Anders Holm, CEO Arild Bårdsen, CFO

Transcription

1 Nexus Floating Production Second Quarter 2008 Presentation Anders Holm, CEO Arild Bårdsen, CFO 1

2 Disclaimer This Report 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 forward-looking 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 Nexus Floating Production Ltd.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 the Nexus Floating Production Ltd. s businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations ti in currency exchange rates and such other factorsasmaybe discussedd from time to time. Although Nexus Floating Production Ltd. believes that its expectations and the information in this Report 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 Report. Nexus Floating Production Ltd. Or any of its subsidiaries is making any representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the information in the Report, and neither Nexus Floating Production Ltd., any of its subsidiaries 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 Report. Nexus Floating Production Ltd. undertakes no obligation to publicly update or revise any forward-looking information or statements in the Report. 2

3 Agenda 1. Highlights 2. Company 3. The Nexus FPSO Fleet 4. The Nexus building projects 5. Market 6. Financials 3

4 Highlights Q2 : Main Events - Nexus#1 FPSO launched from dock June 22, 2008 according to plan - Delivery of Nexus#2 FPSO changed to May Aligning g the delivery with schedule requirements of core prospects p in harsh environment - Expect more favourable financing with later payments to the yard - LOI for Nexus#1 for Camago Malampaya Oil Leg project signed with Burgundy Global Exploration Corporation (July 31, 2008) : Operations and Market - Projects developing well and in good co-operation with our suppliers - More active FPSO market in Persistent high oil price triggers increased and extended activity on previously more marginal fields and in remote and harsh locations - All time high drilling activity. Rig availability is currently a market constraint 4

5 Highlights Hull construction Vessel float-out from dock moving to quayside for topside installation and on-shore commissioning 5

6 Company History and Structure : On May 6, 2006 Nexus Floating Production Ltd. was incorporated Company structure t : On 19 June 2006, Nexus entered into a construction contract for Nexus 1 with Samsung Heavy Industries Option for one FPSO similar to Nexus 1 Financing completed in March 2007 : On 30 March 2007 the first day of trading of Nexus shares on Oslo stock exchange APL Plc Other investors 49,7% 50,3% Nexus Floating Production Ltd. (Singapore) : On June 18th 2007 the contract for Nexus 2 was signed MUSD 25 equity MUSD 75 convertible bonds Additional financing for the Nexus#2 project planned for 2008/ % Nexus 1 Pte. Ltd. (Singapore) 100% Nexus 2 Pte. Ltd. (Singapore) 100% Nexus Floating Production Norge AS (Norway) 6

7 The Nexus FPSO Fleet : Harsh environment and strict regulatory requirements : Wide range of production scenarios 7

8 The Nexus FPSO Fleet Harsh environment : Ship shape double bottom double side hull design : Design life based on 20 YR operation on Norwegian Sea environmental conditions (100YR Hs = 16,5 m) : Raised bow and stern and continuous green water protection along sides and large freeboard : Turret located forward ensures good weather-vaning capabilities. Thruster assisted heading control during off-loading : Self propelled with 2 independent propulsion systems : State-of-the-art disconnectable turret mooring from APL allows for operation in areas prone to iceberg or hurricane activity 8

9 The Nexus FPSO Fleet Wide range of production scenarios : Complete topside process plant for typical mid size oil field with associated gas and water (80 BOPD, 60 BWPD, 1.5 MMSCM gas) : Vessel hull and utility systems prepared for topside expansion without structural interventions : Topside prepared for additional gas, water and oil processing as well as special features (GTL, Heavy oil, etc.) : Expansions are based on principles of modularity and dedicated future system areas : Topsides capacities may be doubled 9

10 The Nexus Projects : Contractual strategy : Project schedule : Project financials : Project status 10

11 The Nexus Projects Contractual strategy : Turn-key integrated FPSO contracts with Samsung Heavy Industries : Turn-key contracts t for delivery of Turret Mooring System with APL : Management agreements with APL for construction supervision, marketing and operation of the vessel 11

