Financial Report Q DOF ASA

Transcription

1 Financial Report Q DOF ASA

2 DOF ASA Alfabygget N-5392 Storebø NORWAY

3 Index Financial Report Q Accounts 3rd Quarter THE GROUPS SUMMARIZED PROFIT AND LOSS ACCOUNT... 8 COMPREHENSIVE STATEMENT... 8 THE GROUPS S SUMMARIZED BALANCE SHEET... 9 EQUITY STATEMENT KEY FIGURES CASH FLOW STATEMENT Notes to the Condensed Financial statements Note 1 General Note 2 Segment informasjon Note 3 Net gain on sale of vessel Note 4 Events after balance date Note 5 Depreciation Note 6 Cash and cash equivalent Note 7 Net interest bearing liabilities Note 8 Transaction with related parties Note 9 Taxes Note 10 SHARE CAPITAL AND SHAREHOLDERS Contract Coverage PSV Contract Coverage AHTS Contract Coverage CSV Contract Coverage... 18

4 Financial Report Q Significant events Q3 Group income for Q3 totalled NOK 2,087 million (NOK 1,674 million), with an operating result before depreciation (EBITDA) of NOK 755 million (NOK 597 million). The average utilization rate for the subsea fleet in Q3 was 92% (87%), with 95% (95%) for the supply fleet. In September, DOF in Brazil took delivery of one AHTS vessel, Skandi Iguaçu. In October, the Group took delivery of one PSV/MRV, Skandi Nova. Both vessels have started on long-term contracts. In September, DOF carried out a successful placement of an unsecured bond loan of NOK 700 million, with a term of 7 years. Several new contracts have been signed for the supply fleet during the quarter, and the Group has secured good utilization of subsea project in 4th quarter. As of October, the Group had two vessels operating in the spot market in the North Sea. DOF ASA is an international group of companies involved in the ownership and operation of a fleet comprising 23 PSVs, 20 AHTS vessels, 31 subsea vessels and service companies for the subsea market. In addition, the Group owns a fleet of 52 modern ROVs, including newbuildings. The Group s fleet is modern with an average age of approximately 6 years, with 68 vessels in operation and 6 newbuildings due for delivery from 2012 to The majority of DOF ASA s fleet operates on long-term contracts. As of October, the financial nominal value of these contracts totalled approximately NOK 18 billion or approximately NOK 38.5 billion including options. Contract coverage in Q is 95% with 76% for Comments to third quarter operations The Group has operations within three segments: platform support vessels (PSV), anchor handling tug supply vessels (AHTS) and Subsea. Within the PSV and AHTS segments, the majority of the Group s fleet is hired out on fixed contracts. Within the subsea segment, the Group s vessels operate partly on fixed contracts and partly on contracts on the project market, where the rate of employment for the vessels is impacted by market and seasonal fluctuations. The subsea segment includes engineering services. PSV The entire PSV fleet has been working on fixed contracts throughout the quarter and has reported a utilization rate of 99% (99.5%). Most of the fleet operates in the North Sea and has had sustained operations with a low rate of technical offhire during the quarter. At the start of the fourth quarter, one vessel had completed a fixed contract and is expected to operate in the spot market for the remainder of the year. All the PSVs in Brazil and Asia are on long-term contracts and have had a high rate of employment and stable operations throughout the quarter. AHTS The majority of the AHTS fleet operates in Brazil (13 vessels), where all the vessels are on fixed contracts. Five of the 17 AHTS vessels in operation are owned via Aker DOF Deepwater AS. The utilization rate for the fleet in Brazil was 94% (95%) which is somewhat lower than for other AHTS fleets attributed to three vessels on technical offhire and one vessel on a scheduled drydocking in the quarter. In addition, Skandi Ipanema was offhire for around 25 days while waiting to start on a new contract. The newbuilding Skandi Iguaçu was delivered in September and started on an 8-year contract for Petrobras after delivery. The vessel is a large AHTS with 31,000 horsepower and traction of 300 tons. The other 4 vessels operate in Asia/Australia and in the North Sea. Two vessels are on fixed contracts, one in Australia and the other in Indonesia. The vessels in the North Sea are partly on fixed contracts and are partly operating in the spot market. The two vessels operating in the spot market have had variable employment and low earnings in the quarter. SUBSEA The total utilization rate for the subsea fleet during the quarter was 92% (87%), which comprises close to 100% (100%) employment for the TC fleet and 70% (70%) employment for the project fleet. Moreover, one vessel which previously had operations in West Africa but has now sailed to the North Sea, carried out drydocking before starting on a new contract. The level of activity in the Atlantic and Brazil was high during the quarter, while Asia has reported a low rate of employment due to two vessels going offhire for workshop Financial Report Q DOF ASA 4

