Presentation 2nd Quarter 2015 Oslo 20.08.2015 CEO Jan Fredrik - - PowerPoint PPT Presentation

Presentation 2nd Quarter 2015

Oslo 20.08.2015 CEO Jan Fredrik Meling

News in 2nd Quarter 2015

Entered into an agreement for installation of Energy Storage System (Battery solution) for «Viking Queen» Extended the fixed period of the contract with Lundin Norway AS from 900 to 1.200 days.

News in 2nd Quarter 2015

Awarded a 19 month contract for Chevron UK for the PSV «Viking Princess» with further options for 4x6 months.

2nd Quarter 2015 results

(2nd Quarter 2014 in brackets)

Revenues MNOK 308,5 (245,7) EBITDA MNOK 177,7 (124,0) Operating profit MNOK 113,6 (63,4) Pre-tax profit MNOK 145,0 (-0,2)

Q2 Profits influenced by agio (MNOK 60,3).

67 63 114 100 200 2013 2014 2015

EBIT Q2 Results 2nd Quarter 2015

(in million NOK, Gain on sale excluded) The results in 2nd Quarter compared to last year are influenced of:

• The subsea vessel “Viking Neptun” was delivered and commenced

contract shortly after delivery in Q1 2015.

• The supply vessel “Viking Queen” has been operated on a contract

with higher revenues in Q2 2015

• Viking Princess and Viking Nereus have been operated in the spot

market in Q2 2015

125 124 178 100 200 2013 2014 2015

EBITDA Q2

243 246 309 200 400 2013 2014 2015

Operating revenue Q2

102 90 197 200 400 2013 2014 2015

EBIT YTD Results pr 30.06.2015

(in million NOK, Gain on sale and termination fee excluded)

The results YTD compared to last year are influenced

• f:
• “Viking Neptun delivered and commenced contract in 1st

Quarter 2015

• 3 vessels with yard stay in 1st Quarter 2014
• Geo Searcher Was sold in 2nd Quarter 2014

226 213 323 200 400 2013 2014 2015

EBITDA YTD

456 466 565 500 1 000 2013 2014 2015

Operating revenue YTD

Cash Flow (in million NOK)

2nd Quarter 2015 2nd Quarter 2014 YTD 2015 YTD 2014 2014 Net cashflow from operating activities 161,4 94,5 230,2 179,6 537,5 Net cashflow from investment activities 21,3 7,1 (922,2) (20,9) (113,3) Net cashflow from finance activities (75,9) (115,0) 558,4 (276,0) (457,4) Net changes in cash holdings 106,8 (13,4) (133,6) (117,3) (33,2) Cash at beginning of period 309,2 478,9 549,6 582,8 582,8 Cash at end of period 416,0 465,5 416,0 465,5 549,6

Interest paid is categorized under financing activities, interest received is categorized under operating activities.

Balance

(in million NOK) 1 000 2 000 3 000 4 000 5 000 6 000 7 000 Assets 30.06.15 Equity and Liabilities 30.06.15 Assets 30.06.14 Equity and Liabilities 30.06.14

Fixed assets Current assets Short-term liab. Short-term liab.

Equity ratio 30.06.15: 35 % (43 %)

Fixed assets

Long-term liabilities

Equity

Long-term liabilities

Equity Current assets

164 359 280 280 284 587 133 300

100 200 300 400 500 600 700 800 900 1 000

rest 2015 2016 2017 2018 2019 Millions

Debt maturity profile 30.06.15

Instalments Balloons Bonds

Segments

• Incl. Share of Joint Ventures

Excluded gain on sale (MNOK)

Revenue Q2 2015

Seismic Subsea Supply

2nd Quarter 2015 Seismic Subsea Supply Other Revenue 76,6 183,6 91,6 5,3 EBITDA 74,3 122,5 31,5

• 10,2

EBIT 50,4 80,8

• 0,3
• 10,7

EBITDA margin 97% 67% 34% N/A EBIT margin 66% 44% 0% N/A 2nd Quarter 2014 Seismic Subsea Supply Other Revenue 67,7 102,2 112,1 5,7 EBITDA 66,4 57,4 43,8

• 10,0

EBIT 39,9 29,9 12,5

• 10,5

EBITDA margin 98% 56% 39% N/A EBIT margin 59% 29% 11% N/A

Contract coverage (per 30.06.2015)

11

282 188 529 305 120 110 93 40 40 159 159 159 159 356

100 200 300 400 500 600 700 800

Q3 2015 Q4 2015 2016 2017 2018 2019 From 2020 Millions

Contract Backlog 30.06.15

Consolidated Share of JV's

Contract status seismic

Oceanic Sirius Oceanic Vega Vantage Viking 2 Veritas Viking Viking Vision Viking Vanquish

2015 2015 2016 2016 2017 2017 2018 2018 2019 2019

Viking Neptun Seven Viking European Supporter Viking Poseidon Acergy Viking Subsea Viking

Contract status subsea

2015 2015 2016 2016 2017 2017 2018 2018 2019 2019

SPOT

Viking Princess Viking Prince Viking Nereus Viking Avant Viking Energy Viking Athene Viking Lady Viking Queen

Contract status supply

2015 2015 2016 2016 2017 2017 2018 2018 2019 2019

Cost reduction initiatives

Cost reduction initiatives launched in H1 2015 reducing the annual costs from 2014 levels.

Total estimated annual cost reductions: MNOK 55

1. Vessel operations: MNOK 39

• Flag change “Viking Nereus” and “Viking Princess”
• Reduced number of cadets and trainees
• New travel policy
• New insurance agreements
• Other

2. Administration: MNOK 16

Market

We still experience very challenging market conditions in all three segments. The activity is falling while the industry is still facing a significant new building program. We do not see sufficient initiative to remove capacity from the market in a scale that will balance the demand and supply of vessels in the market. Some of our vessls will end their contract in 2015, and we are continuously working with existing and new clients to secure employment for these vessels. For 2015 Eidesvik still has a good contractcoverage. In order to remain robust in times such as the current market situation, Eidesvik has initiated actions for cost redustion, fleet optimization and refinancing of long-term debt.

Thanks for Your attention!