INTERIM REPORT Q3 2011

Transcription

1 DOF ASA Q3 2011

2 Significant events Q3 Group income for Q3 totalled NOK 1,710 million (NOK 1,237 million), with an operating result before depreciation (EBITDA) of NOK 597 million (NOK 433 million). The rate of exploitation for the subsea fleet in Q3 was 87%, with 95% for the supply fleet. The Group received delivery of three newbuildings in Q3; one subsea/ahts vessel, one diving vessel and one AHTS vessel. The Group has sold one newbuilding, a PSV, during the quarter. In July, the subsidiary DOF Subsea was awarded a service contract for Goliat FPSO marine. Several long term contracts were signed in Brazil, both for the subsea and supply fleet. In September, DOF ASA carried out an issue of NOK 600 million, comprising 20 million new shares. DOF ASA is an international corporation involved in the ownership and operation of a fleet comprising supply and subsea vessels, and service companies supplying the subsea market. The Group has a modern fleet with an average age of approximately 5.9 years. When adjusted for market value, the average age is 3.4 years. As of November, the fleet (partly/wholly owned) comprises 73 vessels (including 12 newbuildings). The fleet is comprised as follows: 20 AHTS, 24 PSV and 29 CSV. In addition, the Group owns a fleet of 45 modern ROVs. The main share of DOF ASA's fleet operates on longterm contracts. As of September, the financial nominal value of these contracts totalled approximately NOK 19 billion, including options with a value of approximately NOK 36 billion. Contractual coverage in 2011 is 91% with 71% for Main items in the interim accounts for Q3 Operating income amounted to NOK 1,710 million (NOK 1,237 million). Operating result before depreciation (EBITDA) totalled NOK 597 million (NOK 433 million). When adjusted for gain on sales, EBITDA was NOK 560 million (NOK 433 million). The operating result (EBIT) amounted to NOK 368 million (NOK 132 million). Total financial costs before unrealised gain/loss on foreign exchange and change in value of financial instruments were NOK 220 million (NOK 270 million). Unrealised loss on foreign exchange totalled NOK 613 million (gain of NOK 223 million) and net change in value of financial instruments was negative at NOK 131 million (positive NOK 116 million). The pre tax result exclusive of unrealised changes in currency and value totalled NOK 148 million (minus NOK 139 million). The pre tax result was negative at NOK 596 million (plus NOK 200 million). Net interest bearing liabilities as of 30 September 2011 were NOK 17,999 million (NOK 14,154 million). Prepaid instalments per vessel as of 30 September 2011 were NOK 1,627 million (NOK 3,438 million). Book equity including minority interests as of 30 September 2011 amounted to NOK 6,439 million (NOK 6,645 million). Comments to third quarter operations The majority of the Group's vessels are hired out on fixed contracts. DOF Subsea has vessels operating on shorter term contracts on the project and spot market, where the utilization rate for the vessels is impacted by seasonal fluctuations. The supply fleet in the North Sea has reported 99.5% utilization in Q3. Two vessels, Skandi Falcon and Skandi Sotra have worked on the spot market in Q3, achieving good earnings. Technical uptime has been high, with the exception of one vessel which was off hire due to problems with a thruster. One vessel has completed a planned drydock which did not exceed the scheduled number of maintenance days for the quarter. The subsidiary Norskan has all its supply vessels on periodic contracts. Technical uptime has varied for several vessels in Q3 due to drydocks and preparation for new contracts. The average rate of exploitation in Q3 has been 90%. Skandi Leblon started on a new 4 year contract with Petrobras in August, and Skandi Botafogo started on a new 2 year contract for Petrobras in September. Aker DOF Deepwater received delivery of Skandi Saigon in

