Boa Offshore April 2013 Helge Kvalvik, CEO

Transcription

1 Boa Offshore April 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

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. Market leading position in several offshore segments, and in certain niche segments. Improved 2012 Results from restructuring and streamlining of Boa Offshore Group and improved underlying operations. EBITDA 2012 of NOKm383, up 61% YoY from NOKm 238 Further room for improvement as loss-making Boa Tugs AB now shut down and higher market and company activity Improved balance sheet. NIBD/EBITDA 2012 YE of 4.6x, run-rate closer to 4x Value adjusted Equity > 50% Current initiated newbuilding program fully financed. Promising outlook for 2013 and in the years ahead. 4

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

6 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. Main activities/exposure include: Subsea installation and construction (OCV/BMSI) Seismic EM vessel operations (SBL) Sea transportation and load-out and launching of heavy objects (Barges/BMSI) Rig moves (NFDS/AHTS) Harbor and costal towage (Tugs) Salvage operations (Tugs) Global presence and operations. 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 YE 2012 (Excl newbuilds). YE 2012 NIBD NOKbn

7 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 7

8 Description/operations Assets Overview of business segments Offshore Vessels Barges Tugs OCV Boa Sub C OCV Boa Deep C SBL Boa Thalassa SBL Boa Galatea New building program 8 semisubmersible barges 7 deck cargo barges 2 other barges Options for more new barges 1 voith escort tug 4 ASD escort tugs 4 harbour / towage tugs 2 harbour tugs 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 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 8

9 Boa Offshore organizational structure* Boa OCV AS Org. # Norway Boa SBL AS Org. # Norway BOA GALATEA Boa Offshore AS Org. # Norway BOA THALASSA 76% Boa Shipping AS Org. # Norway 76% Boa Barges AS Org. # Norway Taubåtkompaniet AS Org. # Norway Boa PSV AS Org. # Norway NFDS Offshore 1 AS Org. # Norway Det Nordenfjeldske Dampskibsselskap AS Org. # Norway Boa Offshore LLC US Boa Marine Services Inc US Other** 100% of voting shares Boa OCV owns and operates the offshore construction vessels Boa Deep C and Boa Sub C. Boa SBL owns two modern seismic vessels Boa Galatea and Boa Thalassa. Boa Shipping owns and/or operates several barges and tugs with a regional focus. The tugs operate as harbor tugs, salvage tugs, costal and deep sea towage tugs. Boa Shipping also owns the below subsidiaries: Boa Barges: World leading barge operator with a fleet of 10/17 barges (including two newbuilds), also performing associated project engineering and management Taubåtkompaniet: Owns 4 Rampart tugs (operated by Boa Shipping) Boa PSV: Owns the two to MPSV newbuilds; Boa Heron and Boa Pelican, estimated delivery in 2Q and 4Q 2014 NFDS Offshore 1 AS (NOFF 1 AS) is the owner of the newbuild AHTS Boa Bison to be delivered in 1Q 2014 Det Nordenfjeldske Dampskibsselskap AS: At present holding company for NOFF 1 AS. Will consider new vessel investments with external investors going forward. Boa Offshore LLC is a company used for operating vessels in the US Gulf (Boa Deep C). Boa Marine Services Inc. (BMSI) is an engineering and turnkey operator in the Americas * All companies are 100% owned unless otherwise specified ** See appendix for full details 9

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

11 NOK mill. NOK mill. Boa Offshore consolidated historical financials Boa Offshore has streamlined its business model, which is now showing results. Boa Offshore 2012 EBITDA increased 61% YoY to NOKm 383. Corresponding to EBITDA margin of 37%, up from 25% in 2011 Sale of loss making vessels negatively impacting H 12 EBITDA of NOKm 204., up from NOKm 179. in 1H 12 Margins excluding loss making Boa Tugs AB in mid 40s. Boa Tugs AB now shut down, will positively impact EBITDA in 2013 and onwards Several segments performing very well with sustained high EBITDA margins. Gross interesting bearing debt slightly reduced to less than NOK 2 bn. and NIBD maintained at NOK 1.8 bn. despite payments for newbuilding program during Boa Offshore key P&L items NOK mill. 1, , (152) -200 Sales EBITDA Net profit Boa Offshore key balance sheet items NOK mill. 5, , , ,138 2,000 4,134 3,976 1,768 1,363 1,000 1,758 1, ,446 1,576 Total assets NIBD Equity Note: NGAAP reported figures 11

