Pareto Oil & Offshore conference 14 September 2016 Simen - - PowerPoint PPT Presentation

Simen Lieungh President & CEO

Pareto Oil & Offshore conference 14 September 2016

Page 2

We have never operated more safely

TRIF – Total Recordable Incident Frequency Rate (as per 1 million working hours) HIPO – High potential incidents (as per 1 million working hours)

Page 3 Drilling Technology

• One of the leading contractors in the

North Sea platform drilling market

• Drilling engineering services
• Established competence for the

latest generation technology Well Services

• Tubular running services
• Rental services
• Well intervention services
• Services in more than 20 countries

from 11 bases in Europe, the Middle East and Asia Mobile Offshore Drilling Units

• Modern fleet of UDW and harsh

environment drilling units

• Provision of integrated management

services for drilling units

• Extensive drilling experience world

wide (NCS, UKCS, Brasil, West& East Africa and Far East)

Odfjell Drilling group

• an integrated drilling contracter

Page 4

Driven by the desire to succeed

Odfjell Drilling won in 2015 the drilling contract on Johan Sverdrup for Statoil and the drilling contract on Maria field for Wintershall

Attractive rig design & capabilities

• providing high efficiency and quality in operations

Page 5

• Harsh environment hull design
• Dual active heave drawwork
• Dual well center
• Dual mud system
• 38.4m stands in derrick
• Large storage space

 Less waiting on weather  Faster tripping  Off-line activities performed in auxiliary well center  Improved logistics

90% 92% 94% 96% 98% 100% Deepsea Stavanger Deepsea Atlantic Deepsea Aberdeen Deepsea Bergen

Q2-16 operational performance

Page 6

Well Services

• a competent supplier to drillers and operators

Key service offerings

Tubular Running Services Drill Tool Rental Services Well Intervention Services ̶ Conventional and remote-operated casing running tools ̶ Remote-operated and conventional power tongs ̶ Casing / tubing running and recovery ̶ Drill tools (drill pipe, drill collars and tubing) ̶ Tubular handling equipment ̶ Stablisers, subs and valves ̶ Downhole tools ̶ Wellbore clean-up tools and services ̶ Casing exits ̶ Fishing services ̶ Well abandonment ̶ Slot recoveries

Odfjell Well Services in numbers

400+

Employees

Services from

10+

bases

Operation in

20+

countries

7

Never stop innovating

Our targets

• Increase order backlog
• Ensure efficient and

reduced cost base

• Safe and efficient
• peration and project

execution

• Improve cash flow
• Maintain high level

QHSE results Critical to improve competitive edge Opportunity to standardize and simplify working processes Strengthen flexibility in resource base Improved cost efficiency

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183 286 341 526 927 1 088 Q2 16 Q2 15 YTD 16 YTD 15 FY 15* FY 14 73

• 155

117

• 82

78 272 Q2 16 Q2 15 YTD 16 YTD 15 FY 15* FY 14

Financial performance highlights

Odfjell Drilling reports for Q2 2016:

• Operating revenue of USD 183 million
• EBITDA of USD 73 million
• EBITDA margin of 40%
• EBIT of USD 31 million
• Net profit of USD 9 million

Page 9 Group Operating Revenues (USDm) Group EBITDA (USDm) * Restated 2015 figures

Secured long term refinancing

• Firm offer to refinance Deepsea Atlantic and

Deepsea Stavanger received in August 2016

• MUSD 525 to be rolled over in a new 3 year

facility

• No additional equity injections

Total revenue backlog per year1

1) Estimates at 30 June 2016

Earnings visibility through USD 3.0 billion order backlog

• Revenue backlog for Well Services, Technology and MODU Management is not included in the revenue

backlog above. Page 10

USD million

Firm contracts USD 1.8 billion Priced options USD 1.2 billion Total backlog USD 3.0 billion

243 481 441 222 206 233

• 73

99 239 213 600 243 554 540 461 419 833

• 200

400 600 800 1 000 2H 2016 2017 2018 2019 2020 After Firm Options

Q&A