STX OSV Holdings Limited 3Q 2010 Results Presentation. 26 November 2010

Transcription

1 STX OSV Holdings Limited 3Q 2010 Results Presentation 26 November

2 Disclaimer This presentation should be read in conjunction with STX OSV Holdings Limited s results for the period ended 30 September 2010 in the SGXNet announcement. Figures are based on the combined financial statements (CFS) for the Group which are prepared on the same basis as the CFS in the prospectus dated 4 November This presentation may contain forward-looking statements that involve risks and uncertainties. Such forward-looking statements and financial information involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements and financial information. Such forward-looking statements and financial information are based on numerous assumptions regarding our present and future business strategies and the environment in which we will operate in the future. As these statements and financial information reflect our current views concerning future events, these statements and financial information necessarily involve risks, uncertainties and assumptions. Actual future performance could differ materially from these forward-looking statements and financial information. You are cautioned not to place undue reliance on these forward looking statements, which are based on the Company s current view of future events. 2

3 Agenda Business Update Financial Highlights Outlook 3

4 CKey Messages Order intake for 9M 2010 increased more than four-fold to NOK 9,766 million, from NOK 2,347 million in the same period last year. Order intake in 3Q 2010 amounted to NOK 4,179 million 48 vessels in order book as at 30 September 2010 Revenue of NOK 8,309 million for 9M 2010, up from NOK 7,818 million in 9M 2009 EBITDA of NOK 922 million for 9M 2010, up from NOK 369 million in 9M 2009 EBITDA margin, representing EBITDA to total operating revenues, increased to 11.1% from 4.7% on a 9M basis Well positioned to capture opportunities from key market trends, but order intake may vary significantly on a quarter-by-quarter basis 4

5 Business Update 5

6 Vessel Deliveries and New Contracts Vessel Deliveries New Contracts 1 AHTS Skandi Skolten to DOF 2 PSVs Enea to Portosalvo Ltd. KL Brevikfjord to K Line Offshore Order intake for the first nine months in 2010 increased more than four-fold from the same period last year to NOK 9,766 million. 3Q 2010: 11 new contracts for a total value of NOK 4,179 million 1 OSCV Skandi Vitória to DOF/Technip 1 ice-breaking tug Mangystau-1 to JSC Circle Marine Invest July 2010: Secured contracts for eight LPG carriers for an approximate value of NOK 3.0 billion (not yet effective, not included in 3Q contracts) After the end of 3Q 2010: Contracts announced for 4 PSVs to Farstad Shipping for an approx. value of NOK 1.3 billion As of 30 September 2010, the Group had 48 vessels in the order book, 36 of which will be of STX OSV s own design. 6

7 Orderbook Development Order Intake (NOK million) Orderbook as of 30 Sept 2010 (# of vessels) 28 Vessels 15,461 4 Vessels 5,692 8 Vessels 4,458 3 Vessels 2, Vessels 9,766 > Transpetro orders for LPG carriers to be effective after first customer installment, for delivery between 2013 and M M Contracts for 4 PSVs for delivery in 2012 and 2013 secured in November Orderbook (NOK million) 27,363 22, ,411 17,182 17, vessels delivered during the first nine months M M

8 Orderbook Development by Region and Vessel Type By Region Orderbook 30 June 2010 Deliveries 3Q 2010 Order Intake 3Q 2010 Orderbook 30 Sept Norway / Romania Brazil Vietnam Total By Vessel Type Orderbook 30 June 2010 Deliveries 3Q 2010 Order Intake 3Q 2010 Orderbook 30 Sept AHTS PSV OSCV Other Total

9 Operational Performance Generally good project execution Benefits from strengthened coordination in the entire value chain Focus on risk management showing results Deliveries on or ahead of time 9

10 Financial Highlights 10

11 Improving Performance Revenue (NOK million) EBITDA (NOK million) and EBITDA Margin (%) M M ,1% 369 4,7% 9M M % 12 % 10 % 8 % 6 % 4 % 2 % 0 % EBITDA (NOK mm) EBITDA Margin Order Intake (NOK million) M M

12 CSummary Income Statement Fluctuations in quarterly revenues and results within expected range Increase in 9M revenues mainly due to construction of larger vessels with higher contract prices Decrease in 3Q revenues mainly due to vessels on average being at a later stage of completion, contributing less to revenues EBITDA margin increased from 4.7% in 9M 2009 to 11.1% in 9M 2010 (i) N/M Not meaningful (ii) As a result of rounding differences, numbers or percentages may not add up to the total 12

