DOF ASA Q Mons S. Aase CEO. Hilde Drønen CFO

Transcription

1 Q Mons S. Aase CEO Hilde Drønen CFO

2 Agenda Summary Recent highlights Overview Group Q4 Financials DOF Subsea update Outlook Skandi Skansen Presentation

3 Summary Several new contracts in DOF Subsea and in DOF Supply High exposure to expected strong Subsea market Expect stronger spot market in 2012 vs 2011, well positioned in the AHTS segment New bonds in DOF and DOF Subsea have reduced the liquidity risk in 2012 and 2013 No maturity on any significant bank loans before 2nd half 2013 Minimal risk in funding of remaining newbuilding program NOK 581 million EBITDA in Q4, included are NOK 8,5 mill one off restructuring costs in Brazil. Adjusted EBITDA NOK 590 mill Skandi Skansen New management team in Brazil Presentation

4 Recent Highlights Contracts: Several contracts for DOF Subsea project fleet securing high utilization in the North Sea Several vessels renewed in Brazil at higher rates Skandi Singapore and Skandi Hercules secured several contracts in Asia and Australia Four year frame agreement with Statoil and Call-Off for light construction work on the Norwegian Continental Shelf for Geosund Skandi Skansen 4 years contract with Subsea 7 Skandi Inspector one year contract with Integrated Subsea Services Ltd from April DOF Subsea Chartering LOI from a major North Sea operator for one construction vessel Skandi Fjord s contract with Halliburton extended until Oct 14 Skandi Falcon days in Australia Skandi Waveney 1 + 2x1 year contract with Peterson in Holland Skandi Foula and Skandi Rona 5 year contracts with Shell UK Presentation

5 Recent Highlights Fleet: Skandi Singapore delivered in September earnings from early November Skandi Pacific delivered to Aker DOF Deepwater in November onhire from mid November Skandi Niteroi onhire to Petrobras early October Geosea finished rebuild to RSV in Norway onhire to Petrobras 10 th February Purchase of building contract for new subsea vessel Skandi Feistein delivered in November onhire early December (6 years to ConocoPhillips) Skandi Amazonas delivered in December onhire late December (8 years to Petrobras) Skandi Hawk delivered. Start operations as Subsea vessel in Asia Pacific end March. First contract secured. Presentation

6 Recent Highlights Finance: Supply: Total new loans of approx. USD 200 mill drawn upon delivery of four vessels in 4 th quarter and so far in 1 st quarter New bond of NOK 700 mill (2017) and bought back NOK 520 mill of DOF 07 (2013) New drawing facility of NOK 200 mill with main bank Subsea: New drawing facility of NOK 300 mill with main bank Sold NOK 200 mill of bonds in DOFSUB 05 (April 2016) and bought back NOK 100 mill in DOFSUB 03 New bond of NOK 700 mill (2015) and bought back NOK 85 mill of DOFSUB 03(2012) and NOK 149 mill of DOFSUB 04 Presentation

7 Company overview Norskan Ltda DOF Subsea Holding Ship owning company Modern fleet 17 AHTS s 7 PSV s 2 CSV s DOF Subsea Modern fleet & Equipment 22 CSV/ROV vessels 53 ROV s Leading Subsea Contractor DOF Installer 3 state of the art installation CSV vessels Modern fleet 3 AHTS s 17 PSV s 3 CSV Presentation

8 The fleet market segments PSV AHTS ROV/OCSV/DSV/ Total fleet No. of vessels SEISMIC VESSELS NORSKAN OFFSHORE DOF SUBSEA AS DOF INSTALLER ASA AKER DOF DEEPWATER AS Total fleet Contract coverage 12* 91 % 77 % 82 % 84 % Contract coverage 13* 66 % 57 % 59 % 61 % * no options included Presentation

9 Global Player 30 Austevoll Bergen Aberdeen Moscow St. Johns Houston 2 Cairo Manila Singapore Brunei Macae Rio de Janeiro 2 Angola Jakarta Perth 25 5 Buenos Aires GEOGRAPHICAL FOCUS AREAS Presentation

