2008 Q3 results presentation

Transcription

1 2008 Q3 results presentation 17 November,

2 Important notice This document contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Forwardlooking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words believes, expects, predicts, intends, projects, plans, estimates, aims, foresees, anticipates, targets, and similar expressions. The forward-looking statements, contained in this document, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are uncertain and subject to risks. A multitude of factors can cause actual events to differ significantly from any anticipated development. Neither the Company nor any of its subsidiary undertakings nor any of its officers or employees guarantees that the assumptions underlying such forward-looking statements are free from errors nor does any of the foregoing accept any responsibility for the future accuracy of the opinions expressed in this document or the actual occurrence of the forecasted developments. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, neither the Company nor any of its subsidiary undertakings nor any such person s officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document. 2

3 Highlights Q3 2008; on track for full year guidance Consistent results with strong cashflow Adjusted EBITDA up 24% to USD 43.5 million Strong operational and free cash flows Additional one-off cash item of USD 14 million Fleet expansion program ahead of budget; CAPEX savings close to USD 20 million Current performance in line for full year targets and guidance 3

4 Feasibility of full year forecast, visibility on future revenues Sound commercial environment Increase in backlog* to USD 412 million Recent major contracts extend backlog into 2014 Tenders for offshore and T&I projects Tenders for onshore industrial projects Rig and dredging markets support strong last quarter 2008 USD 84 million of end Q3 backlog relate to 2008 Additional USD 27 million contracts announced since 30 September 2008 Schedule for Q4 largely filled *backlog contains signed contracts only 4

5 Vyborg: USD 84 million Transport and installation contract 5

6 Vyborg: USD 84 million Transport & Installation contract Max 4.0 m support Min m draft 6

7 Koniambo: USD 22 million Onshore Industrial contract 7

8 Navantia: USD 31 million Military Transport contract 8

9 Various rig and other cargoes Ocean Heritage on Talisman Ursa on Swift Exmar s Opti 6000 on Swan Sunborn on Tern 9

10 Expansion of fleet nearing completion Vessel name Expected date of delivery Current status Trustee End of 2008 In yard Triumph End of 2008 In yard Mighty Servant 3 First quarter 2009 In yard 10

11 MS3 refurb at advanced stage Main deck MS3 Wheelhouse spaces MS3 Engine room details MS3 11

12 Income statement Amounts in USD million and rounded Q2 08 Q3 08 Q3 07 Change Revenue % Adjusted Revenue (1) % EBITDA % Margin 42.2% 41.4% 40.2% Adjusted EBITDA (2) % Margin 45.2% 40.4% 45.2% Net Profit / (Loss) (14.1) n.a. Adjusted Net Profit / (Loss) (2)(3) (0.9) n.a. 1. Includes compensation for the Mighty Servant 3 2. Includes compensation for the Mighty Servant 3 and excludes gain on sale mid-sections 3. Excludes backlog amortization related to 2007 transactions and amortization capitalized loan fees in

13 Revenue: solid growth Revenue Q307 Q208 Q308 Revenue up 43% compared to Q Revenue compared to Q Dry-docking and Life Time Extension for MS1 Survey and dry-docking Swift Delays in contract lettings to drilling contractors Future growth in Offshore, T&I and Onshore will reduce quarterly volatility in revenue Offshore, T&I and Onshore Rigs, Military, P&MI and Various DYT 13

14 Schedule for Q July August September BLUE MS1 BLACK TRS MS3 TRP TAR TAL TRE TRU TRI SWAN SWIFT TEAL TERN DE10 DE12 ENT Offshore, Onshore, T&I Rigs Various % % % % % % % % % % % % % % % Days Q Days Q Days Q Note: During Q3 MS1 had a LTE and Swift had normal survey Days Q Days Q

15 Operating expenses: tight control Operating expenses Increased business volumes compared to Q Level of contract related costs depending on project mix Higher proportion various cargoes Offshore projects executed on type III and IV vessels DYT costs: increased fleet scale and fuel costs Q307 Q208 Q308 Contract related HL Vessel operating Contract related DYT SG&A 15

16 Balance Sheet Amounts in USD million and rounded 30 Sept June Dec March Sept Property, plant & equipment Intangible assets Other assets Total assets 1, , , ,599.6 Total equity NC Interest bearing borrowings Other liabilities Total liabilities 1, , , ,599.6 CAPEX USD 18 million in Q3 Equity is subject to quarterly changes in financial instruments 16

17 Debt and finance expenses , x 8.0 x 7.0 x 6.0 x 5.0 x 4.0 x 3.0 x 2.0 x 1.0 x 0.0 x Covenants Q Q Q Q Q Cash Flow Cover Cash Flow Cover requirement Interest Cover Interest cover requirement Leverage Ratio Leverage Ratio requirement 80.0 Dec 31 '07 September 30 '08 Tranche A* Tranche B Tranche C Second Lien Revolver * Including current maturity USD 5.0 million (payable 30 th June 2009) 17

18 Update on covenant ratios Ratio Q4 '08 Q2 '09 Q4 '09 Q2 '10 Q4 '10 Q2 '11 Q4 '11 Q2 '12 Q4 '12 Cashflow Cover >= Interest Cover >= Leverage Ratio <= Definitions Update on Interest rates and CAPEX Cashflow cover Interest Cover Leverage Ratio Free Cashflow Net debt service Consolidated EBITDA (Sealift adj.)* Net Finance Charges Consolidated Total Net Debt Consolidated EBITDA (Sealift adj.)* 25% 75% Floating Libor IRSwaps Fixed Libor Floating Fixed: 4.97% + average Margin: 2.93% average IR rate 2008: Approx. 7.4% * adjustments made to EBITDA for vessels of Sealift converted in '07 and '08 18

19 Cash flow: in line with 2008 CAPEX strategy Amounts in USD million and rounded Q Q Q Q Cash generated by operations incl. tax Interest paid and received (20.4) (34.9) (25.6) (19.5) Net cash generated from operating activities (10.9) 25.9 Net cash used in investing activities (3.7) (110.7) (33.3) (47.9) Net cash from financing activities (16.6) Net Cash Flow 10.9 (0.2) 1.4 (11.8) Strong operational and free cashflow in Q3 Investing activities Q include USD 14 million cashback for divestment mid-sections 19

20 Backlog: visible and stable earnings Backlog breakdown * Q3 2008: rigs, military, P&MI, etc 17% % 34% % Q3 2008: onshore, offshore, T&I % 9% % % Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 ' * Data as at end of quarter

21 Sustainability throughout different cycles Exploration Field development Downstream Horizon 1: Drilling rigs High drilling activity from rig global fleet by 2010 Higher global rig utilization spread Higher complexity wells Deepwater activity increases Horizon 2: Offshore modules & float overs Deepwater platforms Increase in size Higher complexity in structures Increase in size and weight of decks Greater global activity Increase in float over installations Continued development drilling Horizon 3: Onshore Increased downstream investments Larger global spread More remote construction sites Environmentally sensitive construction locations Greater use of modular concepts Increase of module weight and sizes 21

22 Summary Steady operational performance and strong backlog development Good cash generation and cost control Confident of 2008 guidance Capex program for fleet development nearing completion Next priority: utilize free cashflow to reduce debt 22