SLIDE 1
Q1 2015 Presentation
DOF Subsea Group DOF Subsea Group DOF Subsea Group In brief - - PowerPoint PPT Presentation
DOF Subsea Group DOF Subsea Group DOF Subsea Group In brief - - PowerPoint PPT Presentation
Q1 2015 Presentation DOF Subsea Group DOF Subsea Group DOF Subsea Group In brief Fleet One of the largest subsea vessel owners in the world Owns and operates a fleet of 22 vessels, plus 5 newbuilds on order In addition
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SLIDE 3
DOF Subsea Group – In brief
- Fleet
- One of the largest subsea vessel owners in the world
- Owns and operates a fleet of 22 vessels, plus 5 newbuilds on order
- In addition 5 vessels on long-term charter
- The market value of owned vessels in operation is NOK 16.5 billion, with a value adjusted
age of approx. 5.6 years
- Operates 58 ROVs and 8 ROVs and 1 AUV on order
- Global organization
- Head office in Bergen
- Regional offices in Australia, Singapore, Norway, UK, Angola, US, Canada and
Brazil
- Total of 1 816 employees
- Subsea employees:
1 816
- Of which offshore engineers and project staff:
1 390
3 Norway Brazil Canada US UK Asia Pacific Angola
332 425 51 248 278 466 16
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DOF Subsea Group – In brief
4
- Key figures
Back-log incl. options NOK 37 billion Market value of fleet NOK 16.5 billion Number of shares 119 733 714
Total Per share
Book equity NOK 6.1 billion NOK 50.75 Value adj. equity NOK 9.2 billion NOK 76.91 Book equity ratio 30.2 % Value adj. equity ratio 39.6 %
3.7 % CAGR 10.6 % CAGR
Quarterly figures
* According to internal Management reporting
0% 5% 10% 15% 20% 25% 30% 35% 40%
- 200
400 600 800 1 000 1 200 1 400 1 600 1 800
Q1 2012 Q1 2013 Q1 2014 Q1 2015
NOK million
Operating revenue EBITDA
SLIDE 5
Recent events
5
- Fleet
- Skandi Aker delivered to new owners
- Delivery of Skandi Africa (Newbuild 800)
- Contracts
- Chevron extended IMR contract for Skandi Salvador in Brazil for the reminder of 2015
- Several subsea contracts in the North America region, increasing the utilization of the vessels
Harvey Deep-Sea, Chloe Candies and Ross Candies
- Several contracts awarded in Asia Pacific, including subsea installation and IMR services,
utilizing Skandi Hercules, Skandi Singapore and Skandi Hawk.
- Two long-term IMR frame agreements in Asia Pacific for Chevron and SPEX
- Contract awards during Q1 2015 in excess of NOK 3 billion
- Finance
- Skandi Africa (Newbuild 800) has been financed at market terms
- Financing secured for the two Brazilian built PLSVs
- Financing secured for Skandi Hawk, acquired from DOF ASA in May 2015
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6
2005
Established
20 140
NOK million total assets
Modern
high-end fleet and equipment
22
- wned subsea
vessels
5
vessels
- n order
5
vessels
- n charter
58 ROVs, 9 ROVs
- n order
First Reserve Corporation (49%)
1 816
highly-skilled employees
Ownership structure
DOF Subsea DOF Subsea Holding
(100%)
DOF ASA
(51%)
SLIDE 7
7
Our global footprint
ATLANTIC NORTH AMERICA BRAZIL ASIA PACIFIC
Macaé Rio de Janeiro Buenos Aires Houston St John’s Aberdeen Bergen Luanda Singapore Manila Melbourne Jakarta Brunei Kuala Lumpur Darwin Perth
425 8 626 9 299 4 466 5
SLIDE 8
DOF Subsea fleet evolution
- 2 000
4 000 6 000 8 000 10 000 12 000 14 000 16 000 18 000 4 8 12 16 20 24 28
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
NOK million Number of operated vessels
Owned vessels Chartered vessels MV of owned fleet (r.a.)