10 Million NOK Backlog Development DOF Group Note: Includes extension options on long-term contracts DOF group has solid cash flow visibility over the next 3-5 years By 31 Dec 2011 the total back-log (incl. options) was approx NOK 36,7 bn Firm contract counts for NOK 18,7 bn Options count for NOK 18 bn Presentation

11 Cash positive based on EBTIDA estimates EBITDA 2012 (Consensus analysts) MNOK Amortization loans Interest (est) Capex new-builds, docking etc Drawdown Surplus 400 In addition, DOF plans to refinance some long term loans on low leveraged vessels in 2012 Note: Table above does not include bond debt maturities Presentation

12 Update on remaining newbuilding program Vessel Yard Delivery Type Contract Financing Skandi Kvitsøy STX Norway Mar 12 PSV, dwt 6 yrs ConocoPhillips N Secured from commercial bank GIEK and ND Skandi Atlantic (ADD) Skandi Bergen (DOF Subsea) STX Vietnam Mar 12 AHTS Uncommited Secured from commercial bank / ND and GIEK STX Norway May 12 CSV Uncommited CIRR secured, in progress of securing financing with various banks Skandi Iguazu STX Brazil Jun 12 AHTS, 325 t BP 8 yrs Petrobras Secured from FMM / BNDES (80%) Skandi Nova STX Norway Sep 12 MRV 05 7 yrs ConocoPhillips N CIRR secured, in progress of securing financing with various banks Skandi Marøy STX Norway Oct 12 MRV 05 7 yrs ConocoPhillips N CIRR secured, in progress of securing financing with various banks Skandi Hugen STX Norway Nov 12 MRV 05 ROV 7 yrs ConocoPhillips N CIRR secured, in progress of securing financing with various banks Skandi Urca STX Brazil Nov 12 AHTS 8 yrs Petrobras Secured from FMM / BNDES (73%), in progress of securing additional funding from various banks Skandi Angra STX Brazil Jun 13 AHTS 8 yrs Petrobras Secured from FMM / BNDES (73%), in progress of securing additional funding from various banks Skandi Paraty STX Brazil Dec 13 AHTS Uncommited Secured from FMM / BNDES (73%), in progress of securing additional funding from various banks Presentation

13 Skandi Bergen to be delivered in May 2012 High end OSCV vessel ROV UHD62 & ROV HD05, rated for 3000/4000 m ROV and WORK Moonpool LOA: 110,9 m 250 t Crane Suitable for Arctic operations, DNV ICE-1B & DEICE notation 100 men accommodation 1150 m 2 deck area All specifications are subject to changes without prior notice. Please contact us for details and verifications. Presentation

14 Skandi Hawk PSV 09 CD GA More money in Subsea mode than in PSV mode? 64 men accommodation 60 T AHC Crane 2 x WROVs DP II Presentation

15 Financials Presentation

16 Financial/Operational Highlights Q Utilization Subsea fleet (87 %) - One vessel in transit/rebuilt - Skandi Singpore partly in operation in the quarter - Good utilization in Brazil - Good utilization vessels in the Atlantic region Utilization Supply fleet (91 %) - Good performance in the North Sea, lower activity in the spot market - Vessel dockings in Brazil and mobilization for new contracts - Two more vessels contributed to the operation in 4th quarter New vessels in 4th quarter Finance - Skandi Feistein (PSV), Skandi Pacific (AHTS) and Skandi Amazonas - Three new loans drawn approx on deliveries of new vessels - Refinancing two vessels in DOF Subsea Changes in depreciation estimates Presentation

17 Result Q ALL FIGURES IN NOK MILLION Q Q Acc Q Acc Q Operating income Operatin expenses Operating profit before depreciation- EBITDA Depreciation Write downs 7 Operating profit- EBIT Net profit/loss from associated companies Financial income Financial costs Net realized currency gain/loss Net profit/loss before unrealised gain/loss long term debt Net unrealized currency gain/loss Net unrealized gain/loss on market instruments Profit/loss before tax tax Net profit/loss Profit attributable to Non-controlling interest Controlling interest Presentation