12 The Nexus Projects Project schedules : Delivery Nexus#1 in June 2009 : Delivery Nexus#2 in May Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Nexus 1 Nexus FPSO Delivery 30 June 2009 Contract Signing Hull Steel cutting Hull Keel Laying Hull Launching Nexus 2 Contract Signing Nexus FPSO Hull Steel Cutting Hull Keel Laying Hull Launching Delivery 31 May

13 The Nexus Projects Project financials : Nexus #1 - All-in delivered cost is MUSD 578, whereas total funding requirement is estimated at MUSD Owner supplied equipment comprises turret mooring system (STP 5000) delivered from APL estimated at MUSD 75 - Capital structure - MUSD 320 bank financing - Bond loan of MUSD Equity MUSD 170 : Nexus #2 - All-in delivered cost is MUSD 628, whereas total funding requirement is estimated at MUSD Capital structure - Equity MUSD 25 - Convertible bond loan of MUSD 75 - Additional financing planned for 2008/

14 The Nexus #1 Project Project status : Nexus#1 - Hull and marine systems - All procurement activities are completed - Sea launch on June 22 - Topside - Detail Engineering completed - Procurement of long lead items completed - Top side construction will be completed mid February 2009 : Nexus#2 - Delivery changed to May

15 Market : FPSO demand : FPSO supply : FPSO vessel availability : Nexus marketing update 15

16 Market FPSO demand : Expected FPSO Demand - Some 80 FPSO projects identified world-wide for award in period High near-term demand for FPSOs (>30 projects within 12 months) - Additional projects to materialize by small oil companies with less visibility than the majors - Increasing demand d for harsh h environment FPSOs - There is sufficient near-term demand to employ all existing harsh environment units - High long-term potential as oil companies have committed to the most extensive deepwater drilling program ever over the next 3 years. Source: Fearnley Offshore 16

17 Market FPSO supply : Expected FPSO Supply - Limited availability of leased harsh environment FPSOs for re-deployment - The high oil price has extended the commercial life of fields and the majority of leased FPSOs stay on contract beyond the firm period - Main FPSO new building yards current delivery position is 2nd half Long lead items limit the time advantage converting existing tanker - Reduced competition for new buildings as cheaper and older FPSOs have been committed - Cost of materials, equipment, fabrication, etc. has continued to increase over past two years Source: Fearnley Offshore 17

18 Market Harsh environment FPSO availability REGION FPSO NAME OWNER OPERATOR HULL STORAGE BUILT '000 BBLS Unemployed Nexus I Nexus Floating Prod. Unemployed Unemployed Sevan 300 no. 5 Sevan Marine Unemployed Unemployed Sevan 650 no. 1 Sevan Marine Unemployed Unemployed Nexus II Nexus Floating Prod. Unemployed North Sea Gryphon A License Maersk Oil & Gas S. Africa Glas Dowr Bluewater Petro SA North Sea BW Carmen BW Offshore StatoilHydro Far East Munin Bluewater Statoil/CNOOC North Sea Maersk Curlew Maersk Contractors CNR Australia Crystal Ocean Rubicon Offshore Anzon North Sea Petrojarl 1 Teekay Petrojarl Statoil North Sea Petrojarl Varg Teekay Petrojarl Talisman S. America Seillean Frontier Drilling Petrobras North Sea Jotun Bluewater ExxonMobil North Sea FPSO Sevan Hummingbird (#2) Sevan Marine Venture Production North Sea Petrojarl Foinaven Teekay Petrojarl BP North Sea North Sea Producer Maersk Contractors ConocoPhillips North Sea Balder FPU License Esso North Sea Triton 1 License Hess North Sea Schiehallion FPSO License BP North Sea Aoka Mizu/Ettrick Bluewater Nexen Petroleum North Sea FPSO Sevan Voyageur (#3) Sevan Marine Oilexco North Sea North Sea Uisge Gorm Bluewater Amerada Hess (Ithaca Energy) North Sea Norne License Statoil North Sea Anasuria License Shell North Sea FPSO Sevan 300 TBN (#4) Sevan Marine Venture Production North Sea Petrojarl Banff Teekay Petrojarl CNRL North Sea Bleo Holm Bluewater Talisman North Sea Haewin Brim Bluewater Shell North Sea Captain License Chevron North Sea Åsgard A License Statoil North Sea Alvheim FPSO License Marathon North Sea Global Producer III License Maersk Oil & Gas North Sea Skarv License BP st 2nd 3rd 4th 1st 2nd 3rd 4th st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th Source: Fearnley Offshore Firm contract Contract options Unit under construction / conversion / upgrade 18

