FARSTAD SHIPPING ASA QUARTERLY REPORT

Transcription

1 FARSTAD SHIPPING ASA QUARTERLY REPORT 1-25

2 Quarterly Report 1-25 NOK mill NOK 6, 5, 4, 3, 2, 1, % THIS IS FARSTAD SHIPPING Farstad Shipping s strategy is to be a long-term important international operator of large, modern offshore service vessels. The company will maintain a long-term chartering profile. The company s fleet consists of 49 vessels, whereof 25 PSV and 22 AHTS vessels. Farstad Supply AS has 4 newbuilds for delivery within 26, all build at Norwegian yards. BOS, the partnership company with Petroserv SA, in Brasil (Farstad owns a 5% share) has additionally signed an 8 year contract with Petrobras for 3 AHTS to be built in Brazil. Altogether, 118 employees in Aalesund, Aberdeen, Melbourne and Macaé direct the company s activities. At the moment 18 vessels are stationed in the North Sea, 8 in Brazil, 2 in Mexico, 1 in West Africa and 18 Far East/Australia. The number of sailors is approx RESULTS FOR THE 1ST QUARTER 25 This is the first quarter that Farstad Shipping ASA will prepare its financial accounts in accordance with International Financial Reporting Standards (IFRS). Below is a detailed description of how this influences the accounts. For further details, we refer to the company s Annual Report, note 2. The Annual Report can be found on our web page: As a result of the transition to IFRS, the corresponding figures for have been changed. CASH FLOW PER QUARTER (BEFORE TAX AND PROFIT ON SALE) 1st quarter 2nd quarter 3rd quarter 4th quarter CASH FLOW PER SHARE (BEFORE TAX) excl. profit on sales incl. profit on sales FREIGHT INCOME FARSTAD SHIPPING Sorted per sector Norwegian UK Brazil Far East/Autralia Others *) Pre-tax profit + depreciation and deferred maintenance cost + change on revaluation of long-term liabilities in foreign currency. Farstad Shipping achieved an operating income of NOK million for the 1st quarter (NOK million for the 1st quarter ). The operating costs for the period were NOK million (NOK million). The reduced cost is partly due to the sale of 2 vessels in 4th quarter. The operating profit (EBIT) was NOK 68.7 million (NOK 54.8 million) after deferred maintenance and depreciation of NOK 11.6 million (NOK 18.6 million). Net finance was negative NOK 87.8 million (negative NOK 95.9 million). Currency gain of NOK 64. million is booked during the 1st quarter (gain of NOK 17.6 million). Further an unrealized currency loss of NOK 12. million (loss of NOK 72.6 million) is booked due to the adjustment of the company s long-term liabilities in foreign currency. The profit after taxes was negative NOK 15.3 million (NOK 39.8 million). Taxes were positive NOK 3.8 mill. (positive NOK 1.3 mill.) due to a reduction of deferred taxes in the balance sheet. The Group s cash flow*) for the period was NOK 22.5 million compared to NOK 14.1 million for the same period in. FINANCING AND CAPITAL STRUCTURE In the balance per , interest-bearing mortgage debt and leasing liabilities together totals NOK million (NOK 3,944.9 million at ). Of the company s debt 26.4% is in USD, 19.3% in GBP, 45.1% in NOK, 3.4% in AUD and 5.8% in EUR. The debt is serviced from charter income in the same currency. Installments on debt and leasing liabilities of NOK million have been paid during the 1st quarter. Interest-bearing current assets at were NOK 73.2 million (NOK 61.8 million). The Group s booked equity at was NOK 2,372.7 million (NOK 2,115.5 million) corresponding to NOK 6.84 (NOK 54.24) per share. Equity ratio was 37.% (33.2%). Farstad Shipping obtains valuations of the fleet twice each year, as at 3.6 and Therefore no estimates are obtained at Based on the valuation of the vessels (charter-free) from 3 independent brokers in January 25, the value-adjusted equity capital per share before tax was calculated at NOK 98.8 (NOK 83.2). Dividend with NOK 5. (NOK 2.5) is included in these figures. For further information regarding the values at , we refer to the company s annual report for. IMPLEMENTATION OF IFRS From the 1st quarter 25 Farstad Shipping ASA will prepare its financial accounts in accor-dance with IFRS. In order to present comparable figures the opening balance as at has been adjusted according to IFRS principles. The opening balance at has further been adjusted to allow for principles not required at Adjustments at and 1.1.5: According to IFRS the dividend shall be allocated when it is approved by the Annual General Meeting. This increases the equity capital of NOK 97.5 million at (NOK 2.5 per share) and NOK 195. million at (NOK 5. per share). First year s instalment on long-term debt has been posted under short-term debt according to IFRS. The effect is that NOK million at will be transferred from long-term debt to short-term debt. The fleet s booked value at and will remain unaltered after the introduction of IFRS. Ordinary depreciations will increase as a consequence of deferred maintenance being charged as depreciation as opposed to operating expenses. The operating expenses are reduced by an amount corresponding to the increase in depreciation. For 1st quarter 25 the effect is NOK 14.8 mill (NOK 19.1 mill). Pension obligations are earlier 2