18 Financial results Q ALL FIGURES IN NOK MILLION ALL FIGURES IN NOK MILLION Financial items Q Acc Q Q Acc Q Share of loss profit from associated Interest reveneue Interest costs Realized currency gain/loss long debt Realized currency gain/loss on forex instruments Realized operational currency gain/loss (-) Other financial expenses Total financial items Unrealized profit/loss on currencies Unrealized currency gain/loss on long debt Unrealized currency gain/loss on forex instruments Total unrealized profit/loss on currencies Total financial items Presentation

19 P&L Q Supply and Subsea ALL FIGURES IN NOK MILLION Supply Subsea Group Supply Subsea Group Q Q Q YTD 2011 YTD 2011 YTD 2011 Operating income Total operating income Operating expenses Total operating expenses Operating profit before depreciation Ebitda margin 30 % 32 % 31 % 33 % 30 % 31 % Presentation

20 Results - Business Segments ALL FIGURES IN NOK MILLION EBITDA Q EBITDA (MNOK) 67 % 12 % 21 % Q Q PSV AHTS CSV Total EBITDA Q % * Installer vessels included in the CSV segment 65 % 20 % Presentation

21 Balance Q ALL FIGURES IN NOK MILLION ASSETS Vessel and other tangible assets Newbuildings Financial assets Non-currents assets Receivables Cash and cash equivalents Current assets Total assets EQUITY AND LIABILITIES Subscribted equity Retained equity Non-controlling equity Equity Provisions for commitments Other non-current liabilities Non-current liabilities Debt to credit institutions Other current liabilities Current liabilities Total equity and liabllities Presentation

22 Key figures Q FINANCIAL RESULT Q Q Acc Q Acc Q EBITDA margin 31 % 29 % 31 % 31 % EBIT margin 24 % 7 % 17 % 10 % Cashflow per share 2,90 1,89 9,91 11,91 Profit per share ex. non-controlling interest 1) 0,51-0,94-3,36-1,53 Profit per share ex. unrealized loss/gain 2) 1,37-2,30 2,11-3,46 No of shares Outstanding number of shares Face value per share *) Diluted number of share is the same as number of shares BALANCE Return on net capital 1 % -2 % Equity ratio 22 % 25 % Value adjusted equity 40 % 43 % Net interest bearing debt (MNOK) Net interest bearing debt ex. unemployed capital (MNOK) ) Net profit excl. non controlling interest/average no of shares 2) Net profit excl.unrealized currencyoss on debt and market instruments/average no of shares Presentation

23 Net interest bearing debt ALL FIGURES IN NOK MILLION Bond loan Current part of bond loan Debt to credit institutions Current part of other non-current liabilites Other non-current liabilities Other current liabilities Totat net interest bearing liabilites Cash cash equivalents Net interest bearing liabilities (NIBD) Uemployed capital NIBD excl uemployed capital Presentation

24 Debt maturity profile Million NOK Bond Loan Bank debt Balloons DOF 07 - NOK 950 million - Maturity July Net NOK 410 million DOF 09 - NOK 700 million - Maturity Feb 2017 DOF Supply DOF 08 - NOK 600 million - Maturity Dec After Million NOK Bond Loan Bank debt Ballons E 2013E 2014E 2015E 2016E After DOFSUB03 PRO - NOK 500 million - Maturity July Net NOK 168 million DOFSUB05 - NOK 750 million - Maturity April 2016 DOF Subsea DOFSUB04 - NOK 750 million - Maturity April Net NOK 601 million DOF SUB 06 - NOK 700 million - Maturity Oct Net NOK 500 million Presentation

