Aqualis ASA FIRST QUARTER RESULTS 2015 Oslo, 28 April 2015 - - PowerPoint PPT Presentation

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Aqualis ASA FIRST QUARTER RESULTS 2015 Oslo, 28 April 2015 - - PowerPoint PPT Presentation

Aqualis ASA FIRST QUARTER RESULTS 2015 Oslo, 28 April 2015 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


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aqualis.no

Aqualis ASA

FIRST QUARTER RESULTS 2015

Oslo, 28 April 2015

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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.

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Q1 2015 - highlights

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  • Total revenues of USD 11.4m (USD 4.6m Q1 2014)
  • EBIT of USD 0.6m (USD -0.5m Q1 2014)
  • Profit after tax of USD 1.4m (USD -0.5m Q1 2014)
  • Order back-log of USD 17.1m end Q1 2015 (USD 8.6m end Q1 2014)
  • Net cash and cash equivalents of USD 20.5m at 31 March 2015
  • The Company had 222 employees* as of end March 2015
  • Continued investment in growth and regional expansion (3 new offices

under development)

  • Multiple contract awards during the quarter across business lines –

growing portfolio of blue-chip clients

* Includes contractors on 100% utilization equivalent basis

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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 Q4 2014 Q1 2015

Revenues – quarterly development

USDm

Notes: (1) Tristein AS included from May 2014; OWC Ltd from July 2014 (2) Effective March 2015, reimbursable expenses on projects are recognized in the P&L within revenue and direct costs respectively. For the Q1 amount totaling to USD 382k is recorded in revenue and direct costs in the month of March 2015

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50 100 150 200 250 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015

Recruitment – quarterly development

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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 2.1x

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Q1 2015 – main new contract wins

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  • A 2-year call out contract from a major offshore contractor for the provision of

marine supervisory personnel during operations offshore Kingdom of Saudi Arabia

  • MWS and consultancy services for project work offshore Tunisia
  • Project management services to mining company in Indonesia for the replacement
  • f a subsea pipeline
  • MWS services to logistics operator for the dry transportation of oil barges from

China to Nigeria

  • Provision of offshore geotechnical representation to a major European power

utility company offshore UK

  • Additional consultancy support to a significant German power utility company
  • Engineering design work from our Norway office to an offshore contractor for a

new cable laying barge fitted with a turntable

  • A basic engineering design contract for a new liftboat for an Asian Pacific based

client

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Q1 2015 – main new contract wins (cont’d)

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  • Engineering design services from our Dubai office for a new jack up barge
  • Project management supervision services contract to an international jack up rig
  • wner associated with the upgrade works on a jack up accommodation unit
  • Marine Consultancy and MWS to a major operator for the transportation and rig

down / rig up of a modular platform rig from USA to offshore Mexico

  • Site specific structural engineering assessments for deployment of jack up liftboats
  • ffshore Arabian Gulf
  • In Q1 call out contracts relating to:
  • Jack up rig moving operations to a large Client portfolio of rig owners have

been strong offshore Middle East and India and showing business line growth in Asia Pacific, Mexico and west Africa

  • DP audits and inspections have been strong in Middle east and Asia Pacific

with new demand building in Caspian region

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Global presence – covering all major oil regions

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Current locations RIO DE JANEIRO MEXICO CITY HOUSTON OSLO/SANDEFJORD SINGAPORE SHANGHAI DAMMAM DUBAI ABU DHABI MANAMA LONDON Under development QATAR KUALA LUMPUR ABERDEEN

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FINANCIAL HIGHLIGHTS

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Q1 2015 – key figures

10 2015 2014 2014 (USD '000) Q1 Q1 FY* Total revenues and other income 11,4 4,6 33,3 Operating profit (EBIT) 0,6

  • 0,5
  • 2,1

Operating profit (EBIT) adjusted** 0,6

  • 0,5
  • 0,7

Profit after taxes 1,4

  • 0,5
  • 0,3

Profit after taxes adjusted** 1,4

  • 0,5

1,1 Cash & cash equivalents 20,5 9,9 21,8 Number of outstanding shares (thousands) 43 191 n/a 43 191

* due to change in accounting principles, travel costs are included both in revenues and other operating cost. There is no change in EBIT compared to actual reported in 2014. ** adjusted by one-off costs in Aqualis ASA of 1.4m in third quarter 2014, relating to corporate restructuring and listing

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0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 % 1 2

Solid financial position (31.03.15)

  • No interest-bearing debt
  • 84% equity ratio
  • Strong liquidity position:
  • USD 20.5m in cash and cash

equivalents

Cash & cash

  • equiv. –

USD 20.5m Other current assets – USD 11.1m Non-current assets – USD 19.8m Equity – USD 43.3m Current liabilities – USD 8.1m Non-current liabilities – USD 0.0m

