Oslo, 6th March DnB NOR Markets Offshore Management Access Conference Karl Ronny Klungtvedt, Exec. Vice President & CFO

Transcription

1 Oslo, 6th March 2008 DnB NOR Markets Offshore Management Access Conference Karl Ronny Klungtvedt, Exec. Vice President & CFO

2 2 Disclaimer All statements in this presentation other than statements of historical fact are forward-looking statements, which are subject to a number of risks, uncertainties, and assumptions that are difficult to predict and are based upon assumptions as to future events that may not prove accurate. Certain such forward-looking statements can be identified by the use of forward-looking terminology such as believe, may, will, should, would be, expect or anticipate or similar expressions, or the negative thereof, or other variations thereof, or comparable terminology, or by discussions of strategy, plans or intentions. Should one or more of these risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this presentation as anticipated, believed or expected. Prosafe does not intend, and does not assume any obligation to update any industry information or forward-looking statements set forth in this presentation to reflect subsequent events or circumstances.

3 3 Prosafe at a glance Leading player in the FPSO segment World s leader within the semisubmersible accommodation/service rig segment Large engineering department More than employees in 15 countries Market capitalization of about USD 4 billion Strongly positioned for continued sustainable growth

4 4 A truly international oil service company North Sea Scotland Norway Houston Cyprus Headquarters Offices Rigs FPSO/FSO operations FPSO operations from 2009 GoM Brasil India Singapore Indonesia West Africa Australia New Zealand Operations as per March 2008

5 5 Q in brief Best quarterly EBITDA ever Solid operating performance Strong accommodation rig fixtures FPSO conversion progress in line with previous guiding Split process progressing as planned Safe Astoria Steady operations and predictable high cash flow going forward

6 6 Offshore Support Services

7 7 The market leader World s largest owner and operator of semi-submersible accommodation/ service rigs Flexible fleet - large number of geographical areas Experience from all major offshore regions Strong operational performance High rig utilization Safe Caledonia alongside the Buzzard platform Strong market position and good assets provide attractive basis for future contracts

8 8 Strong order intake Renewed bareboat contracts for the 5 rigs operating in Mexico Secured attractive contracts for MSV Regalia and Safe Bristolia Safe Scandinavia Solid order backlog and increasing dayrates

9 9 Quality fleet with versatile applications Dynamically Positioned rigs Advanced units with high operational versatility: All water depths Any seabed infrastructure Against fixed installations and most floaters like FPSOs, Semis and Spars 2 1 Anchored rigs 1 Primary strengths: Shallow to medium waterdepths Fixed installations Some floaters, e.g. TLPs Prosafe Cotemar Pemex Prosafe FOE Awilco Etesco

10 10 Accommodation/service rigs - fleet overview Name MSV Regalia Safe Scandinavia Safe Caledonia Geographical area Harsh environment, NCS Harsh environment, NCS Harsh environment Mooring system - 12 point chain winches 10 point wire winches Station keeping NMD3 Moored DP2 / TAMS No of beds 160/ Name Safe Astoria Safe Bristolia Safe Esbjerg Geographical area Moderately harsh env. Moderately harsh env. Harsh environment Mooring system 8 point wire winches 8 point wire winches 4 point wire winches Station keeping Moored Moored Jack-up No of beds

11 11 Accommodation/service rigs - fleet overview Name Safe Britannia Safe Lancia Safe Hibernia Geographical area Harsh env. Moderately harsh env. Harsh environment Mooring system 9 point wire winches 8 point chain winches 12 point wire winches Station keeping DP2 / TAMS DP2 Moored No of beds Name Safe Regency Safe Concordia Jasminia Geographical area Harsh environment Benign environment Benign environment Mooring system 8 point wire winches 4 point wire winches 8 point wire winches Station keeping DP1 DP2 Moored No of beds

12 12 Robust demand outlook ODS-Petrodata anticipates global demand for accommodation rigs to grow by 20% annually over the next 5 7 years Large number of new fields No. of fields Fields on stream in the North Sea* Growing maintenance demand Decommissioning activity increasing Other Denmark Norway Netherlands UK * No. of fields produced with fixed or floating production installations Prosafe strongly positioned to benefit Source: Infield

13 13 Day rates accelerating LoI for Safe Bristolia at USD per day Mexico contracts renewed Average increase of approx. 100% in bareboat dayrates USD/day (T/C equivalent) 350, , , , , ,000 50,000 Day rates rigs with North Sea capabilities Prosafe Others 0 Oct-02 Mar-03 Sep-03 Mar-04 Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Award date

14 14 Offshore Support Services contract status Safe Astoria Asia Safe Bristolia Safe Esbjerg Safe Caledonia Safe Scandinavia North Sea/ West Africa MSV Regalia Safe Concordia Safe Britannia Ł 2013 Safe Lancia Safe Regency Ł 2013 Gulf of Mexico Jasminia Safe Hibernia Contract Option Mobilisation Yard Standby

15 15 Floating Production

16 16 A leading player A leading owner and operator of FPSOs and FSOs Own and operate a fleet of 7 vessels Another three FPSOs will arrive in field late 2008 Solid project management experience 15 projects delivered according to plan Patented in-house developed turret and mooring technology Excellent operational trackrecord ( 99.3% uptime) FPSO Polvo arriving in Rio Consolidating our position as a leading player in the FPSO business