5 repairs. The level of activity within survey and positioning has been moderate. Employment for the project fleet has varied during the quarter, with a particularly low rate in July of 58%. The main reason for this is the installation of an A-frame on Skandi Hercules in Singapore. Furthermore, Geobay underwent a classification drydock and upgrade in July/ August. Several other vessels have also been offhire in between different project contracts in the quarter. Main items in the interim accounts for Q3 Operating income amounted to NOK 2,087 million (NOK 1,674 million). Operating profit before depreciation (EBITDA) totalled NOK 755 million (NOK 597 million including a profit on sale of assets of NOK 36 million). Operating profit (EBIT) amounted to NOK 526 million (NOK 368 million). Total financial costs before unrealised gain/loss on foreign exchange and change in value of financial instruments were NOK 322 million (NOK 220 million). The Group reported an unrealised gain on foreign exchange of NOK 73 million (loss of NOK 613 million) and net change in value of financial instruments was negative at NOK 61 million (negative NOK 131 million). The pre-tax profit exclusive of unrealised changes in currency and value totalled NOK 203 million (NOK 148 million). The pre-tax profit was NOK 215 million (loss of NOK 596 million). Net interest-bearing debt as of 30 September 2012 was NOK 20,903 million (NOK 18,034 million). Prepaid instalments for newbuildings as of 30 September 2012 were NOK 449 million (NOK 1,627 million). Book equity including minority interests as of 30 September 2012 was NOK 6,759 million (NOK 6,439 million). The Group s accounts are exposed to changes in currency, partly because functional local currency is utilised in several countries where the Group is represented. Major fluctuations in currency, for example the BRL against USD, may have a significant impact on the accounts, despite the fact that the Group has a limited exposure to currency as the majority of long-term contracts are hedged in the same currency as operating and financial expenses. Approximately 51% of the Group s total debt has a fixed rate of interest. Fluctuations in long-term interest rates to date this year have resulted in an unrealised loss of NOK 94 million. The tax cost is based on best estimate. The net increase in long-term assets for the Group in Q3 constitutes one newbuilding. The Group s net interest-bearing debt, taking into account unemployed capital at the end of September is NOK 20,454 million. Unemployed capital constitutes advance instalments on 7 vessels and at 30 September totalled NOK 449 million (1,627 million). Cash flow as of 30 September: Amounts in NOK million Q Q Net cash from operating activities Net cash from investering activities Net cash from financing activities Net changes in cash and cash equivalents 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 Financing and capital structure The Group s remaining commitments for vessels under construction as of 30 September total NOK 3,650 million and cover 7 vessels with scheduled delivery in the period from Q to the first half of Estimated long-term financing of this newbuilding program totals approximately NOK 3,350 million, of which approx. NOK 2,800 million has been secured in financing. As of October, one further vessel has been delivered and 4 of the 6 newbuildings scheduled for delivery now have long-term contracts. In September 2012, DOF issued a new bond loan of NOK 700 million, maturing in September This loan was partly utilised to refinance DOF07 maturing in July 2013 and DOF08 maturing in March Financial Report Q DOF ASA 5

