GulfMark Offshore, Inc.

Transcription

1 November, 2005 GulfMark Offshore, Inc. Bank of America 2005 Energy Conference

2 Cautionary Statement Regarding Forward-Looking Statements This presentation includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of The Company has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. However, a variety of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this presentation. While the Company makes these statements and projections in good faith, neither the company nor its management can guarantee that the anticipated future results will be achieved. Reference should be made to the Company s Securities and Exchange Commission filings for additional important factors that may affect actual results. GulfMark Offshore, Inc Richmond Avenue, Suite 340 Houston, TX Phone: (713) Fax: (713) gmrk@gulfmarkoffshore.com Website:

3 Overview of Company North Sea (37) Offshore Mexico (2) West Africa (1) Offshore Southeast Asia (11) Offshore Brazil (5) Offshore India (2) * Blue denotes expansion areas in

4 Fleet Summary * North Sea Southeast Asia Americas Total PSVs AHTS SPVs Total Owned Avg. Age (Yrs.) ** (1) As of November, (2) Average age of owned vessels, excluding SPV s. 4

5 Changing Fleet Dynamics 8 recent additions with 9 more vessels on the way. SOLD Built Delivered Built Managed Additions Built Sea Whip 1983 Abrolhos 2004 Portosalvo 2005 Sea Witch 1983 Coloso 2005 Esmeralda 2005 Sea Conquest 1977 Titan 2005 Safira 2005 Sea Intrepid 2005 TBN Newbuild 2006 Purchased Citadel* 2003 New Construction GMG Aker TBN AHTS (6) * Citadel Purchased in December,

6 Recent Newbuild Deliveries 2004 and 2005 Newbuild Deliveries 6

7 Recent Newbuild Deliveries Austral Abrolhos 7,000 BHP AHTS Price approximately $24 million Built specifically to customer specifications for a 5 year contract in Brazil Delivered 3Q 2004 Coloso and Titan 5,900 BHP AHTS Price approximately $12 million per vessel Each built specifically to customer specifications for a 5 year contract in Mexico Delivered 2Q 2005 Sea Intrepid 5,100 BHP AHTS (1 st of 2) Price $9.2 million Delivered Singapore October,

8 Recent Purchase In December, 2004 we purchased the Highland Citadel a 2003 built 5,450 BHP UT 755L design Platform Supply Vessel. Prior to the purchase GulfMark managed both construction and operations of the Citadel. 8

9 Newbuild Construction GMG 0402 Aker PSV 09 Newbuild AHTS 9

10 Newbuild Program Summary GMG ,100 BHP AHTS (2 nd of two vessels) Price < $10 million per vessel Expected Delivery 2Q 2006 AKER 09 3,300 DWT PSV Price approximately $30 million per vessel Expected Delivery 2Q 2007 Newbuild AHTS 10,800 BHP AHTS (6 vessels) Price approximately $23 million per vessel Expected Deliveries 3Q Q

11 AHTS Construction Project Timeline B V J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D B V1-02 B V1-03 B V1-04 B V1-05 B V1-06 * Assumes first vessel delivers 23 months after contract signing and additional vessels every two to three months thereafter. 11

12 Financial Overview 12

13 Company Overview ($ Millions except per share amounts) Shares Outstanding 20.7 Current Market Cap (11/10/05) $622.7 Long Term Debt (9/30/05) $239.6 Working Capital (9/30/05) $39.9 EPS: 2003A $ A* $ Months Ended Sept. 30, 2005 $1.46 First Call Average: 2005E $ E $2.57 * Before cumulative effect of accounting change 13

14 Selected Financial Data ($ Millions, except per share amounts) 1 st Call 1 st Call 2004(*) 2005E 2006E EBITDA $45.0 $94 $107 Net Income $2.7 $41 $53 Share O/S E.P.S. $0.13 $1.99 $2.57 * Before Cum. Effect of Accounting Change 14

15 Capital Expenditures ($ Millions) Average E 2006E 2007E 2008E New Builds $67.6 $26.2 $24.8 $28.4 $96.0 $23.2 Other/Enhance Acquisitions * 10.0* Total CapEx $86.7 $46.3 $36.0 $40.4 $98.0 $25.2 * Recently announced purchases of small AHTS vessels in China 15

16 Contract Cover (Including Options) Contract Cover (Oct-Dec) 2005E 2006E North Sea Southeast Asia Brazil All Vessels EBITDA ($mm) 91.1% 76.6% 100.0% 89.1% $26.3* 60.4% 9.3% 92.8% 53.4% $49.9 * As of September 30, Amount of Contract EBITDA covered under contracts for the remainder of the year excludes contract EBITDA already earned for prior periods. 16

17 Significant Growth Story 9/ / % increase Vessels and Equipment, net $174.3 $ % Long Term Debt $130.1 $ % Shareholders Equity $90.9 $ % Owned Vessels % 17

18 The Power of Ownership Highest recorded EBITDA in Company history was approximately $50 million in Current 2005 and 2006 estimates are 88% and 114% higher, respectively. Owned Vessels Adjusted EBITDA E* 2006E* 2007E 2008E Adjusted EBITDA Owned Vessels * Based on First Call Estimates as of August, Historical EBITDA adjusted for reclassification of drydock expense. 18

