BW Offshore Q presentation. 26 November 2012

Transcription

1 BW Offshore Q presentation 26 November 2012

2 Disclaimer This Presentation has been produced by BW Offshore Limited ( BW Offshore ) exclusively for information purposes. This presentation may not be redistributed, in whole or in part, to any other person. This document contains certain forward-looking statements relating to the business, financial performance and results of BW Offshore and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words believes, expects, predicts, intends, projects, plans, estimates, aims, foresees, anticipates, targets, and similar expressions. The forward-looking statements contained in this Presentation, including assumptions, opinions and views of BW Offshore or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. None of BW Offshore or any of its parent or subsidiary undertakings or any such person s officers or employees provides any assurance that the assumptions underlying such forward-looking statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the actual occurrence of the forecasted developments. BW Offshore assumes no obligation, except as required by law, to update any forward-looking statements or to conform these forward-looking statements to our actual results. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, neither BW Offshore nor any of its parent or subsidiary undertakings or any such person s officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document. Actual experience may differ, and those differences man be material. By attending this Presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of BW Offshore and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the businesses of BW Offshore. This presentation must be read in conjunction with the recent Financial Information and the disclosures therein. This announcement is not an offer for sale or purchase of securities in the United States or any other country. The securities referred to herein have not been registered under the U.S. Securities Act of 1933, as amended (the U.S. Securities Act ), and may not be sold in the United States absent registration or pursuant to an exemption from registration under the U.S. Securities Act. BW Offshore has not registered and does not intend to register its securities in the United States or to conduct a public offering of its securities in the United States. Any offer for sale or purchase of securities will be made by means of an offer document that may be obtained by certain qualified investors from BW Offshore. Copies of this Presentation are not being made and may not be distributed or sent into the United States, Canada, Australia, Japan or any other jurisdiction in which such distribution would be unlawful or would require registration or other measures. In any EEA Member State that has implemented Directive 2003/71/EC (together with any applicable implementing measures in any member State, the Prospectus Directive ), this communication is only addressed to and is only directed at qualified investors in that Member State within the meaning of the Prospectus Directive. This Presentation is only directed at (a) persons who are outside the United Kingdom; or (b) investment professionals within the meaning of Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the Order ); or (c) persons falling within Article 49(2)(a) to (d) of the Order; or (d) persons to whom any invitation or inducement to engage in investment activity can be communicated in circumstances where Section 21(1) of the Financial Services and Markets Act 2000 does not apply. 26 November

3 Main statements Q EBITDA of USD 35.1 million P-63 (Papa Terra) revised forecast giving USD 75 million in negative contribution Espoir Ivoirien and Berge Helene extensions Dividend payment of USD 0.01 per share 26 November

4 OPERATION

5 Operational statements HSSEQ performance Lost time injuries (LTI) of 0.6 Fleet uptime 99.5% P-63 has left COSCO Dalian Espoir Ivoirien fixed contract extended by four years Berge Helene fixed contract extended by two years Endeavor (FSO) operations ended and unit sold Uptime 100.0% 98.0% 96.0% 94.0% 92.0% 90.0% 88.0% 86.0% 84.0% 82.0% 80.0% YTD 26 November

6 Fleet performance Improved regularity on all units Consistent technical standard implemented and gaps identified and actioned Ongoing discussions for extensions Sendje Berge Abo Optimising fleet overhead Technical and commercial support functions strengthened 26 November

7 Espoir Ivoirien contract extension Firm period extended until 2017 Option period extended until 2036 Life extension and equipment renewal, no change of capacity Equipment renewal/replacement to be paid by client on cost-plus basis Client: Oil production capacity: Gas compression capacity: Storage capacity: Mooring: Water depth: CNR, Ivory Coast 40,000 bbl/d 80 mmscfd 1,100,000 bbl Internal turret 130 m 26 November

8 Fleet overview U nit T yp e C o ntract Sendje Berge FPSO Lease Addax/Sinopec, Nigeria: Berge Helene FPSO Lease Petronas, Mauritania: (2021) Yùum K'ak'Náab FPSO Lease Pemex, M exico: (2025) BW Cidade de São Vicente FPSO Lease Petrobras, Brazil: (2024) BW Pioneer FPSO Lease Petrobras, US: (2020') BW Athena FPSO Lease Ithaca, UK: (2020) BW Joko Tole FPSO Lease Kangean, Indonesia: (2026) Umuroa FPSO Lease AWE, New Zealand: (2022) Polvo FPSO Lease BP, Brazil: (2022) Abo FPSO Lease Agip/ENI, Nigeria: Espoir Ivoirien FPSO Lease CNR, Ivory Coast: (2036) Petroleo Nautipa (50%) FPSO Lease Vaalco, Gabon: (2022) Cidade de Sao M ateus FPSO Lease Petrobras, Brazil: (2024) Azurite FDPSO Lease Murphy, Congo: (2024) Belokamenka FSO Lease Rosneft, Russia: P-63 (Papa Terra) FPSO EPC/Operate Petrobras, Brazil: Peregrino FPSO Operate Statoil, Brazil: (2033) Operation (owned) - fixed period Operation (not owned) - fixed period Construction / EPC Operation (owned) - option period Operation (not owned) - option period 26 November

