Back on Track Back on Track DeepOcean An integrated provider of - - PowerPoint PPT Presentation

4 September 2013

DeepOcean Presentation Pareto Conference - Oslo

Back on Track

• An integrated provider of comprehensive

subsea engineering solutions and a leading subsea contractor

• Market leader in subsea IMR in the Greater

North Sea and global leader of trenching services

• Demonstrated track record of highly-

engineered, complex subsea construction projects for the oil & gas, offshore wind and telecommunication industries

• Corporate office in Amsterdam. Main

execution centers in Haugesund Norway and Darlington UK. Global presence with offices in Trondheim Norway, Aberdeen UK, Macae Brazil, Ciudad del Carmen Mexico, Singapore and Den Helder the Netherlands

www.deepoceangroup.com 1

DeepOcean

Back on Track

HSEQS

2

Back on Track

www.deepoceangroup.com

Through 31 July 2013

Leading Indicators

HSEQS

Lagging Indicator

3

Back on Track

www.deepoceangroup.com

Through 31 July 2013

Lagging Indicators

A Decade of Transformation

2005

IPO at OSE

2006 2011

Acquires CTC Marine Projects Ltd Acquired by Trico for ~NOK3.5 billion

2008 2009 2010 2007 2012 2013

Trico files for bankruptcy protection in US DeepOcean completes restructuring process and appoints new Board Appoints new CEO and CFO Delivers strong EBITDA growth in 2H2012 - 1H2013 Acquires Oceanteam AS

www.deepoceangroup.com 4

Back on Track

Despite turbulence in 2009-

Back on Track

Awarded a 5-year firm IMR contract from Statoil for the Rem Ocean valued between

~$265 and ~$350 million depending on options and additional services

Awarded a contract by Statoil for the procurement, installation and burial of the 140

• km. Aasta Hansteen Fiber Optics Cable

Closed new 125 million Credit Facility with 5 banks Secured extensions of Atlantic Challenger and Arbol Grande vessel charters through

2014

Acquired a 50% interest in ADUS DEEPOCEAN Chartered new vessels for 2014 and beyond, namely Havilia Phoenix, Rem Ocean

and Deep Helder

Opened Engineering Office in Trondheim and staffed up Reported a record and high quality backlog of $814(1) million effective 31 March Achieved one continuous year on hire of the Edda Fauna without any off hire

breakdown

Awarded Most Innovative Subsea Technology Provider at the Deepwater Excellence

Awards ceremony at the 7th Annual Deepwater China Convention in May 2013

Recruited 158 (>10% increase) new employees and experienced turnover of less

than 3% YTD

www.deepoceangroup.com 5

Recent Events in 2013

1) Unaudited

Back on Track

www.deepoceangroup.com 6

Leadership Team

Bart Heijermans CEO 20+ years of global

• il & gas industry

experience Shell E&P, Enterprise Products LP USA EVP & COO Helix 2005 -2011 Dennis de Vreede CFO 20+ years of financial, accounting experience CFO Redevco Mads Bårdsen President DeepOcean AS 20+ years of

• il & gas industry

experience Stolt Offshore Tony Inglis MD DeepOcean UK 30+ years of global oil & gas industry experience Clough - SaiClo Ottar Mæland

• Ops. Director

DeepOcean AS 13+ years of

• il & gas industry

experience Norsk Hydro Pierre Boyde

• Com. Director

DeepOcean UK 15+ years of

• il & gas industry

experience EMC

Owned vessels: 7 Long Term Charters: 8 (+3 in

2014)

Spot charters: 2 28 ROVs 5 ROVs to be delivered in 2H2013 33 ROVs at 2013 year-end > 4 ROVs to be delivered in 2014 7 ploughs 6 jet trenchers (+1 in 2014) 4 mechanical cutters Ultimate trenching spread with T3200

and T1000 to be introduced in 2014 Vessels ROVs Trenchers & Ploughs

Company snapshot

~1200 employees ~250 agency personnel

Talent

www.deepoceangroup.com 7

Revenue: $513m

• Adj. EBITDA: $54m (10%)

ROCE: 7% Net Debt < $0 CAPEX: $72m

2012 Financials (Audited) 1H2013 Financials (un-audited)

Revenue: $294m

• Adj. EBITDA: $51m (17%)