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Q1 2015 – cash flow

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USDm Q1 2015 Q4 2014

Operating cash flow

  • 0.9

0.6 Investing cash flow

  • 0.1
  • 0.2

Financing cash flow

  • Cash beg. of period

21.8 21.4 Net FX difference

  • 0.3

0.0 Change in cash & cash equiv.

  • 1.0

0.4 Cash end of period 20.5 21.8

  • Operating cash flow in the

quarter was negative USD 0.9m

  • Mainly impacted by WC movements
  • Investing cash flow of negative

USD 0.1m in the quarter - limited capex (as expected)

  • Financing cash flow of nil in Q1

2015

  • Change in cash for the quarter of

negative USD 1.0m

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OUTLOOK

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Outlook – top-line growth & increased profitability

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Market:

  • Recent oil price fall continues to create some investment uncertainty in high cost projects and deep-water

developments

  • Reduction of large scale new investment opportunities being identified  focus changing to day to day operational

support

  • Middle East, including India, and Asian Pacific markets still appear solid and likely to remain the drivers going forward
  • 2015 main strategic focus will be on offshore operations and gaining market share from competitors

Micro:

  • Further expansion of global office network expected in Q2 2015 with opening of 3 new offices in Malaysia, Qatar and

UK to further expand offerings into those markets

  • Continued focus on maintaining organic growth through recruitment of quality experienced staff and developing

business line deliverables from existing offices

  • Aim to maintain momentum on marine operations, notably rig moving, in all markets
  • Upside potential for Mexican operations starting to be realized
  • Good opportunities identified in China and additional recruitment underway
  • Short term outlook in Brazil uncertain
  • Continued focus on working capital developments and credit status of clients
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aqualis.no

Aqualis ASA

APPENDIX

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Aqualis Offshore Ltd* Offshore Wind Consultants Ltd

Aqualis ASA

(listed entity – OSE: AQUA)

Marine & engineering consultancy services

* Tristein AS merged with Aqualis Offshore AS, effective date 1 Jan 2015

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Corporate structure

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**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 / Asker / Kristiansund, Norway)

49%** 100% 100% 100%

Aqualis Offshore Ltd (London, UK)

100% 100%

Aqualis Dammam, KSA*

100% 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%**

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

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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

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Offshore operations are key for all business lines

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  • 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
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NOCs / IOCs: Offshore cont. / shipyards: Underwriters / financial inst.:

Selected clients

20 Rig / vessel owners:

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Selected clients

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  • Vattenfall
  • East Anglia Offshore Wind
  • Gwynt y Mor Offshore Wind Limited
  • RWE Innogy GmbH
  • Galloper Offshore Wind Limited
  • Trianel GmbH
  • Dong Energy
  • Mainstream Renewable Power Limited
  • Navitus Bay Offshore Park
  • Iberdrola Renewables
  • ScottishPower
  • SNC Lavalin Capital
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Top 20 shareholders (31.03.15)

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Ferncliff and associated companies: approx. 25% Management and employees: approx. 23%

NAME COUNTRY HOLDING OF SHARES % HELD STRATA MARINE & OFFSHORE AS NORWAY 5 450 973 12,6 % GROSS MANAGEMENT AS NORWAY 2 844 391 6,6 % AQUALIS HOLDCO LIMITED UNITED KINGDOM 2 187 500 5,1 % ARCTIC FUNDS PLC BELGIUM 1 761 972 4,1 % JP MORGAN CLEARING CORP. UNITED STATES 1 678 768 3,9 % FERNCLIFF LISTED DAI AS NORWAY 1 340 963 3,1 % QVT FUND V LP I BELGIUM 1 190 105 2,8 % BINKLEY CAPITAL AS NORWAY 1 133 664 2,6 % AS FERNCLIFF NORWAY 1 093 750 2,5 % DIAB UNITED STATES 814 648 1,9 % T10 INVEST AS NORWAY 791 507 1,8 % AGITO HOLDING AS NORWAY 775 000 1,8 % VERDIPAPIRFONDET DNB SMB NORWAY 745 870 1,7 % SAXO BANK A/S DENMARK 683 196 1,6 % SIX SIS AG SWITZERLAND 669 544 1,6 % LENOX SINGAPORE 653 929 1,5 % AMAN MARINE LIMITED UNITED ARAB EMIRATES 644 599 1,5 % ALSTO CONSULTANCY LTD SEYCHELLES 598 122 1,4 % BONNON UNITED KINGDOM 555 074 1,3 % THEOFANATOS BRAZIL 512 188 1,2 % VALHALL INVEST AS NORWAY 501 408 1,2 % OFFSHORE & MARINE CONSULTING AS NORWAY 500 094 1,2 % 27 127 265 62,8 %

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Consolidated statement of comprehensive income

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Consolidated statement of financial position

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Consolidated cash flow statement

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Segment information

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