3 August. This vessel has sailed from Vietnam to the North Sea during the quarter, for operations on the spot market. In July, Norskan executed the sale of a newbuilding at the Cochin Shipyard in India. The net gain from the sale was approx. NOK 36.5 million. The subsea fleet has reported a rate of utilization of 86% in July, 88% in August and 86% in September. Most TC vessels have reported close to 100% utilization. The project vessels in Brazil and Asia have reported high levels of activity. The level of activity in the North Sea has been variable and several vessels have had a low rate of exploitation. Two vessels were partly off hire during the quarter due to dry docking and repositioning, including Geosea which sailed to Norway for reconstruction for a long term RSV contract for Petrobras. DOF Subsea has received delivery of two vessels; Skandi Skansen in July and Skandi Singapore in August. Work on the newbuilding, Skandi Niteroi, was completed in Q3 and the pipe laying vessel starts on its contract in Q4. Depreciation With effect from 1 January 2011, the Group has amended its depreciation estimate. In brief, the amendment involves a reduced degree of decomposition than with previous depreciation estimates. The prevailing depreciation period is maintained, implying that the vessels are depreciated to the estimated residual value at the time the projected useful life expires, normally 20 years. The estimated residual value is 50% of original cost price for the vessels. Vessels older than 20 years will be subject to individual evaluation. Financial result and tax, Q3 Norskan operates with BRL as functional currency. Significant fluctuations between BRL and USD have a considerable impact on the accounts, even though Norskan has a limited degree of exposure to foreign exchange as all long term contracts are hedged in the same currencies as the operating and financial costs. As of September, the financial result figure includes a cost item for an unrealised loss on exchange of NOK 421 million, mainly related to the stronger USD against the BRL and NOK. The tax cost is based on an estimate. Balance sheet The Group's net interest bearing liabilities, including unemployed capital, at the end of September is NOK 16,372 million. The increase in net interest bearing liabilities mainly represents new long term loans taken out in connection with the delivery of new vessels. The Group has received delivery of in total 7 vessels to date this year, of which 3 vessels were delivered in Q3. Skandi Niteroi has been delivered and is classified as a newbuilding in the balance as of September. The vessel was made ready for operations in October. Three of the vessels delivered have started on long term contracts, two operate on the subsea project market and one supply vessel has operations on the North Sea spot market. Cash flow as of September: Acc Q3 Acc Q3 (MNOK) Cash flow from operation Cash flow from investments Cash flow from financing Net change in cash/cash equivalents Cash and cash equivalents start Gain/loss cash and cash equivalents Cash and cash equivalents end Financing and capital structure In September, DOF ASA executed a capital increase of NOK 600 million by issuing 20 million new shares at a price of NOK 30 per share. The company s main shareholder, Møgster Offshore AS, participated in the share issue and their shareholding as of November is 51.22%. The repair issue was executed in November and totalled NOK 0.4 million, with the issue of 13,375 new shares. After the above mentioned share issues, the company s new share capital totals NOK 222,102,696, divided into 111,051,348 shares. The remaining commitments for the Group in terms of vessels under construction amount to approx. NOK 5,600 million as of November, and cover deliveries up to the end of Planned long term financing of this newbuilding program totals approximately NOK 5,200 million of which approx. NOK 4,000 million has been secured long term financing. Those vessels for which long term financing has not been secured have longterm contracts.

