First quarter Shippingklubben 10 May 2012

Transcription

1 First quarter 2012 Shippingklubben 10 May 2012

2 Important information THIS PRESENTATION AND ITS ENCLOSURES AND APPENDICES (HEREINAFTER JOINTLY REFERRED TO AS THE PRESENTATION ) HAVE BEEN PREPARED BY SEVAN DRILLING ASA ( SEVAN DRILLING OR THE COMPANY ) EXCLUSIVELY FOR INFORMATION PURPOSES. THIS PRESENTATION HAS NOT BEEN REVIEWED OR REGISTERED WITH ANY PUBLIC AUTHORITY OR STOCK EXCHANGE. RECIPIENTS OF THIS PRESENTATION MAY NOT REPRODUCE, REDISTRIBUTE OR PASS ON, IN WHOLE OR IN PART, THE PRESENTATION TO ANY OTHER PERSON. THE CONTENTS OF THIS PRESENTATION ARE NOT TO BE CONSTRUED AS LEGAL, BUSINESS, INVESTMENT OR TAX ADVICE. EACH RECIPIENT SHOULD CONSULT WITH ITS OWN LEGAL, BUSINESS, INVESTMENT AND TAX ADVISER AS TO LEGAL, BUSINESS, INVESTMENT AND TAX ADVICE. THERE MAY HAVE BEEN CHANGES IN MATTERS WICH AFFECT THE COMPANY SUBSEQUENT TO THE DATE OF THIS PRESENTATION. NEITHER THE ISSUE NOR DELIVERY OF THIS PRESENTATION SHALL UNDER ANY CIRCUMSTANCE CREATE ANY IMPLICATION THAT THE INFORMATION CONTAINED HEREIN IS CORRECT AS OF ANY TIME SUBSEQUENT TO THE DATE HEREOF OR THAT THE AFFAIRS OF THE COMPANY HAVE NOT SINCE CHANGED, AND THE COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION, TO UPDATE OR CORRECT ANY INFORMATION INCLUDED IN THIS PRESENTATION. THIS PRESENTATION INCLUDES AND IS BASED ON, AMONG OTHER THINGS, FORWARD-LOOKING INFORMATION AND STATEMENTS. SUCH FORWARD-LOOKING INFORMATION AND STATEMENTS ARE BASED ON THE CURRENT EXPECTATIONS, ESTIMATES AND PROJECTIONS OF SEVAN OR ASSUMPTIONS BASED ON INFORMATION AVAILABLE TO THE COMPANY. SUCH FORWARD-LOOKING INFORMATION AND STATEMENTS REFLECT CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS, UNCERTAINTIES AND ASSUMPTIONS. SEVAN CANNOT GIVE ANY ASSURANCE AS TO THE CORRECTNESS OF SUCH INFORMATION AND STATEMENTS. AN INVESTMENT IN THE COMPANY INVOLVES RISK, AND SEVERAL FACTORS COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT MAY BE EXPRESSED OR IMPLIED BY STATEMENTS AND INFORMATION IN THIS PRESENTATION, INCLUDING, AMONG OTHERS, RISKS OR UNCERTAINTIES ASSOCIATED WITH THE COMPANY S BUSINESS, SEGMENTS, DEVELOPMENT, GROWTH MANAGEMENT, FINANCING, MARKET ACCEPTANCE AND RELATIONS WITH CUSTOMERS, AND, MORE GENERALLY, GENERAL ECONOMIC AND BUSINESS CONDITIONS, CHANGES IN DOMESTIC AND FOREIGN LAWS AND REGULATIONS, TAXES, CHANGES IN COMPETITION AND PRICING ENVIRONMENTS, FLUCTUATIONS IN CURRENCY EXCHANGE RATES AND INTEREST RATES AND OTHER FACTORS. 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 DOCUMENT. THE COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION, TO UPDATE OR CORRECT THE INFORMATION INCLUDED IN THIS PRESENTATION. THIS PRESENTATION IS SUBJECT TO NORWEGIAN LAW, AND ANY DISPUTE ARISING IN RESPECT OF THIS PRESENTATION IS SUBJECT TO THE EXCLUSIVE JURISDICTION OF NORWEGIAN COURTS. 2

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4 01 Highlights 4

5 Highlights in Q1 Operating revenues of USD 31.0 million Including USD 0.9 million of revenues related to revenue for work delivered to Cosco Shipyard Technical uptime of 77.8% and commercial uptime of 76.0% Mainly related to incident with the wash pipe and swivel drive shaft in January Cost control Operational expenses and overhead costs according to expectations USD 2.0 million cost related to January incident Acceptance testing of Sevan Brasil imminent Arrival in Rio de Janeiro on 29 April On track for startup in Q Sevan Drilling transferred from Oslo Axess to the main list on Oslo Børs on 13 February Erling Lind elected as new chairman and Kristian Johansen and Per Wullf elected as new board members at the EGM on 9 January, 2012 The long term incentive plan was approved by the EGM and granted the authorization to the Board of Directors to issue up to 10 million new shares to fulfill such program 5

