Q4 Financial Presentation 2015 DOF ASA

Transcription

1 Q4 Financial Presentation 2015

2 Highlights

3 Main Highlights EBITDA Q4 MNOK 818 (operational EBITDA MNOK 814) EBITDA 2015 MNOK (operational EBITDA MNOK 3 344) General good operational performance in the period, reduced utilisation in certain regions towards end of quarter Average utilisation total fleet of 87% Backlog 71% the next 12 months Two vessels sold and two new-builds delivered Continued challenging markets and few contract awards in the period All numbers based on management reporting 3

4 Highlights Subsea Average utilisation project fleet 74% and TC fleet 91 % Brazil- Good utilisation Asia Pacific Good utilisation, one vessel off contract and mobilised for sale North Sea & US Gulf Low utilisation parts of the fleet Operational AHTS/PSV North Sea 2 vessels fully or partly in the spot market. Brazil & Argentina Good utilisation, but two vessels idle between contracts Asia Pacific Good utilisation, but three vessels off contract in December One vessel in lay-up 4

5 Highlights DOF Subsea awarded IMR contract on Maari field s FPSO, Raroa, offshore New Zealand DOF Subsea awarded commissioning support work for ENI at Goliat field and installation of mooring systems for BW Offshore in UK sector of the North Sea Contract Awards DOF awarded a 75 days contract + options in Argentina for Skandi Chieftain, start up Dec 2015 DOF awarded a 1 yr contract for Skandi Sotra with Asco Marine Ltd., start up from Dec 2015 Norskan awarded a 1 yr contract for Skandi Botafogo, start up Dec 2015, securing close to 100% coverage in 2016 for the Norskan AHTS fleet Skandi Vega awarded a yr with Statoil from mid May

6 Highlights Skandi Protector agreed sold and delivered to new owner in January Fleet Skandi Inspector sold and delivered to new owner in December Skandi Africa delivered and commenced a 5 yrs contract with Technip in Oct Skandi Acu, (PLSV) 1st delivery in January 2016 All DOF and Norskan refinanced balloons due in 2016 Financing Bonds, DOFSUB06, fully repaid, repurchase of DOFSUB05 planned repaid on maturity in 2016 Funding of Skandi Acu (PLSV) secured DOF Subsea completed refinancing program as planned in Q4 6

7 Overview Group

8 in brief Fleet 67 vessels (wholly and partly owned) (19 PSV, 20 AHTS, 28 Subsea) 60 owned vessels in operation 2 owned less than 50% 5 newbuildings; 1 AHTS, 4 Subsea 3 subsea vessels chartered in from external owners 62 ROVs, 5 ROVs on order Back log Total NOK 67.8 bn Firm contracts : NOK 32.6 bn Options: NOK 35.2 bn Global organisation Head office in Norway Regional offices in Australia, Singapore, UK, USA, Canada, Angola, Argentina and Brazil NOK 34 bn in market value owned vessel in operation* (100% basis) Average age 8.3 years, value adjusted fleet age of 5.8 years Total of employees* Subsea employees: Marine personnel: Vessels 3 Subsea 28 AHTS PSV 20 Chartered Subsea Vessels 8

9 Establishing a strategic position in Brazil Skandi Copacabana First Brazilian built AHTS vessel by DOF Skandi Salvador First Brazilian built CSV Skandi Vitória and Niterói First Brazilian built PLSVs 4 new PLSV s 2 built in Brazil : First step in Brazil 2006: DOF Subsea Brasil established Skandi Santos First CSV installing x-mas tree Skandi Amazonas and Iguaçu Biggest AHTS vessels built in Brazil by DOF Strategy: Brazilian flag, local content, local employees Gives DOF a unique position in the Brazilian market