MV of fleet
DOF Subsea timeline
8
2005 - 2010
Fleet: From 11 to 21 vessels
- DOF Subsea was established in 2005
- DOF Subsea was listed on the Oslo
Stock Exchange in 2005, and taken private by DOF and FRC in 2008
- Established a global footprint, present
in all major offshore oil & gas regions
- Built a global organization through
- rganic growth and acquisitions
- Developed global Business
Management System, and achieved global ISO certification
- JV with Technip
- Expanded the fleet by taking delivery
- f 10 newbuilds
2011
Fleet: 24 vessels
- Feb: Delivery of Skandi
Niteroi
- May: Sale of
Geosounder
- Jun: Acquisition Skandi
Constructor
- Jul: Delivery of Skandi
Skansen
- Sep: Delivery of Skandi
Singapore
2012
Fleet: 25 vessels
- Mar: Sale of OSCV
newbuild
- Mar: Signed OSCV
newbuild contract
- Mar: Chartered Skandi
Hawk
2013
Fleet: 26 vessels
- Feb: Signed OSCV
newbuild contract
- Feb: Chartered Harvey
Deep-Sea
- Mar: Sale of Geobay
- Jun: Delivery of Skandi
Bergen
- Aug: Signed newbuild
contracts for 4 x PLSVs
- Nov: Chartered
Normand Reach
- Global ISO recertification
2014
Fleet: 28 vessels
- Jan: Delivered Skandi
Bergen to new owners
- Mar: Chartered Ross
Candies
- Mar: Chartered Chloe
Candies
- Nov: Delivered Skandi
Skolten to new owners
DOF Subsea employees
200 400 600 800 1 000 1 200 1 400 1 600 1 800 2 000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Number of employees
Employees
2015
Fleet: 28 vessels
- Feb: Delivered Skandi
Aker to new owners
- Mar: Delivery of Skandi
Africa
- May: Acquired Skandi
Hawk * As per 31st March 2015
SLIDE 9
New high-end fleet
9
- Majority of the fleet delivered after 2007
- Industry leading value adjusted average fleet age of approx. 5.6 years
- High-end vessels capable of a wide scope of world wide operations
Newbuild 15 % 2007 - 2015 58 % 2000 - 2006 23 % Before 2000 4 %
Year of delivery DOF Subsea fleet
- 1,00
2,00 3,00 4,00 5,00 6,00 7,00 8,00 9,00 10,00 Average fleet age Value adjusted
SLIDE 10
Business management
- Global business management system accredited by DNV to:
- Business Management System
ISO 9001: 2008
- Health and Safety System
OHSAS 18001:2007
- Environmental Management System
ISO 14001:2004
- Global recertification by DNV December 2013
10
2009
SLIDE 11
- Substantial HSE-improvement since 2005
- Substantial increase in activity level measured by total man-hours
HSEQ key statistcs
11
1 000 000 2 000 000 3 000 000 4 000 000 5 000 000 6 000 000 2 4 6 8 10 12 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Man-hours Frequence: Incident / 1 000 000 man-hour
DOF Subsea HSEQ-statistics
LTI TR Man-hours
SLIDE 12
Projects
SLIDE 13
DOF Subsea – Projects
- DOF Subsea has built a global
presence over the last 9 years
- DOF Subsea has developed the
project business gradually
- Increased project activity and
complexity driving growth
- Project business going forward
- Gradually increase the
complexity of work done (Step by Step)
- Build a larger project
back-log
- Mix between owned and
chartered in vessels
13
* According to internal Management reporting 2012 2013 2014 Subsea projects 3 776 4 971 5 378 Chartering of vessels 1 472 1 609 2 044 Total 5 248 6 580 7 422
1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000
NOK million
Chartering of vessels Subsea projects
Q1 2013 Q1 2014 Q1 2015 Subsea projects 867 1 035 1 086 Chartering of vessels 358 496 570 Total 1 225 1 531 1 656
200 400 600 800 1 000 1 200 1 400 1 600 1 800
NOK million
Chartering of vessels Subsea projects
Operating income by segment
SLIDE 14
Contract status
SLIDE 15
Contract coverage
15
- DOF Subsea Group has solid cash flow visibility over the next 3-5 years
- By March 2015 the total back-log (incl. options) was approx. NOK 37 billion
- Firm contracts counts for approx. NOK 18.5 billion
- Options counts for approx. NOK 18.5 billion
* 2015-numbers as per 31st March 2015. Figures based on remaining back-log from beginning of year
2015 2016 2017 2018 2019 2020 2021 2022 Option 19 18 17 16 15 13 12 11 Firm 19 15 13 11 9 7 5 4
- 5
10 15 20 25 30 35 40 NOK billion
SLIDE 16
Financials
SLIDE 17
Condensed profit & loss (IFRS 11)
- Operating income was NOK 1 558 million in Q1 2015, up from NOK 1 451 million in Q1 2014.
