Aqualis ASA THIRD QUARTER RESULTS 2014 Oslo, 29 October 2014 - - PowerPoint PPT Presentation

aqualis asa
SMART_READER_LITE
LIVE PREVIEW

Aqualis ASA THIRD QUARTER RESULTS 2014 Oslo, 29 October 2014 - - PowerPoint PPT Presentation

Aqualis ASA THIRD QUARTER RESULTS 2014 Oslo, 29 October 2014 aqualis.no Disclaimer This Presentation has been produced by Aqualis ASA (the Company or Aqualis ) solely for use at the presentation to investors and other stake


slide-1
SLIDE 1

aqualis.no

Aqualis ASA

THIRD QUARTER RESULTS 2014

Oslo, 29 October 2014

slide-2
SLIDE 2

Disclaimer

  • This Presentation has been produced by Aqualis ASA (the “Company” or “Aqualis ”) solely for use at the presentation to investors and other stake holders and may not be

reproduced or redistributed, in whole or in part, to any other person. This presentation is strictly confidential, has not been reviewed or registered with any public authority or stock exchange, and may not be reproduced or redistributed, in whole or in part, to any other person. To the best of the knowledge of the Company, the information contained in this Presentation is in all material respect in accordance with the facts as of the date hereof, and contains no material omissions likely to affect its importance. However, no representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, neither the Company nor any of its subsidiary companies or any such person’s officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this Presentation. This Presentation contains information obtained from third parties. Such information has been accurately reproduced and, as far as the Company is aware and able to ascertain from the information published by that third party, no facts have been omitted that would render the reproduced information to be inaccurate or misleading.

  • This Presentation contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates.

Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words “believes”, expects”, “predicts”, “intends”, “projects”, “plans”, “estimates”, “aims”, “foresees”, “anticipates”, “targets”, and similar expressions. The forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. None of the Company or any of its parent or subsidiary undertakings or any such person’s officers or employees provides any assurance that the assumptions underlying such forward-looking statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the actual occurrence of the forecasted developments. The Company assumes no obligation, except as required by law, to update any forward-looking statements or to conform these forward-looking statements to our actual results.

  • AN INVESTMENT IN THE COMPANY INVOLVES RISK, AND SEVERAL FACTORS COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE

MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT MAY BE EXPRESSED OR IMPLIED BY STATEMENTS AND INFORMATION IN THIS PRESENTATION, INCLUDING, AMONG OTHERS, RISKS OR UNCERTAINTIES ASSOCIATED WITH THE COMPANY’S BUSINESS, SEGMENTS, DEVELOPMENT, GROWTH MANAGEMENT, FINANCING, MARKET ACCEPTANCE AND RELATIONS WITH CUSTOMERS, AND, MORE GENERALLY, GENERAL ECONOMIC AND BUSINESS CONDITIONS, CHANGES IN DOMESTIC AND FOREIGN LAWS AND REGULATIONS, TAXES, CHANGES IN COMPETITION AND PRICING ENVIRONMENTS, FLUCTUATIONS IN CURRENCY EXCHANGE RATES AND INTEREST RATES AND OTHER FACTORS.

  • SHOULD ONE OR MORE OF THESE RISKS OR UNCERTAINTIES MATERIALISE, OR SHOULD UNDERLYING ASSUMPTIONS PROVE INCORRECT, ACTUAL RESULTS MAY VARY MATERIALLY

FROM THOSE DESCRIBED IN THIS PRESENTATION. THE COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION, TO UPDATE OR CORRECT THE INFORMATION INCLUDED IN THIS PRESENTATION.

  • By attending or receiving this Presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company

and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company’s business. This Presentation does not constitute an offer to sell or a solicitation of an offer to buy any securities in any jurisdiction to any person to whom it is unlawful to make such an offer or solicitation in such jurisdiction.

2

slide-3
SLIDE 3

Q3 2014 - highlights

3

  • Total revenues of USD 10.7m in the 3rd quarter of 2014
  • Adjusted EBIT of USD 0.3m in Q3 2014 (negative EBIT of USD 1.1m for the 3rd quarter after

USD 1.4m one-off costs related to restructuring and listing)

  • Order back-log of approx. USD 22m as of end September 2014
  • Cash and cash equivalents of USD 21.4m at 30 September 2014; no interest-bearing debt
  • The Company had 166 employees* as of end September 2014
  • Continued high investment in growth and regional expansion (13 offices in 10 countries)
  • Aqualis Offshore Holding ASA was listed on Oslo Stock Exchange on 13 August 2014
  • Aqualis Offshore Holding ASA changed name to Aqualis ASA on 20 August 2014
  • Aqualis established operations in Mexico through a newly formed subsidiary Aqualis

Offshore S. de R.L. de C.V.

