GC Rieber Shipping ASA - Fourth Quarter 2018 Bergen 18 February 2019 - - PowerPoint PPT Presentation

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GC Rieber Shipping ASA - Fourth Quarter 2018 Bergen 18 February 2019 - - PowerPoint PPT Presentation

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GC Rieber Shipping ASA - Fourth Quarter 2018 Bergen 18 February 2019 GC RIEBER SHIPPING Agenda Highlights Q4 2018 Operational Review Financial Review Outlook and Summary Highlights Q4 2018 1 Fleet utilisation of

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SLIDE 1

GC RIEBER SHIPPING

GC Rieber Shipping ASA - Fourth Quarter 2018

Bergen 18 February 2019

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SLIDE 2

Agenda

  • Highlights Q4 2018
  • Operational Review
  • Financial Review
  • Outlook and Summary
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SLIDE 3

Highlights Q4 2018

  • Fleet utilisation of 98% in a quarter with continued

challenging market conditions

  • Contract backlog of NOK 434 million as of 1 January

2019

  • Shearwater GeoServices became a market-leading

marine geophysical company by completing the acquisition of the marine seismic acquisition assets and operations of WesternGeco, the geophysical services product line of Schlumberger

1 Excluding marine seismic 2 Excluding charterers’ extension options and marine seismic 2 1

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SLIDE 4

Highlights Q4 2018

  • Net profit of NOK 269.4 million

– Including non-cash gain of NOK 310 million as result of Shearwater’s acquisition of Schlumberger’s marine seismic acquisition business

  • GC Rieber Shipping completed a NOK 246 million rights

issue to finance participation in the above-mentioned transaction Highlights after the end of the period

  • Ship management contract signed with Statnett for

technical management of two vessels

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SLIDE 5

Contract updates

  • Shearwater awarded two 3D surveys in the Arabian Sea

– Adding 8 vessel-months to backlog – Both surveys commenced in Q4 2018

Contract updates after the end of the period

  • Polar Queen’s client declared its extension options, and it was also agreed to extend the contract,

prolonging the first period of 45 days under previously announced charter with approximately two months

– The second firm period of 50 days will commence end of February 2019

  • Shearwater awarded four Ocean Bottom Seismic surveys by Aker BP and Equinor

– Securing backlog for the full North Sea summer season for two of Shearwater’s multi-purpose vessels

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SLIDE 6

Highlights Q4 2018 - Key financial figures

50 31 61 70 70 10 20 30 40 50 60 70 80 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

  • 66
  • 22

9

  • 7
  • 80
  • 60
  • 40
  • 20

20 40 60 80 100 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

REVENUES

NOK million

EBITDA*

NOK million

  • 81
  • 59
  • 9
  • 53
  • 100
  • 80
  • 60
  • 40
  • 20

20 40 60 80 100 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

NET PROFIT

NOK million

*Includes profit and losses from Joint Ventures

300

274 269

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SLIDE 7

Operational Review

Q4 2018

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SLIDE 8

Contract backlog of NOK 434 million* as of 1 January 2019

79% 34% 14% 0% 20% 40% 60% 80% 100% From 1 Jan. 2019 2020 2021 247 133 54 100 200 300 From 1 Jan. 2019 2020 2021

CONTRACT BACKLOG*

NOK million

CONTRACT COVERAGE*

Utilisation rate

*Excluding marine seismic Excluding charterers’ extension options

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SLIDE 9

Subsea Segment

  • Fleet utilisation of 95% in Q4 2018, compared with

58% in Q4 2017

  • Polar Onyx on charter for the entire period
  • Polar King on charter for the entire period
  • Polar Queen on charter for almost three full

months in the period

  • Outlook
  • Polar Onyx on a fixed charter with

DeepOcean until Q1 2021, with options for two more years

  • Polar King continues on a fixed charter with

Nexans until the end of August 2019

  • Polar Queen employed until September 2019

Polar Onyx Polar King Polar Queen

  • SURF vessel, built

2014

  • LOA: 130m
  • Crane: 250mt
  • VLS-tower: 275mt
  • Accommodation: 130
  • CSV vessel, built 2011
  • LOA: 111m
  • Crane: 150 mt
  • Accommodation: 112
  • CSV vessel, built 2011
  • LOA: 111m
  • Crane: 150 mt
  • Accommodation: 119
  • Undisclosed client

46 27 56 65 66

  • 13
  • 19

14 14 11

  • 20

20 60 100 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Operating income EBITDA Fleet utilisation (%)

58 %

KEY FIGURES

NOK million

48 % 95 % 86 % 97 %

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SLIDE 10

Ice/Support Segment

  • Fleet utilisation of 100% in Q4 2018,

compared with 100% in Q4 2017

  • Ernest Shackleton on bareboat

charter to British Antarctic Survey until September 2019

  • Polar research and

subsea support vessel

  • LOA: 80m
  • 50 berths, large decks

& cranes allows for multiple tasks

  • Used as an Antarctic

research vessel

4 4 4 4 4 4 4 4 4 4

2 4 6 8 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Operating income EBITDA Fleet utilisation (%)