25 Remaining newbuild capex and financing New Builds DOF NOK 000 Vessel Name owner Delivery REMAINING CAPEX FINANCING EQUITY Charter Contracts Skandi Iguazu BN 27 Dof Naveg 2) June yrs Petrobras Skandi Atlantic (50%) Aker /DOF 3) March uncomitted Skandi Urca hull nr 30 Dof Naveg 4) Dec yrs Petrobras Skandi Angra hull nr 31 Dof Naveg 4) May yrs Petrobras Skandi Paraty hull nr 33 Dof Naveg 4) Dec uncomitted Skandi Kvitsøy, hull 759 PSV Invest 1 5) mar yrs Conoco Skandi Nova, hull 778 DOF Rederi 6) sep yrs Cococo Skandi Marøy, hull 779 DOF Rederi 6) okt yrs Cococo Skandi Hugen, hull 780 DOF Rederi 6) nov yrs Cococo Skandi Bergen, hull 771 DOF Subsea 6) May uncomitted TOTAL NEW-BUILDS GROUP DOF RELATIVE SHARE NEW-BUILDS (CONSOLIDATED) ) Financing secured FMM/BNDES 3) Financing secured via commercial bank and GIEK 4) 80% Financing secured via FMM/BNDES and GIEK, in progress with funding bank og GIEK transaction 5) Financing secured via NHD/GIEK and commercial bank 6) CIRR secured, in progress to secure with commercial banks Note: Capex include project management, spares and mobilization Presentation

26 DOF asset values Market value vessel - split on segment Valuations PSV: MT 6000, AHTS: UT 722, CSV: OSV 03 T H O U S A N D N O K PSV AHTS CSV - Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q QUARTER Fair market value of the DOF fleet has been stable and slightly increasing since 2007 Total fair market value of fleet (incl. newbuilds): NOK 36,7 bn (on 100 % basis) PSV: NOK 6 bn AHTS: NOK 11 bn* CSV: NOK 19,7 bn Total fair market value fleet in operation: NOK 30 bn * AHTS fleet is partly valued in USD Presentation

27 DOF Subsea in brief Presentation

28 Number of vessels MV fleet in Bn NOK DOF Subsea company history DOF Subsea was incorporated on 24 May 2005 after DOF ASA acquired GEO Group AS and its subsidiary Geoconsult AS DOF Subsea was established by in order to create a more effective organization with the aim of establishing a leading subsea services company In connection with the acquisition, transferred its multipurpose/rov vessels to DOF Subsea, constituting four vessels and one newbuild DOF Subsea is headquartered in Bergen, Norway DOF Subsea fleet evolution MV of fleet Note: On-going time-charter discussions on a number of uncommitted newbuilds Fleet: 11 vessels Fleet: 11 vessels Fleet: 13 vessels Fleet: 16 vessels Fleet: 18 vessels Fleet: 21 vessels Fleet: 25 vessels May: DOF acquired Geoconsult and established GEO (now DOF Subsea) Feb: Acquisition of Covus Corp May: Set up of Geo do Brazil Jan: Acquired 50% of SEMAR Jan: Acquired 100% of DOFCON Feb: Delivery of Geograph Jul: Delivery of Skandi Acergy Feb: Delivery of Skandi Salvador Mar: Delivery of Skandi Arctic Jan: Delivery of Skandi Aker Feb: Sale of Geo Challenger Feb: Delivery of Skandi Niteroi May: Sale of Geosounder May: Private placement of shares of NOK 715 mill Nov: Listed on Oslo Stock Exchange Nov: Acquisition of Century Subsea Aug: Established 50/50 JV in Brunei Mar: Establishment of Aker Oilfield Services Mar: Name change to DOF Subsea Apr: Acquisition of CSL Aug: Merger of Mgmt company with DOF Management AS Nov: Delivery of Skandi Seven and sale of Geofjord Dec: DOF Subsea acquired by DOF ASA and First Reserve JV with Technip Dec: Delivery of Skandi Santos Jun: Acquisition of SWG Jul: Delivery of Skandi Vitoria and Skandi Skolten Dec: Delivery of Skandi Hercules Jun: Acqusition Skandi Constructor Jul: Delivery of Skandi Skansen Sep: Delivery of Skandi Singapore Dec: Purchase newbuild contract. Presentation

29 DOF Subsea Brief summary No of vessels in operation: 24 No of newbuilds: 1 No of ROV s in operation: 47 Employees as per January 2012: 1,400 Marine crew 1,000 Total 2,400 Offshore engineers and project staff: 850 Back-log incl. options: NOK billion Market value of fleet: NOK 16 billion Number of shares: 119,733,714 Total Per Share Book equity: NOK 4.8 billion NOK Value adj. equity: NOK 6.8 billion NOK Presentation