4 Shareholders There were no significant changes in the company shareholders during the quarter. As of 30 September 2011, the company had 4,215 shareholders. The share price as of 30 September 2011 was NOK 27. The ordinary general meeting of 2011 authorised the Board of Directors to issue up to 22,750,000 shares, of which 20,013,375 were realised in connection with the issue in September and the repair issue in November The Board of Directors is authorised to acquire 10% of the company's shares at highest nominal value NOK 100 and lowest nominal value NOK 20 per share. Skandi Feistein, the first of 5 newbuildings planned for long term contracts with ConocoPhillips, is scheduled for delivery at the end of November. The vessel is owned by PSV Invest I AS, and DOF has a shareholding of 48% in this company. The subsidiary Norskan plans to receive delivery of Skandi Amazonas in December. After delivery, the vessel will start on an 8 year contract for Petrobras. New contracts The Group s fleet mainly operates in the North Sea, West Africa, Brazil and Asia/Australia. The fleet/business activities During the first quarter, the subsidiary DOF Subsea took over the newbuilding Skandi Niteroi, which the company part owns 50/50 with Technip. In the third quarter, the vessel was made ready as a pipe laying vessel and started on a 4 year contract for Petrobras at the start of October. The subsidiary Norskan sold a newbuilding at the Cochin Shipyard in July. This vessel is a PSV with STX PSV 09 design. She is the first vessel in a series of two from Cochin Shipyard in India. Vessel number two, Skandi Hawk, is scheduled for delivery at the start of In July, DOF Subsea received delivery of Skandi Skansen, vessel no. 4 of the DOF Installer vessels. Skandi Skansen is a combined AHTS and subsea construction vessel, and is equipped with a 250 ton crane. Since delivery, the vessel has operated on the subsea/project market. DOF Subsea received delivery of Skandi Singapore in September. This is a diving vessel with saturation diving for 18 persons. It is also equipped with ROVs and a 140 ton crane. After delivery, the vessel started on a subsea contract in Vietnam. In August, Aker DOF Deepwater (ADD) received delivery of Skandi Saigon from STX in Vietnam. The vessel arrived in the North Sea at the start of October and has since been in operation in the spot market. ADD received delivery of ship no. 5 in November, Skandi Pacific. This vessel has been secured a 90 days contract in Vietnam. Subsea DOF Subsea Asia has received delivery of two new vessels, Skandi Singapore and Skandi Hercules, both secured project contracts for the rest of the year and the start of In July, DOF Subsea was awarded the contract for Goliat FPSO. The contract, signed with Eni Norge, has an approximate value of NOK 300 million and duration from 2011 to This contract represents an important step forward for DOF Subsea, towards achieving their goal to be the leading operator within the installation market. In November, Skandi Constructor was awarded a contract for DONG in the Danish sector. Supply Skandi Botafogo and Skandi Flamengo were awarded a new 2 years contract and a new 4 years contract respectively for Petrobras. Skandi Fjord has renewed their contract for Halliburton up to October The market The spot market in the North Sea has been stable for the PSV fleet in Q3 and more volatile for the AHTS fleet. Earnings in October were very good for the AHTS fleet, with rates back to the level reported in Fixed contracts have been signed mainly for the PSV fleet in the quarter. The North Sea spot market is expected to be

5 volatile for the rest of the year, and busy in 2012, particularly for AHTS vessels. As of the end of September, 264 vessels were operating in the North Sea market, of which 72 vessels on the spot market. Petrobras continues to dominate the market in Brazil and there is a high level of activity on the tendering side. Fixed contracts recently signed show an increase in the daily rate for long term contracts. The market in South East Asia is improving and is showing signs of a higher number of short term contracts. The level of activity in Australia is expected to be high, particularly for the subsea segment, based on the number of projects scheduled for the near future. on long term contracts. The company s exposure to the short term AHTS market is expected to see a slight increase in DOF Subsea has secured satisfactory contractual coverage for its project fleet for the rest of the year and partly into Moreover, DOF Subsea has added new vessels to its fleet and will continue on its strategy to combine vessels on long term contracts with short term project contracts. The company expects to report earnings for Q4 at the same level or somewhat higher than the Q3 figures. On the basis of the Group's strong growth, TC contracts and expectations of high exploitation for the Group's project vessels, which are on the spot market, the Board of Directors expects earnings in 2012 to exceed the figures reported for Outlook DOF has historically enjoyed a high contractual coverage for its supply fleet. This will also be the case for the PSV fleet in 2012, which is expected to remain The Board of Directors for DOF ASA, 16 November 2011 Helge Møgster Helge Singelstad Oddvar Stangeland (Chairman of the Board) Wenche Kjølås Britt Mjellem Mons Aase (CEO)

6 THE GROUPS SUMMARIZED PROFIT AND LOSS ACCOUNT (MNOK) Note Q Q Acc Q Acc Q Operating income operating expenses vessels Operating profit before depreciation EBITDA Depreciation Write down 0 7 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 Net financial costs Pre tax profit Taxes Result Profit attributable to Non controlling interest Controlling interest COMPREHENSIVE STATEMENT (MNOK) Note Q Q Acc Q Acc 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 KEY FIGURES PROFIT & LOSS Q Q Acc Q Acc Q EBITDA margin 1) 35 % 35 % 31 % 32 % 31 % EBIT margin 2) 21 % 11 % 15 % 11 % 10 % Cashflow per share 3) 3,48 1,89 7,54 9,02 11,91 Profit per share ex. non controlling interest *) 4) 4,00 1,56 4,16 0,59 1,53 Profit per share ex. unrealized gain/loss 5) 2,96 1,81 0,56 1,16 3,46 No of shares Outstanding number of shares Face value per share *) Diluted number of share is the same as number of shares 1) Operating profit before depreciation in percent of operating income. 2) Operating profit in percent of operating income. 3) Cash flow from operaation/average no of shares. 4) Result ex non controlling interest share)/average no. of shares. 5) Result incl non controlling interest + net unrealized currency gain/loss + net changes fair value of financial instruments)/average no of shares.

