DOF Subsea Financial Report Q2 2013

Transcription

1 DOF Subsea Financial Report Q2 2013

2 DOF Subsea AS Thormøhlens gate 53 C 5006 Bergen NORWAY

3 Index Financial Report 2nd quarter Accounts 2nd quarter Group statement of comprehensive income...8 Group statement of financial position balance...9 Group statement of cash flow...11 Condensed statement of shareholder s equity...12 Key figures Notes to the accounts...14 Note 1 General...14 Note 2 Segment reporting...14 Note 3 Events after balance date...15 Note 4 Net interest bearing debt...16 Note 5 Transactions with related parties...16 Note 6 Taxes Note 7 Shareholder information Note 8 Financial income and expenses Supplemental information...18 Profit and loss accounts 5 last quarters...18 Balance sheet 5 last quarters...19

4 Financial Report Q DOF Subsea Financial Report 2nd quarter Headlines During the 2nd quarter 2013 DOF Subsea has been awarded multiple new subsea contracts in the Asia Pacific Region, utilizing the vessels Skandi Singapore, Skandi Hercules and Skandi Hawk. In the Atlantic region the work scope on some of the contracts has increased, leading to high activity in the region. During the 2nd quarter the charter contracts on Skandi Seven, with Subsea 7, have been extended for an additional year. During June DOF Subsea delivered the vessel Geobay to the new owner and took delivery of the newbuilding Skandi Bergen from VARD. The total operating income for the 2nd quarter of 2013 was NOK million (vs. NOK million in 2nd quarter 2012). The EBITDA was NOK 476 million (NOK 673 million, including a profit from sale of non-current assets of NOK 203 million). Operation events During the 2nd quarter 2013 the average utilization of the project vessels has been 85 % with a utilization of 76 % in April, 86 % in May and 92 % in June. During April and May two vessels were in transit to and from the Gulf of Mexico. The utilization of the time charter vessels has been 100 % in April, 96 % in May and 100 % in June. The total utilization of the fleet, both time charter and project vessels, has been 93 % in April, 93 % in May and 98 % in June. During the quarter one vessel has been dry-docked and two vessels have had yard stay for repair/upgrading. All utilization numbers are based on actual available days, not excluding days at yard for dry-docking or repair/ upgrading or transit/idle time between projects. Skandi Constructor entered into a long-term charter in the beginning of April, and the charter contract on Skandi Seven was extended by Subsea 7. The Group has had a quarter with high activity in all regions and have chartered in several vessels, both in the Atlantic and North America regions, resulting in a record-high turnover. P&L and balance sheet The total operating income for the 2nd quarter of 2013 was NOK million (NOK million). The EBITDA was NOK 476 million (NOK 673 million, including a profit from sale of non-current assets of NOK 203 million) whilst EBIT amounted to NOK 281 million (NOK 497 million, including a profit from sale of non-current assets of NOK 203 million) after depreciation of NOK 195 million (NOK 178 million). Net financial loss was NOK 313 million (NOK 541 million) including an unrealized loss on financial instruments of NOK 155 million (NOK 342 million), giving a pre-tax loss of NOK 32 million (loss of NOK 46 million). The total operating income for the 6 first months of 2013 was NOK million (NOK million). The EBITDA was NOK 805 million (NOK million, including a profit from sale of non-current assets of NOK 203 million) whilst EBIT amounted to NOK 416 million (NOK 739 million, including a profit from sale of non-current assets of NOK 203 million) after depreciation of NOK 390 million (NOK 345 million). Net financial loss amounted to NOK 527 million (NOK 530 million), including unrealized loss on financial instruments of NOK 201 million (NOK 154 million), giving a pre-tax loss of NOK 111 million (NOK 208 million) and a loss after tax of NOK 113 million (NOK 248 million). Total assets were NOK million (NOK million) by the end of 2nd quarter Total fixed assets amounted to NOK million (NOK million) including NOK 658 million (NOK 568 million) in intangible assets. Total current assets amounted to NOK million (NOK million) of which NOK million (NOK million) was cash and cash equivalents. Total equity was NOK million (NOK million) and the non-current liabilities was NOK million (NOK million), of which NOK million was debt to credit institutions and NOK million was bond loans. Current liabilities amounted to NOK million (NOK million) of which NOK million (NOK million) was short portion of debt to credit institutions and bond loans. By 30th of June the equity ratio was 25 % whilst the value adjusted equity ratio was 36 % Cash flow from operating activities as per was NOK 308 million (NOK 583 million). Cash flow from investing activities was negative NOK 810 million (negative NOK 122 million). Cash flow from financing activities was NOK 688 million (negative NOK 291 million). Net change in cash and cash equivalents was NOK 314 million (NOK 54 million). The working capital, excluding short-term portion of long-term debt, as per was NOK million (NOK million). The increase is a result of increased subsea project activity.