13 Revenue Recognition According to Percentage of Completion Method % (Illustrative) Month The Group uses percentage of completion accounting method for projects in progress Revenue recognition depends on variables including cost of factor inputs, extent of calculated contingencies, operational developments in a project, and shipyard capacity The graph, with its S- curve, shows the level of completion at key milestones / project stages As the project approaches delivery date, the amount of costs booked decreases, as does the percentage of completion and thus the revenues recognized Generally, a higher portion of revenues is recognized in the middle of the project Whilst the end of a project has less associated revenues, profit can be higher as it may also include released risk contingencies 13

14 Cash and Cash Equivalents, and Construction Loans Net Cash (NOK million) 1 Construction Loans (NOK million) FY M M FY M M 2010 Cash and Cash Equivalents (NOK million) , , FY M M 2010 Non-restricted Cash Restricted Cash (1) Cash and cash equivalents less sum of short-term and long-term interest bearing liabilities, excluding construction financing 14

15 CMajor Balance Sheet Items (NOK million) As at 30 Sep 10 As at 31 Dec 09 Non-current assets Current assets Total assets Total equity Non-current liabilities excl. interest bearing long-term Interest-bearing long-term liabilities Current liabilities excl. construction loans Construction loans Total liabilities Total equity and liabilities Total assets reduced primarily due to delivery of several high-value projects Corresponding reduction in construction loans and trade and other payables (i) N/M Not meaningful (ii) As a result of rounding differences, numbers or percentages may not add up to the total 15

16 CCash Flow Highlights (NOK million) Cash flow from 3rd Quarter ended 30 Sep 9 Months ended 30 Sep Operating activites Investing activities Financing activities Net change in cash and cash equivalents Cash and cash equivalents at the beginning of financial period Effects of currency translation differences Cash and cash equivalents at the end of financial period (i) N/M Not meaningful (ii) As a result of rounding differences, numbers or percentages may not add up to the total 16

17 Earnings per Share and NAV per Share 3rd Quarter ended 30 Sep 10 3rd Quarter ended 30 Sep 09 9 Months ended 30 Sep 10 9 Months ended 30 Sep 09 As at 30 Sep 10 As at 31 Dec 09 (NOK million) (NOK million) (NOK million) Earnings for the financial period Net Asset Value backing at the end of the financial period Earnings per ordinary share for the financial period attributable to equity holders of the parent (based on 1,180,000,000 ordinary shares) (NOK) (NOK) 0,13 0,08 0,62-0,03 (S$) (S$) Net Asset Value per ordinary share for the financial period (based on 1,180,000,000 ordinary shares) (NOK) 1,27 0,86 (S$) 0,03 0,02 0,14-0,01 0,28 0,21 These numbers have been calculated for informational purposes only. They do not represent actual IFRS numbers since they are based on the assumption that the restructuring and IPO were in place as of 30 September 2010 The S$ amounts are translated from NOK based on the exchange rates prevailing at the reporting date 17

18 Outlook 18

19 Well-positioned to Capture Opportunities from Key Industry Trends 1 Steady Recovery in Oil & Gas Activity New orders 9M 2010 of approximately NOK 9,766 million more than double the total orders in Shift Towards Deeper Water Exploration Delivery of Skandi Skolten this quarter. This is vessel is based on our design and is the world s most powerful AHTS with 35,800 BHP to handle larger drilling rigs used in deepwater offshore activity 3 4 Greener Vessels and Stricter Safety Standards Aging Fleet Combined with New Rules and Regulations We introduced to market LNG-powered PSVs with enhanced hull design for optimal fuel efficiency Our Skandi Skolten is environmentally friendly with a low resistance hull shape, designed for high speed and low fuel consumption We have developed a patent pending oil recovery vessel In the long term, we are optimistic in maintaining order momentum given an aging fleet and new rules and regulations However, some short-term pressure on fleet utilization Management believe that STX OSV is well-positioned to capture opportunities from key industry trends, but new order intake may vary significantly on a quarter-by-quarter basis 19