  • The Company signed a rig moving services contract with Saudi Aramco, the world's largest

energy company

* Includes contractors on 100% utilization equivalent basis

slide-4
SLIDE 4

Revenues – quarterly development

USDm

Notes: (1) Tristein AS included from May 2014; OWC Ltd from July 2014

0,0 2,0 4,0 6,0 8,0 10,0 12,0 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Aqualis Offshore Tristein OWC

slide-5
SLIDE 5

20 40 60 80 100 120 140 160 180 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014

Recruitment – quarterly development

5

Notes: (1) Numbers include contractors on 100% utilization equivalent basis (2) Tristein AS included from May 2014; OWC Ltd from July 2014

Number of employees 3x

slide-6
SLIDE 6

Q3 2014 – highlights (cont’d)

6

Subsequent events:

  • 14 October 2014, Aqualis Offshore announced that following a multi-site assessment by

Lloyd’s Register Quality Assurance (LRQA), the company was been successful in achieving ISO 9001:2008 certification

slide-7
SLIDE 7

Q3 2014 – main new contract wins

7

  • a 3 year contract with Saudi ARAMCO to provide jack up rig movers
  • a 3 year with 1 year option call out marine consultancy contract with Total ABK of Abu Dhabi
  • a 9 month (renewable) marine warranty services (MWS) contract from ONGC to attend on all
  • wned rig moves offshore India
  • completion of the Newfield LF7-2 topside floatover project offshore China following our

retention as MWS on behalf of London underwriters

  • a detailed design engineering contract with an Indian client for the conversion and upgrade
  • f 2 jack up drilling units into MOPU’s. Work for one unit will be undertaken in our Houston
  • ffice and for the other in Dubai
  • the reactivation works associated with the bringing a stacked jack up drilling rig from
  • ffshore in the Gulf of Mexico into a shipyard and subsequent loadout onto a heavy lift

vessel for transportation to the Far East for conversion into a MOPU

  • commencement of a contract to effect the basic engineering of an OM 100-4 design lift boat

in Houston

  • two large technical due diligence vessel inspection contracts for a vessel operator and a

major financial institution based in Norway

  • MSAs signed with Nabors Drilling and MMHE (Malaysia)
slide-8
SLIDE 8

Company development

8

2006 - 2013 Nov 2013 – Jul 2014 Aug 2014  ASA ASA ASA

Nov 2013 Apr 2014 Jun 2014 Aug 2014 Aqualis Offshore Holding ASA Listed on Oslo Stock Exchange Listed on Oslo Stock Exchange

Acquisitions: Spin-off:

slide-9
SLIDE 9

9

Aqualis Offshore Ltd Tristein AS Offshore Wind Consultants Ltd

Aqualis ASA

(listed entity – OSE: AQUA)

Marine & engineering consultancy services

slide-10
SLIDE 10

Global presence – covering all major oil regions

10

Current locations RIO DE JANEIRO MEXICO CITY HOUSTON OSLO/SANDEFJORD SINGAPORE SHANGHAI DAMMAM DUBAI ABU DHABI MANAMA LONDON

slide-11
SLIDE 11

FINANCIAL HIGHLIGHTS

slide-12
SLIDE 12

Q3 2014 – key figures

12

slide-13
SLIDE 13

0,0 10,0 20,0 30,0 40,0 50,0 60,0 1 2 USDm

Solid financial position (30.09.14)

  • No interest-bearing debt
  • 86% equity ratio
  • Strong liquidity position:
  • USD 21.4m in cash and cash

equivalents

Cash & cash

  • equiv. –

USD 21.4m Other current assets – USD 10.0m Non-current assets – USD 22.9m Equity – USD 46.9m Current liabilities – USD 7.1m Non-current liabilities – USD 0.2m

slide-14
SLIDE 14

Q3 2014 – cash flow

14

USDm Q3 2014

Operating cash flow

  • 1.1

One-off items* 1.3

  • Adj. operating cash flow

0.2 Investing cash flow

  • 0.2

Financing cash flow 19.3 Cash beg. of period 3.4 Change in cash & cash equiv. 18.0 Cash end of period 21.4

