GulfMark Offshore, Inc. Pritchard Capital Partners: Energize 2006

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Transcription:

GulfMark Offshore, Inc. Pritchard Capital Partners: Energize 2006 January, 2005

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 1995. 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. 10111 Richmond Avenue, Suite 340 Houston, TX 77042 Phone: (713) 963-9522 Fax: (713) 963-0541 E-Mail: gmrk@gulfmarkoffshore.com Website: www.gulfmark.com

Current Operating Locations North Sea (31) Mediterranean (4) Middle East (2) Offshore Mexico (2) West Africa (1) Offshore Southeast Asia (11) Offshore Brazil (5) Offshore India (2) 3

Fleet Summary * North Sea Southeast Asia Americas Total PSVs 30 3 3 36 AHTS 4 8 3 15 SPVs 6 0 1 7 Total 40 11 7 58 Owned 30 11 7 48 Avg. Age (Yrs.) ** 10.8 20.7 6.9 12.8 (1) As of January, 2006. (2) Average age of owned vessels, excluding SPV s. 4

Changing Fleet Dynamics 8 recent additions with 11 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 Sea Intrepid 2005 2005 Safira TBN Newbuild 2005 2006 Purchased Citadel* 2003 New Construction GMG 0402 (Guardian) Jaya 857 (Sovereign) Aker 09 (2) 2006 2006 2007 MTD 313A AHTS (6) 2007-2008 * Citadel Purchased in December, 2004. 5

Recent Newbuild Deliveries 2004 and 2005 Newbuild Deliveries 6

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, 2005 7

Newbuild Construction GMG 0402 (Sea Guardian) Jaya 857 (Sea Sovereign) Aker PSV 09 (2 Vessels) MTD 313A AHTS (6 Vessels) 8

Newbuild Program Summary GMG 0402 (Sea Guardian) 5,100 BHP AHTS (2 nd of two vessels) Price < $10 million Expected Delivery 2Q 2006 Jaya 857 (Sea Sovereign) 5,500 BHP AHTS Price approximately $14.5 million Expected Delivery 4Q 2006 AKER 09 4,850 DWT PSV (2 vessels) Price approximately $30 million per vessel Expected Deliveries 2Q 2007 and 3Q 2007 MTD 313A AHTS 10,600 BHP AHTS (6 vessels) Price approximately $23 million per vessel Expected Deliveries 3Q 2007 3Q 2008 9

Acquisition/Newbuild Cost Est. Delivery GMG 0401 (Sea Intrepid) 10/12/05 $9.2 GMG 0402 (Sea Guardian) 3/30/06 9.9 Jaya H-857(Sea Sovereign) 10/28/06 14.5 Aker 09 2nd Qtr. 2007 30.5 Aker 09 3rd Qtr. 2007 30.5 MTD 313A 3rd Qtr. 2007 23.2 MTD 313A 4th Qtr. 2007 23.2 MTD 313A 1st Qtr. 2008 23.2 MTD 313A 2 nd Qtr. 2008 23.2 MTD 313A 2 nd Qtr. 2008 23.2 MTD 313A 3rd Qtr. 2008 23.2 Est. Cost Total $233.8 10

Financial Overview 11

Company Overview ($ Millions except per share amounts) Shares Outstanding 20.7 Current Market Cap (1/10/06) $635.9 Long Term Debt (9/30/05) $239.6 Working Capital (9/30/05) $39.9 EPS: 2003A $0.03 2004A* $0.13 9 Months Ended Sept. 30, 2005 $1.46 First Call Average: 2005E $2.02 2006E $2.62 2007E $2.87 * Before cumulative effect of accounting change 12

Selected Financial Data ($ Millions, except per share amounts) 1 st Call 1 st Call 1 st Call 2004(*) 2005E 2006E 2007E EBITDA $45.0 $94 $108 $113 Net Income $2.7 $42 $54 $59 Share O/S 19.9 20.7 20.7 20.7 E.P.S. $0.13 $2.02 $2.62 $2.87 * Before Cum. Effect of Accounting Change 13

Capital Expenditures ($ Millions) Average 2001-2003 2004 2005E 2006E 2007E 2008E New Builds $67.6 $26.2 31 $21 $132 $23 Other/Enhance 2.3 2.1 2 2 2 2 Acquisitions 16.8 18.0 11* 21** 0 0 Total CapEx $86.7 $46.3 $44 $44 $134 $25 * Includes: Coloso, Titan and Sea Intrepid ** Includes: Sea Guardian and Sea Sovereign. 14

Contract Cover (Including Options) Contract Cover* 2006E 2007E North Sea Southeast Asia Americas All Vessels EBITDA ($mm) 75.3% 14.0% 92.8% 63.9% $66.0 37.9% 0.0% 73.5% 34.4% $29.5 * As of January 09, 2006 15

Significant Growth Story 9/30 2000 9/30 2005 % increase Vessels and Equipment, net $174.3 $495.1 184% Long Term Debt $130.1 $239.6 84% Shareholders Equity $90.9 $323.2 256% Owned Vessels 30 48 60% 16

The Power of Ownership Highest recorded EBITDA in Company history was approximately $50 million in 2002. Current 2005, 2006, and 2007 estimates are 88%, 114% and 126% higher, respectively. Owned Vessels Adjusted EBITDA 70 60 50 40 30 20 10 0 2000 2001 2002 2003 2004 2005E* 2006E* 2007E* 2008E Adjusted EBITDA Owned Vessels 120 110 100 90 80 70 60 50 40 30 20 10 0 * Based on First Call Estimates as of December, 2005. Historical EBITDA adjusted for reclassification of drydock expense. 17