- EBITDA (excl. gain on sale of assets) was NOK 373 million in Q1 2015, down from NOK 459 million in Q1 2014.
- EBIT (excl. gain on sale of assets) was NOK 237 million in Q1 2015, down from NOK 336 million in Q1 2014.
17 * The financial numbers are presented according to IFRS 11. See DOF Subsea financial report Q1 2015 note 1 for details.
SLIDE 18
Condensed balance sheet (IFRS 11)
- From year end 2014 non-current assets has increased to NOK 15 174 million from NOK 14 336 million
- From year end 2014 total receivables has increased to NOK 2 222 million from NOK 1 964 million
- From year end 2014 cash and cash equivalents has decreased to NOK 1 064 million from NOK 2 120 million
- Total liabilities as per 31st March 2015 was NOK 12 383 million
- The net interest bearing debt as per 31st March 2015 was NOK 9 653 million
- The book equity was NOK 6 077 million giving a ratio of 32.9 % to total assets as per 31st March 2015
- The value adjusted equity was NOK 9 209 million giving a ratio of 42.7 % as per 31st March 2015
18
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Quarterly performance (excl. asset sales)
19
16.5 % CAGR 17.4 % CAGR
* According to internal Management reporting
NOK million
Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Operating income 900 1 028 1 152 1 246 1 223 1 384 1 354 1 288 1 225 1 679 1 804 1 871 1 530 1 963 1 904 2 025 1 656 EBITDA 241 325 370 406 411 470 489 417 329 471 595 550 502 543 553 502 458 EBITDA margin 26.8% 31.6% 32.1% 32.6% 33.6% 34.0% 36.1% 32.4% 26.9% 28.1% 33.0% 29.4% 32.8% 27.7% 29.0% 24.8% 27.7% Current assets 2 829 3 003 2 938 2 923 2 782 2 962 2 704 2 612 3 077 3 319 3 119 3 470 3 247 3 252 2 998 4 223 3 414 Non-current assets 14 520 15 089 16 178 16 305 16 455 16 230 16 056 16 012 16 043 16 344 16 330 16 340 16 012 16 151 16 215 15 796 16 726 Total assets 17 349 18 092 19 117 19 228 19 238 19 192 18 760 18 624 19 120 19 663 19 450 19 810 19 258 19 403 19 213 20 019 20 140 Current liabilities 2 311 2 458 2 640 2 637 2 543 2 495 2 260 1 989 2 000 2 805 2 808 3 167 3 470 3 741 3 607 4 505 4 139 Non-current liabilities 9 946 10 542 11 694 11 759 11 723 11 735 11 439 11 534 12 051 11 862 11 474 11 427 10 126 9 701 9 668 9 402 9 924 Equity 5 091 5 092 4 782 4 832 4 970 4 963 5 061 5 102 5 069 4 996 5 167 5 216 5 662 5 962 5 938 6 112 6 077
0% 5% 10% 15% 20% 25% 30% 35% 40%
- 500
1 000 1 500 2 000 2 500
Q1 2011Q2 2011 Q3 2011 Q4 2011Q1 2012 Q2 2012Q3 2012 Q4 2012 Q1 2013 Q2 2013Q3 2013 Q4 2013Q1 2014 Q2 2014 Q3 2014Q4 2014Q1 2015
NOK million Operating income EBITDA EBITDA margin
SLIDE 20
Asset values over the last years
20 200 300 400 500 600 700 800 900 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 NOK million Skandi Seven Ocean Protector Geoholm Skandi Patagonia
- Fair market values of the DOF Subsea fleet have been stable measured in NOK recent years.