19 Market Marketing update : Main Activities and Outlook - LOI with Burgundy Global Exploration Corporation signed July 31st, Nexus#1 for Calamago Malampaya Oil Leg (CMOL) project MMbbls recoverable oil - First oil planned for Q meters water depth - Typhoon prone area disconnectable turret mooring system - Nexus exclusive for production facilities - First right of refusal clause allows for vessel marketing during LOI term - Contract expected by Q Paid placement studies and offers for specific fields in North Sea made in Q2 concept and supplier selections expected by end of Attracting interest from potential clients world-wide wide, increased activities in activities in Norway and UK, but also S-E Asia and Australia stronger - Nexus is well positioned to meet the growing FPSO market demand 19

20 Financials : Overview : Income statement : Balance sheet : Shareholder structure 20

21 Financials Income statement : P/L - Income USD 309 thousand from paid placement studies - Operating expenses as expected : Balance sheet value USD 539 million - Assets consist mainly of project value (USD 508 million and cash - Liabilities cosnsist mainly equity and bond debt - Shareholders equity at present 36% - Debt at present 64% - Cash holdings and not drawn bank facilities of USD 346 million : Summary - Financially i the company is moving forwards as planned - Additional financing required to meet the next main payment milestone due March 18,

22 Financials Income statement (USD 1000) Q Q YTD 2008 YTD 2007 Full year 2007 Revenues Cost of sales Employee benefits Other operating expenses EBITDA Depreciation EBIT Financial income Financial costs Other financial items Profit before taxes Taxes Profit after taxes EPS (USD) - 0,0387-0,0590-0,0419-0,2049-0,2028 Diluted EPS (USD) - 0,0387-0,0590-0,0419-0,2049-0,

23 Financials Balance sheet (USD 1000) Intangible assets Vessel under construction Other non-current assets Pension funds Total Non-Current Assets Prepayments and other current assets Cash and cash equivalents Total Current Assets TOTAL ASSETS Shareholders Equity Interest bearing loans Pension liability Deferred tax liability Total Non-Current Liabilities Trade and other payables Income tax payable Public duties payable Other short-term liabilities Total Current Liabilities Total Liabilities TOTAL EQUITY AND LIABILITIES

24 Financials Shareholder structure Top 10 shareholders ( ) Name Shares % Nationality APL PLC ,74 CYP SIS SEGAINTERSETTLE ,23 CHE ODIN OFFSHORE ODIN FORVALTNING AS ,98 NOR CLEARSTREAM BANKING CID DEPT, FRANKFURT ,86 LUX VERDIPAPIRFONDET KLP ,47 NOR SEB PRIVATE BANK S.A ,8 LUX GOLDMAN SACHS INT. - SECURITY CLIENT SEGR ,74 GBR DEUTSCHE BANK AG LON ,48 GBR VERDIPAPIRFOND ODIN ,38 NOR GOLDMAN SACHS INT. - SECURITY CLEARANCE ,79 GBR 24

25 Contact information Want to know more? Contact us at Project Office: Servicebox 609, N-4808 Arendal Company address: 8 Shenton Way, #49-03 Temasek Tower, Singapore Anders Holm, CEO aho@nexusfp.no Arild Bårdsen, CFO aba@nexusfp.no tel: fax: info@nexusfp.no Nexus Floating Production Ltd. 25