GC Rieber Shipping Overall strategy and financial position / PARETO S OIL & OFFSHORE CONFERENCE Oslo, 2 September, 2010 GC RIEBER SHIPPING ASA

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Transcription:

/ PARETO S OIL & OFFSHORE CONFERENCE 21 Oslo, 2 September, 21 / 1 GC Rieber Shipping Overall strategy and financial position / 2 / 1 Septem

/ GC RIEBER SHIPPING S BUSINESS IDEA Industrial company with business within offshore/shipping Owns and operates multipurpose built vessels Focus on project development and portfolio management Unique competence on offshore operations in harsh environment / 3 / GC RIEBER SHIPPING BUSINESS AREA OVERVIEW SEP. 21 BUSINESS AREAS ACTIVITIES / ASSETS CATEGORY STAKE SUBSEA VESSELS / Owns two and operates three vessels within subsea support / Two newbuildings with contractual delivery 21 / Two IMR/CSV newbuildings with delivery 21/211 CORE 1% 51% 1% SUBSEA SUBSEA SUPPORT & GEOTECHNICAL SERVICES REEF SUBSEA / Technocean(76%): ROV, ROT, Trenching operations, / Scan Mudring (76%): Subsea inspection, Seabed soil movement / Bluestone Offshore (95%): Geotechnical analysis (core drilling) VALUE CHAIN 5% ICE / SUPPORT ICE / SUPPORT / Owns and operates two vessels within ice/research. Oil support Sakhalin; Research Antarctica. / Two crew boats operating in the Sakhalin II field CORE 5-1% SEISMIC VESSELS / Owns and operates two seismic vessels (3D/4D and 2D/Ice) ARMADA SEISMIC / One 4D seismic vessel adaption to be complete end 21 / One 4D seismic newbuilding with delivery Q3 211 CORE 1% 65% MARINE SEISMIC PERMANENT RESERVOIR MONITORING (IOR) OCTIO GROUP / Permanent reservoir monitoring PROJECT MANAGEMENT & BUILDING SUPERVISION / Operates nine offshore vessels for other owners VALUE CHAIN CORE 73% 1% / 4

/ FINANCIAL DEVELOPMENT NOK million 25 2 15 1 Operating income EBITDA Normalised pretax profit * Reduced operating income in 21, as Technocean & Scan Mudring are reported as associated companies from early 21 EBITDA relatively stable 5-5 Q2 9 Q3 9 Q4 9 Q1 1 Q2 1 * Pretax profit adjusted for unrealized currency gain (loss), sales gains/losses and write-downs 1 H 21 Revenues: NOK 316m EBITDA: NOK 19m EBIT: NOK 232m / 5 / PORTFOLIO MANAGEMENT: DISPOSALS & INVESTMENTS Sale of assets NOK 1 5 million 27: Sale of 42.5% stake in Arrow Seismic to PGS 21: Sale of Polar Queen to Acergy Value chain investments NOK 3 million 27-21: Acquisition / investments in Technocean, Scan Mudring, Bluestone Offshore, Reef Subsea and Octio Fleet renewal NOK 1 9 million 29: Acquisition of 3D/4D vessel Geo Atlantic from PGS 29: Acquisition of two subsea IMR newbuildings from Sea4 21: Acquisition of two 4D seismic newbuildings Long term financing secured NOK 1 6 million ~ NOK 1 45 million in mortgage debt on Geo Atlantic and newbuildings ~ NOK 15 million in equity contribution from investors in Armada Seismic / 6