100 % 100 % 100 % 100 % 100 %

KEY FIGURES

NOK million Ernest Shackleton

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SLIDE 11

Joint Ventures – Ice/Support

  • Ice/Support
  • Fleet utilisation of 100% in Q4

2018, compared with 100% in Q4 2017

  • Polar Pevek on charter to Exxon

Neftegas (ENL) until 2021

  • Polar Baikal and Polar Piltun on

charter to Sakhalin Energy Investment Corporation until end

  • f 2019
  • Share of profit in Q4 2018 of NOK

11 million

  • Ice breaking tug with

towing anchor handling capacity

  • LOA: 74m
  • Oil spill drip tray and
  • il containment

system installed

  • Crew supply vessel
  • LOA: 29m
  • Used for crew

transport between shore and installation in North Eastern Russia

  • Pax: 70
  • Crew supply vessel
  • LOA: 35m
  • Used for crew

transport between shore and installation in North Eastern Russia

  • Pax: 70

12 3 5 14 11

5 10 15 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Share of profit

KEY FIGURES*

NOK million

Polar Pevek Polar Baikal Polar Piltun

* Polar Baikal and Polar Piltun only operate for half the year, the vessels are cold stacked in the winter season

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SLIDE 12

Joint Ventures – Marine Seismic (Shearwater)

  • Marine Seismic (Shearwater)
  • Shearwater achieved a fleet utilisation of

76% in the period for its three active vessels

  • Continued competitive rate pressure,

intercontinental transits as well as non- recurring transaction costs affected the profitability in the quarter

  • Shearwater’s total fleet counted sixteen

vessels from mid November 2018, at the same time GC Rieber Shipping’s ownership was reduced from 50% to 20%

  • GC Rieber Shipping’s share of profit was

negative NOK 63 million in Q4

  • Outlook
  • Active fleet booked for Q1, well underway to

secure backlog for Q2 and Q3

  • 69
  • 10
  • 14
  • 39
  • 63
  • 80
  • 60
  • 40
  • 20

20 40 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Share of profit

KEY FIGURES

NOK million

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SLIDE 13

Financial Review

Q4 2018

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SLIDE 14

Income statement

(1) Profit bef. tax adjusted for unrealised currency gains/losses, profit from disposals, impairment of fixed assets and P&L-effect from Shearwater’s acquisition of Schlumberger’s marine seismic business

NOK mill Q4 2018 Q4 2017 31.12.2018 31.12.2017 Operating income 70.2 50.4 231.9 264.1 EBITDA 273.7

  • 65.7

254.9 21.0 EBIT 279.4

  • 67.2

200.7

  • 90.0

Profit before tax 265.6

  • 81.9

148.0

  • 130.6

Net profit 269.4

  • 81.4

148.1

  • 130.1

Normalised profit before tax (1)

  • 75.2
  • 109.6
  • 218.1
  • 142.1

Earnings per share 3.13

  • 1.86

1.72

  • 2.98

Number of shares (million) 86.1 43.8 86.1 43.8

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SLIDE 15

Balance sheet 31.12.2018*

  • Total balance NOK 2,977 million

(NOK 2,447 million)

  • Equity ratio 57.5 percent

(46.6%)

  • Cash position NOK 204 million

(NOK 108 million)

  • Net debt NOK 1,016 million

(NOK 1,123 million)

NOK million

204 63 59 1203 2715 1711 500 1 000 1 500 2 000 2 500 3 000 Assets Equity & Liabilities

Fixed assets Other current assets Cash & liquid assets Equity Long-term liabilities Current liabilities

* 31.12.2017 in brackets

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Outlook and Summary

Q4 2018

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Outlook

  • Market view short term
  • The oil price has remained volatile and is currently traded around USD 60 per barrel
  • The overall offshore market sentiment has become more positive, but has yet to turn into tangible projects

yielding appropriate returns

  • Expected market trends
  • Subsea: Slow overall improvement, but continued uptick in activity and market rates towards the summer

season

  • Renewables: Decent activity levels and indication of increasing market rates
  • Marine seismic: Improvement in activity levels and market rates
  • Ice/support: Stable and unchanged activities and market rates in a gradually improving market
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SLIDE 18

Summary

  • High utilisation in the subsea and ice segments
  • Solid contract coverage throughout Q3 2019
  • Offshore market conditions remain challenging with unsustainable rates, however gradual

improvement is expected in 2019 and into 2020

  • Shearwater well positioned for improved marine seismic market conditions after closing

acquisition of Schlumberger’s marine seismic acquisition assets and operations

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SLIDE 19

Disclaimer

This quarter presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. Such forward-looking information and statements are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for GC Rieber Shipping ASA and its

  • subsidiaries. These expectations, estimates and projections are generally identifiable by statements containing

words such as "expects", "believes", "estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for GC Rieber Shipping’s businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time. Although GC Rieber Shipping ASA believes that its expectations and the information in this Presentation were based upon reasonable assumptions at the time when they were made, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in this Presentation. GC Rieber Shipping ASA nor any

  • ther company within the GC Rieber Shipping Group is making any representation or warranty, expressed or

implied, as to the accuracy, reliability or completeness of the information in the Presentation, and neither GC Rieber Shipping ASA, any other company within the GC Rieber Shipping Group nor any of their directors,

  • fficers or employees will have any liability to you or any other persons resulting from your use of the

information in the Presentation. GC Rieber Shipping ASA undertakes no obligation to publicly update or revise any forward-looking information or statements in the Presentation.