3 estimated to be overfinanced. This over-financing has not been included in the balance. According to IFRS not posted estimate changes are to be booked directly against the equity. Preliminary estimates show that pension obligation will not give any significant changes in the equity capital. Adjustment only to the balance sheet at 1.1.5: The hedging principle the company has used regarding the cash flow in foreign currency is now considered not to fulfil the hedging criteria according to IFRS. As a consequence the company has decided that this hedging principle shall come to an end. According to IFRS all foreign currencies have to be booked at the exchange rate on closing date. The total effect of this is that long-term debt is reduced by NOK million. Deferred tax will as a consequence increase by NOK 4.7 million. The equity capital at will consequently increase by NOK 14.8 million (NOK 2.69 per share). The company use foreign exchange contracts to secure future freight income in foreign currency. The income is related to signed charter contracts. The discounted value of these currency contracts at shall be included as a current asset. This increased the equity capital by NOK 5.9 million (NOK 1.3 per share). The above effect on the equity capital at is a total increase by NOK 35.7 million (NOK 8.99 per share) from NOK 2,37.3 million (NOK per share) to NOK 2,388 (NOK per share). The abovementioned changes have been included in the profit and loss account and balance sheets at , and respectively. THE FLEET There have been no changes in the fleet during the period. Of the company s fleet only AHTS Far Sky has traded the North Sea spot market the whole quarter. AHTS Far Sovereign traded the spot market the first two month. AHTS Far Scout returned to the North Sea at the end of March from operations in Brazil. PSV Far Scotsman arrived in the North Sea from Singapore at the end of January. Both vessels have been trading the spot market. The vessels in the Far East/Australia fleet have had a good utilization this quarter except for 4 vessels that have been drydocked this quarter. THE MARKET The demand for supply vessels in the North Sea during the 1st quarter was 13% higher than the 1st quarter in and 2.5% higher than the 4th quarter of. The number of supply vessels in the North Sea has increased during 1st quarter and was on an average 7 vessels more compared with 4th quarter and 1 vessels more compared with 1st quarter. The average utilization ratio for the quarter for the total North Sea tonnage was approx. 9% (84%). The average for 4th quarter was 91%. The increased activity in the North Sea during 1st quarter has improved the rates to an acceptable level. A further increase in the activity is expected. The increased rig activity combined with high pipelaying activity will give increased demand for supply vessels. The development in the rate level in 25 and 26 will depend on whether the increased activity is sufficient to absorb in particular the number of platform vessels to be delivered. An enduring high utilization and rate levels in the North Sea also rely on other markets continuing to develop positively. Based on the high oil price the expectations about increased activity in these markets are very positive. The contract coverage for the Farstad-fleet for the 2nd quarter is approx. 87% and approx. 6% for the second half year. For 26 the contract coverage is now approx. 43%. The contract coverage is highest for the PSV-fleet. SHAREHOLDER MATTERS The company s share has during the quarter been traded between NOK 75. and NOK 87.5 and was NOK 84.5 at the end of the quarter. The share price at values the company to approx. NOK 3.3 billion. The number of shareholders is approx. 1,7. Foreign shareholders own approx. 15.5% of the shares. THE ANNUAL GENERAL MEETING The Annual Genereal Meeting passed all affairs in accordance with the summons. This implies payment of dividend of NOK 5, per share due to payment to shareholders at May 31. The shareholders entitled to the dividend are those registered on The share was traded the first day excl. the dividend The company s Board has had its authority extended in order to expand the share capital by up to 3.9 million shares without preference to present shareholders. The Board was also authorized to acquire max. 3.9 million of the company s own shares. The authority is valid until the Annual General Meeting in 26. As new members of the Board replacing Sigmund Borgundvåg and Per Erik Dalen, Gro Bakstad and Janne Grethe Strand Aasnæs was elected for two years. Aalesund May 11th THE COMPANY S 1 LARGEST SHAREHOLDERS AT : Number % 1 Tyrholm & Farstad AS ,5 2 Folketrygdfondet ,6 3 Brown Brothers Harriman Fidelity 2 5 6,4 4 Odin Norge ,7 5 Odin Norden ,9 6 Sverre A. Farstad 1 2,6 7 Jan H. Farstad 1 2,6 8 Third Avenue Intl. V Citibank ,4 9 Pareto Verdipapirfond ,4 1 Skagen Vekst 615 1,6 Total 1 largest shareholders ,6 Other shareholders ,4 Total number of shares 39,, 1. DEVELOPMENT IN EQUITY Equity at Profit (39 823) Allocated dividend 97 5 End of hedging principle at transition to IFRS Change in foreign exchange contract at transiton to IFRS (18 75) Change in deffered tax at transition to IFRS (4 75) Equity at the end of the period Quarterly Report 1-25 Farstad Shipping ASA 3