/ ACTIVE USE OF INDUSTRIAL PARTNERS AND CAPITAL MARKET Prisco/ GC Rieber Armada Seismic Spin-off and IPO in 25 RISH post share of about 4 % Acquired by CGG Veritas in 25 Return of 2% in 6 months Private placement 6 (54 %) followed by IPO in 27 RISH share 42 % Acquired by PGS in 28 Return of 17 % in 2 months JV 5/5 with Primorsk Shipping Corporation Three vessels on long term TC to ENL and SEIC (Sakhalin I & II in Russia) JV with Statoil and ION Geo, established 28 Permanent monitoring of oil & gas fields RISH share 73 % JV 5/5 with Hitec established Jan 21 Niche player within IMR, soil removal and geotech / core drilling Based in Norway and Singapore Private placement of NOK 45 million in June 21 RISH post share of approx. 65% 6% debt financed PAST PRESENT / 7 / BALANCE SHEET AS AT 3.6.21 Assets Equity & Liabilities NOK million NOK million 4 35 3 25 2 15 1 5 194 66 368 452 2565 156 9 163 3.6.21 3.6.29 4 Other current assets Cash & liquid 35 3 25 125 assets 288 2 Fixed assets 772 15 36 Intangible 1 216 assets 5 1463 3.6.21 3.6.29 Long term liabilities Current liabilities Shareholders equity As at 3.6.21: Net debt position of NOK 554 million Equity ratio 57% / 19 August 21 / 8

/ COMPETITIVE ADVANTAGE Equity ratio 8% 7% 6% 5% 4% 3% 2% 1% % GC Rieber Shipping Equity ratio for RISH has been in the range 4-65% Solstad Offshore DOF Eidesvik Offshore 31.12.4 31.12.5 31.12.6 31.12.7 31.12.8 31.12.9 3.6.1 Strong balance sheet facilitates counter cyclical investments / 9 / INVESTMENT AND DIVIDEND CAPACITY Investment capacity Net interest bearing debt NOK million 14 12 1 8 6 4 2-2 -4 66 Cash per 3.6.21-836 Committed investments 793 Draw down loan facility NOK 1 million+ 379 Borrowing capacity vessels Future cash flow NOK million 1 8 6 4 2-2 -4-6 -8-1 -12 66 Cash per 3.6.21 1214 Interest bearing debt per 3.6.21 554 Net interest bearing debt per 3.6.21 / 1

Business areas / 11 / 1 Septem / CORE INVESTMENTS & VALUE CHAIN INVESTMENTS CORE ACTIVITY VALUE CHAIN PROJECT DEVELOPMENT Strategy, technical, S&P / M&A SHIP OWNER Financing, tax/structure, chartering SHIP MANAGEMENT Technical, crewing, HSEQ SUBSEA PERMANENT MONITORING (EOR) 1 % OWNERSHIP 5 1 % OWNERSHIP 1 % OWNERSHIP 34 75 % STAKE 94% OF TOTAL ASSETS 6% OF TOTAL ASSETS / 12

/ CORE AND VALUE CHAIN INVESTMENTS Core investments (shipowner/operations) High CAPEX requirement Moderate working capital required Medium to long term employment secures stable operational cash flow Long term mortgage financing medium to high gearing (6-8%) Low to medium volatility in margins and net earnings Value chain investments Low to medium CAPEX requirement High working capital required Short to medium term project dependent backlog Low gearing high equity ratio High volatility in margins and net earnings Highly exposed business cycle CORE VALUE CHAIN RELATIVELY STABLE CASH FLOW THROUGH CYCLES UPSIDE POTENTIAL BASED ON EXPOSURE TO CYCLES / 13 / SHIPOWNING - GOOD BALANCE SHORT VS. LONG TERM CONTRACTS Vessel Built (year) Type Contract end (year) Geo Explorer 1988/24 2D/source 21 Ernest Shackleton 1995 Ice/offshore 214 Polar Prince 1999 Offshore IMR & light construction 211 Geo Atlantic 2/26 3D/4D 213 Polarbjørn 21 Ice/offshore 21 Polar Pevek 26 Ice/tug 221 Greatship Maya * 29 MPSV / Geotechnical 212 Polar Piltun 1998/29 Crew boat 213 Polar Baikal 2/29 Crew boat 213 Greatship Maya Geo Atlantic Ernest Shackleton Polar Prince Polar Pevek Geo Explorer Polarbjørn * On bare boat charter to GC Rieber Shipping / 14

