Songa Offshore ASA. Q report

Transcription

1 Songa Offshore ASA Q report

2 Highlights Concluded a 2yr contract for Songa Trym Acquired the semisub Deepsea Delta New contracts for Mercur and Venus Financing

3 Fleet update Songa Venus Working for Inpex offshore western Australia Currently mobilizing to new location Steady operation New contract with ADA, starting mid- November; 376 days with 376 days option at market to be declared within 6 months after start-up; initial dayrate USD 400,000 SPS due February 2010

4 Songa Mercur Under contract to Santos in Australia until mid July 2009 Increased efficiency with less downtime In discussion with operators for new assignments mid 2009, including some upgrade alternatives SPS due July 2010

5 Songa Saturn Completed operation for Kosmos in Ghana on July 21st Completed upgrade work in Takoradi, Ghana August 6th as per schedule Currently in transit to Libya via Malta for Hess, approx 20 days at mob dayrate USD 300,000

6 Songa Dee Operated by Stena. Drilling development wells on the Troll field for StatoilHydro Integration of Songa crews and preparation to take over operation is on schedule Two year contract plus 2 x 6 months options, for Marathon / Lundin in North Sea from Q (options to be declared no more than 12 months prior) The unit will be delivered to Songa after SPS with full term certificate to 2014

7 Songa Trym Operated by Odfjell, drilling development wells on the Troll field for StatoilHydro Concluded new contract with StatoilHydro for 2 years firm plus one year option period commencing Q Entered into a management contract with Odfjell for operation SPS due May 2012

8 Deepsea Delta Modified Ocean Ranger design Built 1981 by Rauma Repola Modified 1996 Engineering analysis for increased water depth capacity to 3,000 ft in place

9 Market position midwater segment Other (12 co's); 19 Transocean; 24 Frontier Dr; 3 Stena; 3 Saipem; 3 Diamond; 16 QueGalv; 3 Noble; 3 Songa; 6 FOE; 6 Pride; 6

10 Operational Efficiency

11 Contract status [insert text]

12 P&L Q Q2 Q1 Q2 Jan-Jun Jan-Dec Amounts in USD '000 Note Operating revenue Reimbursables Other revenue Revenues Rig operating expenses 4.1 (32 944) (28 144) (21 682) (61 088) (94 566) Reimbursables 4.1 (762) (965) (1 875) (1 727) (4 905) General and administrative expenses 4.1 (7 918) (7 117) (6 986) (15 035) (28 698) Other gain and loss (11 980) (1 285) Total expenses (25 446) (48 206) (29 580) (73 652) ( ) EBITDA EBITDA % 69 % 45 % 56 % 57 % 58 % Depreciation and amortization 5.1 (15 116) (14 822) (14 005) (29 938) (54 666) EBIT EBIT % 51 % 28 % 35 % 39 % 40 % Finance income Finance costs 6.2 (10 910) (12 116) (19 215) (23 026) (61 020) Profit/(loss) before tax Tax income/(expense) 9.1 (6 193) (3 187) (9 380) (13 730) Profit/(loss) for the year Net earnings per share (USD): Basic 8.2 0,29 0,12 0,10 0,41 0,59 Diluted 8.3 0,26 0,11 0,10 0,37 0,52

13 Q2 vs Q1 - revenues Q Q USD '000s Venus Saturn Mercur Dee Trym Other (5 325)

14 Revenue USD '000 Operating Mobilisation Reimbursables Total Dayrate Dayrate revenue & Other Q Q USD Venus Saturn Mercur Dee Trym Other Sum Dayrate = Operating revenue / 91 calendar days Mobilisation revenue Rem. Bal total -

15 Operating expenses USD '000s Venus Saturn Mercur G&A Other Q Q Rig op exp & reimb G&A / onshore Sum USD/day Q2 Q1 YTD Guidance 2008 Venus Saturn Mercur G&A

16 Other gains & losses Q Q YTD TRS fair value 14,8-6,1 8,7 FX swap 0 1,9 1,9 Flippable swap 3,8-5,2-1,4 Buy back bond -1,8-2,1-3,9 Allowance doubtful debt -0,6 2,0 1,4 Loss disposal of assets 0-1,4-1,1 Net currency loss 0-1,1-1,4 16,2-12,0 4,2 13 Aug 30 June 31 March End 2007 Shareprice Songa 72/13,41 82,25/16,19 68,5/13,45 73,5/13,54 3 mo libor 2,80 % 2,78 % 2,69 % 4,70 % 4 yr swap 3,96 % 4,10 % 3,07 % 4,08 %

17 Finance Bought back USD 17.2 mln of 9.75% 2011 bond, controlled USD 44.2 mln at quarter end All warrants converted or cancelled in June Outstanding shares: 94,707,538 Convertible: 9,349,289 Options to top management 900,000 at strike NOK Fully diluted: 104,956,827 Issued 2 convertible debentures in June, both raised in NOK and swapped into USD with effective rate 7.4%. NOK 200 mln for 12 mo and NOK 260 mln for 3 mo. Debt: bank facility 530, high yield bond 30.8, convertible 125, repo 47.2, commercial paper 39 and 51 = 823

18 Balance sheet (USD '000) 30/06/08 31/12/07 ASSETS Non-current assets Rigs, machinery and equipment Deferred tax assets Other long term assets Total non-current assets Current assets Trade and other receivables Prepayments Incurred revenue Other assets Cash and cash equivalents Total current assets TOTAL ASSETS

19 Balance sheet (cont.) (USD '000) 30/06/08 31/12/07 EQUITY AND LIABILITIES Capital and reserves Issued capital Share premium Paid in not registered share capital Reserves Other equity Total equity Non-current liabilities Deferred tax liability Bank loan Bond loans Other liabilities Total non-current liabilities Current liabilities Bank loans Other external financing Trade and other payables Derivative financial instruments Deferred revenues Other liabilities Total current liabilities Total liabilities TOTAL EQUITY AND LIABILITIES

20 Refinance Will secure refinance of current bank facility 530, delivery of Deepsea Delta 380, takeout commercial paper due September 51 and takeout repo and HY 75, plus for working capital purposes for a total of USD 1,050 mln.

21 Business plan 2008 / 2009 Take delivery of Deepsea Delta Handle takeover of Songa Dee from Stena Preparation for operation of Songa Dee Market Mercur and Saturn for new contracts Re-domicile to Cyprus. Next EGM to be held late October, which should lead to seat being moved mid January 2009