20 Q&A 20

21 About STX OSV 21

22 CSTX OSV Holdings Limited Overview Major global designer and shipbuilder of offshore support vessels with high-end technology Our Core Products and Services We operate nine shipyards across four countries o Five in Norway, two in Romania, one in Brazil and one in Vietnam o Approximately 9,000 employees o Second shipyard in Brazil currently under development Delivered more than 200 vessels since 2000 One of few high-end OSV shipbuilders with in-house vessel design capabilities Significant market share in various categories 1) o 1 st in market share in newbuild orders and designs for PSV above 4,500 DWT o 1 st in market share in newbuild orders for AHTS above 20,000 BHP o 2 nd in market share in newbuild orders for selected types of OSCV 2) Anchor Handling Tug Supply (AHTS) vessels Offshore Subsea Construction Vessels (OSCV) Platform Supply Vessels (PSV) Vessel Design and Power & Automation Solutions (1) According to RS Platou, as at 31 August (2) OSCV includes Saturation Diving Support Vessels ( SAT DSV ), Pipe-Laying Support Vessels ( LAYSV ), and Remote Operated Vehicle Support Vessels ( ROVSV ). 22

23 Our Position in the Offshore Value Chain We are involved in constructing complex OSVs to support every stage of the oil & gas value chain Offshore Field Lifecycle Surveying Exploration Development/ Construction Production Facilities Upgrade Decommissioning Seismic surveying & core drilling Well drilling with mobile offshore drilling units Installation of platforms, subsea structures & pipelines Supply & maintenance of production units Extend field production & tie in fields Partial or complete removal of installations Required Offshore Tonnage Primary Tonnage Seismic vessel Jack-up Semi-sub Drillship Fixed platform Floating platform FPSO Subsea structures Fixed platform Floating platform FPSO Subsea structures Fixed platform Floating platform Subsea structures Fixed platform Floating platform Subsea structures Support Tonnage Chase boats AHTS PSV AHTS PSV Diving support vessel ROV support vessel Pipelayer PSV Diving support vessel ROV support vessel Pipelayer Well stimulation AHTS PSV Diving support vessel ROV support vessel Pipelayer AHTS PSV Diving support vessel ROV support vessel Pipelayer Source: RS Platou Standby boat Crew boat Tug Accommodation unit Standby boat Heavy lift/crane Standby boat Crew boat Accommodation unit Standby boat Heavy lift/crane Accommodation unit Standby boat Heavy lift/crane 23

24 Key Investment Highlights 1 High-end OSV designer and shipbuilder 2 Unique R&D and manufacturing capabilities 3 Strategic presence in key offshore oil and gas markets worldwide 4 Strong relationships with key customers maintained by experienced management team 5 Member of STX Group 24

25 #1 High-end OSV Designer and Shipbuilder We compete in the most sophisticated and advanced market and have been a consistent industry leader in the past decade Focus on the High-end OSV Segment Brake horsepower (BHP) Deadweight tons (DWT) High Specification Medium Specification Low Specification AHTS >= 20,000 BHP PSV >= 4,500 DWT Key Players: Mainly Norwegian & Asian AHTS 7,000 19,999 BHP PSV 2,500 4,499 DWT Key Players: Mainly Asian AHTS < 7,000 BHP PSV < 2,500 DWT Key Players: Mainly Asian 25

26 #2 Unique R&D and Manufacturing Capabilities We Are at the Forefront of Key Developments and Innovation High market acceptance for our vessel designs Wide range of commercialized prototype designs since 2000 Four Main Areas of Innovation Over 70% of current orderbook are of our own designs Designs sold to global OSV shipbuilders, including in Japan, Singapore and India Most commonly used design for PSV above 4,500 DWT¹ Green Vessels LNG-Powered PSVs Greater Stability Normand Prosper (2010) Some of Our Many Firsts Winner of 2010 Ship of the Year² - Skandi Aker New generation of LNG-powered PSVs World s most powerful AHTS Skandi Skolten Fuel Efficiency Olympic TBN (2012) New Functionality Skandi Aker (2009) Large-scale oil recovery vessel (patent pending) (1) Source: RS Platou (2) Awarded by major Nordic Shipping magazine, Skipsrevyen 26

27 #2 Unique R&D and Manufacturing Capabilities We Operate an International Value Chain Contract Class Approval Delivery Concept Development & Sales Basic Design Detailed Engineering Fabrication Outfitting 1 Procurement Commissioning 2 Design Hull Production Outfitting Design Hull Production and Outfitting 27