6 Shareholders There were no significant changes in the company shareholders during the quarter. As of 30 September 2012, the company had 3,649 shareholders. The share price as of 30 September 2012 was NOK The fleet/business activities As mentioned above, the Group has taken delivery of two vessels in the quarter: Skandi Iguaçu (AHTS) and Skandi Nova (PSV/MRV). The vessels started on contracts for Petrobras in Brazil and ConocoPhillips in the North Sea respectively. Remaining vessels scheduled for delivery in Q4 are Skandi Marøy and Skandi Hugen, the last two vessels in a series of five which will operate for ConocoPhillips on the Ekofisk field. The Group has three AHTS vessels under construction at STX in Brazil: Skandi Urca, Skandi Angra and Skandi Paraty. The first of these vessels is scheduled for delivery in the first half of Long-term contracts have been secured for two of the vessels. Moreover, the subsea vessel, Skandi Bergen, is scheduled for delivery in DOF owns a minority shareholding of 20% in Skandi Iceman, which will also be delivered in Market/new contracts The Group s fleet operates worldwide and the most important operating areas are the North Sea, West Africa, Brazil and Asia/Australia. Subsea DOF Subsea has secured a good rate of employment for its project fleet in both Asia and the North Sea for the fourth quarter and into DOF Subsea Atlantic has been awarded a project contract with Statoil on the Tordis field, involving the installation of flexible flowlines. This is an important step for DOF Subsea in their plans to increase growth within the subsea construction segment. Contractual activities have also been at a high level, including a new 3+3 year contract for Skandi Constructor with Hellix Well Ops, starting in the second quarter of The project market for subsea vessels in the North Sea has been good during the quarter but is expected to see a slight decline in the fourth quarter. The level of activity in Asia/Australia is expected to be high for the rest of the year. AHTS/PSV Several contract renewals have taken place for the supply fleet during the quarter, including a 3-year extension for Skandi Peregrino for Statoil and a 2-year extension for Skandi Yare for Petrobras in Brazil. Moreover, a two + one-year contract has been signed for Skandi Pacific in Indonesia and a 220-day contract for Skandi Emerald in Latin America. As such, the Group only has a limited degree of exposure to the spot market for the winter season. The spot market in the North Sea has been generally weak throughout the quarter and this trend has shown no signs of changing to date in the fourth quarter. As of the end of September, 304 supply vessels were operating in the North Sea market, of which 116 vessels on the spot market. Outlook DOF has signed a number of new contracts in the third quarter and expects only to have 2-3 vessels available on the North Sea spot market in the fourth quarter. The Group has secured good utilization of the majority of the subsea project fleet in Q4, while the level of activity in certain regions is expected to be somewhat lower than in Q3 due to projected seasonal fluctuations. The Group currently expects the earnings in the fourth quarter to be in line or slightly lower than the third quarter. As expected, the Group s earnings for 2012 will be significantly higher than in Financial Report Q DOF ASA 6

7 The Board of Directors for DOF ASA, 16 november 2012 Helge Singelstad Chairman of the Board Helge Møgster Oddvar Stangeland Wenche Kjølås Karoline Møgster Mons S. Aase CEO IR contact persons: Mons S. Aase, CEO Hilde Drønen, CFO DOF ASA, 5392 Storebø Financial Report Q DOF ASA 7

8 Accounts 3rd Quarter 2012 THE GROUPS SUMMARIZED PROFIT AND LOSS ACCOUNT (MNOK) Note Q Q Q Q Operating income Operating expenses vessels Net gain on sale of vessel Operating profit before depreciation EBITDA Depreciation Write-down Operating profit - EBIT Net profit from associated companies Financial income Financial costs Net realized gain/loss on currencies Net unrealized gain/ loss on currencies Net changes in fair value of financial instruments Pre-tax profit Resultat før skatter Taxes Result Profit attributable to Non- controlling interest Controlling interest COMPREHENSIVE STATEMENT (MNOK) Q Q Q Q Currency translation differences Other income and costs Other comprehensive income/loss Total comprehensive income/loss Total comprehensive income/loss attrubutable to Non- controlling interest Controlling interest Financial Report Q DOF ASA 8

9 THE GROUPS S SUMMARIZED BALANCE SHEET (MNOK) Note ASSETS Deferred taxes Goodwill Intangible assets Vessel and equipments Newbuildings Tangible assets Investment in affiliated companies and other shares Other non-current receivables Financial assets Non-current assets Accounts receivables Other current receivables Current receivables Restricted deposits Cash and cash equivaltents Cash and cash equivalents incl. restricted deposits Currrent assets Total Assets EQUITY AND LIABILITIES Paid in equity Other equity Non-controlling interests Equity Deferred taxes Other provisions and derivates Non-current provisions and commitments Bond loan Debt to credit institutions Other non-current liabilities Non-current liabilities Current part of interest bearing debt Accounts payable Other current liabilities Current liabilities Total liabilities Total equity and liabilities Financial Report Q DOF ASA 9

