Boa Offshore Pareto Oil & Offshore Conference 4 Sept 2013 Helge Kvalvik, CEO

Transcription

1 Boa Offshore Pareto Oil & Offshore Conference 4 Sept 2013 Helge Kvalvik, CEO

2 Disclaimer This presentation is made by Boa Offshore (or the Company ). The information contained herein include statements that are forward-looking in their nature. These forward-looking statements include all matters that are not historical facts and are based on the Company s current intentions, believes and expectations about among other things, the Company s results of operations, financial condition, prospects, growth, strategies and the industry in which the Company operates. Such forward-looking information and statements reflect current views with respect to future events. The Company cannot give any assurance as to the correctness of information and statements related to such future events. Furthermore, these forward-looking statements involve known and unknown risks, uncertainties and other factors that are in many cases beyond the Company s control that could cause the actual results of operations, financial condition, liquidity and the development of the industry in which the Company s businesses operate to differ materially from the impression created by the forward-looking statements contained herein, because they relate to events and depend on circumstances that may or may not occur in the future. Although the Company believes that its intentions, beliefs and expectations, and the statements in this presentation, are based on reasonable assumptions as of today, the Company can not give any assurance that the actual results will be as set out in this presentation. Financing the Company involves risks, and several factors could cause the actual results, performance or achievements of the Company to be materially different from the impression created by the forwardlooking statements contained herein. Neither the Company, nor any company within the Boa Offshore Group, is making any representation or warranty (express or implied) as to the accuracy, reliability or completeness of the information and statements in this presentation, and neither the Company, any company within the Boa Group, nor any of their directors, officers or employees will have any liability to any persons resulting from the possible use of information in the presentation. 2 2

3 Contents 1 Boa Offshore summary 2 Boa Offshore overview 3 Financials 4 Boa Offshore Subsidiaries 5 Market overview and outlook 3

4 BOA Offshore Group summary Currently operates around 35 different vessels world wide with a market leading position in specific offshore segments: Subsea installation and construction (Boa OCV/BMSI) Seismic EM vessel operations (Boa SBL) Sea transportation and load-out and launching of heavy objects (Boa Barges/BMSI) Rig moves (NFDS AHTS) Harbor and costal towage and Salvage operations (Boa Tugs) Further improvement in 1H 2013 EBITDA from 1) recent years restructuring and streamlining of Boa Offshore Group and 2) improved underlying operations. EBITDA 1H 13 of NOKm 209, up from NOKm 179 in 1H 12 and NOKm 204 in 2H 12. Improved balance sheet and liquidity situation. NIBD/EBITDA 1H 13 of < 4.2x, down from 4.6x YE 12 and 7.4x YE 11 Current initiated newbuilding program fully financed. Promising outlook for remainder of 2013 and in the years ahead. 4

5 Three outstanding Bonds Face value of NOKbn 1.6 BOA OCV 1 pri bond Issued NOKm 1,200 in April 2011 at NIBOR +550 bps Maturity April 2016, 6.25% annual amortization NOKm 1,050 outstanding per post amortization 1 pri in vessels Boa Deep C and Boa Sub C Currently trading at around YTM ca NIBOR + 480bps Boa Offshore unsecured Issued NOKm 150 in total November 2012/June 2013 at NIBOR bps Maturity March 2015 Currently trading at around 100 YTM ca NIBOR bps Boa SBL 1 pri bond Issued NOKm 400 in April 2013 at NIBOR bps Maturity April 2018, 5% annual amortization 1 pri in vessels Boa Galatea and Boa Thalassa Currently trading at YTM ca NIBOR Source: Boa, Pareto, Sparebank1 Markets, Arctic 5

6 Contents 1 Boa Offshore summary 2 Boa Offshore overview 3 Financials 4 Boa Offshore Subsidiaries 5 Market overview and outlook 6

7 Boa Offshore in short Boa Group and Boa Offshore is controlled by Ole T. Bjørnevik and his family. Boa Offshore currently operates and manages a fleet of approximately 35 units in various segments. Performs the technical, commercial and operational tasks on behalf of all its subsidiaries, with approximately 350 employees. Global presence and operations. Engineering and Project Management capacity out of Trondheim and Houston. Leading player in the global market for heavy lift barges. Head Office in Trondheim/Norway, and offices in Houston/USA and Gdynia/Poland. Fleet value of NOKbn 3.6 per (excl newbuilds). Approximately NOKbn 5.1 fully invested (incl newbuilds). 1H 2013 Net Interest Bearing Debt of NOKbn 1.7. Value adjusted equity ratio of 52,5% per