  • Operating cash flow in the

quarter adjusted for one-off items was positive: USD 0.2m

  • Limited cash expenditure on

capex (as expected) in the quarter

  • Aqualis had a positive net

financing cash flow of USD 19.3m in Q3 2014

  • Net proceeds from cash

contribution (USD 10.5m)

  • Contribution in kind (USD

8.8m)**

* USD 1.3m one-off cash outflow during Q3 2014 related to restructuring and listing ** Financial assets representing a part interest in the prepayment in relation to Weifa ASA’s (former Aqualis ASA) acquisition of Weifa AS

slide-15
SLIDE 15

OUTLOOK

slide-16
SLIDE 16

Outlook – top-line growth & increased profitability

16

Market:

  • Continued good global activity in all market segments expected
  • Limited signs of long term slowdown have yet manifested themselves through workload

Micro:

  • Expect continued top-line growth in Q4 and throughout 2015 and gradual normalization of EBIT

margins

  • Strategic emphasis still being maintained on organic growth within key markets
  • Significant engineering opportunities being bid to Middle East and Asia Pacific clients
  • Expecting a Q4 ramp-up of rig moving operations offshore India and general increase globally
  • Office open in Mexico City and good opportunities being identified with some attendances offshore

already undertaken

  • Merging Tristein and Aqualis Offshore operations in Norway into single streamlined entity
  • Opportunistically seeking M&A targets on a selective basis
slide-17
SLIDE 17

aqualis.no

Aqualis ASA

APPENDIX

slide-18
SLIDE 18

Corporate structure

18

**The company is 100% controlled by Aqualis Offshore

Aqualis ASA

* In KSA / Bahrain, Aqualis operates through agency agreement with AET

Aqualis Offshore Inc (Houston, USA) Aqualis Offshore Marine Services LLC (Dubai,UAE) Aqualis Offshore Pte Ltd (Singapore) Aqualis Offshore UK Ltd (London, UK) Aqualis Offshore Serviçõs Ltda (Rio de Janeiro, Brazil) Aqualis Offshore AS (Sandefjord, Norway)

49%** 100% 100% 100% 100%

Aqualis Offshore Marine Consulting Co., Ltd. (Shanghai, China) Aqualis Offshore Ltd (London, UK)

100% 100%

Aqualis Dammam, KSA*

100%

Tristein AS (Oslo, Norway)

100% 100%

Offshore Wind Consultants Ltd (London, UK)

100%

Aqualis Offshore S. de R.L. de C.V. (Mexico City, Mexico) Aqualis Offshore Marine Consulting LLC (Abu Dhabi, UAE)

100%

Aqualis Manama, Bahrain*

100% 49%**

slide-19
SLIDE 19

Executive Management Board of Directors

David Wells, CEO Has more than 30 years experience in the offshore sector with particular focus on offshore operations, MWS and marine consultancy. Specialist on jack up operations, location approvals and all aspects of rig moving. More recently involved in senior management duties. Based in London.

Martin Nes (Deputy member) He is CEO and Partner of investment firm Ferncliff TIH AS. Has previously worked several years for the Norwegian law firm Wikborg Rein, both in their Oslo and London offices, and for the shipping law firm Evensen & Co. Mr Nes’ experience is especially within the shipping and offshore industry. Mr Nes joined Ferncliff in March 2008.

19

Christian Opsahl, CFO Extensive international finance, investment banking and private equity experience within the global financial markets, together with industrial experience from companies servicing the offshore oil and gas markets. Based in Norway.

Yvonne L. Sandvold She is the Chief Operating Officer of Frognerbygg AS, and has extensive experience from the Norwegian real estate industry. Ms Sandvold currently serves on the Board of several private companies.