10 Fleet overview and contract coverage * Including Newbuilds ** Excl. Vessels with minority share No. of vessels PSV AHTS Subsea Total fleet /DOF REDERI AS NORSKAN OFFSHORE DOF SUBSEA AS * 22 DOF INSTALLER ASA DOF DEEPWATER AS Total fleet ** Contract coverage 2016 Firm 80 % 69 % 65 % 71 % 2016 Including options 86 % 70 % 72 % 75 % 2017 Firm 43 % 49 % 44 % 45 % 2017 Including options 74 % 53 % 59 % 61 % Expectations for 2016: Despite weak market we see progress in securing short and long term contracts Our global footprint, track record and project capacity will be vital to secure utilisation High back-log in the PSV segment but reduced earnings on contract renewals Low back-log in the AHTS segment (excl. vessels with Brazilian flag) Plan to increase number of vessels with Brazilian flag 10

11 DOF backlog overview Contract coverage at , NOK million Thereafter Option Firm Total value backlog from 2020 and onwards is MNOK 36,836

12 A global player Austevoll Aberdeen Moscow North America St. Johns Houston Macaé Rio de Janeiro Atlantic Cairo 3 Luanda Malaysia Singapore Manila Brunei Jakarta Darwin Region Buenos Aires Perth Brazil Asia Pacific Melbourne Marine Crew:

13 Remaining newbuilding program Vessel Yard Delivery Type Contract Financing Skandi Acu Vard Norway 2016 PLSV 8 yrs Petrobras Signed loan agreement Skandi Paraty Vard Brazil 1H 2016 AHTS 4 yrs Petrobras Signed loan agreement Skandi Buzios Vard Norway 2016 PLSV 8 yrs Petrobras Skandi Recife Vard Brazil 2016 PLSV 8 yrs Petrobras Loan agreement signed with BNDES Skandi Olinda Vard Brazil 2017 PLSV 8 yrs Petrobras Loan agreement signed with BNDES 13

14 Financials Management Reporting

15 Result Q All figures in NOK million Q Q Operating income Operating expenses Net profit/loss from JVs Net gain on sale of vessel EBITDA before hedge Hedge operating income Operating profit before depr - EBITDA Depreciation Impairment Operating profit- EBIT Financial income 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 Comments result Q4 Operational performance: PSV: 96% utilisation PSV fleet Generally good performance AHTS: 81% utilisation AHTS fleet Vessels idle between contracts One vessel in lay-up Subsea: 91% utilisation CSVs on TC 74% utilisation project fleet One vessel sold One vessel delivered and on contract Depreciation and impairment: Impairment loss mainly from PSV and AHTS segment Finance: Strong USD towards NOK and BRL high impact on financial result Tax Net profit/loss According to management reporting 15

16 Segment reporting Q PSV AHTS CSV Total Amounts in NOK mill Q Q Q Q Q Q Q Q Operating income EBITDA *) Operating result (EBIT) **) EBITDA margin 35 % 34 % 37 % 47 % 30 % 35 % 31 % 36 % EBIT margin 19 % 16 % 7 % 30 % 16 % 26 % 15 % 25 % *) Ebitda includes gain on sale of vessels **) Ebit includes impairment loss According to management reporting EBITDA Q EBITDA Q % 18 % PSV 10 % 18 % PSV 69 % AHTS CSV 72 % AHTS CSV 16

17 Historical Performance Group (excl gain from sale of assets) Operating revenue EBITDA EBITDA margin 40% 35% 30% MNOK Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Operating revenue EBITDA EBITDA margin 33 % 31 % 27 % 31 % Non-current assets Current assets Total Assets Equity Non-current debt Current debt Total Equity and Debts According to management reporting 25% 20% 15% 10% 5% 0% EBITDA Margin % 17

18 Balance Q Amounts in NOK million ASSETS Intangible assets Vessel and other tangible assets Newbuildings Financial assets Non-current assets Receivables Cash and cash equivalents Asset held for sale Current assets incl asset held for sale Total assets EQUITY AND LIABILITIES Subscribed equity Retained equity Non-controlling equity Equity Provisions for commitments Other non-current liabilities Non-current liabilities Current part of interest bearing debt Other current liabilities Liabilities held for sale Current liabilities incl liabilities held for sale Total equity and liabilities Comments to balance Assets: 10 vessels sold Two newbuilds delivered in 2015 Intagible assets mainly deferred tax (MNOK and goodwill MNOK 436) Financial assets: Financial assets include minority share in shipowning companies Receivables: Asset held for sale = Skandi Protector (delivered in Jan 2016) Equity: YTD negative impact unrealised currency loss of MNOK Current liabilities: Current part interest term debt includes bonds, MNOK 422, balloons MNOK 300, + normal amortization, credit facilities and accrued interest According to management reporting 18

