Presentation of Farstad Shipping ASA

Transcription

1 Norwegian Shipowners Association Presentation of Farstad Shipping ASA Karl-Johan Bakken - CEO Olav Haugland - CFO

2 Brief summary No of vessels in operation: 57 (29 AHTS, 22 PSV, 6 Subsea) No of newbuilds: 1 (1 Subsea) No of employees offshore: No of employees onshore: 215 Market value fleet*) (excl. newbuilds): Bln. NOK 14.9 Newbuilds: Bln. NOK 0.5 Share price ( ): NOK 11.8 Market capitalization: Bln. NOK 0.5 Book equity ratio ( ): 22.3 % Value adjusted equity ratio *) ( ): 25.8 % *) Calculated and based upon average values, estimates from 3 shipbrokers per Slide 2

3 Financial update As earlier communicated, Farstad Shipping, together with its financial and legal advisors, is pursuing various options to strengthen its financial position and capital structure including evaluating potential strategic alternatives As a first step, Farstad Shipping entered into a standstill and deferral agreement with secured lenders until 1 October 2016, including defeasance of all financial covenants Farstad Shipping has been working to establish an overall refinancing plan, and is currently in advanced discussions with potential investors and industrial partners In parallel, Farstad Shipping continues the work to optimize its operating model, fleet composition and utilization, as well as operating cost improvements Slide 3

4 Fleet distribution 58 vessels - August 2016 ÅLESUND 12 PSV (3 lay-up) 5 AHTS (2 lay-up) 1 Subsea 1 Subsea tbn 1 Subsea 2 PSV 8 AHTS 3 SUBSEA MACCAÈ RIO DE JANEIRO 1 Subsea PERTH 8 PSV (2 lay-up) 16 AHTS (8 lay-up) SINGAPORE MELBOURNE Slide 4

5 Listed since 1988 Largest shareholders (29 August 2016) Slide 5

6 100% Farstad Shipping SA (Macae/Rio) 3 vessels Farstad Shipping (Indian Pacific) Pty. Ltd. (Melbourne/Perth) 100% Farstad Shipping Offshore Simulator Centre Pty Ltd 100% 100% 100% 100% 100% 100% 100% Farstad Shipping Pte.Ltd (Singapore) 6 vessels 100% Farstad Shipping Crewing Services Pte. Ltd. Farstad Shipping Aalesund AS Farstad Offshore AS Farstad Marine AS 8 vessel Farstad Construction AS 4 vessels 1 newbuild 50% Farstad Supply AS 34 vessels 100% Farstad International AS 50% P/R International Offshore Services ANS 2 vessels Company structure August 2016 Slide 6

7 Health, Safety, Environment and Quality LTIF - (No of injuries per mill. work hours ) 2,00 1,80 1,60 1,81 1,40 1,20 1,51 1,38 1,00 0,80 0,60 0,92 1,04 0,81 0,77 0,73 0,40 0,20 0,41 0,50 0,31 0, Slide 7

8 Contract summary AHTS August 2016 Slide 8

9 Contract summary PSV August 2016 Slide 9

10 Contract summary SUBSEA August 2016 Slide 10

11 Contract summary(*) Fleet August % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Options Term contracts 45.2%**) 39.6%**) 30.4%**) 24.3%**) 17.3%**) **) AHTS **) PSV **) SUBSEA 29.0% 26.2% 19.7% 17.2% 7.3% 56.3% 43.4% 28.3% 19.9% 18.2% 81.7% 83.4% 81.1% 67.9% 56.0% *) Actual no of days term contracts divided by no. of available days **) incl. options Slide 11

12 Market values vessels*) Willing buyer, Willing seller, Free of charter, Available in the market Mill. NOK Mill. NOK : Average decrease in values of Farstad fleet: 1,0%. 2013: Average decrease in values of Farstad fleet: 3,9%. 2014: Average decrease in values of Farstad fleet: 5,4% st half year: Average decrease in values of Farstad fleet: 9,7% nd half year: Average decrease in values of Farstad fleet: 7,0%. Far Service(PSV,1995) Far Star (PSV,1999) Far Senior (AHTS,1998) Far Sovereign (AHTS,1999) Far Sword (AHTS, 2006) Far Scorpion (AHTS,2009) st half year: Average decrease in values of Farstad fleet: 11,8% *) Average values, based upon estimates from 3 shipbrokers. Vessel s first value is building cost. Slide 12