8 Global presence Trondheim, Norway Houston, USA Gdynia, Poland Site offices, China OCVs on contract in West Africa and Asia/Australia Tugs located in North Europe Two heavy lift, semi submersible barges in GoM Two large heavy lift, semi submersible barges in Australia SBL EM vessels in Brazil & Asia Boa office Geographical presence 8

9 Description/operations Assets Business overview Concentrated in three segments 9 Offshore Vessels 19 Barges 8 Tugs OCV Boa Sub C OCV Boa Deep C SBL Boa Thalassa SBL Boa Galatea New building program 8 semisubmersible barges 8 deck cargo barges 2 other barges Options for more new barges, BB 37 now signed 3 ASD escort tugs 4 harbour / towage tugs 1 harbour tug World wide operations Ongoing modernization of the fleet, incl NFDS Successfully owns and operates two of the world s most high spec OCVs World Wide operations Leading player in the global heavy lift market Continuous new building program since 1999 Management of Myklebusthaug Dina Lifter/Launcher Mid-Norway and North Sea operations Tugs has been the primary business of Boa since inception Revitalization of this business segment with a substantial fleet renewal BMSI, also solution/ project provider for: SURF (subsea, umbilicals, risers and flowlines) IRM (inspection, repair and maintenance) of platforms Floater moves and installations Also use of 3 rd party vessels Tonnage provider, also solution/ project provider for: All engineering related to barges. In house design Turn key transportation projects Load out and launching Dry docking operations Float over Tonnage provider and solution/ project provider for: Salvage operations Turn key towage / transport / handling operations 9

10 Contents 1 Boa Offshore summary 2 Boa Offshore overview 3 Financials 4 Boa Offshore Subsidiaries 5 Market overview and outlook 10

11 Boa Offshore consolidated historical financials Boa Offshore has streamlined its business model, now showing results. Boa Offshore 1H 2013 EBITDA increased to NOKm H 12 EBITDA of NOKm H 12 EBITDA of NOKm H 11 EBITDA of NOKm 155. Modest negative impact from lower sequential USD/NOK in 1H 13. Boa Tugs AB shut down 2H 12, positively impacting EBITDA. Record strong Boa OCV. Boa SBL slightly below expectations, but less in USD. Net interesting bearing debt reduced to NOKbn 1.7 bn. despite payments for newbuilding program during Improved key credit matrices. Value adjusted equity 52.5% Annualized NIBD/EBITDA 4.16x Boa Offshore key P&L items NOKm Boa Offshore key balance sheet items NOKm -8% +35% Note: NGAAP reported figures 11

12 Key figures (NIBD/EBITDA, ROA) NIBD/EBITDA 1H 2013 Return on Assets* 1H 2013 Boa Offshore consolidated NIBD/EBITDA 1H 13 < 4.2x. IFRS adjusted at around 3.8x** The lowest multiple in the Norwegian supply vessel sector. Sector average of around 7.5x. Boa Offshore consolidated Return on Assets* (ROA) on active fleet of 12%. Highest in the Norwegian supply vessel sector. Sector average of around 6%. ** = NB: Boa Offshore EBITDA figure includes P&L expensed provision for class/periodical maintenance (NGAAP) * = EBIT/ Fixed Tangible Assets adj for newbuilds on balance sheet - annualized (1Hx2) Source: Boa, Company Reports 12