30 Global player DOF Subsea Bergen (240) Aberdeen (345) St. Petersburg St. Johns (33) Houston(57) Macae Rio de Janeiro (286) Buenos Aires Cairo Angola (7) Singapore (126) Jakarta Perth (194) Manila Brunei GEOGRAPHICAL FOCUS AREAS Presentation

31 DOF Subsea Asset and Contract status DOF Subsea AS Presentation

32 Large, world class subsea vessel fleet DOF Subsea owns and operates one of the world s largest and most modern subsea vessel fleets DOF Subsea s fleet is far younger and better equipped than the market average Average vessel age of 6.8 years Value adjusted age of 3.1 years New vessels are safer and more comfortable for the crew creating knowledge consistency Segmented by function, DOF Subsea s fleet is generally in the top quartile in the relevant metrics of age, crane capacity, vessel length, deadweight capacity, positioning system, functional flexibility, etc Purposed built vessels in the high end segment Diving support Well intervention Flexible Lay Offshore construction Presentation

33 Level of barriers to entry Engineering requirement Level of industry barriers to entry DSV Complex subsea operations OSCV ROV Marine transport/ services AHTS PSV DOF Subsea s main presence is in segments with medium to high barriers to entry Presentation

34 CSV DOF Subsea - contract coverage (Vessels) DOF Subsea J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D Geograph Ocean Protector Skandi Seven Skandi Salvadore Skandi Vitoria Skandi Aker Skandi Santos Skandi Patagonia Skandi Carla Skandi Neptune Skandi Achiever Skandi Acergy Skandi Arctic Skandi Geosea Niteroi Skandi Skansen Skandi Inspector Skandi Constructor Skandi Singapore Skandi Hercules Skandi Skolten Geobay Geosund Geoholm Skandi Bergen FIRM CONTRACTS OPTIONAL PERIOD UNDER CONSTRUCTION Skandi Hawk Presentation

35 DOF Subsea AS Asset coverage Combined market value DOF Subsea s fleet is NOK 16,1 billion Asset-level gearing on the existing fleet is 63%, decreasing to 44% in 2014 Provides a significant equity cushion on top of the existing vessel-level financing Significant gearing reduction forecasted upon completion of the current newbuild program Gearing forecast summary Total Fleet Market value 100 % 80 % 60 % 40 % 20 % 0 % 37 % 43 % 48 % 56 % 69 % 79 % 63 % 57 % 52 % 44 % 31 % 21 % E 2013E 2014E 2015E 2016E Vessels NOK 16,057 Other Equipment (a) NOK 1,100 Total Fleet NOK 17,157 Note: Vessel values as of 31 December, 2011 (a) Includes ROVs, AUV, diving systems, other equipment Fleet Level Gearing Market Value Cushion * The figures reflects amortization and balloon payments on debt drawn as pr 31 December 2011 Presentation

36 Substantial subsea growth announced Supply side Newbuilding program within all subsectors limited Old fleet Financing constraints Demand side Surface to subsea activity increasing Subsea capex to double by 2014 Increased tendering for equipment Backlog Presentation

37 OUTLOOK Presentation

38 Short term AHTS exposure Name BHP BP Uncommitted from Skandi Skansen t January 2012 Skandi Skolten t May 2012 Skandi Saigon t In spot Skandi Emerald t March 2012 Skandi Møgster t March 2012 Skandi Pacific t April 2012 Skandi Atlantic t March 2012 Expect a strong AHTS market in 2012 Increased spot exposure in North Sea or renewals at increased rates? Skandi Skansen, signed contract with Subsea 7 Skandi Emerald, left Brazil end January, working in West Africa spot market, planned for North Sea spot when market picks up Skandi Møgster, new 2 years contract with OGX Presentation

39 Short term PSV exposure Name Deck area Uncommitted from Skandi Sotra 900 m 2 In North Sea spot market Skandi Falcon 850 m 2 In North Sea spot market Skandi Foula 900 m 2 April 2012 Skandi Rona 900 m 2 April 2012 Skandi Hawk m 2 February 2012 Skandi Waveney 680 m 2 January 2012 Expect a good PSV market in 2012, but worried longer term due to high order book Skandi Falcon firm long term contract in Australia Skandi Foula and Skandi Rona new 5 years contracts with Shell UK Skandi Hawk, will work in the Asia Pacific subsea market Skandi Waveney, x 1 year contract in Holland Presentation