10 EQUITY STATEMENT Currency Non- Paid-in Retained translation controlling (MNOK) capital earnings differences Total interest Total equity Balance at Result /loss for the year Other comprehensive income/loss Transaction with noncontrolling interests Balance at Balance at Result /loss for the year Other comprehensive income/loss Share issues Transaction with noncontrolling interests Balance at KEY FIGURES Q Q Q Q EBITDA margin ex net gain on sale of vessel 1) 36 % 34 % 35 % 31 % 31 % EBITDA margin 2) 36 % 36 % 38 % 32 % 31 % EBIT margin 3) 25 % 22 % 26 % 15 % 18 % Cashflow per share 4) 3,90 4,08 11,99 7,42 9,03 Profit per share ex. non-controlling interest *) 5) 1,02-4,00 0,59-4,16-3,69 Profit per share ex. unrealized gain/loss 6) 1,61 2,96 5,46 0,56 1,67 Return on net capital 7) 4 % -8 % -8 % Equity ratio 8) 21 % 22 % 22 % Value adjusted equity 38 % 41 % 44 % Net interest bearing debt Net interest bearing debt ex. unemployed capital No of shares Outstanding number of shares *) Diluted number of share is the same as number of shares. 1) Operating profit before net gain on sale of vessel and depreciation in percent of operating income. 2) Operating profit before depreciation in percent of operating income. 3) Operating profit in percent of operating income. 4) Pre-tax result + depreciation and write downs +/- unrealized gain/loss on currencies +/- net changes in fair value of financial instruments/average no of shares. 5) Result ex non-controlling interest share)/average no. of shares. 6) Result incl non-controlling interest + net unrealized currency gain/loss + net changes fair value of financial instruments)/average no of shares. 7) Result incl non-controlling interest/total equity. 8) Total equity/total balance. Financial Report Q DOF ASA 10

11 CASH FLOW STATEMENT (MNOK) Q Q Q Q Profit before taxes Profit/loss on disposal of tangible assets Depreciation and write offs of tangible assets Changes in accounts receivables Changes in accounts payable Foreign exchange gain/losses Changes in other working capital Share of profit/loss from assosiates Cash from operating activities Interest income/cost Interest received Interest paid Tax paid for the period Net cash from operating activities Payments received fro sale of tangible assets Purchase of tangible assets Payments received for sale of shares Purchase of shares and associates Payments received /purchase of other non-current receivables Net cash from investering activities Proceeds from borrowings Repayment fo borrowings Payments from non-conrolling interests Equity payments received Net cash from financing activities Net changes in cash and cash equivalents 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 Financial Report Q DOF ASA 11

12 Notes to the Condensed Financial statements Note 1 General This interim report has been prepared in accordance with the standard for interim reporting (IAS34). Amendments to the standards and their interpretation may result in amended figures. The accounting principles and calculation methods applied for the last annual accounts published have been applied to this document. The interim report has not been audited and should be read in the context of the annual report for Note 2 Segment informasjon Operating income, EBITDA and EBIT per segment Q Q Q Q Operating Income PSV AHTS CSV Total EBITDA PSV AHTS CSV Total EBIT PSV AHTS CSV Total Note 3 Net gain on sale of vessel Net gain on sale of vessel is related to sale of newbuild STX 771. The newbuild was delivered from yard and sold in May Financial Report Q DOF ASA 12

