Havila Shipping ASA Presentation 4th Quarter 2006 Preliminary results 2006»news»results»company»fleet»market
Latest news 23/2-06: Purchase of parts in Havila Saturn Havila Shipping ASA has purchased a further 27,5 % part in KS Havila Saturn. After this the company s ownership will be 69,5%. KS Havila Saturn has under construction an AHTS vessel of Havyard 842 design which will be delivered from Havyard Leirvik during November 2007.
Events during 2006 Sale of 8 UK rescue recovery vessels and operations Enter into newbuilding- contracts of a value of NOK 2 bn Signed contracts against Statoil/Hydro with a value of NOK 740 mill Established a joint venture company together with PACC group in Singapore Entered into the Subsea market
> Results Best quarterly results ever! Spot marked in Q4 better than Q3! High spot- exposure through end of 2006 Gain from sale of vessels booked in 2006 cash effect in Q1/07 Purposed dividend NOK 3,50 per share NOK 1000 4Q 2006 Income and profits 245 490 720 591 EBITDA 178 823 73% 456 827 63% EBIT 158 821 65% 363 277 50% Pre tax result 163 582 67% 347 597 48%
NOK 1000 Q4 2006 Q4 2005 01.01-31.12 2006 01.01-31.12 2005 Freight income 192 332 +54% 124 733 666 012 +41% 472 115 Profit by sale of vessel 52 153 482 52 153 27 354 Other income 1 005 1 128 2 426 1 128 Operating income 245 490 126 343 720 591 +44% 500 597 Crew Expenses 40 465 41 271 170 251 151 409 Vessel Costs 16 191 16 301 65 471 57 221 Other Operating Expenses 10 011 7 595 28 042 22 688 Total operating expenses 66 667 65 167 263 764 231 318 Operating profit before depr. 178 823 +192% 61 176 456 827 +70% 269 279 Depreciation 20 002 20 417 93 550 65 443 Operating profit 158 821 +289% 40 759 363 277 +78% 203 836 Associated companies 4 179 1 475 22 030 3 701 Financial income 6 104 2 277 19 098 2 859 Unrealised agio 11 409 18 234 14 647 Financial expenses 20 508 15 390 73 308 40 112 Other financial expenses -3 580 8 402 1 734 Net financial items 4 764-20 040-15 680-48 199 Profit before tax 163 585 +689% 20 719 347 597 +123% 155 637 Taxes 28 331 6 217 50 070 6 217 Profit / loss for the period 135 254 14 502 297 527 149 420
Segment reporting 2006 100 % 80 % 60 % AHTS PSV 40 % 20 % RRV 0 % Operating Income Operating Profit EBIT AHTS 118 973 90 298 76 % PSV 306 766 170 278 56 % RRV 239 192 75 083 31 %
Quarterly development 2005-2006 in NOK 1000 250 000 200 000 150 000 100 000 REVENUES OPEX 50 000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Brokers fleet valuation sorted by building year 1040 mill - 55 % 861 mill - 45% 1995-1999 2000-
Assets NOK 1000 ASSETS 31.12.2006 31.12.2005 Vessels Contract newbuildings Buildings, office etc 1 424 291 325 385 2 405 1 585 058 46 078 2 305 Total financial fixed assets 33 279 31 789 FIXED ASSETS: Accounts receivables Other short-term receivables Market based shares Bank deposit CURRENT ASSETS: TOTAL ASSETS 1 785 360 130 734 152 895 53 047 615 418 952 094 2 737 454 1 665 230 74 715 25 596 526 614 626 925 2 292 155
Equity and liabilities EQUITY AND LIABILITIES 31.12.2006 31.12.2005 Total equity 991 586 646 352 Deferred tax 71 904 22 351 Total long term debt 1 501 857 1 491 898 Total current liabilities 172 107 131 554 TOTAL EQUITY AND LIABILITIES 2 737 454 2 292 155
Cash Flow IFRS NOK 1000 Q4 2006 2006 2005 Cash from operating activity 126 854 327 731 175 266 Cash flow from investing activity -173 701-482 032-996 154 Cash flow from financing activity 161 345 296 157 1 292 455 Net change in cash 114 498 141 856 471 567 Liquid assets - start period 553 972 526 614 55 047 Liquid assets - end period 668 470 668 470 526 614