Executive Management & Board of Directors

Øystein Stray Spetalen He is Chairman and owner of investment firm Ferncliff TIH AS, and an independent

  • investor. He has worked in the Kistefos Group as an investment manager, as corporate

advisor in different investment banks and as a portfolio manager in Gjensidige Forsikring. Synne Syrrist She is an independent business consultant, and has extensive experience as a non- executive director. She has previously worked as a financial analyst at Elcon Securities and First Securities, and currently serves on the Board of several public companies, including Awilco Drilling Ltd and Eidesvik Offshore ASA. Glen Rødland, Chairman Director and co-investor Direct Active Investments in Ferncliff TIH AS. Mr. Rødland has PhD studies in Finance from NHH and UCLA. He has worked within management consulting, portfolio management and investment banking. Mr. Redland's experience is mainly in Energy, Basic Materials and Shipping. Reuben Segal

  • Mr. Segal is the Director Middle East for Aqualis Offshore and has almost 20 years’

experience in the offshore and shipping sectors covering both engineering design and ship surveying. He is a naval architect, and has extensive recent global business development experience with focus on design and construction of offshore oil and gas.

slide-20
SLIDE 20

The combined group

20

Strengthened position in a growing market space Enhanced services through sharing of knowledge, resources and expertise Stronger foothold in the offshore wind industry Utilisation of the group’s global network

Ticker: AQUA

slide-21
SLIDE 21

Complete life cycle involvement with offshore assets

Project initiation Engineering / design phase Project procurement Construction Hook-up and commissioning Asset management De- commissioning

Marine project / asset life cycle Aqualis Offshore services

Engineering (niche-focus):

Basic / conceptual design / FEED Modifications and upgrades of drilling rigs / FPSOs / FSOs / lift- boats Transportation & installation analysis

Inspection & approvals:

Marine warranty services Mooring analysis Condition and suitability surveys / audits DP inspections and audits Jack-up site assessments

Construction yard supervision:

Site attendance on behalf of owners, shipyards, financial institutions, 3rd parties New-builds + conversions & upgrades Due diligence / compliancy; financial community focus

Marine operations:

Transport and installation services; “moving of offshore assets” Rig moving Float-overs Site attendance & procedure management

Aqualis’ key competencies are conjointly exposed to both offshore opex and capex cycles

21

slide-22
SLIDE 22

Offshore operations are key for all business lines

22

  • Moving of rigs
  • Offshore Construction

Projects

  • Transportation &

installation

  • Marine Warranty

Services (MWS)

  • FPSO/MOPU engineering

and installation

  • Towages

Offshore operations «Doing» «Observing»

  • Jack up engineering

(basic design, upgrade and conversion)

  • FPSO marine engineering
  • Construction supervision
  • Engineering design and

consultancy

  • Key staff provision
  • Technical Due diligence
  • DP FMEAs and audits
  • Vessel inspections and

surveys

  • Marine and engineering

approvals

  • Site assessments
  • Engineering reviews /

verifications

  • Marine consultancy
slide-23
SLIDE 23

Rig / vessel owners: NOCs / IOCs: Offshore cont. / shipyards: Underwriters / financial inst.:

Selected clients

23

slide-24
SLIDE 24

Top 20 shareholders

24

Ferncliff and associated companies: ~24% Management and employees: ~24%

Holding Percentage (%) Name Citizenship 5 450 973 12,62 STRATA MARINE & OFFS NOR 2 350 169 5,44 GROSS MANAGEMENT AS NOR 2 187 500 5,06 AQUALIS HOLDCO LIMIT GBR 1 761 972 4,08 ARCTIC FUNDS PLC IRL 1 475 000 3,42 VERDIPAPIRFONDET DNB NOR 1 363 498 3,16 DEUTSCHE BANK AG GBR 1 340 963 3,10 FERNCLIFF LISTED DAI NOR 1 135 666 2,63 JP MORGAN CLEARING C USA 1 093 750 2,53 AS FERNCLIFF NOR 1 074 702 2,49 BINKLEY CAPITAL AS NOR 814 648 1,89 DIAB BADREDDIN GBR 696 286 1,61 T10 INVEST AS NOR 653 929 1,51 LENOX PHILIP ALAN GBR 650 000 1,50 PORTIA AS NOR 646 023 1,50 SAXO PRIVATBANK A/S DNK 644 599 1,49 AMAN MARINE LIMITED GBR 598 122 1,38 ALSTO CONSULTANCY LT SYC 555 074 1,29 BONNON IAN DENNIS GBR 512 188 1,19 THEOFANATOS ANDREAS BRA 468 594 1,08 REWAL AS NOR 25 473 656 58,98

slide-25
SLIDE 25

Consolidated Statement of Comprehensive Income

25

slide-26
SLIDE 26

Consolidated Statement of Financial Position

26

slide-27
SLIDE 27

Consolidated Cash Flow Statement

27

slide-28
SLIDE 28

Segment information

28