Market Overview 18

E&P Spending Surveys 2005 E&P spending rose by more than 20% globally, compared to a 13.4% increase suggested by the mid-year spending survey and the 5.7% increase at this same time last year. 2006 Global E&P spending predicted to increase 14%+ to $238 billion, from $207 billion in 2005 North America: increase 14.9% to $57 billion International: increase 14.9% to $156 billion Additional Upside to E&P Spending Updates Gains likely understated due to higher oil and gas prices than budgeted Deepwater Focus Deepwater spending increasing with 29% of those surveyed planning to spend a greater percentage of their budget in deepwater verses 17% in 2005 92% of international companies surveyed view drilling more favorable than purchasing reserves Source: Lehman Brothers - Oil Service and Drilling Oil Service December 9, 2005. 19

Improving Markets Supermajors getting more active in the international markets International Budget Increases from 2005-2006 ConocoPhillips 46.3% Chevron 30.3% ExxonMobil 7.8% BP 6.6% Royal Dutch Shell 5.5% Source: Lehman Brothers - Oil Service and Drilling Oil Service December 9, 2005. 20

Improving Markets Independents likely to continue to push into the international markets as many are budgeting higher spending in 2006 International Budget Increases from 2005-2006 ATP Oil & Gas 87.5% Noble Energy 80.0% Devon 39.9% Apache 21.4% Marathon 13.9% Amerada Hess 9.6% Source: Lehman Brothers - Oil Service and Drilling Oil Service December 9, 2005. 21

North Sea In December, 2005 the UK Tax Chancellor Announced a 20% Supplementary Corporate Tax Rate on UK Oil and Gas Producers Following the announcement however, even the majors have continued to make additional commitments Shell Sedco 711 has received a 3 year commitment and the JW McLean a 1 year commitment from around July 2007 and March 2007 respectively BP 1 year charter for Sedco 704 in the North Sea from Feb/March 2007 and LOI for the charter of ENSCO 92 for two to four wells from first quarter 2007. North Sea jackup demand has historically been largely short term in nature and often seasonal yet today we are seeing focus on potential shortfall in 2007 Strength in drilling, development and production support provides strong vessel utilization and future demand 22

Brazil Recent Petrobras Fixtures Add 81 Rig Years in Brazil. Diamond Noble Transocean Pride GSF # of Rigs 1 2 3 4 1 2 3 4 5 6 1 2 3 4 5 1 2 3 4 1 2 2005 2006 2007 2008 2009 2010 Source: ODS Petrodata. 23

West Africa The Nigerian National Petroleum Corp. raised 2006 capex budget by 36% 2006 budget of $5.57 billion, mainly to finance various joint venture projects being implemented in the Nigerian oil and gas sector Activity is expanding and finds within Africa continue Emergence of local companies such as Peak and Equator in Nigeria, the expansion of independents such as Tullow in Nambia, and successes of Murphy in Gabon Majors/SuperMajors active in the Deepwater Market ExxonMobil issued tender for up to four floaters for one-to-two year (plus options) development programs and appraisal programs covering five wells plus options ExxonMobil recently issued LOI for semi GSF Rig 140 and Transocean semi Jim Cunningham to start 2007 Trident IV to be mobilized to Nigeria to undertake a two year contract with Chevron starting after March 2006 Forecasted jackup undersupply in West Africa in 2006 Even with recent additions, a deficit still exists in the second half of 2006 Scheduled mobilizations into the region are expected to increase marketed supply from 19 units to 24 by fourth quarter 2006 but the undersupply will remain as demand peaks at 26 to 28 units in Q3 of 2006 24

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

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 2006 Emergence of other Indian players (Reliance/Hindustan) Strong push by ONGC during 2006 and moving forward 26

Future Rig Deliveries Newbuilds/Reactivations 11 10 9 1 1 * Expected deliveries of GulfMark New Builds. 8 7 6 1 2 5 4 3 2 1 0 1Q05 2Q05 1 1 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 1 1 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 Source: Morgan Stanley, Oil Services, Drilling & Equipment, November 7, 2005. 1 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 27

North Sea vs. International No. of Supply Vessels 450 400 350 300 250 200 150 100 50 0 411 369 309 269 219 213 196 198 201 197 192 178 191 200 208 114 137 88 60 64 1997 1998 1999 2000 2001 2002 2003 2004 2005E 2006E International (number of high capacity supply vessels) North Sea (number of high-capacity supply vessels) Source: Enskilda Securities 28

Modern Fleet = Competitive Advantage Specialized/Technologically Advanced Vessels Highly Efficient Vessels with Multiple Uses Dependable Vessels Maximize Customer Profits Minimum Downtime, Maximum Flexibility with Dry Docking Younger Vessels More Likely to be Employed in Downturns Premium Day Rates High Utilization Rates Extended Term Charters Minimum Required Capital Expenditures Maximum Profitability 29

Reconciliation of Adjusted EBITDA 1999 2000 2001 2002 2003 2004 Net (loss) income $ 1.9 $ 7.9 $ 37.9 $ 24.0 $ 0.5 $ (4.6) Interest expense, net 9.5 10.7 11.6 10.9 12.8 17.0 Income tax (benefit) 0.3 3.1 (12.2) 3.0 0.2 (6.5) DD&A 12.4 12.6 15.3 21.4 28.0 26.1 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* 0.9-1.5 (2.5) 1.3 1.5 Debt refinancing costs - - - - - 6.5 Cum. effect of acctg. change - - - - - 7.3 Adjusted EBITDA 25.0 30.6 54.1 56.6 42.8 45.0 *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. 30