SHAREHOLDERS PER 15.02.2007 Company Shares HAVILA AS 8 031 450 50,3 % NOR PARETO AKSJE NORGE 1 066 800 6,7 % NOR VERDIPAPIRFOND ODIN NORDEN 775 700 4,9 % NOR VERDIPAPIRFOND ODIN NORGE 707 300 4,4 % NOR PARETO AKTIV 482 600 3,0 % NOR PICTET & CIE BANQUIERS 376 685 2,4 % CHE PACTUM AS 289 600 1,8 % NOR SIS SEGAINTERSETTLE AG 5 PCT NOM 275 000 1,7 % CHE DNB NOR SMB 226 000 1,4 % NOR GRIFFIN UMBRELLA FUND PLC 209 200 1,3 % NOR Largest shareholders: 78 % Other Shareholders 22 % Total 100 %
> Havila Shipping ASA A high qualified organisation which put focus on human resources and solid seamanship 9 vessels in operation New -building program of 11 vessels: -1 SubSea Construction -6 AHTS vessels -1 PSV vessel -3 AHTS vessels in China 225 seamen on 9 vessels. 15 employees at the office in Fosnavåg
Main customers Norsk Hydro (approx 25 % of fleet- capex end 2007) Statoil (approx 25 % of fleet- capex end 2007) Maersk Marathon TS Marine Other operators in the North Sea
QUALITY Health - Safety - Environment Havila Shipping ASA has a clear goal of improving its performance with regards to health, safety and environment both at sea and onshore. The company s goal is for its ships to fulfill or exceed our customer s expectations as to standards within health, safety and environment.
Company strategy To be a preferred partner within offshore services vessels Focus on safe operations Focus on human resources and development Focus on modern fleet To maintain a balanced mix between long contracts and spot marked Create values for shareholders
New company structure New-buildings: -07 Havila Mars AHTS -07 Havila Mercury AHTS -07 Havila Foresight PSV -07 KS Saturn 49 % -08 KS Neptune 15% -09 Havila 845 1 AHTS -09 Havila 845 2 AHTS Havila Shipping ASA 100% ownership Havila Shipping Pte Singapore Havila Offshore Havila SuBCon Havila Trencher - 08 3 AHTS vessels PACC Havila Pte -50% JV company -97 Havila Runde-RRV -03 Havila Troll- RRV -05 Havila Harmony (SubSea vessel) -08 Havila 858 TBN SubSea Construction -95 Havila Fame PSV -97 Havila Favour PSV -98 Havila Faith PSV -00 Havila Force AHTS -05 Havila Princess PSV -98 Havila Fortress PSV
1+1 SubSea Construction vessels Design 2006 2007- Options Built VESSELS : 1.Havila Harmony MT 6010 Mars 2007-2010 2 X 1 year 2005 2.Havila TBN Havyard 858 6/2008 Havila Harmony converted -Q1 2007
2 Multi-Field Rescue vessels VESSELS : Design 2007 2008- Options Built 1. Havila Troll UT 527 12/2013 3 X 2 year 2003 2. Havila Runde KK 7/2011 2 X 1 year 1997
5+1 Plattform Supply Vessels VESSELS : Design 2007 2008- Options Built 1.Havila Favour - North Sea VS 483 SPOT 1999 2.Havila Faith - North Sea VS 483 Sept 2007 frontrunner 1998 3.Havila Princess - North Sea VS 473 Aug 2007 1 year 2005 4.Havila Fame - North Sea LMG SPOT 1995 5.Havila Fortress - North Sea VS 483 Jan 2009 2 x 1 year 1996 6.Havila Foresight North Sea MT 6010 July 2016 5 x 1 year 2007
Havila Foresight Norsk Hydro from sept. 2007 Specifications: MT 6010 design Length/ Breadth : 93,60/19,70 1046 m3 deck- area clean and comfort class ORO 2005 ABCS ASFA