13 Result - quarterly development Pressure on rates Vessels in lay up Changes in the Farstadfleet Crew costs Dry dockings Brazil exposure Depreciations/Impairments Currency effects Taxes 01/01/2016 Average 1Q 30/06/2016 Average 2Q GBP 13, , , ,7653 USD 8,8090 8,5613 8,3776 8,2702 EUR 9,6190 9,4678 9,3008 9,2786 AUD 6,4471 6,2500 6,2300 6,1533 BRL 2,2559 2,2218 2,6100 2,4253 Slide 13

14 Operating income excl. sale of assets - quarterly development Mill NOK 1 400, , ,0 800,0 600,0 400,0 200,0 0,0 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter ,0 846,2 860,6 897, ,8 871,2 959,9 961, ,3 933,1 958,8 905, ,3 993, , , , , , , , ,8 969,3 939, ,8 735,1 Slide 14

15 EBITDA excl. sale of assets - quarterly development Mill NOK 600,0 500,0 400,0 300,0 200,0 100,0 0,0 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter ,4 385,8 379,6 328, ,8 347,0 412,3 375, ,5 348,0 357,3 290, ,2 360,4 455,4 379, ,6 367,7 496,2 406, ,7 364,8 301,7 330, ,2 222,2 Slide 15

16 EBIT excl. sale of assets and impairment - quarterly development Mill NOK 350,0 300,0 250,0 200,0 150,0 100,0 50,0 0,0 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter ,4 254,6 252,4 195, ,6 216,4 275,5 230, ,8 200,2 213,6 151, ,8 201,8 283,2 207, ,7 178,6 311,2 204, ,2 139,0 73,6 112, ,7 13,0 Slide 16

17 Result sorted by segment Operating income - sorted by segment Northwest Europe Brazil Indian Pacific Other Markets 100% 1,5 0,1 2,6 3,8 90% 4,7 11,2 80% 70% 48,7 52,4 47,5 43,5 47,4 36,9 60% 50% 40% 27,9 26,1 29,6 32,2 30% 35 38,2 20% 10% 21,9 21,4 20,3 20,5 12,9 13,7 0% AHTS PSV Subsea *) excl. sale of vessel 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 4,6 6,6 5,6 6,3 13,7 24,8 30,6 31,7 35,4 35,5 31,4 22,6 64,7 61,6 59,0 57,8 54,5 52,2 Slide 17

18 EBITDA margin sorted by segment EBITDA in % of income sorted by vessel type EBITDA in % of income sorted by region AHTS PSV SUBSEA 70% Northwest Europe Brazil Indian Pacific 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% -10% -10% Slide 18

19 Comprehensive Income/Equity STATEMENT OF 2nd quarter 2nd quarter COMPREHENSIVE INCOME Profit (loss) ( ) ( ) ( ) ( ) ( ) Items not to be reclassified to income statement in subsequent periods Actuarial gains and losses pensions Change in deferred tax pensions (1 455) Items to be reclassified to income statement in subsequent periods Change in foreign exchange contracts and interest swaps (33 067) Change in deferred tax (1 860) (933) (6 141) (528) Translation effects foreign operations (3 720) (4 756) (14 266) (19 651) Total other comprehensive income Comprehensive income for the period ( ) (1 583) ( ) ( ) ( ) CHANGE IN EQUITY 2nd quarter 2nd quarter Equity at the beginning of the period Comprehensive income ( ) (1 583) ( ) ( ) ( ) Dividend payment - ( ) - ( ) ( ) Equity at the end of the period Slide 19

20 Cash flow STATEMENT OF CASH FLOW 2nd quarter 2nd quarter Cash flow from operating activity Sale of fixed assets Investment in fixed assets and contracts newbuilds (71 911) (94 171) ( ) ( ) ( ) Other investments activity Cash flow from investment activity (60 069) (61 254) (3 264) ( ) ( ) New long-term debt Repayment of debt ( ) ( ) ( ) ( ) ( ) Dividend paid - ( ) - ( ) ( ) Interest costs ( ) ( ) ( ) ( ) ( ) Cash flow from finance activity ( ) ( ) ( ) ( ) ( ) Net changes in liquidity in the period ( ) ( ) ( ) ( ) ( ) Net currency exchange differences subsidiaries (27 612) (49 733) Cash and cash equivalents at the beginning of the period *) Cash and cash equivalents at the end of the period *) *) Ex. shares, equity certificates and bonds Shares, equity certificates and bonds Liquid assets Slide 20

