Disclaimer This presentation should be read in conjunction with STX - - PowerPoint PPT Presentation

This presentation should be read in conjunction with STX OSV Holdings Limited’s results for the period ended 30 June 2012 in the SGXNet announcement. Financial figures are presented according to SFRS. This presentation may contain forward-looking statements that involve risks and uncertainties. Such forward-looking statements and financial information involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements and financial information. Such forward- looking statements and financial information are based on numerous assumptions regarding our present and future business strategies and the environment in which we will operate in the future. As these statements and financial information reflect our current views concerning future events, these statements and financial information necessarily involve risks, uncertainties and assumptions. Actual future performance could differ materially from these forward-looking statements and financial information. You are cautioned not to place undue reliance on these forward looking statements, which are based on the Company’s current view of future events.

Disclaimer

14.08.2012 | Page 2

2Q 2012 Results Presentation

STX OSV Holdings Limited

14 August 2012

• Revenue of NOK 3 337 million for 2Q 2012, up 22% from NOK 2 744 million in

2Q 2011

• EBITDA of NOK 460 million for 2Q 2012, up 2% from NOK 451 million in

2Q 2011

• EBITDA margin, representing EBITDA to total operating revenues, of 13.8% for

2Q 2012, down from 16.4% in 2Q 2011

• Order intake of NOK 4 986 million in 2Q 2012. Order intake may vary significantly
• n a quarter-by-quarter basis
• 55 vessels in the order book as at 30 June 2012, of which 31 of own design
• Strong new order intake boosts average order book length and secures good

utilization of yard capacity

• Brazil operations experiencing delays, but financial impact mitigated by existing

risk management procedures

• Continued demand for high-end OSVs supported by strong sub-sea market
• Special interim dividend of SGD 13 cents per share declared based on strong

financial position

Key messages

14.08.2012 | Page 4

Business update

2Q 2012

14.08.2012 | Page 5

4 PSVs

• Skandi Kvitsøy from Aukra (Norway) to DOF
• Olympic Energy from Aukra (Norway) to Olympic

Shipping

• Troms Sirius from Søviknes (Norway) to Troms

Offshore

• Island Crusader from Brevik (Norway) to Island

Offshore

1 OSCV

• Ocean Shield from Søviknes (Norway) to DOF /

The Commonwealth of Australia

1 Other specialized vessel

Eight new vessel contracts secured in 2Q 2012

• 1 AHTS for Iceman
• 2 OSCVs for Siem Offshore
• 1 OSCV for Ocean Installer and Solstad

Offshore

• 2 PSVs for Farstad Shipping
• 2 PSVs for Island Offshore

One additional contract secured since the end of the quarter

• 1 PSV for Troms Offshore

Vessel deliveries and new contracts in 2Q 2012

Vessel deliveries

New contracts As of 30 June 2012, the Group had 55 vessels in the order book, 31 of which will be of STX OSV’s own design.

14.08.2012 | Page 6

Order book development

2007 2008 2009 2010 2011 1H 2012 2007 2008 2009 2010 2011 1H 2012

Order book at the end of the period (NOK million)1) New order intake during the period (NOK million)1)

22 389 16 411 4 Vessels 5 692 8 Vessels 4 458 17 031 27 Vessels 12 555 16 675 28 Vessels 11 117 1) Includes firm orders only. Includes variation orders and trading packages 28 Vessels 15 461 27 363 18 267 12 Vessels 7 328

1Q 2012: NOK 2 342 million 2Q 2012: NOK 4 986 million

14.08.2012 | Page 7

Order book status

Order book as of 30 June 2012 (# of vessels)

23 11 14 23 10 8 10 20 30 2011 2012 2013 2014 2014-16

8 LPG carriers to be delivered from new yard in Brazil Delivery year Delivery year Norway / Romania Brazil Vietnam Total 2014-16 8 Other 8 2014 2 AHTS 2 OSCV 2 PSV 2 Other 1 AHTS 1 PSV 10 2013 3 AHTS 8 PSV 3 OSCV 4 Other 2 ATHS 1 PSV 2 PSV 23 2012 17 PSV 1 OSCV 2 Other 1 AHTS 2 PSV 1 AHTS 1 PSV 25 delivered 11 delivered 14 remaining 1 vessel moved from end 2012 to early 2013

