Eidesvik Offshore ASA (EIOF)

Transcription

1 Eidesvik Offshore ASA (EIOF) CFO Svein Ove Enerstvedt Hordaland på børs 22. aug 2013

2 Eidesvik s operational segments Subsea Seismic Supply Revenues MNOK 339 (YE 2012) EBITDA MNOK 214 (YE 2012) 6 vessels delivered, 1 newbuild Avg. contract length 1 : 4.3 years Length meters Accommodation pax 1 vessel owned by JV company Revenues MNOK 253 (YE 2012) EBITDA MNOK 245 (YE 2012) 8 vessels delivered Avg. contract length 1 : 5.7 years Avg. length 95 meters 3 20 streamers 2 vessels owned by JV companies Revenues MNOK 452 (YE 2012) EBITDA MNOK 227 (YE 2012) 8 vessels delivered Avg. contract length 1 : 1.9 years Avg. size 4,960 dwt Avg. accommodation: 26 pax 1) Simple average 2

3 September 2012 Viking Princess delivered and commenced on contract

4 October year contract extension for Subsea Viking to Subsea 7

5 New year contract for Viking Energy to Statoil December 2012

6 Delivery of Ship of the year Seven Viking and commencement of 8-year contract to Subsea 7 January 2013

7 The company placed a MNOK 300 unsecured bond with maturity in May 2018 at a margin of 450. May 2013

8 August 2013 Entered into agreement for sale of Viking Forcados. Delivery to new owners and recording of gain of approximately MNOK 40 expected to take place in 3 rd Quarter 2013.

9 Newbuilding Offshore Construction Vessel Eidesvik has only one vessel remaining in its newbuilding program: the high-end subsea vessel NB Kleven 365 Delivery 3Q 2014 Eksportkreditt funding secured at attractive levels, subject to bank guarantee Overall length 145 meters, 31m beam Optimal utilisation of space - large length between perpendiculars (135 meters). Free deck space 2,600 sqm is greater than competing vessels with overall lengths of ~160 meters DP3, ice-class B (hull), moonpool, ROV hangars, prepared for pipelay systems Swift mobilization with max speed 16 knots Planned funding: Contract price 1,209 All-in delivered cost 1,236 Expected debt 840 (~70%) Equity 396 Remaining equity req ) EIOFs share of the remaining capex 9

10 Contract backlog (per ) 10

11 Contract backlog (per ) 11

12 Results (MNOK) Revenues Operating revenues Sales gains EBITDA Steadily growing revenues and EBITDA over time due to prudent growth The strategy of employing vessels on long-term contracts has resulted in robust and stable revenues during market downturns The conversion of the charter contracts in the seismic segment in 2011/2012 from T/C to bareboat resulted in lower revenues, but a marginal increase in EBITDA The contract conversion has reduced EIOFs operational risk within the seismic segment Revenues and EBITDA are influenced by fluctuations in USD, but the USD exposure is hedged through USD denominated debt EBITDA (excl JV) Sales gains 12

13 Balance (in million NOK) Current assets Short-term liabilities Current assets Short-term liabilities Fixed assets Long-term liabilities Fixed assets Long-term liabilities Equity Equity 0 Assets Equity and Liabilities Assets Equity and Liabilities Equity ratio : 38 % (38 %)

14 # of rigs Market overview E&P Spending USD bn. Number of active offshore rigs USDbn E&P spending (lhs) Annual growth % (rhs) % % % % % % 0-20% e 2014e 1, Active offshore drilling fleet Increasing E&P spending and growing offshore active drilling fleet points towards a higher oil service demand Consensus E&P spending growth is projected at around 10% p.a. in The market for platform supply vessels improved trough second quarter, and we expect the market to be strong in long term for large- and vessels with high specification. The Subsea market remains strong with high tendering activity and oil service companies continuing building their backlogs for project start in 2014 and onwards. With oil prices above USD 100 per bbl and general high E&P activity worldwide we are general positive to market conditions going forward. Source: Pareto Research and EIOF 14

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16 Fellowship I Fuel cells in ships - Eidesvik has worked with fuel cells for 4 years - Patented system solution with fuel cells and steampower in a hybrid combination - LNG or metanol as fuel - 50% reduced emission of CO 2 and zero emission of NOx, SOx and particles Chemical-electrical power production Fuel - LNG

17 Fellowship II The only vesssel with fuel cell for energy production

18 FellowSHIP project

19 Why hybrid machinery? Reduce engine load variations Reduce engine low load operations

20 Hybrid ship machinery

21 Bergen Havn prosjektet Bergen havn 12. januar 2010 kl 12 (foto: H. Vågenes)

22 Bergen Havn prosjektet -De store havner bidrar i stor grad til luftforurensning -Fremtiden vil stille betydelige krav til reduksjoner i utslipp -Bruk av hybride flytende kraftverk kan kunne komme til å bli del av løsningen en

23 Key investment highlights Reputable company with a conservative business profile Long standing industry track record with more than 30 years of offshore experience Conservative and proven strategy of employing vessels on long term contracts Modern and diversified fleet of 23 vessels incl. 1 newbuild average age of 7.3 years Listed on the Oslo Stock Exchange with a market cap of ~MNOK 1,000 Stable revenues from strong contract counterparts Firm contract backlog of MNOK 4,000 average contract length of 4 years + options Solid counterparties such as Statoil, Subsea 7 and CGGVeritas Strong value adjusted contract coverage of 91%, 74%, 63% and 43% in 2013, 2014, 2015 and 2016 respectively Diversified exposure through subsea, seismic and supply vessels 2012 revenues of MNOK and EBITDA of MNOK (before JVs and gains) Strong financials and low leverage Solid balance sheet with a value adjusted equity ratio of 55% Secured debt to fleet value below 47%; net debt / EBITDA 1) at a moderate 5.9x in 2012 Remaining capex for Eidesvik s share of the subsea newbuilding is MNOK 664, minority s share is MNOK 442 Increasing offshore E&P spending and growing offshore drilling activity Positive market outlook Strong subsea market with high tendering activity and demand for high-end vessels The seismic contract market continues to be attractive with increased exploration spending and low fleet growth 1) EBITDA excluding sales gains and associated companies 23

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