13 Boa Offshore initiated newbuild program - fully financed Vessel Design Yard Delivery/status Debt Financing Ownership (subsidiary) Other AHTS #1 VS 491, 28,000 bhp Fosen/China hull 1Q % guaranteed SMN/GIEK, Eksportkreditt funding NFDS Offshore 1 AS, 76% owned by Boa Offshore 600t winch, ROV Hangar On hold until AHTS #2* VS 491, 28,000 bhp financing in place Boa Shipping AS MPSV #1 VS 495 Chinese 2H 14 70% bank, CDB & Sinosure Boa PSV AS IMR/Light Construction MPSV #2 VS 495 Chinese 2H 14 70% bank, CDB & Sinosure Boa PSV AS IMR/Light Construction Boa Barge 43 Boa Chinese 2H 13 SMN Boa Barges AS 300 ft Flat top Boa Barge 44 Boa Chinese 2H 13 SMN Boa Barges AS 300 ft Flat top NFDS AHTS #1 VS 491 Boa Heron/Pelican MPSV VS 495 * = AHTS #2 will not be initiated until total finance solution is in place. Construction of BB 37 has now been signed with contract secured for un-named client starting Source: Boa Offshore 13

14 Contents 1 Boa Offshore summary 2 Boa Offshore overview 3 Financials 4 Boa Offshore Subsidiaries 5 Market overview and outlook 14

15 Boa OCV AS Summary and key financials Record 1H 13 numbers for Boa OCV. Account for > 50% of Boa Offshore values and EBITDA. 1H 13 EBITDA of NOKm 128, up from NOKm 117 in 1H 12. NOKm 1,050 gross debt and NIBD of Nokm 918 per 1H 13. NIBD/EBITDA of 3,6x. Shipbrokers average valuation per of NOKbn 2 both vessels. Gross/net LTV per 1H 13 of 53/46%. Strong outlook for subsea construction vessels. Identified a number of attractive possibilities for Deep C from contract expiry October Boa Offshore key P&L items NOKm Boa Offshore key balance sheet items NOKm 10 year class of vessel to be performed before new contract. See coming slides. Note: NGAAP reported figures 15

16 Boa OCV: BOA DEEP C/ BOA SUB C state of the art vessels Particulars Length overall m Breadth 30.6 m Positioning DP-III Deck Space (free) 1885 m2 Deck Strength 20 t/m2 Main Crane 400 t Crane Depth 3000 m Main Winch 600 t Bollard Pull 220 t Accommodation 135 Available Mid 2015/16 Particulars Length overall 120 m Breadth 27 m Positioning DP-III Deck Space 1150 m2 Deck Strength 15 t/m2 Main Crane 250 t Crane Depth 2000 m Main Winch 500 t Bollard Pull 229 t Accommodation Available End 2013/Early 2014 Source: Boa Offshore, Shipbroker Reports/Valuation 16

17 Boa SBL - Summary and key financials Owns two modern seismic vessels being the world s first custom built vessels for EM seismic, built 2008/2009. On long term contracts to EMGS: Boa SBL key P&L items NOKm Thalassa firm until Dec x12 months options. Galatea firm until July x12 months options. 1H 13 EBITDA of NOKm 26 slightly down Y/Y from NOKm 27. Slightly lower USD/NOK sequentially. Secured at higher USD/NOK in 2H 13. Note: NGAAP reported figures Average shipbroker values* slightly up H/H to NOKm 620. NIBD of NOKm 357 = LTV 58%. Although purpose built for EMGS, vessel design is generic (MT 6000 series) and vessels can be converted into: Traditional 3D seismic/obn/obc seismic Survey/ROV support IMR/light construction Offshore Wind Farm support * Source: According to average of two independent shipbroker valuations 17

18 Boa Offshore The barge experts BOA has since 1998 had continuous new building program for barges in China. Boa Offshore Group today operates 19 barges of different capabilities (incl newbuilds). Management of Myklebusthaug Dina Lifter/ Launcher. Built up an in-house engineering capacity that is unique in the industry. From 2002 BOA developed its own in-house design, giving substantial cost savings. Boa can offer in additional to the steel : Total turn key projects for transportation or dry docking operations by barges. All engineering services related to barges. Hydrostatics & Hydrodynamics. Structural & Operational. Engineering and project management performed from Trondheim and Houston. Has been in involved in several major Field Developments world wide. Currently two barges on Gorgon LNG Field Development Australia. Source: Boa Offshore 18