14.08.2012 | Page 8

Order book by region and vessel type – 2Q 2012

By Region Order book 31 Mar. 2012 Deliveries 2Q 2012 Order intake 2Q 2012 Order book 30 Jun. 2012 Norway / Romania 35 6 7 36 Brazil 15

• 15

Vietnam 3

• 1

4 Total 53 6 8 55 By Vessel Type Order book 31 Mar. 2012 Deliveries 2Q 2012 Order intake 2Q 2012 Order book 30 Jun. 2012 AHTS 8

• 1

9 PSV (incl. MRV) 26 4 4 26 OSCV 3 1 3 5 Other 16 1

• 15

Total 53 6 8 55

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Market

Strong order intake in 2Q boosts average order book length Highest 1H new order intake since 2007, driven mainly by strong subsea market AHTS orders behind expectations due to lower-than-anticipated day rate levels Long-term demand for large and sophisticated vessels remains robust Macro uncertainty and financing environment affect order conversion in the short term

Operations – Norway, Romania & Vietnam

Successful delivery of 11 vessels during 1H 2012 – and another 3 since Recent new orders secure good utilization of yards in Romania and Norway Workload for Vietnam yard secured in the short to medium term Investment program underway in Romania to improve efficiency and throughput

Market & operations update

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Several vessels behind schedule

• Two vessels with more than six months delay currently undergoing sea trials, and coming to delivery

within 3Q 2012; both have contracts with end user

• One vessel scheduled for delivery in 4Q 2012; one with lesser delay moved from 4Q 2012 to 1Q 2013
• Remaining vessels in Brazil order book facing lesser delays

Delays mostly due to general yard overload, temporary supplier constraints, and bottlenecks in access to subcontracting capacity

• Labor dispute in 2Q contributed to delay, but considered «Force Majeure» under the contracts
• Also some contractually agreed extensions of delivery dates due to variation orders

Financial impact has been accounted on an ongoing basis

• Prudent risk management procedures in place to mitigate impact of delays
• But Brazil margins weighing down on group average

Improvement measures initiated

• Strengthening of Niterói yard organization with new yard manager and production specialists
• Agreement for sub-delivery of steel hulls from Rio Nave shipyard

Operations – Brazil (Niterói)

14.08.2012 | Page 11

Work on yard construction approx. 40% complete

• Start of shipbuilding activities scheduled for 2Q 2013 in line with previous estimates
• Total projected investment increased to approx. 148 MUSD mainly due to increased cost for civil

works, and adjustments to capacity and equipment specifications

Transpetro project progressing

• Steel hulls for the first two LPG carriers will be built at Rio Nave to reduce pressure, and open for

earlier construction start of core OSV vessels at the new yard

Brazil new yard project (STX OSV Promar)

Production halls – status as of end-July

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Financial highlights

2Q 2012

14.08.2012 | Page 13

Revenues and margins

3 192 2 811 2 744 3 337 1 000 2 000 3 000 4 000 5 000 6 000 1H 2011 1H 2012

5 936 6 148

Revenues (NOK million) EBITDA (NOK million) and EBITDA Margin (%)

439 393 451 460 200 400 600 800 1 000 1H 2011 1H 2012

15.0% 13.9%

14.08.2012 | Page 14

(NOK million) 2Q ended 30 June

D( %)

1H ended 30 June

D( %)

2012 2011 2012 2011 Revenue 3 337 2 744

22%

6 148 5 936

4%

Materials, subcontract cost and

• thers

(2 272) (1 730)

31%

(4 102) (3 931)

4%

Salaries and related costs (484) (436)

11%

(958) (877)

9%

EBITDA 460 451

2%

853 890

(4%)

EBITDA % 13.8% 16.4%

n/m

13.9% 15.0%

n/m

Operating profit 431 420

3%

793 829

(4%)

Net financial income / (cost) 12 (11)

n/m

22 3

574%

Profit before tax 444 419

6%

817 844

(3%)

Profit for the period 278 274

1%

548 587

(7%)

Statement of income – major items

14.08.2012 | Page 15

Cash and cash equivalents, and construction loans

(1) Cash and cash equivalents less sum of short-term and long-term interest bearing liabilities, excluding construction financing

Construction Loans (NOK million)