19 Net interest bearing debt Amounts in NOK million Bond loan Debt to credit institutions Total non-current interest bearing liabilities Bond loan Debt to credit institutions Utilised credit facilities Liabilities held for sale Total current interest bearing liabilities Total interest bearing liabilities Cash and cash equivalents Net derivatives Non-current receivables - - Total net interest bearing liabilities Comments current interest bearing debt: Bonds DOFSUB05 MNOK 422 Debt to credit institutions Two balloons MNOK 300 Amortization MNOK Cash and derivatives: MNOK 520 represent cash deposit Net derivatives represent interest derivatives Newbuilds Net interest bearing liabilities, excluding unemployed capital According to management reporting 19

20 Cash Flow Statement Amounts in NOK million Q Q Cash from operating activities Net interest paid Taxes paid Net cash from operating activities Sale of tangible assets Purchase of tangible assets Sale of shares - - Other changes in investing activities Net cash from investing activities Proceeds from borrowings Prepayment of borrowings Payment from/to non-controlling interests -0 - Net cash from financing activities Comments Cash flow Statement Purchase of tangible assets: 2nd delivery of Skandi Africa Proceeds from borrowings: 2nd draw down Skandi Africa Refinancing three vessels Prepayment of borrowings: Payment balloons Payment bond (DOFSUB 06) Normal amortization Net changes in cash and cash equivaltents Cash and cash equivalents at the start of the period Exchange gain/loss on cash and cash equivalents Cash and cash equivalents at the end of the period According to management reporting 20

21 Management reporting vs Financial reporting RESULT Q Q Amounts in NOK mill Management reporting Variance Financial reporting Management reporting Variance Financial reporting Operating income Operating expenses Net profit from associated and joint ventures Net gain on sale of tangible assets Operating profit before depreciation EBITDA Depreciation Impairment Operating profit - EBIT Financial income Financial costs Net realised gain/loss on currencies Net unrealised gain/loss on currencies Net changes in fair value of financial instruments Net financial costs Profit (loss) before taxes Taxes Profit (loss)

22 Management reporting vs Financial reporting BALANCE Management reporting Financial reporting Management reporting Financial reporting Amounts in NOK mill Variance Variance ASSETS Intangible assets Tangible assets Non-current financial assets Total non-current assets Receivables Cash and cash equivalents Total current assets Asset held for sale Total current assets incl. asset held for sale Total assets EQUITY AND LIABILITIES Equity Non-current provisions and commitments Non-current liabilities Current liabilities Total liabilities Liabilities held for sale Total liabilities incl. liabilities held for sale Total equity and liabilities Net interest bearing liabilities

23 Debt maturity profile DOF GROUP COUNTERPARTY EXPOSURE Q DOF ex Subsea Bank Debt Bond Loan Balloons 42% 42% ECA Bonds Other Banks 16% E 2017E 2018E 2019E 2020E After ECA mainly represent exposure with Norwegian and Brazilian ECAs DOF Subsea E 2017E 2018E 2019E 2020E After Bank Debt Bond Loan Balloons Liabilities held for sale Bonds: DOFSUB05, MNOK 422, due in April 2016 (MNOK 62 bought back YTD 2016) Bank Balloons: Total balloons of MNOK 300 next 12 months: Consist of two balloon payment DOF Subsea in process to refinance these balloons Liabilities held for sale: Sale of Skandi Protector 23

24 Adjust the Group s capacity to the challenging market Several cost cutting measures have been implemented during 2015 The organisation has been reduced both onshore and offshore with approx. 10% of the work force Vessels have been re-allocated between regions in order to secure utilisation Chartered-in vessels redelivered Sale of several vessels over past 12 months Cost focus going forward Continuously focus on adjusting the Group s capacity and risk exposure to the market going forward 24