4 Profit and loss account FARSTAD SHIPPING ASA (NOK 1) GROUP OPERATING INCOME: Freight income and other income Profit on sale of fixed assets 1 st quarter st quarter Total operating income OPERATING EXPENSES: Operating expenses vessels Administration ( ) (22 555) ( ) (23 547) (759 16) (91 162) Total operating expenses ( ) ( ) (85 322) Operating result before depreciation Depreciation (11 564) (18 632) (431 99) Operating result FINANCIAL ITEMS: Financial income Financial expenses Realised agio (disagio) Unrealised agio (disagio) 3 1 (34 863) (12 47) (44 251) (72 598) ( ) Net financial items (87 825) (95 916) (92 881) Pre-tax profit (19 9) (41 144) Taxes (12 36) Profit (15 282) (39 823) Profit and diluted profit per share (NOK) (.39) (1.2) 4.47 Cash flow per share (NOK) Average number of shares OPERATING INCOME AND OPERATING PROFIT SORTED BY BUSINESS SEGMENTS (NOK 1) Operating income ex. profit on sales 1 st quarter 1 st quarter 25 Operating profit (EBIT) ex. profit on sales 1 st quarter 1 st quarter 25 AHTS PSV Other (563) Total vessels: Norwegian sector British sector Brazil Far East / Australia Other Total sectors

5 Balance sheet FARSTAD SHIPPING ASA (NOK 1) GROUP ASSETS Fixed assets: Goodwill Vessels etc. Deferred maintenance cost Contracts newbuildings Other long-term receivables Shares Total fixed assets Current assets: Account receivables, freight income Other short-term receivables Forward exchange contracts Other securities Bank deposits Total current assets Total assets EQUITY AND LIABILITIES Equity capital: Paid-in capital Retained earnings Total equity capital Liabilities: Long-term liabilities: Other long-term liabilities Bond loan Leasing obligations Interest-bearing mortgage debt Total long-term liabilities Short-term liabilities: Debt to suppliers Other short-term liabilities Short-term interest-bearing debt Total short-term liabilities Total liabilities Total equity and liabilities CASH FLOW STATEMENT (NOK 1) 1 st quarter 25 1 st quarter Cash flow from operating activity Cash flow from investment activity Cash flow from finance activity (56 28) (35 531) (99 564) ( ) ( ) Changes in liquidity over the period (28 175) (81 53) Liquid assets at the beginning of the period Liquid assets at the end of the period Quarterly Report 1-25 Farstad Shipping ASA 5

6 The Fleet - Employment AHTS: Anchor Handling Tug Supply Vessel. Offshore Supply vessel specially designed to provide anchor handling services and tow offshore platforms, barges and production modules/vessels. The AHTS is generally equipped for fire-fighting, rescue operations, oil recovery and in addition can carry out normal supply duties. Owner Year Design BHP Employment v ) built at Farstad Supply AS 26 UT 712 L FAR TBN 4 Farstad Supply AS 26 UT 712 L FAR TBN 3 Farstad Supply AS 26 UT 712 L FAR TBN 2 Farstad Supply AS 26 UT 712 L FAR TBN 1 i ) 22 UT 728 L 163 June 5 + opt. FAR SALTIRE Farstad Supply AS 21 UT 722 L 18 Spot FAR SCOUT Farstad Supply AS 2 UT Sept. 7 +opt. FAR SANTANA Farstad Supply AS 1999 UT Dec. 6 + opt. FAR SOVEREIGN Farstad Supply AS 1998 UT 722 L 18 Dec. 6 FAR SENIOR Farstad Supply AS 1997 UT Dec. 6 FAR SAILOR Farstad Supply AS 1993 UT Nov. 8 FAR FOSNA Farstad Supply AS 1993 UT Aug. 5 FAR GRIP Farstad Supply AS 1983 ME April 6 FAR CRUSADER Farstad Supply AS 1983 ME March 6 FAR CENTURION IOS ii ) 23 UT July 5 + opt. LADY ASTRID IOS 23 UT July 5 + opt. LADY CAROLINE IOS 21 UT Oct. 6 + opt. LADY GURO IOS 1993 ME Aug. 7 + opt. LADY MARGARET IOS 1987 Hudong 9388 Sept. 5 + opt. LADY CYNTHIA IOS 1987 Hudong 866 Spot LADY GERDA IOS 1983 ME Oct. 5 LADY AUDREY IOS 1983 ME May 5 LADY VALISIA IOS 1983 Bolsønes 128 May 5 LADY DAWN IOS 1991 ME 33 II 144 Spot FAR SKY IOS 1991 ME 33 II 132 Jan. 6 + opt. FAR SEA iii ) 1998 KMAR Oct. 5 LADY SANDRA BOS (5%) iv ) 25 UT 722 L 8 years BOS TBN 3 BOS (5%) 25 UT 722 L 8 years BOS TBN 2 BOS (5%) 25 UT years BOS TBN 1 i) On a bareboat charterparty untill 27 to Farstad Shipping Ltd. ii) P/R International Offshore Services ANS iii) The vessel is chartered by IOS on a 5 years bareboat charterparty. iv) BOS Navegaçäo SA (Brazil Offshore Services) v) Certain freight contracts contain clauses which give the charterer the right to cancel the contract C O N T R A C T O V E R V I E W A T Contracts Charterer s option Under construction 6

