Nordic Energy Summit. Oslo, 18 March August 2013

Transcription

1 Nordic Energy Summit Oslo, 18 March August 2013

2 Disclaimer This presentation (the Presentation ) has been produced by Songa Offshore SE ("Songa" or the "Company") exclusively for information purposes. This Presentation includes forward-looking statements regarding Songa, including projections and expectations, which involve risk and uncertainty. Such statements are included without any guarantee as to their future realization. Although Songa currently believes that the expectations regarding the Company reflected in such forward-looking statements are based on reasonable assumptions, no assurance can be given that such projections will be fulfilled. Any such forward-looking statement must be considered along with the knowledge that actual events or results may vary materially from such predictions due to, among other things, political, economic, financial or legal changes in the markets in which Songa does business, and competitive developments or risks inherent to the Company s business plans. Many of these factors are beyond Songa s ability to control or predict. Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements. Accordingly, the Company does not accept any responsibility for the future accuracy of the forwardlooking statements expressed in this Presentation or the actual occurrence of the forecasted developments. The Company does not intend, and does not assume any obligation, to update any such forward-looking statements as of any date subsequent to the date hereof. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including, without limitation, projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, the Company does not accept any liability whatsoever arising directly or indirectly from the use of this Presentation. By receiving this Presentation, the recipient acknowledges that he will be solely responsible for its own assessment of the market and the market position of the Company and that he will conduct his own analysis and be solely responsible for forming his own view of the potential future performance of the businesses of the Company. This Presentation must be read in conjunction with the recent financial information, as well as other publicly disclosed information. Nothing in this Presentation, nor any other information provided to the recipient by the Company or any of its advisers constitutes, or may be relied upon as constituting, investment advice or any financial, tax or legal advice by such persons or anybody else. 2

3 $ million Songa Offshore - in transition Quarterly EBITDA Revenue of $562 million 2013 EBITDA of $213 million 2016 firm contract backlog of $925 million with additional options of $170 million Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 3

4 We continue to build a new Songa under the New Songa Vision Vision: Songa Offshore shall be the preferred International Midwater Drilling Contractor with a strong presence in the harsh environment North Atlantic basin Mission: We will accomplish this by: Providing safe and cost efficient operations which exceeds our customers expectations Following our key customers world wide Being recognised for having competent and passionate employees combined with robust systems and procedures Working with our customers to effectively utilize value added technologies Taking on management contracts, with a special focus on South East Asia Offering high-quality engineering and Rental Services 4

5 With an experienced management team Bjørnar Iversen - CEO Before joining the company in June 2013, Mr. Iversen was a member of the executive leadership team at Odfjell Drilling AS. During his 17 year's tenure at Odfjell Drilling, he has been executive vice president for Corporate Business Development, Odfjell Drilling Technology and Odfjell Well Services. His latest position was President and CEO of Odfjell Galvao Ltda in Brazil. Mr. Iversen holds a Master of Science in Business from the Norwegian School of Business and Economics (NHH), and various management courses from Harvard Business School and NHH. Jan Rune Steinsland - CFO Mr. Steinsland previously held the position of CFO at Ocean Rig ( ) during a period of great expansion and development, including an IPO and listing on NASDAQ. Prior to that, he was CFO at Acta Holding ASA, a position he held for six years. From 1988 to 2000, he held several management positions at ExxonMobil, including Financial Analyst, Financial Reporting Manager, Vice President Accounting and Audit Advisor. Mr. Steinsland holds a Master of Business Administration from University of St. Gallen and is Certified European Financial Analyst (AFA) from The Norwegian Society of Financial Analysts/Norwegian School of Economics and Business Administration. Mark Bessel - COO Before joining the company in October 2013, Mr Bessell previously held the position of Senior Vice President with Ocean Rig. Mr Bessell commenced in the industry with Sedco, he then remained with Transocean for over 20 years where he held a number of Senior Positions within Operations, Projects, Technical and HR having gained extensive Industry and Business Experience. Mr Bessell holds a BSc in Petroleum Engineering. 5

6 Fleet overview Songa Dee Semisubmersible Norwegian North Sea Fleet Built: 1984 Modified: 2004 / 2012 Water depth: 1,800 feet Next main survey: Q Songa Trym Semisubmersible Norwegian North Sea Fleet Built: 1976 Modified: 1996 / 2002 / 2005 Water depth: 1,200 feet Next main survey: Q Songa Delta Semisubmersible Norwegian North Sea Fleet Built: 1981 Modified: 1996 / 2011 Water depth: 1,500 feet Next main survey: Q Cat-D Equinox HE semisubmersible Built: Delivery Q Water depth: 1,640 feet Moored / DP Cat-D Encourage HE semisubmersible Built: Delivery Q Water depth: 1,640 feet Moored / DP Cat-D Enabler HE semisubmersible Built: Delivery Q Water depth: 1,640 feet Moored / DP Songa Venus Semisubmersible Midwater International fleet Built: 1975 Modified: 2005 / 2006 Water depth: 1,500 feet Next main survey: Q Songa Mercur Semisubmersible Midwater International fleet Built: 1989 Modified: 1999 / 2006 /2007 Water depth: 1,200 feet Next main survey: Q Cat-D Endurance HE semisubmersible Built: Delivery Q Water depth: 1,640 feet Moored / DP 6