9 Papa Terra status P-63 (Papa Terra) left COSCO Dalian Shipyard on 20 November Estimated arrival in Brazil is February 2013 Project cost increased by USD 75 million to USD 450 million Increased engineering, construction, procurement and commissioning cost and increased yard costs associated with the delayed schedule Final integration of six modules in QUIP s Rio Grande yard BW Offshore and QUIP working to meet the overall project schedule requirements from Petrobras for a July 2013 start-up 26 November

10 FINANCE

11 Financial statements Q EBITDA of USD 35.1 million Negative contribution from the Papa Terra-project Full contribution from BW Athena and BW Joko Tole Linear booking of revenue and EBITDA for BW Joko Tole Finalised depreciation schedule for the three new units in production; BW Pioneer, BW Joko Tole and BW Athena Received final installment of USD 100 million from Apache in July 26 November

12 P&L USD million Q3 12 Q2 12 Q Operating revenue Operating expenses Share of profit from associates EBITDA Depreciation Amortisations Gain (loss) on sale of assets / impairments EBIT Net interest expense Fx, fin instr and other fin items Profit (loss) before tax Income tax expense Net profit (loss) Reported EBITDA 35.1 Share of profit of associates (positive in Q) -0.1 FX included in EBITDA (negative in Q) 2.3 Operational EBITDA November

13 Balance sheet Equity ratio 30.4% Net interest bearing debt USD 1,662.4 million USD million Total non-current assets Assets of disposal group held for sale Total current assets Total assets Total equity Total non-current liabilities Liabilities of disposal group held for sale Total current liabilities Total liabilities Total equity and liabilities Reported interest bearing debt Cash and deposits Net interest bearing debt November

14 Financial covenants BW Offshore has agreed with its lending banks on a waiver for the USD 2,400 million loan facility and the Umuroa loan The waiver applies for the equity ratio covenant, the leverage covenant and the interest cover ratio Carve out of the Q loss on Papa Terra of USD 50 million, as well as additional Papa Terra-losses of up to USD 75 million in the second half of 2012 Applicable for as long as the relevant quarter is included in the covenant calculations No changes to any other terms and conditions 26 November

15 Debt and instalment profile Gross debt of USD 1,750.3 million per 30 September 2012 Gross debt (USD million) Instalments (USD million) Bond Petroleo Nautipa Umuroa Bond CIRR Petroleo Nautipa Umuroa RCF Term loan RCF Term loan/nv Term loan 26 November

16 Orderbook Orderbook of USD 8.5 billion Whereof USD 4.5 billion are firm contracts New orders of USD 800 million in Q3 High value cashflow and backlog from solid counterparties Orderbook (USD million) Clients Petrobras 30 % NOC 24 % Firm Option E&P 46 % 26 November

17 MARKET

18 Market statements Large number of prospects Flat to slightly increasing demand (contracts) expected near term Number of active competitors still reducing Contract extensions on existing fields have very high probability Yard capacity is very good due to lower shipbuilding activity FPSO orders e 2013e 2014e Lease - actual Lease - estimate EPC/turnkey - estimate Turnkey - actual Source: Fearnley Offshore 26 November

19 FPSO fleet development Number of FPSOs expected to grow significantly Relative share of conversions vs newbuilds unchanged Contractor owned FPSOs limited by financial resources Oil companies contracting strategies FPSO fleet ownership 2005 FPSO fleet units & type % 53% % 38% 38% 62% 62% 62 % % 2012 Contractor Oil company 57% Conversions Newbuilds 26 November

20 Selected opportunities Project Name Operator Country Indicated award Madura FPSO CNOOC Indonesia Q Leviathan FPSO Noble Energy Israel Q Catcher FPSO Premier Oil UK North Sea Q Ande Ande FPSO AWE Indonesia Q Cameia FPSO Cobalt Energy Angola Q Lakhsa FPSO Shell Brunei Q Chissonga FPSO Maersk Oil Angola Q Ayatzil-Tekel FPSO Pemex Mexico Q November

21 SUMMARY

22 Focus areas Papa Terra (P-63) project completion and start-up Operational improvements in fleet Extensions for Sendje Berge and Abo Selective market opportunities 26 November

23 Q&A 23 Picture:: Petrobras

24 Further information: IR contact: Kristian Flaten, Vice President IR and Corporate Finance kristian.flaten[a]bwoffshore.com 26 November