Registration no

Transcription

1 Registration no Viking Supply Ships A/S Financial Report Q2

2 Contents Page Summary of events 3 Operational highlights 3 Financial highlights 3 Financing and capital structure 4 Employment overview 4 Contract backlog 5 Outlook 5 Condensed consolidated profit and loss account 6 Condensed consolidated statement of comprehensive income 6 Condensed consolidated cash flow statement 6 Condensed consolidated balance sheet 7 Notes to the condensed consolidated financial statements 8 Viking Supply Ships (VSS) conducts operations in the North Sea, Arctic and in the global offshore sector. The fleet comprises of 14 offshore vessels that are equipped for and have the capacity to operate in areas with harsh environment, further 7 of the AHTS vessels are equipped to operate in Arctic areas. The AHTS fleet, combined with crew and ice management competence, is tailor-made to operate in ice conditions. There has been an increased contract activity in this niche. VSS is committed to have a substantial part of the fleet on longer term contracts, and have a focus on increasing the contract backlog. For further information, please contact CEO, Christian W. Berg, ph: The interim financial statements have not been subject to audit or review. Page 2

3 SUMMARY OF EVENTS Total revenue for Q2 was MNOK 260 (MNOK 231), with an EBITDA of MNOK 87 (MNOK 43). During the second quarter VSS raised NOK 100 million in a new unsecured short term bond in the Norwegian bond market with maturity in September 2014 in order to comply with covenants. Total revenue for was MNOK 448 (MNOK 411), with an EBITDA of MNOK 92 (MNOK 53). The average fixture rate for the AHTS fleet in was NOK 290,000 (NOK 275,000) and GBP 10,500 (GBP 11,500) for the PSV fleet. The average utilization for the AHTS fleet in was 70 % (67 %) and 76 % (76 %) for the PSV fleet. OPERATIONAL HIGHLIGHTS Anchor Handling Tug Supply vessels (AHTS) The market for AHTS vessels in the North Sea started soft in the second quarter but tightened in June. Several vessels were fixed to various projects, reducing the supply of vessels in the North Sea market. During the second quarter of two vessels were on term charters, while six were traded in the North Sea spot market. The vessels on term charters obtained an average fixture rate of NOK 360,000 (NOK 350,000). The vessels on the spot market obtained an average fixture rate of NOK 334,000 (NOK 259,000) and a utilization of 64 % (59 %). For the second quarter the entire AHTS fleet obtained an average fixture rate of NOK 343,000 (NOK 288,000) and a utilization of 73 % (72 %). Magne Viking departed the North Sea at the end of the quarter and commenced its contract with Chevron Canada early July. The vessel will remain in Canada for the remainder of the year. Platform Supply Vessels (PSV) As several vessels have left the region in the beginning of the second quarter, the North Sea market balance improved over the latter part of the quarter. Two of the vessels were on term contracts in the beginning of the second quarter, while four vessels were traded in the North Sea spot market. During the second quarter VSS signed a term contract for two PSV vessels with BP UK. Idun Viking was signed with a firm period lasting till 31 st July and optional periods of 2x1 months and 3x1 months. SBS Tempest was signed with a firm period lasting till 31 st January 2014 and optional periods of 3x1 months. Further VSS signed a term contract for SBS Cirrus to EON for a period of 3 months firm and optional periods of 6x1 weeks and 14x1 days. Also VSS signed a term contract for Frigg Viking to HMC with a firm period lasting till 30 th June and optional periods of 20x1 days. As a result of the high contract activity during the second quarter the entire fleet was operating on term contracts at the end of the quarter. The vessels on term contracts obtained an average fixture rate of GBP 11,000 (GBP 12,400). The vessels on the spot market obtained an average fixture rate of GBP 10,800 (GBP 13,600) and a utilization of 43 % (48 %). For the second quarter the entire PSV fleet obtained an average fixture rate of GBP 11,000 (GBP 12,600) and a utilization of 88 % (70 %). FINANCIAL HIGHLIGHTS Results for Q2 Total revenue for Q2 was MNOK 260 (MNOK 231). The total operating costs were MNOK 173 (MNOK 188) and EBITDA was MNOK 87 (MNOK 43). The operating result (EBIT) was MNOK 45 (negative MNOK 17). Net financials were negative MNOK 22 (negative MNOK 37). Financial costs include unrealized currency gain of MNOK 11 (gain of MNOK 11), realized value adjustment on interest rate swaps of negative MNOK 1 (negative MNOK 3) and realized value adjustment on foreign exchange contracts of MNOK 0 (negative MNOK 9). The result for the quarter was MNOK 23 (negative MNOK 49). Page 3