40 Short term outlook Supply: Skandi Feistein delivered and onhire in December Skandi Pacific onhire in Vietnam in November Skandi Amazonas onhire in Brazil in December Skandi Møgster 2 years contract with OGX New and higher rates for Skandi Leblon, Skandi Botafogo and Skandi Flamengo in Brazil Expect strong AHTS market from Q2 Subsea/CSV: Good utilization and rates for the North Sea project fleet in Q4, and surprisingly high activity in January 2012 Skandi Singapore started full operations Geosea onhire to Petrobras mid February Several new contracts awarded during the last month. Much better visibility and higher rates than in 2011 Expect Q in line or slightly better than Q Presentation

41 Thank you

42 DISCLAIMER This presentation by designed to provide a high level overview of aspects of the operations of the DOF ASA Group. The material set out in the presentation is current as at 27 February, This presentation contains forward-looking statements relating to operations of the Group that are based on management s own current expectations, estimates and projections about matters relevant to s future financial performance. Words such as likely, aims, looking forward, potential, anticipates, expects, predicts, plans, targets, believes and estimates and similar expressions are intended to identify forwardlooking statements. References in the presentation to assumptions, estimates and outcomes and forward-looking statements about assumptions, estimates and outcomes, which are based on internal business data and external sources, are uncertain given the nature of the industry, business risks, and other factors. Also, they may be affected by internal and external factors that may have a material effect on future business performance and results. No assurance or guarantee is, or should be taken to be, given in relation to the future business performance or results of the Group or the likelihood that the assumptions, estimates or outcomes will be achieved. While management has taken every effort to ensure the accuracy of the material in the presentation, the presentation is provided for information only., its officers and management exclude and disclaim any liability in respect of anything done in reliance on the presentation. All forward-looking statements made in this presentation are based on information presently available to management and assumes no obligation to update any forward looking- statements. Nothing in this presentation constitutes investment advice and this presentation shall not constitute an offer to sell or the solicitation of any offer to buy any securities or otherwise engage in any investment activity. You should make your own enquiries and take your own advice (including financial and legal advice) before making an investment in the company's shares or in making a decision to hold or sell your shares. Presentation

43 Appendix Presentation

44 CSV AHTS PSV DOF contract coverage DOF Supply J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D Skandi Falcon Skandi Marstein Skandi Foula Skandi Rona Skandi Buchan Skandi Sotra SPOT Skandi Caledonia Skandi Barra Skandi Texel Skandi Mongstad Skandi Flora Skandi Gamma Skandi Waveney Skandi Hawk Skandi Feistein Skandi Kvitsøy Skandi Nova Skandi Marøy Skandi Hugen Skandi Stord Skandi Admiral Skandi Vega Skandi Fjord Skandi Olympia Skandi Commander FIRM CONTRACTS OPTIONAL PERIOD UNDER CONSTRUCTION Presentation

45 AHTS Aker DOF Deepwater contract coverage Aker DOF Deepwater J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D Skandi Peregrino Skandi Emerald SPOT West Afica Skandi Saigon SPOT North Sea Skandi Pacific Skandi Atlantic FIRM CONTRACTS OPTIONAL PERIOD UNDER CONSTRUCTION Presentation

46 CSV AHTS PSV DOF / Norskan /DOF Subsea - contracts in Brazil Norskan J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D Skandi Leblon Skandi Flamengo Skandi Yare Skandi Stolmen Skandi Captain Skandi Copacabana Skandi Botafogo Skandi Rio Skandi Fluminense Skandi Giant Skandi Møgster Skandi Admiral Skandi Ipanema Skandi Amazonas Skandi Iguacu Skandi Angra Skandi Urca Skandi Paraty Skandi Chieftain Skandi Hav Skandi Salvador Skandi Santos Skandi Vitoria Geograph Skandi Commander Skandi Niterói Skandi Skolten Geosea * DOF SUPPLY ** DOF SUBSEA FIRM CONTRACTS OPTIONAL PERIOD UNDER CONSTRUCTION Presentation