Q3 Financial Presentation 2017 DOF ASA

Transcription

1 Q3 Financial Presentation 2017 DOF ASA

2 Highlights Group 2

3 Highlights Operational EBITDA Q3 MNOK 607 (excl hedge accounting) Average utilization fleet 73% in Q3 Low utilization in Subsea IRM Projects in APAC Skandi Vinland on-hire on a 10 years contract with Husky Energy Skandi Bergen on management from mid July Skandi Darwin completed conversion and arrived Australia for a contract with Shell Several contract awards securing utilization in Q (74%) All numbers based on management reporting 3

4 DOF ASA, a global player Our vessels and subsea equipment* Subsea 31 AHTS 21 PSV 17 Total fleet 69 ROV / AUV billion backlog Approx employees 69 vessels* Positioned globally Head office in Norway Operating from 6 continents 20 offices near key O&G markets 69 vessels globally Total of employees Subsea employees Supply employees * Included one hired-in vessel 4

5 Positioned to deliver Group backlog at Assets 69 vessels Subsea AHTS PSV 21 Chartered Subsea Vessels Total value backlog (firm & options) from 2020 and onwards is MNOK 42,789 Backlog DOF Supply / DOF Subsea at Average age approx. 9.4 years, value adjusted fleet age of 6.3 years NOK 31.7 billion in fair market value owned vessels in operation* (100% basis) 71 ROVs 1 subsea vessel chartered in from external owner Backlog Firm contracts: NOK 23 bn Options: NOK 33 bn (* As per ) 5

6 DOF Supply Highlights Q3 New contracts in the Atlantic region Skandi Foula (PSV) awarded 2 month contract + option in the Black Sea Skandi Caledonia (PSV) won a 300 days contract with Technip in Med, commencement in Q4 Skandi Olympia (RSV) extended with Fugro until September 2018 Skandi Gamma (PSV) extended with Wintershall until mid March 2018 New contract in the Asia Pacific Skandi Sotra (PSV) secured 75 days with Chevron in Australia New contract in Brazil Skandi Commander (RSV) on-hire for Petrobras for 200 days New Vessel added to the fleet Skandi Bergen (AHTS), on management from July 6

7 DOF Subsea Highlights Q3 Raymond P. Semple appointed as Chief Operating Officer (COO) New contracts 105-day contract for Skandi Constructor (CSV) at Galloper Offshore Wind Farm, North Sea 2-year extension for Skandi Carla (RSV) with Fugro from July 2017 in North Sea Contract in the Mediterranean: 90 days Skandi Skansen (MSV) commenced Q4 Several IRM and subsea project contracts for Skandi Hercules (MSV) and Skandi Singapore (DSV) in Asia Pacific, and Skandi Neptune (CSV in the Atlantic securing utilization in 3rd and 4th quarter A contract for the provision of survey, ROV and vessel services in the Gulf of Mexico, securing 135 days for the vessels Harvey Deep Sea (CSV) and Skandi Achiever (DSV) 6-month extension for Skandi Salvador (CSV) by Petrobras from August 2017 New vessels Skandi Vinland (CSV) on-hire with Husky Energy in July Skandi Darwin (CSV) completed conversion for a contract with Shell in August, arrived Australia in October 7

8 Financials Management Reporting 8

9 Main Financial Highlights Operational EBITDA Q3 MNOK 607 (excl hedge) Average utilization total fleet 73% in Q3 79% PSV segment 69% AHTS segment 72% Subsea segment (project fleet 69%) EBITDA ex hedge Q EBITDA ex hedge Q % 42 % 56 % 58 % DOF Supply DOF Supply DOF Subsea DOF Subsea Comments to highlights Performance DOF Subsea EBITDA: MNOK 337 DOF Supply EBITDA: MNOK 270 Operations Avg. utilization of DOF Subsea fleet: 73% Avg. utilization of DOF Supply fleet: 72% Six vessels in lay-up end September Stable utilization PSV segment, variable utilization Subsea IRM projects, and AHTS fleet in the spot market All numbers based on management reporting 9

10 Profit & Loss Q All figures in NOK million Q Q YTD Q YTD Q Operating income Operating expenses Net profit/loss from TS and JV Net gain on sale of vessel EBITDA before hedge Hedge operating income Operating profit - EBITDA Depreciation Impairment Operating profit- EBIT Financial income Financial costs Net currency gain/loss Net profit/loss before unrealized gain/loss Net unrealized currency gain long term debt Net unrealized gain on market instr Profit/loss before tax Tax Net profit/loss According to management reporting Main events in Q3 Operational performance: PSV: Stable utilization spot fleet in the North Sea Two vessels in lay-up end Q3 AHTS: Steady earnings from the fleet in Brazil Variable utilization spot fleet in North Sea Low utilization in APAC Four vessels in lay-up end Q3 Subsea: Variable utilization Subsea IRM fleet Low utilization in APAC, improved and decent utilization in the other regions A 5% drop in FMVs, of the fleet on aggregated level represented in the impairment 10