7 PSV: Platform Supply Vessel. Ship specially designed for transportation of supplies and equipment to/from offshore installations. Transporting individual items mainly in containers on deck, in addition to a variety of different products (dry and wet) in separate tanks. Also transporting pipes to pipelaying activities. Owner Year Design DWT Employment iii ) built at P S V - P L A T F O R M S U P P L Y V E S S E L Farstad Supply AS 23 P Dec. 8 + opt. FAR SPLENDOUR Farstad Supply AS 23 P Spot FAR SYMPHONY Farstad Supply AS 23 UT 755 L 384 Jan. 7 + opt. FAR SWIFT Farstad Supply AS 21 UT 745 L 3475 April 7 + opt. FAR SAGA i ) 21 UT Jan. 7 + opt. FAR SCOTIA Farstad Supply AS 21 UT 745 L 445 June 5 + opt. FAR SWAN Farstad Supply AS 1999 UT Aug. 9 + opt. FAR STAR Farstad Supply AS 1999 VS Jan. 7 + opt. FAR SUPPLIER Farstad Supply AS 1999 VS Jan. 6 + opt. FAR STRIDER Farstad Shipping Ltd UT June 5 + opt. FAR SUPPORTER Farstad Shipping Ltd UT Dec. 5 FAR SERVICE Farstad Shipping Ltd UT Dec. 5 FAR SERVER Farstad Supply AS 1991 UT Jan. 9 FAR SCANDIA Farstad Supply AS 199 UT 75 L 3796 Dec. 6 + opt. FAR SUPERIOR Farstad Supply AS 1984 ME Nov. 6 FAR SLEIPNER Farstad Supply AS 1983 UT 76 L 3325 April 6 FAR GRIMSHADER Farstad Supply AS 1983 UT June 5 + opt. FAR SPIRIT Farstad Supply AS 1982 H/R 154 Aug. 5 FAR VISCOUNT Farstad Supply AS 1982 ME Spot FAR SCOTSMAN IOS ii ) 23 UT July 5 + opt. LADY MELINDA IOS 22 UT 755 L 3271 Sept. 5 + opt. LADY GRETE IOS 22 UT April 9 + opt. LADY GRACE IOS 1985 ME April 9 + opt. LADY CHRISTINE IOS 1983 ME may 5 LADY ELIZABETH IOS 1982 ME Jan. 9 LADY KARI-ANN i) On a bareboat charterparty untill 27 to Farstad Shipping Ltd. ii) P/R International Offshore Services ANS iii) Certain freight contracts contain clauses which give the charterer the right to cancel the contract C O N T R A C T O V E R V I E W A T Contracts Charterer s option Quarterly Report 1-25 Farstad Shipping ASA 7

8 FARSTAD SHIPPING ASA P.O.Box 131, Sentrum, 61 Aalesund, Notenesgt.14, Norway Tel: , Fax: post@farstad.no, Internet: FARSTAD SHIPPING LTD. Farstad House, Badentoy Avenue, Badentoy Park, Portlethen, Aberdeen AB12 4YB, Scotland Tel: , Fax: aberdeen@farstad.co.uk FARSTAD SHIPPING (INDIAN PACIFIC) PTY. LTD. GPO Box 5111, Melbourne Victoria, 31 Australia, 99 Queensbridge Street, Southbank, Victoria, 36 Australia Tel: Fax: post@farstad.com.au BOS NAVEGAÇÃO SA (BRAZIL OFFSHORE SERVICES) Rua Abilio Moreira de Miranda, 66 Parque Valentina Miranda, CEP Macae - RJ, Brasil Tel: , Fax: bos@bos.com.br