/ SHIPOWNING FLEET DEVELOPMENT AND RENEWAL 29: USD 58m acquisition of 4D vessel Geo Atlantic 29: USD 12m investment in two IMR/CSV newbuildings delivery 21/211 (acquired from Sea4) 21: Polar Queen sold to Acergy 21: USD 13m investment in two high capacity seismic newbuildings delivery 21/211 The price level for the investments in vessels is considerably lower than comparable tonnage / 15 / SHIPOWNING - ICE/OIL RELATED SUPPORT Increasing activity within oil-related operations in icy waters, but still in early-phase Promising development in Sea of Okhotsk The Arctic is assumed to hold approx. 2% of the worlds undiscovered oil resources 84% of the unfound resources assumed to occur in offshore areas Much of the oil assumed to be found offshore Alaska Sea of Okhotsk, Russia American & Canadian Arctic GC Rieber Shipping has a long history and extensive experience in developing and operating vessels in icy waters/harsh environment / 16

/ VALUE CHAIN REEF SUBSEA (5% STAKE) Reef Subsea is a subsea specialist company offering services to The oil & gas industry The renewables industry Financial capacity: NOK 195 mill. in initial funding Owners commitment to further capital support Solid financial development in Reef Subsea since it was formed early 21 76% 95% 1% 5% 5% GC RIEBER SHIPPING CEO Mark Preece and CFO Ivan Coyard joined Reef in Q3 21 Former Acergy executives / 17 / REEF SUBSEA CAPABILITIES AND EXPANSION PLANS IMR/ construction support Polar Prince (incl. ROV spread) working in the offshore/wind sector Consulting, engineering and project services Dredging/ seabed intervention services Norwegian customer and asset base Strong market position Geotechnical surveys Greatship Maya single purpose geotechnical survey vessel Inhouse lab and project organization Increase no. of IMR operations Target opportunities within offshore/wind International provider of dredging services Focus on difficult access and high precision Increase no. of geotechnical survey vessels Inhouse lab and project organisations / 18

/ VALUE CHAIN SUBSEA MARKET EXPECTATIONS Growth in the subsea market expected from 211 Reef Subsea well positioned towards some of the expected high growth areas: Asia West Africa North Atlantic (211/12) H&D pipeline installation forecast 6, Mediterranean West Africa 5, Latin America Asia/AUS 4, US GoM 3, North Atlantic Forecast 2, 1, 1992 1994 1996 1998 2 22 24 26 28 21 212 214 Source: ODS-Petrodata, April 21 Pipeline installation is a trigger for subsea market activity The pipeline installation activity forecasted by ODS-Petrodata indicates that harsh and deepwater subsea activity in the Mediterrranean, West Africa, Asia /AUS and Latin America will grow significantly from 211. / 19 / VALUE CHAIN - OCTIO GROUP (73% OWNED) Octio Group is an Integrated Service Supplier with focus on permanent monitoring enabling Enhanced Oil Recovery (EOR) The market for permanent monitoring of oil & gas fields is expected to grow strongly in a longer perspective Octio Group is in an early commercialisation phase / 2

/ SUMMARY Track record Strong operational track record Profitable portfolio management within niches Seismic success stories Expl. Resources and Arrow Seismic Active use of financial partners Financial record Market risk Stable and solid earnings over time Access to loan capital, also in challenging market environments Strong balance sheet gives dividend capacity and room for counter cyclical investments Fleet renewal at attractive prices fully financed Short to medium term slow market in subsea and seismic Exposure through two vessels on short term contracts and two newbuildings without contract Comfortable with risk, due to strong balance sheet, attractive vessel specifications and low capex on newbuilidings / 21 / DISCLAIMER This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. Such forwardlooking information and statements are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for GC Rieber Shipping ASA and its subsidiaries. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for GC Rieber Shipping s businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time. Although GC Rieber Shipping ASA believes that its expectations and the information in this Presentation were based upon reasonable assumptions at the time when they were made, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in this Presentation. GC Rieber Shipping ASA nor any other company within the GC Rieber Shipping Group is making any representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the information in the Presentation, and neither GC Rieber Shipping ASA, any other company within the GC Rieber Shipping Group nor any of their directors, officers or employees will have any liability to you or any other persons resulting from your use of the information in the Presentation. GC Rieber Shipping ASA undertakes no obligation to publicly update or revise any forward-looking information or statements in the Presentation. / 22