2017 Pareto Conference Bart Heijermans CEO Recent DeepOcean - - PowerPoint PPT Presentation

2017 Pareto Conference – Bart Heijermans CEO

Recent DeepOcean presentations at Pareto Conference DeepOcean is getting ready to thrive in the new normal but… light at the end of the tunnel is still dim… (except ‘Nordic‘ light that is a bit brighter..) “We cannot solve

• ur problems

with the same thinking we used when we created them”. Albert

Einstein

Navigating through crowded water 2014 Weathering the prolonged oil downturn 2016

Offshore Wind and Interconnectors Oil & Gas

State of the Industries

 In absence of a global geopolitical event

• il will likely trade in the ~$40-$60 range

for years to come  Continued focus on cost deflation in

• rder for offshore oil to become

competitive  Market structurally oversupplied with rigs and vessels for many years  Still enormous amounts of debt that have to be written off because vessel day rates are not going to return to 2014 levels (not even close…)  Contractors with relative lower fixed cost basis have advantage  Significant global growth caused by continued technology advancements, productivity gains and cost reductions soon resulting in a phase-

• ut of the need for any subsidies

 Focus on sustainable sources of renewable energy to reduce CO2 emissions and improve quality of life – Energy transition ongoing and likely to accelerate  Adequate number of suppliers to drive down LCOE  Long term prospect for interconnectors looks promising

Size of fleet

14

Number

• f ROVs

50

Number of trenchers

15

Number of Employees

~1000

Number of Engineers ~200 Lead Shareholder – Funds advised by Triton Partners

Life of field subsea services

Financials

437 548 591 322 269 76 61 41 90 132 513 609 632 411 402 ~375-400 2012 2013 2014 2015 2016 2017

$’m

Oil & Gas Renewables / interconnector

DeepOcean is a very effective platform for customers and ship-owners

 ‘15-’17 revenue on par with ‘12 in NOK terms  ‘17 renewable and interconnector revenue ~ 50%

86% 87% 80% 82% 83% 79% 2012 2013 2014 2015 2016 1H17

Utilization

~ of vessels 15 14 15 14 13 13

Revenue

 Find and secure new work  Innovation to structurally reduce cost

• Several initiatives ongoing

 Unit cost leader

• Smooth execution
• Low and flexible cost basis (company and supply chain)
• High utilization
• Repetitive nature of work (learning curve)
• Personnel retention

 Diversification

• Oil & gas
• Renewables
• Interconnectors
• CAPEX & OPEX

 Agile & Nimble & Savvy

Getting ready to thrive in new normal

Fleet rebalancing

Installation of Subsea Trees

Strong engineering capabilities and fast response

Subsea well scale squeeze

• perations using coiled tubing rig

Subsea laser data acquisition and visualization High speed survey ROV Installing flexible risers using a VLS Installation of suction piles

Not your typical IMR2 contractor – differentiated IMR2 services

Examples of Innovation

Typical OCV Campaign in spot market

Varg subsea decommissioning Race Bank Array – Array cables Foinaven riser replacement Troll B&C riser replacements and wear protection

Simultaneous installation and burial

• f export cables

136 km Installation of interlink cable 23 km # of engineered groundings 10 # of complex 3.5km beach pulls across Morecambe Bay 2

Walney Extension Project

11

Installation and burial of 91 Array Cables

• Max. >3

cables per day

Race Bank Project

Variable hard soils, strong currents and sand waves

Unmatched trenching performance

T3200 and T1000 trenchers both worked on this project

Race Bank Project

Trenched ~130 km of export cables up to 3m depth of burial in challenging and variable soil conditions including Calcareous rock T3200 is the industry standard

Getting ready to thrive in new normal

www.deepoceangroup.com 13

2x 130 km subsea 1000 MW interconnector cables Belgium – UK Complicated route engineering, preparation in English channel 7,000 te. split capacity duel concentric carousel Simultaneously loading 2 x 59km 400kv HVDC XPLE cables

Nobelwind Bligh Bank Array Cables

Renewable and transmission projects in 2017

Race Bank Export Cables Nemo Interconnector Walney Array Cables Real projects by committed contractor - not just W2W vessel utilization….

 Acquired French company Searov Offshore SAS effective 1 July 2017  Company owns 10 ROVS  Operations in Congo, Cameroon, Gabon, Ivory Coast  Clients Total, ENI, Perenco, Vaalco, etc.  “Can do attitude” and great addition to our platform

Searov acquisition

Part of DeepOcean’s strategy to become life of field subsea services contractor in key countries in Africa

 Safety of all employees and other stakeholders  Finding and contracting new work  Operational excellence  Continued focus on unit cost reductions (company and supply chain)  Innovation to reduce cost  Add SAT diving to our service offering  Acquire companies and assets in line with our Deep 2020 Vision

Our focus

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Q&A