea IMR Projects In July, Skandi Vinland commenced the 10-year IMR contract with Husky Energy off the East Coast of Canada Skandi Constructor was awarded a contract by Siemens on the Galloper Offshore Wind Farm Project in the North Sea. The contract secures utilisation for the vessel until the end of the year Fugro extended the time charter contract for Skandi Carla until end of October 2019 Petrobras extended the contract for Skandi Salvador by 6 months from August 2017 The Asia Pacific region and the Atlantic region were awarded several contracts and work under existing frame agreements, securing utilisation for the vessels Skandi Singapore, Skandi Hercules and Skandi Neptune in Q3 and into Q Skandi Skansen was awarded a 90-day contract in the Mediterranean with commencement in Q Events after balance date Raymond P. Semple was appointed as Chief Operating Officer (COO) in October 2017 The Atlantic region was awarded a contract on an offshore wind farm, securing 60 days of utilisation for Skandi Neptune in Q4 The North America region was awarded a contract for the provision of survey, ROV and vessel services in the Gulf of Mexico, securing 135 days of vessel utilisation in Q and Q for Harvey Deep Sea and Skandi Achiever Skandi Darwin commenced its charter contract with the Asia Pacific region, and she will commence the Shell Prelude IMR contract ultimo November 13

14 Subsea IMR Projects performance North America region Weak project performance and low vessel utilisation for Harvey Deep Sea, Skandi Achiever and Skandi Chieftain in the North America region YTD 2017 APAC region Weak project performance and low vessel utilisation for Skandi Hercules, Skandi Singapore and Geoholm in the APAC region during Q Harvey Deep Sea Skandi Achiever Skandi Chieftain Skandi Hercules Skandi Singapore Geoholm Backlog and contract coverage for the rest of 2017 indicate improved performance for the rest of the year: Charter extension at renegotiated rate and >70% contract coverage through Q for chartered-in JAC vessel Harvey Deep Sea Start-up of 10-year IMR contract with Husky Energy off the East Coast of Canada Contract award for the provision of survey, ROV and vessel services in the Gulf of Mexico, securing utilisation for Harvey Deep Sea and Skandi Achiever in Q and Q Contract awards and project start-ups indicate improved performance for the rest of the year: Award of several call-offs and work under existing frame agreements, securing utilisation for Skandi Singapore and Skandi Hercules in Q Higher utilisation for Geoholm in Q Skandi Darwin on contract mid-october and will commence Shell Prelude IMR contract ultimo November 14

15 Condensed Profit & Loss 1) 1) Note: Financial statement according to IFRS. Condensed financial statement according to management reporting is included in the Quarterly Financial Report 15

16 Condensed Balance Sheet 1) 1) Note: Financial statement according to IFRS. Condensed financial statement according to management reporting is included in the Quarterly Financial Report 16

17 NOK million EBITDA margin Quarterly performance 1) % 35% 30% 25% 20% Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Operating income EBITDA EBITDA margin 15% 10% 5% 0% NOK million Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Operating income EBITDA EBITDA margin 33,0% 29,4% 32,8% 27,7% 29,0% 24,8% 27,7% 26,2% 27,8% 31,4% 32,4% 30,7% 36,3% 28,4% 28,4% 33,4% 30,4% Current assets Non-current assets Total assets Current liabilities Non-current liabilities Equity Total equity and liablilites ) Note: Figures according to management reporting, and excluding profit from sale of non-current assets 17

18 NOK million Debt maturity profile 1) Debt maturity profile, 2017E 2021E E 2018E 2019E 2020E 2021E Thereafter Bond Loan Bank Debt Balloons The figures reflect amortisation and balloon payments on outstanding debt 1) Note: Figures according to management reporting and based on exchange rates as at end of Q

19 NOK billion Backlog 1) 20,0 15,0 10,0 5,0 0, Thereafter Options 0,1 0,7 0,8 0,5 0,8 15,2 Firm 1,0 2,5 2,5 2,2 1,9 6,2 As at 30 September 2017, the Group s firm contract backlog was NOK 16.3 billion 1) Note: Figures based on remaining backlog as at end of Q3 17 and exchange rates as at end of Q3 17 2) Note: Contract backlog excludes master service agreements (MSAs) within the Subsea IMR Projects segment only confirmed POs are included in the backlog 19

20 Years Modern high-end fleet Year of delivery fleet 9,0 8,0 Fleet age 1) % Newbuilds 8 % 7,0 Skandi Africa, Ship of the Year ,0 5,0 4, % 3,0 2,0 1,0 Skandi Acu, PLSV built Average fleet age Value adjusted average fleet age Majority of the fleet delivered from 2007 and onwards Modern fleet with a value adjusted average fleet age of 6.2 years High-end vessels, capable of a wide scope of worldwide operations Skandi Buzios, PLSV built ) Note: Excluding newbuilds under construction and chartered-in vessels 2) Note: Figures as at end of Q

21 Thank you!