19 Market Overview 19

20 Improving Markets Increased E&P Spending Recent surveys estimate continued increased international spending in 2005 Improving International Markets Identified projects have meant more drilling rigs, development projects, and construction support activity Rig contracts at record levels with limited availability Increased Demand for Modern Vessels Customers are demanding newer, modern vessels with greater functionality and reliability as the average industry vessel age continues to increase 20

21 E&P Spending Surveys Global E&P spending predicted to increase 13%+ in 2005 verses 5.7% indicated in December, 2004 North America: 16.9% International: 13.3% Additional Upside to E&P Spending Updates Current budgets based on low commodity price assumptions 65% of companies surveyed indicate higher spending in 2006, and almost 80% of those expect double-digit increases Source: Lehman Brothers - Oil Service and Drilling Oil Service June 22,

22 North Sea North Sea Far From Dead While the world viewed the North Sea as dead as little as a year ago, it is now a mad scramble to get involved and the region appears to have several years of oilfield service growth ahead. Increased focus on long offset and infill drilling New strides in rotary stearable and measurement technologies are driving up recovery rates in mature fields serviced from fixed platforms Statoil targeting 75% recovery rates with 100 new sidetrack wells planned Independents gaining increased access to pipeline and processing infrastructure from the majors Source: Morgan Stanley Oil Service and Equipment May 31,

23 Brazil Recent Petrobras Fixtures Add 81 Rig Years in Brazil. Diamond Noble Transocean Pride GSF # of Rigs Source: ODS Petrodata. 23

24 West Africa After some time, several large-scale projects are beginning to move forward 2005 Programs TFE Angola Rosa/Lirio Woodside Mauritania Chinguetti Shell Bonga BP Plutonio West Africa has had the highest number of outstanding deepwater rig tenders for the past year, moving from only a handful a year ago to approximately 30 today. Jack-up demand is expected to contribute to a continued tightness in the market with additional units being mobilized to the region. 24

25 Mediterranean Egypt continues to be the driving force for vessel activity in the Med Attracting new tonnage every month Active Middle East region Owners purchasing vessels left, right and center and placing them on drilling support contracts from time of delivery Source: Fearnley's Offshore Supply AS July 15, 2005 Market Report 25

26 Other Areas Southeast Asia Currently leads the world in offshore exploration drilling and will continue to due so through 2009 By 2009, should lead the world in total offshore expenditures at more than $30 billion Despite regular deliveries of newbuilds, operators are struggling to cover vessel requirements Far East India Deepwater program underway in India Steady demand expected through

27 Future Rig Deliveries Newbuilds/Reactivations * Expected deliveries of GulfMark New Builds Q05 2Q05 1 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 1 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 Source: Morgan Stanley, Oil Services, Drilling & Equipment, November 7, Q09 1Q10 2Q10 3Q10 4Q10 27

28 Demand for High-Capacity Supply Vessels International demand for high-capacity supply vessels has shown impressive growth since 1997 Increased deepwater activity creating new demand. Improved efficiency replacing older vessels. Health and safety plus environmental issues replacing older vessels. The number of high-capacity supply vessels in the North Sea has been relatively stable at around 200 units since However, international demand over the same period showed impressive growth - total units have increased from 60 to 369 units. Source: Enskilda Securities 28

29 North Sea vs. International No. of Supply Vessels E 2006E International (number of high capacity supply vessels) North Sea (number of high-capacity supply vessels) Source: Enskilda Securities 29

30 2006E 2005E 2004E World Supply Vessel Market (High Capacity) 250 Newbulind boom in 1982 and number of vessels Source: Enskilda Securities.

31 Summary Premier World Class Fleet Attractive Dynamics in Markets of Operation Additional Newbuild Vessel Upside 31

32 Reconciliation of Adjusted EBITDA Net (loss) income $ 1.9 $ 7.9 $ 37.9 $ 24.0 $ 0.5 $ (4.6) Interest expense, net Income tax (benefit) (12.2) (6.5) DD&A EBITDA $ 24.1 $ 34.3 $ 52.6 $ 59.3 $ 41.5 $ 32.0 Adjustments: Gain on sale of assets - (3.7) - (0.2) - (2.3) Other income (expense), net* (2.5) Debt refinancing costs Cum. effect of acctg. change Adjusted EBITDA *Includes loss from unconsolidated ventures in minority interest EBITDA is defined as net income (loss) before interest expense, net, income tax provision, and depreciation and amortization. Adjusted EBITDA is calculated by adjusting EBITDA for certain items that we believe are non-cash or unusual, consisting of: (i) gain on sale of assets; (ii) loss from unconsolidated ventures; (iii) minority interest; and (iv) other (income) expense, net. EBITDA and a Adjusted EBITDA are not measurements of financial performance under GAAP and should not be considered as an alternative to cash flow data, a measure of liquidity or an alternative to income from operations or net income as indicators of our operating performance rmance or any other measures of performance derived in accordance with GAAP. EBITDA and Adjusted EBITDA are presented because we believe they are used by security analysts, investors and other interested parties in the evaluation of companies in our industry. However, since EBITDA and Adjusted EBITDA are not measurements determined d in accordance with GAAP and are thus susceptible to varying calculations, EBITDA and Adjusted EBITDA as presented may y not be comparable to other similarly titled measures of other companies. 32