Quarterly Presentation Q DOF Subsea Group

Transcription

1 Quarterly Presentation Q Group

2 Group at a glance 2005 established NOK 1.1bn 1) Revenues Q1 18 NOK 15.3bn Firm backlog Q ) Subsea employees worldwide Q1 18 Integrated Supplier of subsea offshore services Modern State-of-the-art asset base 27 3) Subsea vessels 71 4) ROVs 1) Note: According to management reporting 2) Note: Excluding marine crew 3) Note: Including newbuilds Skandi Olinda and Skandi Recife and chartered-in vessels Harvey Deep Sea, Skandi Chieftain and Skandi Darwin 4) Note: Including 2 AUVs 2

3 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 Development in number of Subsea Employees 1) 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 Delivery of two newbuilds entering into long-term contracts and commencement of two long-term IMR contracts Two newbuilds with long-term contracts to be delivered Q Development in number of vessels in operation 2) Q Owned vessels Chartered-in vessels 1) Note: Marine crew not included 2) Note: Newbuilds not included 3 3) Note: Year-end numbers

4 Key financials 1) Revenue EBITDA 2) Firm backlog NOK million NOK million NOK billion LTM LTM LTM 1) Note: Figures according to management reporting (LTM = Last Twelve Months) 2) Note: EBITDA excl. profit from sale of non-current assets 4

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 Q1 18, excluding marine crew 2) Note: Vessels in operation as at end of Q1 18, including 3 chartered-in vessels (excluding newbuilds under construction) 5

6 Local Multi-regional Global holds a leading position in the subsea IMR market through its global presence and integrated solutions offering Positioning Improved competitive position for DOF Subsea when market normalises multiple competitors have scaled down operations or entered financial distress Geographies Illustrative Favourable competitive dynamics in tendering for mid-sized subsea IMR projects Larger EPCI providers typically invited to tender, however less capable and willing to meet specific project requirements due to relatively small project size Vessel suppliers are not invited to tenders due to lack of engineering and project execution capabilities benefits from offering an integrated engineering and vessel solution = Chapter 11 / financial distress Source: ABGSC Dayrate / Support services Small to medium EPCI contracts Larger EPCI contracts Capabilities 6

7 NOK billion Maintained strong backlog in challenging market Firm backlog Q equals firm backlog Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Sum of Firm Sum of Options Majority of firm contract backlog with investment grade companies Firm contract backlog in NOK has been relatively steady over time Current firm contract backlog equals ~3x actual 2016 revenue Majority of firm backlog has high EBITDAmargin 7

8 Segment highlights

9 Two business segments Last Twelve Months (LTM) Group Subsea / IMR Projects Long-term Chartering 1) Framework agreements Engineering capabilities Opex spending Long-term charters Vessel capabilities Capex spending Revenues LTM 2) NOK million EBITDA LTM 3) NOK 297 million ~10% margin Firm backlog 4) NOK 4.0bn Revenues LTM 2) NOK million EBITDA LTM 3) NOK million ~77% margin Firm backlog 4) NOK 11.4bn Employees Q vessels in operation 5) Q vessels in operation Q newbuilds Q1 18 1) Note: Long-term chartering comprises 5 PLSVs in operation and 2 PLSVs under construction, plus Skandi Acergy and Skandi Patagonia 4) Note: Firm backlog as at end of Q ) Note: According to management reporting (LTM = Last Twelve Months) 3) Note: According to management reporting (LTM = Last Twelve Months) 5) Note: Including 3 chartered-in vessels

10 Subsea IMR Projects Numerous projects completed and ongoing 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 unrivalled 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 Petrobras DSV Contract ( ) ENI Angola IMR Contract ( ) Husky Energy IMR Contract ( ) Shell Prelude IMR Contract ( ) Goliat Field Support ENI (2016) Chevron Gorgon IMR Contract ( ) Shell Malampaya IMR Contract ( ) ConocoPhillips ROV Services (2012 and onwards) ROV Support Vessel Petrobras (2011 and onwards) Selected Mooring projects Last 5 years Aasta Hansteen Mooring Installation (2018) Lam Son Mooring Replacement (2017) 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 ( ) 10

11 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 11.4bn firm backlog per Q1 18 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 11

12 Selected long-term contracts 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 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 Utilising Skandi Darwin Jun 2018 Sep 2018 Skandi Achiever Feb 2019 Skandi Olinda Jul 2017 Husky Energy Nov 2017 Prelude FLNG Skandi Recife Long-term contract with Petrobras 8 years + 8 years options Vessel owned in joint venture with TechnipFMC Built in Brazil with 300t VLS Long-term DSV contract with Petrobras 3 years + 2 years options ROV and diving services Partnered up with diving partner in Brazil Long-term contract with Petrobras 8 years + 8 years options Vessel owned in joint venture with TechnipFMC Built in Brazil with 300t VLS 12

13 1 st quarter 2018

14 Q highlights The operating revenue for the quarter was NOK million 1), EBITDA was NOK 311 million 1) and overall vessel utilisation was 71%. Firm contract backlog as at 31 March 2018 was NOK 15.3 billion. was awarded several short-term contracts in the Asia Pacific region, the Atlantic region, the Brazil region and the North America region securing utilisation of personnel and assets in the Subsea/IMR Projects segment. The Brazil region was awarded long-term ROV contracts with Petrobras. The Brazil region was awarded a three-year firm contract with a two-year option by Petrobras in Brazil for the provision of the DSV Skandi Achiever and ROV and diving services. The North America region was awarded a contract securing 120 days of utilisation of the chartered-in vessel Skandi Chieftain for seismic support operations from May ) Note: Figures according to management reporting 14

15 NOK million EBITDA margin Quarterly performance 1) % 35% 30% 25% 20% 15% 10% 5% - Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Operating income EBITDA EBITDA margin 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 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% 31,5% 29,4% 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 15

16 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 16

17 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 17

18 NOK million Debt maturity profile 1) Debt maturity profile, 2018E 2022E E 2019E 2020E 2021E 2022E Thereafter Bond Loan Bank Debt Balloons 1) Note: Figures according to management reporting and based on exchange rates as at end of Q1 18 The figures reflect amortisation and balloon payments on outstanding debt 18

19 NOK billion Backlog 1) As at 31 March 2018, the Group s firm contract backlog was NOK 15.3 billion 20,0 15,0 10,0 5,0 0, Thereafter Options 0,4 0,8 0,5 0,9 1,0 14,1 Firm 2,3 2,6 2,4 2,0 1,7 4,4 Firm Options 1) Note: Figures based on remaining backlog as at end of Q1 18 and exchange rates as at end of Q1 18 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 1) (number of vessels) 10,0 Fleet age 1) Newbuilds 2 9,0 8,0 Skandi Africa, Ship of the Year ,0 6, ,0 4,0 3,0 2,0 1,0 Skandi Buzios, PLSV built Average fleet age Value adjusted average fleet age Majority of the fleet is younger than 10 years Modern fleet with a value adjusted average fleet age of 6.7 1) years High-end vessels, capable of a wide scope of worldwide operations Skandi Vinland, CSV built ) Note: Excluding newbuilds under construction and chartered-in vessels, and figures as at end of Q

21 Thank you!