19 BMSI SURF/IMR Boa Marine Services, Inc (BMSI) is a Texas corporation and subsidiary of Boa Offshore with its main office in Houston, USA. Established in May 2009 to expand and strengthen Boa Offshore s global presence and complement its fleet of construction vessels, MPSV, AHTS, and submersible barges. BMSI is a full-service deepwater construction solution provider with an experienced in-house engineering group, project managers and execution staff. Capable of supporting vast offshore installation campaigns including: IMR, SURF, and mooring installations. Built strong project track record. Two vessels, Polar Queen and Topaz Captain are currently chartered to support BMSI business strategy. Currently working in US GoM and Mexico. Ambition to grow further. Source: Boa Offshore 19

20 Contents 1 Boa Offshore summary 2 Boa Offshore overview 3 Financials 4 Boa Offshore Subsidiaries 5 Market overview and outlook 20

21 Industry Book to Bill as leading indicator for Barges, OCV, and BMSI Offshore Construction backlogs currently at all-time high (Saipem, Subsea7, Technip). The book-to-bill (B-t-B) ratio currently at 1.5x. Above 1.0 indicates future growth as order intake exceeds turnover. Lead time for the major projects are in general 2-3 years. Indicates higher subsea/offshore construction activity in years to come, and most likely demand for construction vessels and also Barges. Industry Book to bill Source: Pareto Research, company reports, Boa Offshore 21

22 Strong growth in subsea wells and FPSOs expected: OCV, BMSI Subsea tree installations World Wide FPSO installations World Wide Subsea tree awards and estimated subsea tree installations is a key indicator for vessel activity. Number of tree installations likely to increase from an average of < 300 p.a. in to around 500 within 3-5 years (IHS/ODS-Petrodata). Even stronger growth in +2000m water depth. Most important markets are North Sea, Brazil, and West Africa with US GoM and Australia as runners up. OCV: Boa Sub C and Boa Deep C also well suited for FPS installation due to bollard pull capacity. Average number of FPS installations p.a. around 20 last 5 years, and below this level in 2011/2012. Prospect list indicate > 30 per year on average next five years (IHS/ODS- Petrodata). Some projects will be postponed/turned down. Includes FPSO, FSRU, FSO, Semi, TLP and Spars. Source: ODS/IHS, Boa Offshore 22

23 Very few available OCVs in m category with DP2/3 and 250t crane Boa Deep C OCV fleet m LOA/min DP2 Available OCVs m LOA/250t crane Current Fleet of offshore construction vessels (all modes) count around 50 vessels in category m LOA and min DP 2 capabilities. Fleet will increase to around 65 in Some vessels uncertain of timing of delivery. Fleet growth matching demand drivers (subsea wells, FPSOs etc). Narrowing it down to vessels with Crane > 250t only a few vessels available before YE 13, with Boa Deep C one of them. Vessels available before mid 2014 most likely < 10 (including newbuilds) estimated charter contract awards/optional extensions since July 2012*. Boa Deep C (27m) only available vessel with Beam wider than 25m. Together with bollard pull capacity etc, Boa Deep C is uniquely positioned. Source: ODS/IHS, Boa Offshore, UNO 23

24 North Sea AHTS spot Market > 20,000bhp North Sea AHTS > 20k bhp spot market dayrates Boa Offshore has one large AHTS 28,000 bhp under construction through NFDS with delivery 1Q14. Average dayrate last 9 years around NOK 400,000. Average dayrate was NOK 550,000. Dayrates significantly down in in a combination of falling demand (rig count etc) and too many new vessels delivered to the market. Dayrates have recovered in 2013 in a combination of: Stable/decreasing North Sea AHTS fleet (few newbuilds delivered) and Rising demand, rig moves. Improved PSV market, spill-over effect. Correlation between bhp/vessel and achieved dayrate in Source: ODS Petrodata, Boa 24

25 North Sea AHTS Market: Floater Rigs working Supportive demand factors: Number of floater/semisubmersible drilling rigs working up in 1Q13 vs 2012 (red mark). New floater rigs entering : Island Innovator, Songa x4, Sedco 712, Stena Carron, Blackford, Ocean Patriot, DS Aberdeen, Bollista, North Dragon?, COSL Promoter, COSL Prospector, 1x Seadrill?. Ca 15 rigs = 37,5% increase. On top comes potential Offshore Greenland rig campaigns and more FPSO/ Construction support. Source: ODS Petrodata, Pareto 25

26