12 Three outstanding Bonds Face value of NOKbn 1.6 BOA OCV 1 pri bond (Taubåt) Issued NOKbn 1.2 in April 2011 at NIBOR +550 bps Maturity April 2016 Currently < NOKbn 1.1 (YE 12) outstanding post amortization 1 pri in vessels Deep C and Sub C Currently trading at around 102 YTM ca NIBOR + 470bps Boa Offshore unsecured Issued NOKm 75 in November 2012 at NIBOR bps Maturity March 2015 Currently trading at 100,5 101,5 YTM ca NIBOR + 648/594 bps Boa SBL 1 pri bond Issued NOKm 400 in April 2013 at NIBOR bps Maturity April pri in vessels Galatea and Thalassa Currently trading at 100, YTM ca NIBOR + 546/528 Source: Boa, Pareto, Sparebank1 Markets

13 Key Figures (NIBD/EBITDA, ROA) NIBD/EBITDA 2012 Return on Assets* 2012 Boa Offshore consolidated with NIBD/EBITDA 2012 YE of 4.6x. Current run-rate figure closer to 4x The lowest multiple in the Norwegian supply vessel sector. Sector average of around 7x. Boa Offshore consolidated Return on Assets* (ROA) on active fleet of >10%. Highest in the Norwegian supply vessel sector. Sector average of around 6%. Source: Boa, Company Reports NB: 2012 EBITDA figure includes > NOKm 35 P&L expensed provision for class/periodical maintenance (NGAAP) * = EBIT/ Fixed Tangible Assets adj for newbuilds on balance sheet

14 Boa Offshore initiated newbuild program - fully financed Delivery/ Vessel type Design Yard status Debt financing Ownership Other AHTS #1 Boa Bison 28,000 bhp AHTS #2 28,000 bhp VS 491 VS 491 Norwegian/ China hull 1Q 2014 On hold until financing is in place 60% commitment from bank, SpareBank1 SMN/GIEK NFDS Offshore 1 AS with 24% external investors Boa Shipping AS MPSV #1 Boa Heron VS 495 Chinese 2Q % bank, CDB & Sinosure Boa PSV AS MPSV #2 - Boa Pelican VS 495 Chinese 4Q % bank, CDB & Sinosure Boa PSV AS 600t winch ROV hangar Targeted for light construction/ IMR market Targeted for light construction/ IMR market Boabarge 34 Boa Chinese Delivered Jan SpareBank1 SMN Boa Barges AS 140 m Semi submersible Boabarge 43 Boa Chinese 2Q 2013 SpareBank1 SMN Boa Barges AS 300 feet Flat top Boabarge 44 Boa Chinese 2Q 2013 SpareBank1 SMN Boa Barges AS 300 feet Flat top Boa Heron/Pelican MPSV VS 495 NFDS AHTS #1 VS

15 Contents 1 Boa Offshore summary 2 Boa Offshore overview 3 Financials 4 Boa Offshore Subsidiaries 5 Market overview and outlook 15

16 Boa OCV: BOA DEEP C BOA DEEP C is a specialized offshore construction vessel designed by Vik- Sandvik (VS 4201) and built at the Factorias Vulcano Yard in Spain in The vessel is equipped with: Two WROV hangars Anchor handling winch Two secondary winches Two cranes Heli-deck The vessel has proved operational excellence with close to full utilization. MV estimated at NOKm Contract till August 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 Source: Boa Offshore, Shipbroker Reports/Valuation 16

17 Boa OCV: BOA SUB C BOA SUB C is a specialized offshore construction vessel designed for sub sea construction, including pipe laying. The vessel has enhanced capabilities to manage difficult assignments in particularly demanding or harsh environments. Gross tonnage of 16,500 tons, VS 4201 design, delivered in The vessel is equipped for the following operations: Anchor handling (>3000 m dept) Towing (3 winches at 6/5/500 t) Mooring ROV operations (2 ROV hangars) Heavy lift up to 400 tons (3 cranes) Helicopter operations Multifunctional subsea services MV estimated at NOKm 1,050-1,150. Contract till July options. 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 Source: Boa Offshore, Shipbroker Reports/Valuation 17

