Second quarter 2014 Bergen 22 August 2014 / First quarter 2013 Bergen 16 May 2013 Bergen, 22 February 2013 21.08.2014 1
Agenda Highlights Q2 2014 Operational review Financial review Summary and outlook Polar Onyx 21.08.2014 2
Highlights second quarter Stable operations, focus on core business Rebuilding of Polar Marquis completed Fleet utilisation of 94% Solid financial result Polar Marquis 21.08.2014 3
Key figures REVENUES NOK million EBITDA NOK million NET PROFIT NOK million 250 200 150 174 215 176 168 214 150 120 90 94 126 66 75 110 500 400 300 200 439 100 50 0 Q213 Q313 Q413 Q114 Q2 14 60 30 0 Q213 Q313 Q413 Q114 Q2 14 100 0-100 41 44-6 -73 Q213 Q313 Q413 Q114 Q2 14 21.08.2014 4
Operational Review Q2 2014 21.08.2014 5
Solid contract backlog of NOK 3.0 billion* CONTRACT COVERAGE* Utilisation rate CONTRACT BACKLOG* NOK million 100% 100% 1 800 80% 1 500 60% 40% 62% 48% 38% 1 200 900 600 469 709 618 1 169 20% 300 0% from 30.06.2014 2015 2016 2017 * Excluding options 0 from 30.06.2014 2015 2016 2017-21 21.08.2014 6
Average duration of contract portfolio is 2.4 years VESSEL CHARTERER 2014 2015 2016 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 SUBSEA Polar Prince Reef Subsea Polar King Reef Subsea Polar Queen BOA Marine Services Polar Onyx Ceona Services Contract (5 yr) + Option (5 yr) MARINE SEISMIC Fixed Polar Duke Dolphin p Geophysicalp y Option (6x1yr) Polar Duchess Dolphin Geophysical Option (4+2 yr) Polar Marquis* Dolphin p Geophysicalp y New contract (3.5 yr) + Option (2 x 2 yr) Seismic Newbuild Dolphin Geophysical Contract (5 yr) + Option (2 x 3 yr) ICE/ SUPPORT Polar Piltun Polar Baikal Sakhalin Energy Inv. Sakhalin Energy Inv. Ernest Shackleton British Antarctic Survey Option (4x1yr) Polar Pevek Exxon Neftegas Long-term contract until 2021 Fixed Fixed Option Option Option * Former Geo Atlantic 21.08.2014 7
Construction of seismic vessel Advanced 3D seismic vessel 22 streamers and ice class 1A* Expected delivery in Q1 2015 5 years contract with Dolphin Geophysical from delivery Seismic newbuild 21.08.2014 8
Subsea Fleet utilisation 100 percent 89 percent in Q2 2013 Improved performance YoY KEY FIGURES NOK million 150 132 Delivery of Polar Onyx primo March 2014 Increased fleet utilisation 120 90 70 90 82 94 72 Market Relatively good demand for vessels 60 30 37 50 32 46 Expectant market, new charter party agreements are more timeconsuming 0 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Operating income EBITDA 21.08.2014 9
Marine Seismic Fleet utilisation 82 percent 100 percent in Q2 2013 KEY FIGURES NOK million Reduced income and EBITDA 90 78 80 76 Yard stay for rebuilding of Polar Marquis, delivered ultimo May Market 60 41 49 58 67 Weaker, more challenging market Sound order backlog 30 25 21 30 0 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Operating income EBITDA 21.08.2014 10
Ice/ Support Fleet utilisation 100 percent Equivalent to Q2 2013 Reduced volume YoY KEY FIGURES NOK million 60 Sale of HMS Protector in September 2013 44 Market 30 26 28 Generally stable development 16 18 16 16 9 8 8 0 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Operating income EBITDA Note: As of 01.01.2014 joint ventures are booked as financial items using the equity method. All figures have been restated accordingly. 21.08.2014 11
Financial review Q2 2014 21.08.2014 12
Income statement NOK mill Q2 2014 Q2 2013 (2) 1H 2014 1H 2013 (2) 2013 (2) Operating income 214.4 173.8 382.3 354.9 745.5 EBITDA 110.3 93.6 185.1 183.4 375.4 EBIT 72.2 56.4 113.4 116.8 621.9 Net financial income and expenses -28.4-77.2-27.8-146.8-260.5 Profit before tax 43.8-20.8 85.7-30.0 361.4 Net profit in the period 43.5-5.7 84.7 5.5 371.0 Normalized profit before tax (1) 57.8 9.5 90.7 9.2 81.8 Earnings per share 1.0-0.13 1.94 0.13 8.50 (1) Profit bef. tax adjusted for unrealised currency gains/losses, profit from disposals and write-downs (2) As of 01.01.2014 joint ventures are booked as financial items using the equity method. Figures from Q2 2013 and 31.12.2013 have been restated accordingly. 21.08.2014 13
Segments Q2 2014 Q2 2013 NOK mill Revenues EBITDA Margin Revenues EBITDA Margin Subsea 132.3 72.3 54.6% 70.3 36.6 52.1% Marin Seismic 66.5 29.8 44.8% 77.5 40.9 52.8% Ice/ support 15.5 8.2 52.9% 26.1 16.1 61.7% Sum 214.4 110.3 51.4% 173.9 93.6 53.8% 21.08.2014 14
Balance sheet per 30.06.2014 NOK million 5 000 4 000 57 Intangible assets Total balance NOK 4 369 million Equity ratio 48.9 percent Solid cash position 3 000 2 000 1 000 0 3642 192 2138 1854 478 assets 377 Assets Fixed assets Other current assets Cash & liquid Equity & Liabilities Equity Longterm liabilities Current liabilities Net debt NOK 1 571 million Total debt of NOK 2 231 million Average duration of loan portfolio is 4.0 years Available revolving facility of NOK 250 million 21.08.2014 15
Outlook Overall market Expectant offshore market Reduced petroleum investment activity Uncertainties related to political risk in the Russian region Expected trends in segments: Subsea: Relatively good demand Marine Seismic: Challenging market Ice/support: Long-term focus 21.08.2014 16
Summary Stable operations, focus on core business Rebuilding of Polar Marquis completed Solid financial result Polar Onyx 21.08.2014 17
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