5 DOF Subsea Financial Report Q Financing During the 2nd quarter the vessel Skandi Bergen was financed by Swedbank, GIEK and Eksportkredit. The financing of the vessel was done at market terms for offshore financing and with no changes to the DOF Subsea Group s covenants. Financial risk The Group s operating income is in NOK, USD, AUD, GBP and BRL, while the Group s loans are distributed between NOK and USD. This exposes the Group to the risk of exchange rate fluctuations. The Group has an active exchange rate policy, and uses derivatives to hedge the exchange rate exposure. The Group is exposed to fluctuations in interest rates. Part of the Group s loans has fixed interest rates, reducing the exposure. The Group has an active interest rate policy, and uses derivatives to hedge the interest rate exposure. The Group has prepaid instalments to shipyards for vessels under construction. The prepaid instalments are ensured by parent company s guarantee or by bank guarantees. Shareholders The shares in DOF Subsea AS are 100 % owned by DOF Subsea Holding 2 AS. The number of outstanding shares is , with a book value of NOK per share. The value adjusted equity per share as per 30th of June was NOK Employees As per 30th of June the number of employees in the DOF Subsea Group was persons. The numbers do not include marine employees that are employed in DOF Sjø AS and Norskan S.A. designed and constructed by VARD. Two of the vessels will be built in Norway and delivered in 2Q 2016 and 3Q 2016 respectively. The other two vessels will be built in Brazil and delivered in 4Q 2016 and 2Q 2017 respectively. The combined value of the contracts for the firm period for the DOF Group is approximately NOK 10 billion. The total investment for DOF Subsea is approx. USD 625 million and the annual EBITDA contribution will be approx. USD 110 million. The Group was awarded several contracts in the Atlantic region and the scope of the ongoing Banff project for Teekay has increased. The projects will utilize the vessels Skandi Bergen and Skandi Skolten in addittion to chartered external vessels. The Group was awarded several contracts in the Asia Pacific region, utilizing the vessels Skandi Singapore and Skandi Hawk. The Group has been awarded a new contract by Chevron for the vessel Skandi Salvador. The contract will start in September 2013 and the firm period ends in December Market outlook The majority of the Group s vessels are fixed on long-term contracts. The contract backlog including options amounted to approximately NOK 30 billion as of 21st of August, compared to approximately NOK 16 billion reported for Q However, the Group is exposed to the short-term market on the project vessels. On these vessels the management are working to increase the contract backlog. With the current oil price and the expected subsea investments in the years to come, the Board of Directors are expecting a stable subsea market for the next 12 months. 5 The Fleet As per 30th of June 2013 the Group s fleet comprised of 24 owned vessels, one long term chartered in vessel, one newbuilding and a ROV fleet of 52 units. The Board of Directors is very pleased with the increased activity and the high order intake, both in the time charter and subsea project segments. The record-high back-log secures earnings visibility for the Group over the next couple of years. Events after balance date Subsea 7 extended the charter contract on Skandi Neptune with one year from March DOF Subsea AS 21st of August 2013 Petrobras has extended the contract for Skandi Vitória with two years from September The extension of the charter contract is done in line with the current market. A joint venture owned by DOF Subsea and Technip was awarded four contracts by Petrobras, covering the construction of four new pipelay support vessels (PLSVs). The vessels will be Contact information: Mons S. Aase, CEO DOF Subsea AS Thormølens gate 53 C 5006 Bergen

6 Financial Report Q DOF Subsea Confirmation from the Board of Directors We confirm that, to the best of our knowledge, the half-year financial statements for the period 1st of January to 30th of June 2012 have been prepared in accordance with IAS 34 Interim Financial Reporting, and that the information in the accounts gives a true and fair view of the Group s assets, liabilities, financial position and overall result. We also confirm that, to the best of our knowledge, the half-year report provides a true and fair view of significant events during the accounting period and their impact on the half-year accounts, the most central risk and uncertainty factors faced by the Group during the next accounting period, and of significant transactions with related parties. Bergen, 21 August 2013 The Board of Directors of DOF Subsea AS 6 Helge Møgster Chairman Helge Singelstad Board member Mons S Aase CEO/Board member Hilde Drønen Board member Alex Townsend Krueger Board member Neil John Hartley Board member James Brooks Board member John Mogford Board member