21 Balance Sheet ASSETS Non-current assets: Goodwill Vessels etc Contracts newbuilds Deferred tax asset Other long-term receivables Currency and interest swap derivatives Shares Total non-current assets Current assets: Account receivables, freight income Other short-term receivables Currency and interest swap derivatives Liquid assets Total current assets Assets classified as held for sale Total assets EQUITY AND LIABILITIES Equity: Paid-in capital Retained earnings Total equity Liabilities: Non-current liabilities: Provision for liabilities Deferred tax Currency and interest swap derivatives Interest-bearing debt and leasing obligations Total non-current liabilities Current liabilities: Accounts payable Currency and interest swap derivatives Taxes payable Other current liabilities Current portion of interest-bearing debt Total current liabilities Total liabilities Total equity and liabilities Vessels sold: 1Q Far Scandia, Lady Grace, Lady Grete and Far Sea. Far Service and Lady Sandra are vessel incl. in assets held for sale. Ordinary repayment of long term debt: 2Q NOK 214 mill. New debt in 2Q was NOK 0 mill. No dividend paid to be shareholders in May this year. Bond due in February 2017 with NOK 400 mill. moved from long term debt to short term. Booked EQ per share: NOK 93,09 Booked EQ%: 22.3 % (1Q-15: 25,9%) Value adjusted EQ% *): 25.8 % (1Q-15: 33,0%) *) Calculated and based upon market values as per EUR 0,5 % GBP 1,7 % AUD 5,2 % USD 24,5 % Currency - Interest bearing debt NOK 68,0 % Slide 21

22 Long term debt repayment profile Slide 22

23 PSV>2.000 dwt AHTS> bhp 1148 vessels newbuilds (21,0%) 522 vessels + 67 newbuilds (12,8%) DWT 1670 vsls. Approx. 45% Approx vessels worldwide BHP Fleet Structure Supply Vessels Worldwide Source: IHS/Clarkson Platou/ Farstad July-16 Slide 23

24 Worldwide sorted by owners/ managers AHTS> BHP and PSV> DWT No of vessels AHTS = 522 vessels PSV = 1148 vessels Newbuilds = 308 vessels Total fleet incl. newbuild count 1978 vessels 242 owners. The 51 largest owners having 10 or more vessels control 72,2 % of the fleet incl. newbuilds. 164 owners have 5 vessels/newbuilds or less 18,1 % of the fleet 358 vessels. The 51 largest owners have ordered 168 newbuilds 54,5 %. Source: IHS/Clarkson Platou/ Farstad July-16 Slide 24

25 Newbuildings sorted by regions AHTS> BHP, PSV> DWT and Subsea No of vessels 250 AHTS = 67 vessels PSV = 241 vessels Subsea= Source: IHS/Clarkson Platou/ Farstad July-16 Slide 25

26 Worldwide and Northwest Europe *) AHTS> BHP and PSV> DWT 1800 No of vessels Other markets Northwest Europe Number of players 2004: Number of players 2016: 242 Number of vessels 2004: Number of vessels 2016: *) Excl newbuilds Source: IHS/Clarkson Platou/ Farstad July-16 Slide 26

27 Worldwide sorted by regions AHTS> BHP No of vessels 250 Jan.- 12 Jan.-13 Jan.-14 Jan.-15 jan.16 jul Source: IHS/Farstad, July 2016 Slide 27

28 Worldwide sorted by regions PSV> DWT No of vessels Jan.-12 Jan.-13 Jan.-14 Jan.-15 Jan.-16 July Source: IHS/Farstad, July 2016 Slide 28

29 No of vessels Newbuildings sorted by deliverytime AHTS> BHP, PSV> DWT and Subsea 140 Subsea (85 vessels) 12500BHP<AHTS<20000BHP (24 vessels) PSV<4000 DWT (97 vessels) AHTS<12500 BHP (28 vessels) AHTS>20000 BHP(15 vessels) PSV>4000 DWT (144 vessels) Source: IHS/Clarkson Platou/ Farstad July-16 Slide 29

30 No of vessels Newbuildings sorted by deliverytime Subsea 30 Subsea (85 vessels) ROVSV DSV LAYSV 57 Vsls. 20 Vsls. 8 Vsls Source: IHS/Clarkson Platou/ Farstad July-16 Slide 30

31 North West Europe Supply- Demand- Utilisation ,0% 85,0% 75,0% 65,0% 55,0% 45,0% 35,0% Term demand Spot demand Fleet size Total utilisation % Term utilization Source: IHS/Farstad, July 2016 Slide 31

32 Source: IHS Slide 32

33 North West Europe 100% Fleet Utilization forecast % 90% 85% 80% 75% 70% 2016-jan lay up (125 vessels) 2016-July 65% 60% 55% 50% Source: IHS/Farstad, July 2016 Slide 33

34 Takk for oppmerksomheten! Slide 34