1+9 Anchor Handling Supply Vessels VESSELS : Design 2007 2008- Options Built 1.Havila Force VS 473 Frontrunner sept 07 2000 2.Havila Mars UT 786 April 07-10 3x1 year 4/2007 3.Havila Mercury UT 786 Aug 07-10 3x1 year 8/2007 4.Havila Saturn KS 50% Havyard 842 10/2007 5.Havila Neptune KS 15% Havyard 842 12/2007 6,7,8 Havila TBN 50% JV Focal Marine- Kina 1-12/2008 9. Havila TBN 1 Havyard 845 4/2009 10. Havila TBN 2 Havyard 845 9/2009
2 x AHTS XXL Delivery April, September 2009 Specifications: Length/ Breadth: 92 m/ 22 m 275 tons Bollard Pull 500 t winch- tipple drum Hybrid propulsion system Low fuel consumption Low emissions Safe AHTS equipment Integrated ROV
4 AHTS XL newbuilds Havila Mars and Havila Mercury : Rolls Royce 786 CD design 210 ton bollard pull 18 400 BHP safe anchore handling equipment Havila Neptun and Havila Saturn: KS shares; 70% and 15% Havyard 842 design 200 ton bollard pull 17 500 BHP
> Market All-time high spot- market during 2006! Growth and optimism in rig and oil exploration will continue to trig activity for offshore service vessels in coming years Increasing demand for modern vessels with lager capacities and higher on environmental standards. Focus and access to Human capital will be success criteria in coming years Havila Shipping ASA has focus into Asia Pacific region The company is positioned and has capacity to take part in the development in the industry
FLOATING PRODUCTION UNITS PER TYPE 300 250 Accumulated no. of FPU's 200 150 100 Spar TLP Semi-Sub FPSO 50 0 1979 1982 1984 1986 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 Year installed Source: Offshore Research
300 FLOATING PRODUCTION UNITS PER WATER DEPTH Accumulated no. of FPU's 250 200 150 100 1800 m + 900-1799 m 500-899 m 200-499 m 100-199 m 3-99 m 50 0 1979 1982 1984 1986 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 Year installed Source: Offshore Research
World Wide state of the art AHTS fleet No. of vessels Built Type 1973-79 1980-84 1985-89 1990-94 1995-99 2000-04 2005-06 2007 2008 2009 2010 2011 Total 10,000<AHTS<12,000 BHP 3 17 3 2 2 13 15 10 4 69 12,000<AHTS<15,000 BHP 2 34 14 5 20 9 19 14 15 3 1 136 15,000<AHTS<18,000 BHP 2 8 16 25 7 10 12 7 87 AHTS>18,000 BHP 2 12 17 7 3 1 16 4 2 64 Total AHTS 5 51 21 15 50 64 48 37 32 26 5 2 356 Source: Offshore Research
World Wide state of the art PSV fleet No. of vessels Built Type 1973-79 1980-84 1985-89 1990-94 1995-99 2000-04 2005-06 2007 2008 2009 2010 2011 Total 2,000<PSV<3,000 DWT 9 15 2 1 45 39 5 4 1 121 3,000<PSV<4,000 DWT 1 6 3 11 20 78 62 35 38 1 1 256 PSV>4,000 DWT 2 1 6 28 28 27 24 3 8 127 Total PSV 12 22 5 18 93 145 94 63 41 10 1 0 504 Source: Offshore Research
Maritime expertise Our region is one of the world fastest growing offshoreservice and know-how cluster in the world Local maritime design and technology is in world top class and a leader in development of the industry Approx. 90 offshore service vessels with a value of NOK 15-20 mrd are operated from Fosnavåg Ship-owners in Fosnavåg has an order- book of approx. NOK 5 mrd against Norwegian yards Local seamen are high qualified with long experience
Conclusion Havila Shipping ASA has strengthened focus and activity into state of the art offshore vessels Havila Shipping ASA is financial positioned and has knowledge to take part in the development in the industry Planned activity in the offshore market, combined with expectation to still high oil prices, will keep up high activity through 2007. Focus and access of human capital will be success criteria in coming years But; limited access, and higher prices in advanced equipment.