ROCE: 19% Net Debt: $2m CAPEX: $29m

Back on Track

Survey, inspect and map terrain prior to the installation of new subsea systems

• More than 50 000

km pipeline surveyed

• Water depth to

2100 m

• ROV and vessel

based

• Co-owner of ADUS

DeepOcean Installation of subsea structures

• SURF
• Power Cables

and umbilicals

• Structures
• Module

replacement

• Life of Field

Seismic cables Leading provider of subsea trenching and protection services

• Global leader
• Largest portfolio of

seventeen trenching assets with wide range of capabilities

Subsea Installation Trenching

Service lines

Survey and Seabed Mapping DeepOcean is the largest subsea IMR service provider in the Greater North Sea

• Largest subsea IMR

Contractor in Greater North Sea

• More than 1200

vessel days per year and 700 call-

• ffs per year
• Long term service

contracts Inspection, Maintenance and Repair (IMR) ROV based subsea decommissioning

• Lead contractor
• n subsea

decommissioning projects Decommissioning

www.deepoceangroup.com 8

Back on Track

Confidential Not for Public Dissemination

Arbol Grande Deep Endeavour CBO Isabella Edda Flora Edda Fauna Edda Fonn Deep Vision Volstad Surveyor Northern Wave Volantis Maersk Recorder Rem Forza

Vessel and project activity

T1

Office locations

Northern Commander Northern Supporter

Back on Track

Maersk Responder Maersk Assister Excludes:

Walker I Havila Phoenix (2014) Rem Ocean (2014) Deep Helder (2014) TBD (2014)

www.deepoceangroup.com 9

Atlantic Challenger

Activity on 6 continents managed by regional offices through two execution centres

www.deepoceangroup.com 10

Proprietary visualization software and data acquisition methodology Decommissioning of Statfjord Loading Buoy. Novel technology used to disconnnect chains from buoy Installation of X-MAS tree with Edda Fauna IMR vessel ADUS DEEPOCEAN STATFJORD LOADING BUOY DECOMMSSIONING AND REMOVAL Clamp Installation on Glitne

Selection of recent projects

Back on Track

Flexible Riser End Replacement IMR

www.deepoceangroup.com 11

Trenching of pipelines by AMP500 plough Snoree LOFS / PRM Macedon and Gorgon Ithaca Stella Burial of umbilicals offshore Australia

Selection of recent projects

Back on Track

Installation and burial of 80 array cables in German sector of North Sea BARD

Installation and burial of ~535km of cables and umbilicals on Snorre PRM project

More subsea wells

• Increased demand for construction, IMR and decommissioning

Bigger and more complex subsea structures

• Need for larger and more capable vessels
• More pro-active and critical maintenance requirements

Ageing Infrastructure

• Increased requirements for IMR and replacement scope
• Focus on IOR (Increased Oil Recovery)
• Installation, IMR and change-out of subsea production systems
• Well intervention (downhole IMR)
• Permanent Reservoir Monitoring (PMR)
• Electrification projects

Renewables

• Increase in number of Offshore wind farms
• IMR market for remedial trenching

West European Grid

• New interconnector power cables

Subsea trends

Back on Track

www.deepoceangroup.com 12

Oil & Gas vs. Renewables revenue CAPEX vs. OPEX funded revenue Day-rate vs. qualified lumpsum or qualified EPCI Differentiated services vs. differentiated assets Large number of relatively inexpensive assets vs. small number of expensive assets Global vs. regional strategy

www.deepoceangroup.com 13

Trade Offs for DeepOcean to achieve predictable and sustainable growth

Back on Track

• T3200

Our Focus Zero incidents as the result of thorough preparations, training, development and ACT for Safety Retain and attract talent through investment, development and empowerment and become an Employer of Choice, that is admired by its peers Deliver high quality and reliable services to our Customers Grow ROCE Manage balance sheet to withstand and take advantage of opportunities during downturns Credibility Say what you do and do what you say

www.deepoceangroup.com 14

Back on Track

www.deepoceangroup.com

High ambitions - Deep knowledge!

www.deepoceangroup.com 15