- * As per 31st March 2015
Market value development
SLIDE 21
Debt maturity profile
21
DOFSUB06
- NOK 700 million
- Maturity Oct 2015
- Net NOK 700 million
DOFSUB05
- NOK 750 million
- Maturity April 2016
- Net NOK 750 million
DOFSUB07
- NOK 1 300 million
- Maturity May 2018
- The figures reflects amortization and balloon payments on debt drawn as per 31st March 2015.
- Debt maturity profile excludes approx. NOK 0.5 billion in payments to Eksportfinans which is serviced by a corresponding
amount of restricted cash.
- * As per 31st March 2015
Debt maturity profile DOF Subsea AS level, 2015E – 2019E
- 500
1 000 1 500 2 000 2 500 3 000 3 500 2015E 2016E 2017E 2018E 2019E After Bond Loan Bank Debt Balloons
SLIDE 22
Asset coverage
22
- The figures reflects amortization and balloon payments on debt drawn as per 31st March 2015, including newbuilds to be
delivered assuming standard DOF Subsea leverage. Bonds not included.
Gearing forecast – summary
Total assets (NOK billion) Market value
Vessels 16.5 Other equipment (a) 1.4
Total assets 17.9
- Note: vessel values as per 31st March 2015
(a) Includes ROVs, AUV, diving systems and other equipment
- Combined market value of DOF Subsea’s fleet is NOK 16.5 billion
- Vessel level gearing on the existing fleet is estimated to 52 % at year end 2015
- Provides a significant equity cushion on top of the existing vessel financing
- Significant gearing reduction on the existing fleet in the years to come
0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 % 2015E 2016E 2017E 2018E 2019E 52% 47% 44% 39% 29% 48% 53% 56% 61% 71% Loan to value Market Value Cushion
SLIDE 23
Key credit metrics
23
- 0,50
1,00 1,50 2,00 2,50 3,00 2009 2010 2011 2012 2013 2014
Interest Coverage (EBIT / Interest cost)
- 2,00
4,00 6,00 8,00 10,00 12,00 2009 2010 2011 2012 2013 2014
NIBD/EBITDA
- 0,10
0,20 0,30 0,40 0,50 0,60 0,70 0,80 0,90 1,00 2009 2010 2011 2012 2013 2014
NIBD/Total assets
- 0,10
0,20 0,30 0,40 0,50 0,60 0,70 0,80 0,90 1,00 2009 2010 2011 2012 2013 2014
Debt/Total assets
* According to internal Management reporting, including gain on sale of assets
SLIDE 24
Strengthened financial position
24
Strengthened financial position
Extremely strong back-log provides stable earnings Diversified blue- chip customers reduce counterparty risk Value added services provide increased earnings potential New, high-end fleet provides safe collateral Strong bank and investor relationships provide access to credit Spare leveraging capacity on existing fleet Recent sale of vessels
Challenging subsea market
SLIDE 25
Outlook
SLIDE 26
Challenging fundamentals for subsea activity
26
- Demand
- Weak and volatile oil price
- Increased cost focus by oil companies
- Reduced offshore E&P spending
- Uncertainty in project timing
- Increased focus on newer, technologically
advanced and flexible vessels and engineering capabilities
- DOF Subsea owns the world’s most
sophisticated fleet and has a global project
- rganization
SLIDE 27
Challenging fundamentals for subsea activity
27
- Supply
- Fleet of subsea vessels increasing
- Improving supply of engineering
capabilities
Weaker market conditions
Reduced demand Increasing supply
SLIDE 28
DOF Subsea is well positioned
28
Challenging subsea market – pressure on margins
Lower IMR activity globally Lower rig activity and delayed field development Reduced E&P spending Weak oil price Number of niche subsea players Improved access to qualified personnel Increased supply of subsea vessels
DOF Subsea has mitigated the increased market risk through a global footprint, a diversified portfolio of clients, strengthened balance sheet and a strong back-log of NOK 37 billion
SLIDE 29