7 DOF Subsea Financial Report Q

8 Financial Report Q DOF Subsea Amounts in NOK million Accounts 2nd quarter 2013 Group statement of comprehensive income Note 2Q Q 2012 YTD 2013 YTD Operating income Total operating income Payroll expenses Other operating expenses Profit from sale of non-current assets Total operating expenses Operating profit before depreciation (EBITDA) Depreciation Operating profit (EBIT) Income / loss from associated companies Financial income Financial expenses Realized gain / loss on financial instruments Unrealized gain / loss on financial instruments Net financial income / loss Profit / loss before tax Tax expenses Profit / loss for the period Currency translation difference (CTA) Cash flow hedges Defined benefit plan actuarial gains / losses - -3 Other comprehensive income Total comprehensive income for the period Total comprehensive income attributable to: Non-controlling interests Owners of the parents

9 DOF Subsea Financial Report Q Amounts in NOK million Group statement of financial position balance Deferred tax benefit Goodwill Intangible assets Vessels ROVs Machinery and other equipment Newbuilds Tangible assets Investment in associates Other non-current receivables Financial assets Total fixed assets Fuels reserves and other inventory Trade receivables Current receivables from group companies Other current receivables Financial current derivatives Total receivables Restricted cash Unrestricted cash and cash equivalents Cash and cash equivalents Total current assets Total assets

10 Financial Report Q DOF Subsea Amounts in NOK million Group statement of financial position balance (continued) Share capital Other paid-in capital Share premium fund Subscribed equity Retained earnings Non-controlling interests Total equity Deferred taxes Pensions Financial non-current derivatives Non-current provisions for commitments Bond loans Debt to credit instistutions Other non-curent liabilities Non-current liabilities Short portion of debt to credit institutions Trade payables Current liabilities to group companies Tax payables Public duties payables Financial current derivatives Other current liabilities Current liabilities Total liabilities Total equity and liabilities

11 DOF Subsea Financial Report Q Amounts in NOK million Group statement of cash flow Profit before tax Depreciation Gain/loss sold vessel Share of gain / loss from associated companies Change in trade receivables Change in trade payables Changes in other accruals Unrealised gain / loss financial assets Unrealised foreign exchange gain / loss Cash flow from operating activities Net interest booked in profit / loss Interest received Interest paid Tax paid Net cash flow from operating activities (1) Sale of tangible assets Purchase of tangible assets Purchases of intangible assets Change in intercompany receivables/debt Change in other long term receivables Cash flow from investing activities (2) Proceeds from non-current liabilities Instalments on non-current liabilities Minority interest Cash flow from financing activities (3) Net change in cash and cash equivalents Cash and cash equivalents at the beginning of the period Exhange rate gain/loss on cash and cash equivalents Cash and cash equivalents at the end of the period

12 Financial Report Q DOF Subsea Amounts in NOK million Condensed statement of shareholder s equity Equity at period start Profit / loss for the period Currency translation difference (CTA) Cash flow hedges Defined benefit plan actuarial gains / losses Total comprehensive income for the period Non-controlling interest Equity at period end Key figures Profit per share¹ -0,94 2,08 3,96 Profit per share excl. non-controlling interest² -1,01 2,02 3,86 Profit per share excl. unrealized currency loss / gain³ 0,74 3,36 4,81 Cash flow per share⁴ 1,55 1,42 1,07 EBITDA margin⁵ 28 % 39 % 34 % EBIT margin⁶ 14 % 26 % 21 % Return on net capital⁷ -2 % 5 % 10 % Equity ratio⁸ 25 % 26 % 27 % Value adjusted equity ratio9 36 % 35 % 37 Book equity per share Value adjusted equity per share No. of shares Face value per share ) Result incl. non-controlling share / average number of shares 2) Result excl. non-controlling share / average number of shares 3) Result incl. non-controlling share excl. unrealized currency gain / loss / average number of shares 4) Changes in cash and cash equivalents / average number of shares 5) Operating profit before depreciation / operating income (excl. profit from sale of non-current asset) 6) Operating profit / operating income (excl. profit from sale of non-current asset) 7) Profit after tax / booked equity 8) Booked equity / total capital 9) Value adjusted equity / total capital 10) Booked value of equity / No of shares 11) Value adjusted equity / No of shares

13 DOF Subsea Financial Report Q

14 Financial Report Q DOF Subsea Amounts in NOK million Notes to the accounts Note 1 General This interim report has been prepared in accordance with the standard for interim reporting (IAS34). Amendments to the standards and their interpretation may result in amended figures. The accounting principles and calculation methods applied for the last annual accounts published have been applied to this document. Changes in IAS 19 Employee benefits are applied from 1st of January The amendments are effective for the treatment of the Group`s benefit plans. Effect of these changes is that all actuarial gains and losses are recognized in other comprehensive income as they arise (no corridor). For DOF Subsea Group these effects are immaterial. Prior year figures are therefore not restated. In this period actuarial losses are recognized with NOK 3 million in other comprehensive income. See condensed statement for shareholder`s equity. The Financial Statement is unaudited. 14 Note 2 Segment reporting Operating income 2Q Q 2012 YTD 2013 YTD TC Projects Total EBITDA TC Projects Total Time Charter segment is covering all vessels on long-term Charters to external customer. The Projects segments is covering the groups integrated service activities in survey, subsea construction and inspection repair and maintenance services (IRM), and use of vessels.