17 17 Technological strength Capable and experienced engineering department High uptime on FPSOs confirms quality of designs and operational competence In-house developed turret and mooring systems Disconnectable turret - first application for Apache in Australia Technology is a major competitive advantage

18 18 FPSO with drilling capacity(fdpso) World s first FPSO with drilling capacity Will be installed at Murphy Oil s Azurite field offshore Congo Based on the conversion of a VLCC with a moonpool in the middle of the ship Cost-efficient solution to develop deepwater marginal fields Modular drilling technology Earlier production

19 19 Conversion projects The three conversion projects are progressing as previously communicated Target arrival in field: Q FDPSO Azurite FPSO Cidade de São Mateus FPSO Ningaloo Vision

20 20 Building growth capacity The VLCC M/T Takama acquired for future conversion Organisation strengthened considerably M/T Takama

21 21 Geared for growth Expression of interest from oil companies picking up again Solid long-term demand outlook No. of units Prospects Firm FPSO demand new projects in the planning, final design or bidding phase Hardware, software and funding in place for further growth Source: ODS-Petrodata, IMA Source: ODS-Petrodata, IMA

22 22 Contract status Ningaloo Vision Azurite Cidade de São Mateus Umuroa Polvo Apache, Australia Ł 2024 Murphy Oil, Congo Ł 2024 Petrobras, Brazil Option Ł 2023 NZOP, New Zealand Devon, Brazil Ł 2022 Abo Espoir Ivoirien Petróleo Nautipa (1) Endeavor Madura Jaya (2) 2003 Agip, Nigeria 2002 Canadian Natural Resources, Ivory Coast Ł Vaalco, Gabon 1997 Aban Offshore, India 2000 Kodeco Oil, Indonesia M/T Takama (3) Project phase Production contract Options Letter of Intent (1) 50% ownership, can be terminated if the vessel requires drydocking in 2012; (2) 50% ownership; (3) conversion candidate

23 23 Update on split process and financing

24 24 Split process progressing according to plan Floating Production division will most likely be distributed as dividend Total debt facility of USD 2.3 billion -fully underwritten offer received Split expected to be concluded during the latter part of Q FPSO Polvo

25 25 Financing of new entities Existing net debt evenly split between the divisions Low funding cost secured USD 1.2 billion debt facility for Floating Production USD 1.1 USD debt facility for Offshore Support Services Safe Esbjerg s gangway

26 26 Offshore Support Services growth and dividend Organisation in place Strategy to seize interesting growth opportunities and continue dividend payment Safe Bristolia Provides capacity for growth and dividend

27 27 Floating Production -growth capacity secured Organisation in place Strategy to continue organic growth and technology development Substantial growth capacity in place FPSO Umuroa

28 28 Summary and outlook Solid results Strong day rate development and bright long-term outlook for accommodation rigs Solid demand outlook in the FPSO segment Split process progressing according to plan Strongly positioned for taking advantage of growing markets in both business segments

29 29 Attachments

30 30 Income statement (Unaudited figures in USD million) Q4 07 Q3 07 Q Operating revenues Operating expenses (75.4) (55.6) (41.2) (224.9) (157.9) Operating profit before depreciation Depreciation (25.1) (23.7) (17.3) (80.0) (57.7) Operating profit Interest income Interest expenses (18.8) (15.6) (11.1) (60.5) (32.1) Other financial items (13.8) (2.3) 2.4 (10.9) 16.6 Net financial items (30.8) (16.3) (5.1) (64.5) (7.0) Profit before taxes Taxes (3.8) (8.0) (7.2) (14.0) (14.9) Net profit EPS, basic and diluted (USD)

31 31 Balance sheet (Unaudited figures in USD million) Goodwill Rigs Ships Other non-current assets Total non-current assets Cash and deposits Other current assets Total current assets Total assets Share capital Other equity Total equity Interest-free long-term liabilities Interest-bearing long-term debt Total long-term liabilities Dividends payable Other interest-free current liabilities Current interest-bearing debt Total current liabilities Total equity and liabilities

32 32 Offshore Support Services (Unaudited figures in USD million) Q4 07 Q3 07 Q Operating revenues Operating expenses (43.6) (39.0) (27.9) (154.3) (113.6) EBITDA Depreciation (11.7) (11.6) (13.0) (46.0) (41.7) EBIT

33 33 Floating Production (Unaudited figures in USD million) Q4 07 Q3 07 Q Operating revenues Operating expenses (27.6) (13.4) (12.0) (57.6) (39.1) EBITDA Depreciation (13.2) (12.1) (4.2) (33.6) (15.7) EBIT

34 34 Cash flow (Unaudited figures in USD million) Q4 07 Q3 07 Q Operating activities Investing activities (122.9) (163.8) (105.9) (496.2) ( ) Financing activities (49.3) Net cash flow (136.1) 14.8 (156.4) Cash at beginning of period Cash at end of period

35 35 Key figures Q4 07 Q3 07 Q Operating margin 41.1 % 47.0 % 43.3 % 42.2 % 41.0 % Equity ratio 39.6 % 46.4 % 50.8 % 39.6 % 50.8 % Return on equity 12.9 % 16.2 % 11.3 % 13.5 % 16.8 % Return on capital employed 12.4 % 13.3 % 10.3 % 10.7 % 11.6 % Net interest bearing debt