Q1 Financial Presentation 2018 DOF ASA

Transcription

1 Q1 Financial Presentation 2018 DOF ASA

2 Highlights Group 2

3 Highlights EBITDA Q1 MNOK 520 (excl hedge accounting) Average utilisation Group fleet 72% in Q1 Improved markets and signs of higher activity in certain regions Several contract awards during March and April Repair issue of NOK 202 million completed in February All numbers based on management reporting 3

4 Contract Highlights New contracts in Asia Pacific DOF Subsea awarded various short-term contracts in the Subsea IMR project segment New contracts in the Atlantic region Skandi Captain (PSV) awarded 1-year contract with Peterson, commencement in February Skandi Vega (AHTS) secured a 1-year Framework Agreement with Statoil, commencement in May Skandi Foula (PSV), Skandi Rona (PSV) and Skandi Feistein (PSV) awarded 60-day, 120-day and 180-day contracts respectively, supporting drilling campaigns for UK operators DOF and Nexen have entered into a 18-month Frame Agreement for anchor handling vessels to support pre-lay and hook up operations of the COSL Pioneer utilising 4-6 vessels Skandi Barra (PSV) awarded 18-month contract with Nexen, commencement in April DOF Subsea awarded various short-term contracts in the Subsea IMR project segment New contracts in Brazil Skandi Admiral (AHTS) contract extended 265 days from June 2018 Skandi Botafogo (AHTS) awarded a 1-year contract with Petrobras, commencement in June Skandi Commander (Subsea) awarded 150-day contract with Petrobras DOF Subsea awarded 3-year firm contract with 2-year extension option with Petrobras for the provision of DSV Skandi Achiever, and ROV- and diving-services. Two ROV contracts with Petrobras, to be installed onboard Skandi Angra (AHTS) and Skandi Paraty (AHTS) and extension two ROV contracts on Skandi Iguazu (AHTS) and Skandi Urca (AHTS) DOF Subsea awarded various short-term contracts in the Subsea IMR project segment New contract in North America Skandi Chieftain (Subsea) secured 120-day seismic support in Eastern Canada DOF Subsea awarded various short-term contracts in the Subsea IMR project segment 4

5 Recently commenced and commencing long-term contracts in DOF Subsea 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 Long-term DSV contract with Petrobras 3 years + 2 years options ROV and diving services Partnered up with diving partner in Brazil Sep 2018 Skandi Achiever Feb 2019 Skandi Olinda Jul 2017 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 Husky Energy Long-term contract with Petrobras 8 years + 8 years options Vessel owned in joint venture with TechnipFMC Built in Brazil with 300t VLS 5

6 This is DOF ASA DOF ASA Norskan DOF Subsea DOF Rederi / DOF Management The Brazilian OSV and marine management activities 13 vessels mainly high-end AHTS vessels Brazilian built tonnage with local privileges and blocking rights Subsea contractor A flexible business model Subsea IMR Projects and Long-term Chartering 25 vessels The international OSV and marine management activities 29 vessels mainly PSV and AHTS Long track-record within the OSV market 6

7 DOF ASA, a global player Our vessels and subsea equipment Subsea 31 AHTS 20 PSV 16 Total fleet 67 ROV / AUV billion backlog ~3 700 employees 67 vessels Positioned globally Head office in Norway Operating from 6 continents 20 offices near key O&G markets 67 vessels globally Total of employees Subsea employees Supply employees

8 DOF Group overview Contract backlog and debt Firm contracts: NOK 22 billion Options: NOK 32 billion **per Global organisation Head office in Norway Regional offices in Australia, Singapore, UK, USA, Canada, Angola, Argentina and Brazil Total ~ employees Subsea employees: Marine personnel: Fleet Group fleet of 67 vessels (including 2 JV newbuilds, 1 chartered-in vessel and 3 management vessels) Total fair market value of owned vessels in operation NOK ~ 30 billion based on ship broker valuations Average age fleet of 10 years (value adjusted average age of 7 years) Assets 67 vessels 71 ROVs Split fair market value vessels 70 % 1 24 % 6 % Subsea AHTS PSV Chartered Subsea Vessels AHTS PSV Subsea 8

9 A value-driven organisation Safe the RITE way enhances our behaviour-based programme, integrating three main elements: Values, Safe Behaviours and Rules, processes and procedures. Sustainable operations DOF released its annual stand-alone Sustainability report according to the GRI guideline. The DOF Sustainability Report for 2017 is available at: A code to work by, globally DOF has in 2017 released a refreshed Code of Business conduct. Everywhere the DOF Group does business we act responsibly and ethically. See our new Code of business conduct on our website: 9