25 DOF Subsea

26 DOF Subsea in brief (51%) First Reserve Corporation (49%) DOF Subsea Holding (100%) DOF Subsea 2005 Established NOK million total assets Modern high-end fleet and equipment highly-skilled employees 21 owned subsea vessels 4 vessels on order 3 vessels on charter 62 ROVs, 5 ROVs on order

27 New high-end fleet Year of delivery DOF Subsea fleet 9,0 8,0 7, % Newbuild 16 % 6,0 5,0 4, % 3,0 2,0 1,0 - Average fleet age Value adjusted Majority of the fleet delivered after 2007 Industry leading value adjusted average fleet age of approx. 6.2 years High-end vessels capable of a wide scope of world wide operations

28 Quarterly performance (excl. asset sales) Operating income EBITDA EBITDA margin 40% 35% 30% NOK million % 20% 15% % 5% - Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q % NOK million Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Operating income EBITDA EBITDA margin 33,6% 34,0% 36,1% 32,4% 26,9% 28,1% 33,0% 29,4% 32,8% 27,7% 29,0% 24,8% 27,7% 26,2% 27,8% 31,4% Current assets Non-current assets Total assets Current liabilities Non-current liabilities Equity * According to internal Management reporting 28

29 DOF Subsea Projects DOF Subsea has built a global presence over the last 10 years DOF Subsea has developed the project business gradually Increased project activity and complexity driving growth Operating income by segment Project business going forward Gradually increase the complexity of work done (Step by Step) Build a larger project back-log Mix between owned and chartered in vessels Subsea projects Chartering of vessels Total Q Q Q Subsea projects Chartering of vessels Total revenue Chartering of vessels Subsea projects Chartering of vessels Subsea projects * According to internal Management reporting 29

30 Market and outlook Subsea: APAC market Construction in Australia slowing down, but being replaced by IRM Reduced spending from operators leading to low activity Competition scene changing DOF SUB: Still long and short term opportunities, but downward pressure on rates Brazil market We expect a slow market, with few new tenders, pressure on rates and blocking activity leading to termination and renegotiation of contracts DOF SUB: Challenging and time-consuming for vessels that are up for renewal Important with Brazilian flag 30

31 Market and outlook Subsea: North America market We expect a slow market in 2016 Increased competition in the spot market, looking for utilisation DOF SUB: Maintaining our position. We expect to see a gradual increase in market share in the medium term, as target clients provide access to opportunities. Flexible business model with chartered-in vessels. Atlantic market We expect Norway to be weak in 2016 We expect UK to be weak in 2016 DOF SUB: Normand Reach will be redelivered Q

32 Market and outlook Supply: Brazil: DOF: Slow market continues, with few new tenders, increased competition and lower rates. Petrobras redelivering vessels in order to reduce current fleet size. Few vessels up for renewal. There are some opportunities for Brazilian flagged and international vessels using REB flag import capacity, through blocking. Slow progress on negotiations and risk of idle time. North Sea: We expect the North Sea market for both AHTS and PSV to be weak. DOF: Low market exposure in Q1, but gradually higher exposure going forward. Asia Pacific: We see low tender activity in the region within supply. Downward pressure on rates and over-supply of tonnage. DOF: 3 vessels in the region, all idle. 32

33 Outlook EBITDA in 2015 according to our guidance (guidance MNOK , actual MNOK 3 345) Guidance for 2016: Back log of 71%, but high uncertainty regarding utilisation and earnings Main focus is to keep the majority of the fleet on contracts A refinancing plan in progress High uncertainty to guide for 2016, and our best estimate today is an operational EBITDA of MNOK (MNOK excl hedge) 33

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

35 DISCLAIMER This presentation by designed to provide a high level overview of aspects of the operations of the Group. The material set out in the presentation is current as at 19 Feb This presentation contains forward-looking statements relating to operations of the Group that are based on management s own current expectations, estimates and projections about matters relevant to 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 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., 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. 35