18 Boa OCV AS Summary and key financials Account for > 50% of Boa Offshore values and EBITDA. Both vessels are on contracted to EMAS AMC EBITDA of NOKm 240. NOKm 1,088 gross debt 2012 YE NIBD NOKm 973 Shipbrokers average valuation per December 2012 of NOKm 2,020 for both vessels. LTV year end 2012 of 54/48%. Strong outlook for subsea construction vessels. Identified several attractive possibilities for Deep C from contract expiry August Few vessels in same segment with matching capacities: crane, deck-space, DP3, and winch/bollard pull. And few available before mid 2014 Boa OCV AS share of EBITDA* 2012 Barges, tugs and other 27% Barges, tugs and other 27% SBL 14% OCV 59% Boa OCV AS share of fleet value December 2012 SBL 17% OCV 56% Note: NGAAP reported figures *EBITDA before eliminations 18

19 Boa SBL - The vessels Boa SBL owns two modern seismic vessels being the world s first custom built vessels for electromagnetic seismic; EM On long term contracts to EMGS Thalassa firm until December x12 months options (first option exercised) Galatea firm until July x12 months options Total construction costs NOKm 325 each and average market value (charter free) of NOKm 305* today. Estimated newbuild price today assumed 20% above historical construction cost. 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 Main specifications vessels Design MT 6007 (Marin Teknikk AS) Type EM seabed logging vessels Length (m) Beam (m) DWT (t) 3,000 Max speed 17 knots Accommodation 57 persons DP-system Rolls-Royce DP II Delivered December 2008 and July 2009 respectively Yard Bergen Group Fosen, Norway Class Det Norske Veritas Flag Cayman Islands 19

20 NOK mill. NOK mill. Boa SBL - Historical financials Boa SBL key P&L items NOK mill Sales EBITDA Net profit Boa SBL key balance sheet items NOK mill Boa SBL reported EBITDA of NOKm 57 in Corresponding figures for 2010 and 2011 were NOKm 99 and NOKm 45 respectively. The 2010 number was positively impacted by currency gains, and the 2011 number was negatively impacted by higher than expected class provision (level is now adjusted for going forward). Net profit 2012 reported at NOKm 13 Debt to credit institutions YE 2012 reduced by NOK 47 mill. YoY to NOK 289 mill. Cash reported at NOK 26 mill. NIBD of NOKm Total assets NIBD Equity LTV of 47/43% Recently issued April 2013 new NOKm 400 bond to re-finance debt. 20

21 Boa Barges AS The barge experts BOA has since 1998 had continuous new building program for barges in China. Today operates 10/17 barges of different size. Built up an in-house engineering capacity that is unique in the industry. As from 2002 BOA developed its own inhouse 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. Source: Boa Offshore 21

22 Boa Tugs and Barges Summary and key financials Boa owns and operates 31 tugs and barges (including 2 other vessels) in various subsidiaries within the group EBITDA for Boa Offshore other segments at NOKm 108, from NOKm 51 in Shipbrokers valuation per YE 2012 of NOKm 996. Excluding equity paid in AHTS #1 and MPSV # 1 and 2. LT Debt per YE 2012 of NOKm 601. NIBD of NOKm 533 Boa Tugs and Barges share of EBITDA* 2012E Barges, tugs and other 27% SBL 14% OCV 59% Boa Tugs and Barges share of fleet value Dec Indicative LTV around 60/54%. Contracts for most subsidiaries and assets in the other segments of Boa Offshore are of a short to medium term character. Market outlook for all of the other segments are stable to positive. Barges, tugs and other 27% SBL 17% OCV 56% Note: NGAAP reported figures *EBITDA before eliminations 22

23 Contents 1 Boa Offshore summary 2 Boa Offshore overview 3 Financials 4 Boa Offshore Subsidiaries 5 Market overview and outlook 23

24 Offshore construction book-to-bill indicates continued growth for OCV, Barges and BMSI Offshore construction Book to Bill ratio is a leading indicator for OCV, Barges and BMSI. With project sanctioning gaining momentum in 2011 and 2012, backlogs again started to increase with the book-to-bill (B-t-B) ratio currently at 1.6x. Above 1.0 indicates future growth as order intake exceeds turnover. Lead time for the major projects are in general 2-3 year. Industry backlog at all-time high of USD bn 27 per 3Q12 (graph down to the right). Indicates higher subsea/offshore construction activity in years to come, and most likely demand for construction vessels and also barges. Offshore Construction Book-to-Bill and sales USD m (r.h.s.) Offshore Construction Industry backlog USD bn Source: Pareto Research, Sparebank1 Markets, Company reports 24