11 Segment reporting Q PSV AHTS Subsea Total Amounts in NOK million Q Q Q Q Q Q Q Q Operating income Gain on sale of tangible assets Operating result before depreciation and impairment (EBITDA) Depreciation Impairment Operating result (EBIT) EBITDA margin 19 % 38 % 46 % 41 % 29 % 34 % 31 % 36 % EBIT margin -69 % -162 % 17 % -41 % -3 % 5 % -7 % -24 % According to management reporting EBITDA Q EBITDA Q % 7 % 29 % 64 % 12 % 24 % PSV AHTS Subsea PSV AHTS Subsea 11

12 Balance as of Amounts in NOK million ASSETS Tangible assets Goodwill Deferred taxes Investment in associated and joint ventures Other non-current receivables Non-current assets Receivables Cash and cash equivalents Current assets Total assets EQUITY AND LIABILITIES Subscripted equity Retained equity Non-controlling equity Equity Non-current interest bearing debt Other non-current liabilities Non-current liabilities Current part of interest bearing debt Other current liabilities Current liabilities Total equity and liabilities According to management reporting Main events balance sheet YTD Non current assets: One vessel sold, two newbuilds delivered YTD No major events in Q3 Current assets: Operating cash flow MNOK 669 Investments MNOK -1,133 Financing activity MNOK 232 Equity: Convertible bond loan MNOK 336 by end Q3 Non current liabilities: Two new loans drawn upon delivery newbuild New bond loan USD 175 million drawn in February No major changes in Q3 Current liabilities: Short term IBD: Amortisation MNOK 1,967 ( next 12 months) Bond loan MNOK 508 (May 2018) Credit facilities and accrued interests No balloons on secured debt before

13 DOF Subsea 13

14 DOF Subsea Group at a glance 2005 DOF Subsea 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 All numbers according to managment reporting DOF Subsea 14

15 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 DOF Subsea 15

16 Two business segments DOF Subsea Group Subsea IMR Projects Long-term Chartering 1) Framework agreements Engineering capabilities Opex spending Long-term charters Vessel capabilities Capex spending Revenues YTD NOK million EBITDA YTD NOK 221 million ~10% margin Firm backlog NOK 3.9bn Revenues YTD NOK million EBITDA YTD NOK 784 million ~77% margin Firm backlog NOK 12.4bn Employees Q vessels in operation 2) Q vessels in operation Q newbuilds Q3 17 1) Note: Long-term chartering comprises 5 PLSVs in operation, 2 PLSVs under construction, Skandi DOF Subsea Acergy and Skandi Patagonia 16 2) Note: Including 2 chartered-in vessels

17 Subsea IMR Projects performance North America region Weak project performance and low vessel utilization for Harvey Deep Sea, Skandi Achiever and Skandi Chieftain in the North America region YTD 2017 APAC region Weak project performance and low vessel utilization for Skandi Hercules, Skandi Singapore and Geoholm in the APAC region during Q Harvey Deep Sea Skandi Achiever Skandi Chieftain Skandi Singapore Geoholm Skandi Hercules 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 utilization 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 utilization for Skandi Singapore and Skandi Hercules in Q Higher utilization for Geoholm in Q Skandi Darwin on contract mid-october and commences Shell Prelude IMR contract ultimo November DOF Subsea 17

18 Long-term Chartering DOF Subsea 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 DOF Subsea 18

19 Outlook No change in guidance for 2017 (MNOK MNOK 2 800) Good backlog for 4 th quarter 2017 (74%) The two remaining newbuild to be delivered in 2018 and 2019 are committed on firm contracts Markets expected to continue to be challenging 19

20 Presented by Mons Aase Hilde Drønen Thank you - CEO - CFO

21 DISCLAIMER This presentation by DOF ASA designed to provide a high level overview of aspects of the operations of the DOF ASA Group. The material set out in the presentation is current as at 15 November This presentation contains forward-looking statements relating to operations of the DOF ASA Group that are based on management s own current expectations, estimates and projections about matters relevant to DOF ASA 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 the DOF ASA 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 ASA, 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 ASA 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. You should make your own enquiries and take your own advice (including financial and legal advice) before making an investment in the company's shares or in making a decision to hold or sell your shares. 21