7 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 0 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 Debt to credit institutions Accounts payable Other current liabilities Current liabilities Total liabilities Total equity and liabilities KEY FIGURES BALANCE Acc Q Acc Q Return on net capital 1) 7 % 3 % 8 % Equity ratio 2) 22 % 26 % 25 % Value adjusted equity 41 % 43 % 44 % Net interest bearing debt Net interest bearing debt ex. unemployed capital ) Profit after taxes in percent of booked equity. 2) Equity/total capital.

8 EQUITY STATEMENT Paid in capital Retained earnings Currency translation differences Total Noncomtrolling interest Total equity Balance at Result /loss for the year Other comprehensive income/loss Share issues Transaction with non conrolling interests Balance at Balance at Result /loss for the year Other comprehensive income/loss Share issues Transaction with non conrolling interests Balance at CASH FLOW STATEMENT (MNOK) Acc Q Acc 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

9 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 The Financial statement are unaudited. Note 2 Segment informasjon Operating income and EBITDA per segment Acc Q Acc Q Operating Income PSV AHTS CSV Total EBITDA PSV AHTS CSV Total EBIT PSV AHTS CSV Total Note 3 Events after balance date The newbuilding Skandi Niteroi, which was completed as a pipe laying vessel in 3rd quarter, started on a four year contract for Petrobras in October. Aker DOF Deepwater AS took delivery of Skandi Pacific 3 November. The vessel is secured a 90 days contract in Vietnam. Note 4 Depreciaiton With effect from 1 January 2011, the DOF Group has amended its depreciation estimate. In brief, the amendment involves a reduced degree of decomposition than with previous depreciation estimates. Existing depreciation is maintained which implies expected useful life for each vessel. Estimated residual value is 50 % of original cost price for the vessel. Vessels older than 20 years are based on individual evaluations. Note 5 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.

10 Note 6 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 abd cash equivalents Net interest bearing liabilities Note 7 Transaction with related parties Transactions with realated parties are governed by market terms and conditions inaccordance with the "arm's length principle". Note 8 Taxes Taxes per 30 September 2011 are an estimate. SHARE CAPITAL AND SHAREHOLDERS Largest shareholders as of Name No. shares Shareholding Voting shares MØGSTER OFFSHORE AS ,22 % 51,22 % ODIN NORGE ,35 % 6,35 % PARETO AKSJE NORGE ,56 % 5,56 % SKAGEN VEKST ,10 % 5,10 % PARETO AKTIV ,53 % 2,53 % ODIN OFFSHORE ,21 % 2,21 % MP PENSJON PK ,09 % 2,09 % PARETO VERDI ,33 % 1,33 % VESTERFJORD AS ,93 % 0,93 % KANABUS AS ,89 % 0,89 % MUSTAD INDUSTRIER AS ,63 % 0,63 % MOCO AS ,57 % 0,57 % SKANDINAVISKA ENSKILDA BANKEN ,50 % 0,50 % HOLBERG NORGE ,46 % 0,46 % NORDEA BANK NORGE ASA ,45 % 0,45 % DNB NOR SMB ,45 % 0,45 % ODIN MARITIM ,43 % 0,43 % FORSVARETS PERSONELLSERVICE ,39 % 0,39 % PACTUM AS ,36 % 0,36 % CITIBANK N.A. NEW YORK BRANCH ,32 % 0,32 % Total ,78 % 82,78 % Total other shareholders ,22 % 17,22 % Total no of shares ,00 % 100,00 % IR contact persons: Mons S. Aase, CEO msa@dof.no Hilde Drønen, CFO hdr@dof.no DOF ASA, NO 5392 Storebø,