13 Note 4 Events after balance date Contracts Norskan has agreed a contract renewal for the vessel Skandi Yare with Petrobras. The new contract will start in November and has a duration of two years. Total value is approx NOK 110 million. Aker DOF Deepwater (50 % owned by DOF) has signed a contract with an International Charterer for Skandi Emerald for operations in Latin America. The firm period of the contract is 220 days + 30 days options and commences in October The value of the contract is approx NOK 36 million. DOF Subsea Asia Pacific has been awarded several contracts during October and November increasing the utilization on the regions fleet in both 4th quarter 2012 and 1st quarter DOF Subsea Atlantic has entered into a contract with Statoil for the Tordis -field. The contract is the first SURF contract with Kystverket for survey of the wreckage and the surrounding seabed and removal of oil at the U-864 at Fedje. Financing DOF ASA has in November purchased NOK 140 million in the bond loan DOF07, with maturity July Remaining outstanding amount in DOF07 after the buy-back will be NOK 140,5 million. DOF Subsea AS has in November sold a volume of NOK 200 million of own holding in its bond loan DOFSUB06, with maturity October Outstanding amount in DOFSUB06 after the sale is NOK 700 million. Note 5 Depreciation DOF has an intention that the Group not shall own vessel which is older than 20 years. Hence DOF has to calculate a residual value after the estimated useful life of the vessel within the DOF Group. The basis for the residual value should be market valuation of charter free vessel. The market values have to be adjusted to reflect the market value of the vessels if it had been of an age and in the condition expected at the end of the useful life. To estimate the residual value DOF has applied a linear model depending on the age of the vessel increasing from 50% (on a newbuild) to 100% (of a 20 years old vessel) of the received market valuation. DOF changed the estimated residual value from Q Comparable figures for Q is not restated. The effect of changing the residual value is approximately NOK 33 million in reduced depreciation for Q and approximately NOK 99 million for year to date Q Note 6 Cash and cash equivalent Restricted cash *) Cash and cash equivalent Total cash and cash equivalent *) Including restricted cash related to non-current loan from Eksportfinans. Financial Report Q DOF ASA 13

14 Note 7 Net interest bearing liabilities Bond loan Debt to credit institutions Other non-current liabilities Current part of bond loan Current part of other non-current liabilites Other current liabilities Totat net interest bearing liabilites Cash and cash equivalents Net interest bearing liabilities Note 8 Transaction with related parties Transactions with related parties are governed by market terms and conditions in accordance with the arm s length principle. The transactions are described in the Annual report for There are no major changes in the type of transactions between related parties. Note 9 Taxes Taxes per 30 September 2012 are an estimate. Financial Report Q DOF ASA 14

15 Note 10 SHARE CAPITAL AND SHAREHOLDERS Largest shareholders as of Name No. shares Ownership Voting shares MØGSTER OFFSHORE AS ,22 % 51,22 % PARETO AKSJE NORGE ,68 % 5,68 % SKAGEN VEKST ,13 % 5,13 % ODIN NORGE ,08 % 5,08 % PARETO AKTIV ,50 % 2,50 % ODIN OFFSHORE ,16 % 2,16 % MP PENSJON PK ,09 % 2,09 % PARETO VERDI ,51 % 1,51 % VESTERFJORD AS ,93 % 0,93 % KANABUS AS ,90 % 0,90 % STRATOS INVESTMENTS LTD ,82 % 0,82 % MOCO AS ,79 % 0,79 % ODIN MARITIM ,52 % 0,52 % SIX SIS AG ,49 % 0,49 % MUSTAD INDUSTRIER AS ,48 % 0,48 % PARETO SICAV ,42 % 0,42 % PACTUM AS ,41 % 0,41 % FORSVARETS PERSONELLSERVICE ,39 % 0,39 % SKANDINAVISKA ENSKILDA BANKEN ,39 % 0,39 % UBS AG, LONDON BRANCH ,34 % 0,34 % Total ,24 % 82,24 % Total other shareholders ,76 % 17,76 % Total no of shares % 100 % Financial Report Q DOF ASA 15

16 Contract Coverage PSV Contract Coverage PSV O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D Skandi Falcon Skandi Marstein Skandi Foula Skandi Rona Skandi Buchan Skandi Sotra Skandi Caledonia Skandi Barra Skandi Texel SPOT Skandi Mongstad Skandi Flora Skandi Gamma Skandi Waveney Skandi Feistein Skandi Kvitsøy Skandi Nova Skandi Marøy Skandi Hugen Skandi Leblon Skandi Flamengo Skandi Yare Skandi Stolmen Skandi Captain Firm contract Option Under Construction Financial Report Q DOF ASA 16