2 379 2 950 500 1 000 1 500 2 000 2 500 3 000 3 500 31 Dec 2011 30 Jun 2012

Net Cash (NOK million)1

2 805 2 922 500 1 000 1 500 2 000 2 500 3 000 3 500 31 Dec 2011 30 Jun 2012

Cash and Cash Equivalents (NOK million)

1 532 2 163 2 451 3 329

2 074 3 035 3 305 377 29 24

500 1 000 1 500 2 000 2 500 3 000 3 500 30 Jun 2011 31 Dec 2011 30 Jun 2012 Restricted Cash Non-restricted Cash 3 064

14.08.2012 | Page 16

Major balance sheet items

(NOK million) As at 30 June 2012 31 December 2011 Non-current assets 2 074 1 788 Current assets 11 677 11 019 Total assets 13 751 12 807 Total equity 3 621 3 553 Loans and borrowings and construction loans 2 988 2 407 Trade and other payables and construction work in progress 5 336 4 871 Other current liabilities 1 232 1 536 Long-term loans and borrowings 369 231 Other non-current liabilities 205 209 Total liabilities 10 130 9 254 Total equity and liabilities 13 751 12 807

14.08.2012 | Page 17

Cash flow highlights

(NOK million) 2Q ended 30 June 1H ended 30 June 2012 2011 2012 2011 Cash flows from operating activities 750 (574) 1 007 (176) Cash flows from investing activities (195) (29) (310) (90) Cash flows from financing activities (367) (208) (428) (197) Net change in cash and cash equivalents 188 (811) 269 (463) Cash and cash equivalents excluding restricted cash at the beginning of the financial period 3 107 2 881 3 035 2 551 Effects of currency translation differences 10 4 1 (14) Cash and cash equivalents excluding restricted cash at the end of the financial period 3 305 2 074 3 305 2 074 Restricted cash at the end of financial period 24 377 24 377 Cash and cash equivalents at the end of the financial period 3 329 2 451 3 329 2 451

14.08.2012 | Page 18

Earnings per share

Note: Earnings per ordinary share for the financial period attributable to equity holders of the parent. SGD amounts are translated from NOK based on the exchange rates prevailing at the reporting dates.

2Q ended 30 June 1H ended 30 June 2012 2011 2012 2011 Earnings for the period (NOK millions) 279 272 548 582 Earnings for the period (SGD millions) 59 62 116 133 Weighted average number of shares (millions) 1 180 1 180 1 180 1 180 Earnings per share (NOK) 0.24 0.23 0.46 0.49 Earnings per share (SGD cents) 5.02 5.26 9.85 11.24

• Adj. weighted average number of shares (millions)

1 191 1 182 1 191 1 182 Diluted earnings per share (NOK) 0.23 0.23 0.46 0.49 Diluted earnings per share (SGD cents) 4.97 5.25 9.76 11.23 Exchange rates (SGD/NOK) 4.716 4.385 4.716 4.385

14.08.2012 | Page 19

Net asset value per share

Note: Net asset value at the end of the financial period, and at the end of the last financial year, attributable to equity holders of the parent. SGD amounts are translated from NOK based on the exchange rates prevailing at the reporting dates.

As at 30 June 2012 31 December 2011 Net asset value at the end of the period (NOK millions) 3 556 3 510 Net asset value at the end of the period (SGD millions) 754 761 Number of shares (millions) 1 180 1 180 Net asset value per ordinary share (NOK) 3.01 2.97 Net asset value per ordinary share (SGD) 0.64 0.65 Exchange rate (SGD/NOK) 4.716 4.610

14.08.2012 | Page 20

A special interim dividend of SGD 13 cents per share has been declared

• Book closure and dividend payment dates to be announced

separately

Special interim dividend

14.08.2012 | Page 21

Outlook

2Q 2012

14.08.2012 | Page 22

Outlook

• Strong subsea market
• Increased offshore installation activity continues to drive demand for new tonnage in the

subsea support and construction segment

• Lower-than-anticipated charter rates for AHTS and PSVs currently limit

market opportunities in these segments

• Expected upturn in the North Sea summer season has not materialized so far
• Projects under negotiation in several vessel segments, including other

specialized vessels

• But macro uncertainty persists, and financing environment still difficult
• STX OSV fundamentally well-positioned to cater to demand for larger,

more complex and customized projects

14.08.2012 | Page 23

13.08.2012 | Page 24

Q&A Q&A

2Q 2012