4 Results for Total revenue for was MNOK 448 (MNOK 411). The total operating costs were MNOK 356 (MNOK 358) and EBITDA was MNOK 92 (MNOK 53). The operating result (EBIT) was MNOK 8 (negative MNOK 62). Net financials were negative MNOK 73 (negative MNOK 70). Financial costs include unrealised currency loss of MNOK 3 (gain of MNOK 20), realized value adjustment on interest rate swaps of negative MNOK 6 (negative MNOK 6) and realized value adjustment on foreign exchange contracts of MNOK 0 (negative MNOK 19). The result for the period was negative MNOK 55 (negative MNOK 132). FINANCING AND CAPITAL STRUCTURE VSS is a 100 % owned subsidiary of Rederi AB Transatlantic (RABT). RABT is a limited liability company registered in Sweden, with its domicile in Gothenburg, and corporate registration number RABT is listed on the Small Cap list of the NASDAQ OMX Nordic Exchange in Stockholm. VSS book equity amounted to MNOK 1,695 (MNOK 1,802) as at 30 June, and was impacted by the result for the period of negative MNOK 55 (negative MNOK 132), currency translation effects of MNOK 27 (negative MNOK 5) and group contributions of MNOK 0 (MNOK 381). The value adjusted equity ratio was 43 % (43 %). VSS raised NOK 100 million in a new unsecured short term bond in the Norwegian bond market with maturity in September The bond has a fixed interest rate of 11 % p.a. and the net proceeds from the bonds shall be employed for general corporate purposes. The settlement date was 24 June, and Pareto Securities was the issue manager. EMPLOYMENT OVERVIEW Firm contract Option 2014 AHTS July August September October November December January February SMA stand by Tor Viking March April May June Balder Viking Vidar Viking Odin Viking Loke Viking Njord Viking Magne Viking Brage Viking Sakhalin Energy, Firm till 1st December x3 months options Eni Norge, Firm till 29th July x1 years options Chevron Canada, 1 well firm est days SMA stand by PSV July August September October November December January February March April May June Frigg Viking Idun Viking SBS Tempest Freya Viking SBS Typhoon SBS Cirrus BP UK, Firm till 31st July + 1x2 months + 3x1 month options BP UK, Firm till 31st January x1 month options Centrica, firm till year option RWE, 2 Wells firm until mid July EON, 3 m firm + 6x1 week options + 14x1 day options Figures are basis 30 June, Page 4

5 CONTRACT BACKLOG * Contract backlog 1, , Contract coverage 47% 30% 20% 11% * figures are basis 30 June,. Contract includes options. OUTLOOK The supply of AHTS vessels in the North Sea will likely remain at same levels as seen during the summer as we do not expect more vessels to enter the North Sea. During the summer the market has softened and we expect this also for the remainder of Q3. The PSV market has been strong during the summer but with several newbuilds entering the North Sea it is expected to soften slightly. Copenhagen, 7 August, Board of Directors: Christen Sveaas Anders Folke Patriksson Henning Eskild Jensen Chairman Vice chairman Lars Håkan Larsson Per Magnus Sonnorp Managing Director: Christian W. Berg Page 5

6 CONDENSED CONSOLIDATED PROFIT AND LOSS ACCOUNT Note Q2 Q2 Total Revenue * Direct voyage costs Operating costs *,** Total operating costs Operating profit before depreciation (EBITDA) Net gain on sale of fixed assets Depreciation Operating profit (EBIT) Financial income Financial costs Net financials Pre-tax result Taxes *** Result for the period * Total Revenue and Operating costs for Q2 have been restated by decreasing both items by MNOK 21.9 to correct a previous elimination from ship management. A similar restatement was made for Q1 by increasing both items by MNOK ** Operating costs in include bareboat charter of Odin Viking. *** Tax of positive MNOK 10 due to reversal of accrual for Norwegian tax. The accrual was made prior to move to tonnage tax system and is now redundant. CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Q2 Q2 Result for the period Translation effect foreign operations Other comprehensive income net of tax Total comprehensive income for the period CONDENSED CONSOLIDATED CASH FLOW STATEMENT Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Net changes in cash and cash equivalents Cash and cash equivalents at the start of the year Exchange gains/loss on cash and cash equivalents Cash and cash equivalents at the end of the period Page 6