17 AHTS Contract Coverage AHTS Skandi Stord O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D Skandi Admiral Skandi Vega Skandi Copacabana Skandi Botafogo Skandi Rio Skandi Fluminense Skandi Giant Skandi Møgster Skandi Ipanema Skandi Amazonas Skandi Iguacu Skandi Angra Skandi Urca Skandi Paraty Skandi Peregrino Skandi Emerald Skandi Saigon SPOT Skandi Pacific Skandi Atlantic Firm contract Option Under Construction Financial Report Q DOF ASA 17

18 CSV Contract Coverage CSV O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D Skandi Fjord Skandi Olympia Skandi Commander Skandi Chieftain Skandi Hav Geograph Ocean Protector Skandi Seven Skandi Salvadore Skandi Vitoria Skandi Aker Skandi Santos Skandi Patagonia Skandi Carla Skandi Neptune Skandi Achiever Skandi Acergy Skandi Arctic Skandi Niteroi Geosea Skandi Skansen Skandi Inspector Skandi Constructor Skandi Singapore Skandi Hercules Skandi Skolten Skandi Hawk Geobay Geosund Geoholm Skandi Bergen III (NB776) Firm contract Option Under Construction Financial Report Q DOF ASA 18

19 Contacts NORWAY: AUSTRALIA: SINGAPORE: DOF ASA Phone: Fax: Austevoll Address: Alfabygget 5392 Storebø NORWAY DOF Subsea AS Phone: Fax: Address: Thormøhlensgate 53 C 5006 Bergen NORWAY DOF Subsea Norway AS Phone: Fax: info@dofsubsea.com Address: Thormøhlensgate 53 C 5006 Bergen NORWAY DOF Management AS Phone: Fax: Management@dof.no Austevoll Address: Alfabygget 5392 Storebø NORWAY Bergen Address: Thormøhlensgate 53 C 5006 Bergen NORWAY ANGOLA: DOF Subsea Angola Phone/Fax: Mobile: / angola@dofsubsea.com Address: Rua Ndumduma 56/58 Caixa postal 2469, Miramar Luanda, Republic of Angola DOF Subsea Australia Pty Ltd Phone: Fax: asia-pacific@dofsubsea.com Address: 5th Floor, 181 St. Georges Tce Perth, Wa 6000, Australia DOF Management Australia Phone: Mobile: Address: Level 1, 441 South Road Bentleigh, Vic. 3204, Australia BRAzIL: DOF Subsea Brasil Serviços Ltda Phone: brasil@dofsubsea.com Macae Address: Rua A1, número 35 Vale Encantado - Macae Rio de Janeiro, BRAZIL Rio Address: Rua Lauro Müller 116 Salas 2802 a 2805 Torre do Rio Sul - Botafogo , Rio de Janeiro, R.J., BRAZIL NorSkan Offshore Ltda Phone: Fax: office@norskan.com.br Rio Address: Rua Lauro Müller, 116 Salas 2802 a 2805, Torre do Rio Sul - Botafogo Rio de Janeiro, R.J., BRAZIL Macae Address: Rua A1, número 35 Vale Encantado - Macae R.J., BRAZIL Canada: DOF Subsea Canada Phone: Fax: can@dofsubsea.com Address: 472 Logy Bay Road St John s, Newfoundland, Canada A1A 5C6 DOF Subsea Asia Pacific Pte Ltd Phone: Fax: asia-pacific@dofsubsea.com Address: 460 Alexandra Road# PSA Building, , Singapore DOF Management Pte Ltd Phone: Fax: Address: 460 Alexandra Road# PSA Building, , Singapore UNITED KINGDOM: DOF Subsea UK Ltd Phone: Fax: uk@dofsubsea.com Address: Exchange No.1 62 Market St. Aberdeen, AB11 5PJ UNITED KINGDOM DOF (UK) Ltd Phone: Fax: info@dofman.co.uk Address: Voyager House 75 Waterloo Quay Aberdeen AB11 5 DE UNITED KINGDOM USA: DOF Subsea USA Inc Phone: Fax: info@dofsubsea.us Address: 5335 W. Sam Houston Parkway N Suite 390, Houston, Texas USA

20 DOF ASA Alfabygget N-5392 Storebø NORWAY