6 02 Financial review 6

7 Income statement Profit and loss account All figures in USD million Q Q Operating Income Operating Expense EBITDA Depreciation, Amortization and impairment Operating Profit / (Loss) Financial Income/(expense) Foreign Exchange gain/(loss) relating to financing Net Financial Items Profit / (Loss) before tax Tax income / (expense) Net Profit / (loss) Quarter marked by challenging operations Revenues of USD 31.0 million EBITDA of USD 2.8 million Commercial uptime 76.0% Technical uptime 78.0% Operational expenses as expected Overhead and pre-operational expenses in total of USD 9.5 million Sevan Driller cash opex of USD 164k/day. Repair cost USD 2.0 million Financial expenses of USD 4.2 million USD 3.9 million in interest expenses USD 1.2 million in amortization of upfront loan fee (non-cash) 7

8 Balance sheet Balance sheet All figures in USD million Q Q Drilling Rigs Other fixed assets Intangible assets Deferred income tax assets Other non-current assets Total non-current assets Inventories Trade and other receiveables Cash and cash equivalents Total current assets TOTAL ASSETS Share Capital Other equity Total equity Interest bearing debt Other non-current liabilities/provisions Total non-current liabilities Interest bearing debt Current liabilities 118, Total current liabilities Total liabilities Total equity and liabilities Cash balance of USD 89.2 million Payment of USD 47 million from Cosco in Q under the Project Management Agreement, Pre-ops agreement and License Agreement for Sevan Drilling Rig no 3 and 4 Agreed revised payment terms for Rig no 4; 90 % payment on delivery of the rig in Q Equity ratio of 40% per Q

9 Debt maturity schedule Amortization fully covered by revenues under the charter contracts Debt amortization schedule by Q USD million Amortization for Sevan Brasil does not start until 6 months after acceptance Assuming budgeted uptime for Sevan Driller the balloon will be reduced to less than USD 100 million Installment Sevan Drilling Rig no 4 Bullet - bank debt Amortization - bank debt 9

10 03 Operational update 10

11 Operations and uptime Uptime in Q1 influenced by incidents related to wash pipe and repair of a control line on the BOP 78% technical uptime 76% commercial uptime 67% uptime in April. Most of down-time in April is related to repair of the control line on the BOP Weak uptime in Q1 challenging operations 90% 91% 94% 96% 88% 88% 98% 100% 78% 76% Petrobras Bad Sonda rating system: (Scale 1 to 10): January 8.5 February 9.4 March 9.3 April 9.2 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Technical uptime Commercial uptime 11

12 Sevan Brasil soon ready for acceptance testing March 6: Departed China April 29: Arrived Rio de Janerio Contract start by end of Q SEA TRIALS ACCEPTANCE TESTING JANUARY FEBRUARY MARCH APRIL MAY JUNE Next steps Importation and custom clearance Installation of thrusters to be completed by the end of next week Acceptance testing with Petrobras Review of documentation was completed by Petrobras in March Testing of the marine and drilling systems will start mid-may All rig employees to be approved and registered in the Petrobras rig-employee register Commencement under the Petrobras contract by end of Q

13 Uptime projections for Sevan Brasil Average uptime on Sevan Brasil is projected at: 80% for first 6 months 85% for next 6 months 90% for next 6 months Largest impact in first 6 months 52% 80% 84% 85% 94% 90% 95% 95% Why the improvement Lessons learned on Sevan Driller (i.e.. DAT Cylinders) Rig fully commissioned before transit Transit using heavy lift instead of rig power 1st 6 Mo. 2nd 6 Mo. 3rd 6 Mo. Target Established Phase Sevan Driller Sevan Brasil 13

14 Rig expansion update Construction of newbuilds on schedule Total price USD 526 million per unit Delivery in Q and Q Increased marketing of both rigs UDW market even stronger Rig availability is lower Up-tick in fixtures activity Rate increase in Q1 Options for two UDW expires 10 December 14

15 04 Summary and outlook 15

16 Outlook Focus on safe and efficient operations of Sevan Driller and Sevan Brasil Firm cost control Acceptance testing of Sevan Brasil imminent Estimated commencement date under the Petrobras contract Q Construction of Rig No.3 and No. 4 according to plan Rigs available in Q and Q Marketing Project Management 16

17 Investor update Sevan Drilling invite for an investor update on 20 June, 2012 at 2 pm. 17

18 The pure-play ultra deepwater drilling company.