7 CONDENSED CONSOLIDATED BALANCE SHEET ASSETS Note Vessels and equipment 3, , ,773.8 Tangible fixed assets 1.2 3, , ,773.8 Financial fixed assets Total fixed assets 3, , ,870.5 Inventories Accounts receivables Other current receivables Cash and cash equivalents Total current assets Total assets 4, , ,242.6 EQUITY AND LIABILITIES Note Share capital Retained Earnings and reserves 1, , ,722.3 Total equity 1, , ,722.9 Deferred taxes Bond loan Long-term debt to credit institutions 3 1, , ,807.4 Other non-current liabilities Non-current liabilities 2, , ,173.0 Short-term debt to credit institutions Accounts payable Other current liabilities Current liabilities , Total liabilities 2, , ,519.8 Total equity and liabilities 4, , ,242.6 Page 7

8 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. Depreciation Tangible fixed assets are recognized at cost or after deductions for accumulated depreciation according to plan and possible impairment. Straight-line amortization according to plan is based on the following useful lives: Vessels years with residual value Docking and major overhaul measures years Other equipment 5 10 years Impairment test as at 30 June, shows no need for impairment. 2. Segment information The segment information is presented in accordance with the internal reporting structure and includes two segments AHTS and PSV. Revenue (external revenue) AHTS *,** PSV Total revenue EBITDA AHTS PSV Total EBITDA EBIT AHTS PSV Total EBIT * Total Revenue and Operating costs for Q2 have been restated by decreasing both items by MNOK 21.9 to correct a previous elimination from ship management. A similar restatement was made for Q1 by increasing both items by MNOK ** VSS performs external ship management assignments for 5 icebreakers owned by the Swedish Maritime Administration. External ship management is not considered a segment of its own. Revenues and costs for the AHTS include MNOK 33 (MNOK 29) for Q1 and MNOK 29 (MNOK 24) for Q2. Tangible fixed assets are distributed as follows: AHTS 3, , ,209.7 PSV Total tangible fixed assets 3, , ,773.8 There are no significant revenue transactions between the segments. Page 8

9 3. Interest bearing liabilities The vessels owned by the Company are primarily financed through bank loans with pledge in the vessels. Further securities have been given in the form of pledge in revenue and insurance policies. The interest bearing debt in VSS per Q2 is MNOK 2,385 (MNOK 2,530). Parts of the interest bearing liabilities are associated with loan covenants, according to which VSS must fulfill certain key data. At the balance date all covenants were in compliance. In March VSS issued a 5 year senior unsecured bond loan in the Norwegian capital market, with maturity in March 2017, totaling MNOK 300. The bond agreement has a limit of MNOK 750. The net proceeds from the bond shall be employed for investments, capital expenditures related to fleet expansion and general corporate purposes. The bond was listed on Nordic ABM in Oslo on 28 June,. In March an additional MNOK 85 was drawn in a tap issue. In June MNOK 100 was raised in a new unsecured short term bond issue in the Norwegian bond market. The bond was listed on Nordic ABM in Oslo on 25 June,. VSS has 11 % (12 %) of its interest bearing debt in USD. The remaining loans are denominated in NOK. VSS has swapped 37 % (36 %) of the total loan portfolio into fixed interest rate Classification by type of debt Bond loan Current part of bond loan Long-term debt to credit institutions 1, , ,807.4 Short-term debt to credit institutions Total interest bearing liabilities 2, , , Debt maturity 1,400 MNOK 1,200 1, After 2018 Bank debt Bond Page 9

10 4. Cash and cash equivalents * The amount is included in the item "Financial fixed assets" in the balance-sheet 5. Operational and financial risk Restricted cash * Free cash and cash equivalents Cash and cash equivalents VSS is characterized by a high degree of international operations and is thus exposed to a number of operational and financial risks. VSS works actively to identify, assess and manage these risks. VSS is exposed to changes in the freight rates. To mitigate this operational risk, VSS has a clear focus on increasing the number of vessels on term contracts. Long-term loans are the principal form of financing. Accordingly, interest rate fluctuations have an impact on VSS earnings and cash flow. To reduce this risk the Group aims to actively manage the interest exposure through various types of hedging instruments. Part of the VSS cash flow is generated in currencies other than NOK which is VSS functional currency. This means that currency fluctuations have an impact on VSS earnings and cash flows. The foreign exchange risk is primarily reduced by matching the exposure to revenues in various currencies with costs in the corresponding currency. In the same manner, assets in a certain currency are matched with liabilities in the same currency. 6. Basis of preparation These condensed interim financial statements for the six months ended 30 June, have been prepared in accordance with the accounting principles as described in the VSS Annual report for. Page 10