25 Strong growth in subsea wells and FPSOs expected: OCV, BMSI Subsea tree awards World Wide FPSO installations World Wide 2x 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 around 300 p.a. in to 500+ within 3-5 years. Normally on average months lead time from award to installation Most important markets are North Sea, Brazil, and West Africa with US GoM and Australia as runners up. Source: ODS/IHS, Boa Offshore, Sparebank1 Markets, FMC Technologfies/Quest 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. has been around 20 last 5 years, but was down to 14/18 in 2011/2012. Prospect list indicate > 40 per year next five years. Some projects will be postponed/turned down. However, per year looks very achievable at present. Includes FPSO, FSRU, FSO, Semi, TLP and Spars. 25

26 Very few available OCVs in m category with DP2/3 and 250t crane OCV fleet m LOA/min DP2 Available OCVs m LOA and min 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. Assuming certain options called. Vessels available before mid 2014 around 10 (including newbuilds) estimated charter contract awards/extensions since July Boa Deep C (27m) only available vessel with Beam wider than 25m. Together with bollard pull capacity etc, Boa Deep C is unique. Source: ODS/IHS, Boa Offshore, UNO 26

27 AHTS North Sea spot market Market holding up through Q1 AHTS > 15,000 bhp GBP/day 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Current spot 2013 Market showing signs of balance this year with healthy dayrate levels and utilization until recently. Current spot around NOK 300,000/day (NCS). Improved potential for 2013 with limited newbuilds entering, increased activity. PSV > 4,000dwt GBP'/day 30,000 25,000 20,000 15,000 10,000 5,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Curr. spot 2013 PSV market also holding up well with new deliveries YTD largely not impacting North Sea spot supply. A recovery is still dependent on migration out of the North Sea with a significant number of vessels due for delivery next months. Vessel values threatened by non-european built vessels increasingly competing. Source: Pareto Research 27

28 Despite Term demand down significantly AHTS 15k+ Also seen in spot market* No large FPSOs to support (ref 2011 and 3Q12). Few very large Field Developments/construction projects. Competition from PSVs (increased fleet). Less exploration wells. Total number of spot AHTS fixtures for period Jan-March up 30% from 2011 to Number of spot fixtures for Rig Moves up 80% from 2011 to Other spot fixtures down 10% last two years. * Updated per mid march Source: IHS/ODS Petrodata, Boa 28

29 Drilling activity to pick up significantly in 2013 and onwards # of working rigs Other supportive demand factors: Increased subsea/fpso activity, particularly in 2014 More frontier drilling with Barents Sea and Greenland up y/y in 2013 At least one, likely two and potentially three drilling campaigns offshore Greenland in Q3'15 Q1'15 Q3'14 Q1'14 Q3'13 Q1'13 Q3'12 Q1'12 Q3'11 Q1'11 Q3'10 Q1'10 Q3'09 Q1'09 Q3'08 Q1'08 Q3'07 Q1'07 Q3'06 Q1'06 Q3'05 Q1'05 UK Norway Source: Pareto 29

30 Boa Offshore outlook and strategy 2013: Further improvement in EBITDA expected SBL Barges OCV/Subsea BMSI* Tugs Stable YoY 2013 EMGS expected to exercise the first set of 12 months options One of the first set of three these options exercised in December 2012 for Thalassa No expansion or investment plans for Boa SBL at present Higher market activity and delivery of newbuilds projected to increase EBITDA Delivery of Boa Barge 34, 43 and 44 in 2013 will add to revenues and earnings Offshore construction activity in general showing growth Boa Barges expected to grow steadily going forward Higher and more stable EBITDA with full year effect of new Sub C contract Several leads for Deep C from Aug 2013 when current contract ends Recent contracts in OCV segment and bidding activity are good leading indicators Long-term Boa Offshore will look into expanding its subsea exposure More third party contracts and higher volumes and EBITDA Polar Queen on T/C from GC Rieber Shipping ASA from November 2012 High market activity BMSI expected to grow steadily in low capital cost structure Improvement towards YE 2013 Loss-making Sweden (Boa Tugs AB) shut down during 2012 No expansion or investment plans for Tugs at present Long term some expansion could be justified * Boa Marine Services Inc. 30

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