15 DOF Subsea Financial Report Q Amounts in NOK million Note 3 Events after balance date Subsea 7 extended the charter contract on Skandi Neptune with one year from March Petrobras has extended the contract for Skandi Vitória with two years from September The extension of the charter contract is done in line with the current market. A joint venture owned by DOF Subsea and Technip was awarded four contracts by Petrobras, covering the construction of four new pipelay support vessels (PLSVs). The vessels will be designed and constructed by VARD. Two of the vessels will be built in Norway and delivered in 2Q 2016 and 3Q 2016 respectively. The other two vessels will be built in Brazil and delivered in 4Q 2016 and 2Q 2017 respectively. The combined value of the contracts for the firm period for the DOF Group is approximately NOK 10 billion. The total investment for DOF Subsea is approx. USD 625 million and the annual EBITDA contribution will be approx. USD 110 million. The Group was awarded several contracts in the Atlantic region and the scope of the ongoing Banff project for Teekay has increased. The projects will utilize the vessels Skandi Bergen and Skandi Skolten in addittion to chartered external vessels. The Group was awarded several contracts in the Asia Pacific region, utilizing the vessels Skandi Singapore and Skandi Hawk. The Group has been awarded a new contract by Chevron for the vessel Skandi Salvador. The contract will start in September 2013 and the firm period ends in December

16 Financial Report Q DOF Subsea Amounts in NOK million Note 4 Net interest bearing debt Bond loan floating rate Debt to credit institutions Total non-current interest bearing debt Bond loan floating rate Debt to credit institutions Total current interest bearing debt Total non-current and current interest bearing debt Cash and cash equivalent Other non-current interest bearing assets Net interest bearing debt * A long term loan has been provided by Eksportfinans and is invested as a restricted deposit. The repayment terms on the loan from Eksportfinans is equivalent with the reduction on the deposit. The loan is fully repaid in The cash deposit is included in restricted deposits. 16 Financial covenants The Group s long-term financing agreements include the following covenants: - The Group shall have available cash of at least NOK 400 million at all times. - The Group shall have value adjusted equity to value adjusted assets varying from %. - The Group shall have book equity of at least NOK million at all times. - The Group shall have positive working capital at all times. - The fair value of the Group s vessels shall always be at least % of the outstanding loan amount. In addition to the above-mentioned financial covenants, the loan agreements are also subject to the following conditions: - The Group s assets shall be fully insured. - There shall not be any change to classification, management or ownership of the ships without the prior written approval of the banks. - DOF ASA should own directly or indirectly a minimum of 50 % of the shares of DOF Subsea AS. - DOF Subsea AS shall not merge, demerge or divest activities without the prior written approval of the banks. - DOF Subsea AS shall report financial information to the banks and Oslo Stock Exchange on a regular basis. - The Group s vessels shall be operated in accordance with current laws and regulations. The Group is in compliance with all the loan terms. Note 5 Transactions with related parties Description of transaction with related parties is described in the Annual Report for There are no major changes in type of transactions between related parties.

17 DOF Subsea Financial Report Q Amounts in NOK million Note 6 Taxes Taxes are estimated. Note 7 Shareholder information Name No. shares Shareholding Voting shares DOF Subsea Holding 2 AS % 100 % Total number of shares % 100 % Note 8 Financial income and expenses 2Q Q 2012 YTD 2013 YTD Income/ loss from associated companies Interest income Other financial income Financial income Interest expenses Other financial expenses Financial expenses Realized gain / loss on derivative financial instruments Realized gain / loss on currencies Realized gain / loss on financial instruments Unrealized gain / loss on derivative financial instruments Unrealized gain / loss on currencies Unrealized gain / loss on financial instruments Net financial income / loss