28 #3 Strategic Presence in Key Offshore Oil & Gas Markets Worldwide Multiple Production Centers Strategically Placed at Key Offshore Oil & Gas Markets Norway Innovative culture and strong competition in the offshore maritime cluster, the test bed for new designs in industry Romania Close proximity to Caspian Sea, region with large oil field prospects Vietnam Brazil Petrobras, Brazil s national oil company, has high production ambitions at its pre-salt oil cluster First-mover advantage, as one of the first foreign OSV builders to penetrate the market since 2001 Second shipyard to be constructed in state of Pernambuco West Africa Growing market, demand for larger and newer tonnage India Increasing deepwater exploration Recently established Vietnam operations to tap into South East Asian oil & gas activity Australia Promising region for oil and gas development Major Oil & Gas Markets STX OSV Presence 28

29 #3 Strategic Presence in Key Offshore Oil & Gas Markets Worldwide We are well positioned to serve the Brazilian offshore market, one of the most promising offshore markets in the world Brazilian Market Growth Potential New Yard in Pernambuco Existing Yard in Niterói Largest and fastest growing offshore deepwater market in the world Geological complexity characterized by difficult oil fields and deep water environment Government policies favor locally built vessels One of the first foreign OSV builders to penetrate the Brazilian market in 2001 Established presence and rich market knowledge Second shipyard currently under development Advanced and innovative technological capabilities suited for a deep water and harsh environment 29

30 #4 Strong Relationships with Key Customers Maintained by Experienced Management Team Strong Customer Relationships Selected Examples Customer Years of Relationship Number of Vessels Delivered Since 2000 More than 20 years Nearly 10 years with DOF subsidiary NorSkan in Brazil 24 vessels (6 built in Brazil) 10 vessels on order More than 20 years 17 vessels 7 years 3 years 2 vessels 1 vessel Orderbook By Customer¹ Other 20 DOF 10 Total: 48 Vessels "K" Line Offshore 5 (1) As at 30 September, JSC Circle Marine Invest 4 Island Offshore 4 Aker Capital 5 30

31 #4 Strong Relationships with Key Customers Maintained by Experienced Management Team A strong management team with extensive industry experience, proven execution capabilities and solid long-term relationships with customers President since years of industry experience Deep understanding of customers needs with over 15 years of industry experience on average Roy Reite President & CEO Years in industry: 20 Industry expertise and innovative culture to identify key market opportunities and stay ahead of the competition Jan Ivar Nielsen Magne Håberg Stig Bjørkedal Knut Ola Tverdal Magne O. Bakke Leverage on trust with clients and first hand market knowledge to develop technologically advanced prototypes EVP & CFO Years in industry: 13 EVP, Sales & Marketing Years in industry: 25 EVP, Business Development & Strategy Years in industry: 20 EVP, Strategy Implementation Years in industry: 10 EVP & COO Years in industry: 27 31

32 #5 Member of STX Group Our ties with STX Group help us further strengthen our overall market position in the global offshore shipbuilding industry 32

33 STX OSV Holdings Organization Structure Company names as stated in the prospectus STX OSV Holdings Limited (Singapore) STX Norway Offshore AS (Norway) 5.23% 100% 51%¹ 50.5% 70% 100% 100% 100% 100% 100% STX RO Holding SRL (Romania) STX Brazil Offshore SA (Brazil) Estaleiro Promar SA² (Brazil) STX Singapore Offshore Pte Ltd (Singapore) STX Norway Offshore Design AS (Norway) STX Norway Electro AS (Norway) Johansen Maritime AS (Norway) STX Norway Accommodation AS (Norway) STX Norway Offshore Brevik AS (Norway) 94.77% 95.43% 100% STX RO Offshore Braila SA (Romania) STX RO Offshore Tulcea SA (Romania) STX Vietnam Offshore Ltd (Vietnam) Holding Shipyard Other ¹ With 100% voting rights. 2 Second yard in Brazil currently under development. 33

34 STX OSV Holdings Organization Structure New company name STX OSV currently being rolled out world-wide STX OSV Holdings Limited (Singapore) STX OSV AS (Norway) 5.23% 100% 51%¹ 50.5% 70% 100% 100% 100% 100% 100% STX OSV RO Holding SRL (Romania) STX OSV Niteroi SA (Brazil) STX OSV Promar SA² (Brazil) STX OSV Singapore Pte Ltd (Singapore) STX OSV Design AS (Norway) STX OSV Electro AS (Norway) STX OSV Piping AS (Norway) STX OSV Accommodation AS (Norway) STX OSV Brevik Holding AS (Norway) 94.77% 95.43% 100% STX OSV Braila SA (Romania) STX OSV Tulcea SA (Romania) STX OSV Vung Tau Ltd (Vietnam) Holding Shipyard Other ¹ With 100% voting rights. 2 Second yard in Brazil currently under development. 34