7 Areas of Operation We are building Norway's largest semi submersible company in 2014 and 2015 Songa Enabler New Songa Encourage New Songa Delta Songa Trym New Songa Endurance Songa Equinox New Songa Dee 7

8 Statoil s largest drilling operator Backlog per rig (USDm) Statoil # rig years contracted in Norway (floaters) Songa Offshore ; 50 % 0 Songa Offshore 3rd player 2nd player 4th player Market leading backlog per rig 50% of Statoil firm floater contracts in Norway Note: Firm backlog as reported by companies in latest quarterly report. Reporting practices may vary. Source: Companies, Managers estimates, ODS Petrodata 8

9 Solid operating performance Operating Efficiency % Operating Efficiency of 100% for the Norwegian in fourth quarter 100% 95% 97% 94% 94% 94% 98% 93% 97% 100% Songa Delta intermediate SPS completed in November without downtime 90% 85% 80% Operating Efficiency of Songa Venus of 99% 75% Operating Efficiency of Songa Mercur of 100% following enivietnam contract commencement on October 9 70% 65% 60% Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3' 13 Q4' 13 9

10 Contract Status Unit Customer Current Option Day rate Day rate 2013 Q1 Q2 Q3 Q4 Q Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Norwegian Continental Shelf Songa Dee Statoil 353 Songa Trym Statoil 368 Songa Delta Statoil 360 Rate end of firm contract Rate end of firm contract Rate end of firm contract NCS Newbuilds Songa Equinox Statoil 479 Songa Endurance Statoil 479 Songa Encourage Statoil 480 Songa Enabler Statoil 484 Firm contract end rate + $15 k Firm contract end rate + $15 k Firm contract end rate Firm contract end rate 8 year firm + 4x3 year options 8 year firm + 4x3 year options 8 year firm + 4x3 year options 8 year firm + 4x3 year options International Songa Venus Petronas Malaysia/Mubadala/Pearl Songa Mercur Eni/Idemitsu/Mubadala Contract (incl. mob) Yard Option IS / SPS / Shipyard 10

11 $ million Order Backlog 1,200 1, Contract Option Strong firm backlog of USD 6.6 billion and further USD 8.4 billion in option revenues 11

12 NCS demand supply balance 12

13 NCS day rates development 13

14 Songa Dee Special Periodic Survey August September days out of service incl. transit Budget of $90 million Experienced Songa Offshore project organization fully operational Lessons learned from the last SPSs implemented Scope of work includes 122 defined work packages - no material steel replacement Long lead items ordered and on schedule Yard award given 14

15 Status Cat D Newbuild Project Songa Equinox Songa Endurance

16 Cat D Newbuild Project Construction Progress Equinox Endurance Encourage Enabler August % 65.8% 19.1% 8.0% October % 72.8% 38.3% 12.1% January % 77.2% 59.8% 22.8% Yard Delivery Equinox Endurance Encourage Enabler January 2014 Q Q Q Q

17 Cat D Newbuild Project Cat Ds constructed according to Statoil s specifications Mutual understanding that Statoil will accept as much as possible before delivery High focus on commissioning and mobilization planning Songa Equinox core operational team in place at yard Average ready-to-drill cost about $660 plus capitalized interests Mobilization fee $40 million paid to Songa Offshore at yard delivery 17

18 Completed refinancing Amended Cat D drilling contracts with 5% average rate uplift Raised new equity of $275 million Issued convertible bond of $150 million with 4% coupon Amended bond loans - maturity extended and interest reduced Amended the bank fleet loan extended maturity and reduced amortization New covenant structure for all debt 18

19 $ million $ million Refinancing removed «maturity wall» in 2015 Maturity profile before refinancing Maturity profile after refinancing Main bank facility Pre-delivery CAT-D 1&2 Pre-delivery CAT-D 3&4 Bond 2015 Bond 2016 Main bank facility Pre-delivery CAT-D 1&2 Pre-delivery CAT-D 3&4 Bond 2015 Bond 2016 Convertible Bond

20 Financing of Cat D Completing documentation on Cat D 1 and 2 financing $507 million per rig Average profile 10.5 years Maturity 6 years from delivery Loan availability pre-delivery of $104 million Strong interest in financing of Cat D 3 and 4 - expect higher leverage than Cat D 1 and 2, following day rate uplift and refinancing 20

21 Songa Offshore going forward Focused North Atlantic harsh environment drilling contractor Largest semi submersible drilling fleet on the NCS Market leading contract backlog at attractive day rates High cash flow visibility Strong operational track record