18 Financial Report Q DOF Subsea Amounts in NOK million Supplemental information Profit and loss accounts 5 last quarters 2Q Q Q Q Q 2012 Operating income Total operating income Payroll expenses Other operating expenses Profit from sale of non-current assets Total operating expenses Operating profit before depreciation (EBITDA) Depreciation Operating profit (EBIT) Income / loss from associated companies Financial income Financial expenses Realized gain / loss on financial instruments Unrealized gain / loss on financial instruments Net financial income/ loss Profit / loss before tax Tax expenses Profit / loss for the period

19 DOF Subsea Financial Report Q Amounts in NOK million Balance sheet 5 last quarters 2Q Q Q Q Q 2012 Intangible assets Tangible assets Financial assets Total fixed assets Fuel reserves and other inventory Receivables Cash and cash equivalents Total current assets Total assets Q Q Q Q Q 2012 Subscribed equity Retained earnings Non-controlling interest Total equity Non-current provisions for commitment Other non-current liabilities Total non-current liabilities Short portion of debt to credit institutions Other current liabilities Total current liabilities Total liabilities Total equity and liabilities

20 Financial Report Q DOF Subsea DOF Subsea vessels DOF Subsea currently own one of the largest fleets of high-end construction vessels (including newbuilds) in the world. Offering a versatile, new generation of high power and purpose-built vessels with broad offshore capabilities. 20 Ocean Protector Skandi Bergen Skandi Inspector Skandi Acergy Skandi Constructor Skandi Carla Skandi Achiever Skandi Hercules Skandi Neptune Skandi Aker Skandi Arctic Skandi Niteroi

21 DOF Subsea Financial Report Q Skandi Singapore Skandi Skansen Geograph 21 Skandi Salvador Skandi Skolten Geoholm Skandi Santos Skandi Patagonia Geosea Skandi Seven Skandi Vitoria Geosund

22 GLOBAL HQ DOF Subsea AS Thormøhlensgate 53 C 5006 Bergen NORWAY Phone: Fax: info@dofsubsea.com NORWAY DOF Subsea Norway AS Thormøhlensgate 53 C 5006 Bergen NORWAY Phone: Fax: info@dofsubsea.com SEMAR AS Oksenøystein Lysaker NORWAY Phone: Fax: info@semar.no DOF Management AS Alfabygget 5392 Storebø NORWAY Thormøhlensgate 53 C 5006 Bergen NORWAY Phone: Fax: management@dof.no ANGOLA DOF Subsea Angola Rua Ndumduma 56/58 Caixa postal 2469, Miramar Luanda, Republic of Angola Phone: Fax: Mobile: / angola@dofsubsea.com AUSTRALIA DOF Subsea Australia Pty Ltd 5th Floor, 181 St. Georges Tce Perth, Wa 6000 AUSTRALIA Phone: Fax: asia-pacific@dofsubsea.com DOF Management Australia Level 1, 441 South Road Bentleigh, Vic AUSTRALIA Phone: Mobile: BRAZIL DOF Subsea Brasil Serviços Ltda Macae address: Rua A1, numero 35 Vale Encantado - Macaè - RJ BRAZIL Rio address: Rua Lauro Muller, 116 Salas 2802 a 2805, Torre do Rio Sul - Botafogo , Rio de Janeiro, R.J., BRAZIL - CEP: Phone: Fax: brasil@dofsubsea.com CANADA DOF Subsea Canada 26 Allston Street Mount Pearl, Newfoundland CANADA A1N 0A4 Phone: Fax: can@dofsubsea.com SINGAPORE DOF Subsea Asia Pacific Pte Ltd 460 Alexandra Road# PSA Building, SINGAPORE Phone: Fax: asia-pacific@dofsubsea.com DOF Management Pte Ltd 460 Alexandra Road# PSA Building, SINGAPORE Phone: Fax: UNITED KINGDOM DOF Subsea UK Ltd Exchange No.1, 62 Market St. Aberdeen AB11 5PJ, UNITED KINGDOM Phone: Fax: uk@dofsubsea.com DOF Subsea S&P UK Ltd Exchange No.1, 62 Market St. Aberdeen AB11 5PJ, UNITED KINGDOM Phone: Fax: uk@dofsubsea.com CSL Engineering Exchange No.1, 62 Market St. Aberdeen AB11 5PJ, UNITED KINGDOM Phone: Fax: info@csl-engineering.com DOF (UK) Ltd Voyager House, 75 Waterloo Quay Aberdeen AB11 5 DE UNITED KINGDOM Phone: Fax: info@dofman.co.uk USA DOF Subsea USA Inc 5335 W. Sam Houston Parkway N Suite 390, Houston, Texas 77041, USA Phone: Fax: info@dofsubsea.us

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24 Report design: DOF Corporate Communication Department DOF Subsea AS Thormøhlens gate 53 C 5006 Bergen NORWAY