10 Positioned to deliver Group backlog at Backlog DOF Supply / DOF Subsea at NOK million Thereafter Option Firm Total value backlog (firm & options) from 2020 and onwards is MNOK (As per ) 10

11 Two newbuildings remaining with 8-year contracts Co-owned 50/50 with TechnipFMC Vessel Yard Delivery Type Contract Financing Skandi Recife Vard Brazil Q PLSV 8 years Petrobras Loan agreement signed with BNDES Skandi Olinda Vard Brazil Q PLSV 8 years Petrobras Loan agreement signed with BNDES 11

12 Financials Management Reporting 12

13 Main Financial Highlights EBITDA Q1 MNOK 520 (excl hedge) Average utilisation total fleet 72% in Q1 76% PSV segment 68% AHTS segment 72% Subsea segment (project fleet 64%) EBITDA ex Hedge Q EBITDA ex Hedge Q % 52 % 60 % 48 % DOF Supply DOF Supply DOF Subsea DOF Subsea Comments to highlights Performance DOF Subsea EBITDA: NOK 313 million DOF Supply EBITDA: NOK 207 million Operations Avg. utilisation of DOF Subsea fleet: 71% Avg. utilisation of DOF Supply fleet: 72% Four vessels in lay-up end March Variable utilisation Subsea IRM fleet and the vessels in the short term&spot market Stable utilisation TC vessels All numbers based on management reporting DOF Supply is DOF Rederi and Norskan consolidated 13

14 Profit & Loss Q All figures in NOK million Q Q Operating income Operating expenses Net profit/loss from TS and JV -2 5 Net gain on sale of vessel 1-2 EBITDA before hedge Hedge operating income Operating profit before depr - EBITDA Depreciation Impairment Operating profit- EBIT Financial income 8 18 Financial costs Net realised currency gain/loss Net profit/loss before unrealised currency Net unrealised currency gain/loss Net unrealised gain/loss on market instr Profit/loss before tax Tax Net profit/loss According to management reporting Main events in Q1 Operational performance: PSV: Good utilisation but variable earnings Three vessels partly idle due to conversion to new contracts and class dockings One vessel in lay-up AHTS: Stable utilisation fleet in Brazil One vessel idle between contracts Two vessels partly idle due to conversion new contracts Subsea: Variable utilisation Subsea IRM fleet Improved activity in the Atlantic region Reduced activity in the Asia Pacific, North America and Brazil region Stable utilisation long term chartering fleet Others Impairment reduced Q&Q due to reduced drop in FMV of he fleet Strengthened NOK and BRL to USD 14

15 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 3 % 20 % 41 % 42 % 28 % 26 % 28 % 29 % EBIT margin -44 % -57 % 1 % 7 % 5 % -2 % -1 % -6 % According to management reporting EBITDA Q EBITDA Q % 1 % 29 % 60 % 8 % 32 % PSV AHTS Subsea PSV AHTS Subsea 15

16 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: No major events in Q1 Current assets: Operating cash flow MNOK 207 (MNOK 207) Investments MNOK -117 (MNOK -339) Financing activity MNOK -502 (MNOK 408) Equity: Convertible bond loan MNOK 276 by end Q1 Repair issue ofmnok 202 in February Non current liabilities: Amortisation MNOK -402 Current liabilities: Short term IBD include Amortisation MNOK 1,912 (next 12 months), credit facilities drawn and accrued interest No balloons before

17 DOF Group is reducing net debt quarter by quarter NOK million Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 DOF Supply DOF Subsea (ex deliveries) DOF Subsea newbuilds w/contract DOF Supply has reduced net debt by ~ NOK 4,2 billion since post the restructuring in Q2 16 and by ~ NOK 0,3 billion during Q1 18 DOF Subsea has reduced net debt by ~NOK 1,5 billion since Q2 16 including new debt drawn on delivery of 3 new vessels and 1 vessel sold. In Q1 18 net debt is reduced by ~ NOK 1,1 billion All numbers based on management reporting DOF Supply is DOF Rederi and Norskan consolidated 17

18 Outlook No change in guidance for 2018 (MNOK MNOK 2 800) Ebitda Q2 expected to be slightly better than Q1 Skandi Recife expected to be on-hire in June Increased tendering activity Mixed activity in the regions 18

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

20 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 9 May 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. 20