Presentation 3rd Quarter 2016 Oslo 15.11.2016 CEO Jan Fredrik Meling
News in 3rd Quarter 2016 Statoil has awarded the supply vessel Viking Prince a 6 month contract. Terms are in accordance with current market conditions. commencement is ultimo August 2016.
News in 3rd Quarter 2016 Entered into an agreement for sale of the Platform Supply Vessel Viking Nereus (UT 755L built 2004). An impairment loss of MNOK 55 is recognized in 3 rd quarter 2016. The vessel was delivered to new owners in October.
News after 30.09.2016 Entered into agreement with CGG to terminate contract for Viking Vision. Original contract expiry was July 2017. Payment of the charter rate will continue to until original contract expiry.
News after 30.09.2016 Awarded two contracts from CGG for the seismic vessels Vantage and Veritas Viking. The vessels shall be employed as source vessels. The contracts are 180 days firm each with further options. Contracts commencement are primo January 2017. The Vantage and the Veritas Viking have been in lay-up respectively since August 2014 and November 2015.
3rd Quarter 2016 results (3rd Quarter 2015) Revenues MNOK 201,4 (308,7) EBITDA MNOK 96,2 (193,2) Operating profit MNOK -163,4 (131,1) Pre-tax profit MNOK -145,5 (-77,4) Q3 2016 profits influenced by impairment of vessels of MNOK -205,3 (0) and agio of MNOK 53,3 (-168,4)
Results 3rd Quarter 2016 (in million NOK) The results in 3rd Quarter compared to last year are influenced of: Operating revenue Q3 - Impairment related to 7 PSV’s totaling MNOK 205,3 - The subsea vessel “Viking Neptun ” was operated on lower rate in 2016. 300 309 - “Viking Poseidon” contract terminated in Q2 2016 200 259 201 - “ Acergy Viking” and “Veritas Viking” without contract from 2015 100 - PSV’s “Viking Prince”, “Viking Lady” and “Viking Athene” operated on weaker 0 rates 2014 2015 2016 - “European Supporter” and “Viking 2” sold - “ Vantage ” in lay -up after contract termination in Q1 2015 EBIT Q3 EBITDA Q3 150 200 50 131 193 91 150 148 -50 100 -163 96 -150 50 -250 0 2014 2015 2016 2014 2015 2016
Results pr 30.09.2016 (in million NOK, Gain on sale and termination fee excluded) The results YTD compared to last year are influenced of: Operating revenue YTD - Impairment related to 7 PSV’s totaling MNOK 205,3 1 000 -The subsea vessel “Viking Neptun ” was operated on lower rate in 2016. 874 725 500 - “Viking Poseidon” contract terminated in Q2 2016 575 - “ Acergy Viking” and “Veritas Viking” without contract from 2015 0 - PSV’s “Viking Prince” and “Viking Lady” operated on weaker rates 2014 2015 2016 - “European Supporter” and “Viking 2” sold - “ Vantage ” in lay -up after contract termination in Q1 2015 EBITDA YTD EBIT YTD 600 400 300 400 516 329 200 100 360 181 200 279 0 0 -100 -88 2014 2015 2016 2014 2015 2016
Cash Flow (in million NOK) 3rd Quarter 3rd Quarter 1.1- 1.1- 2016 2015 30.09.2016 30.09.2015 2015 Net cashflow from operating activities 69,8 160,6 204,4 390,7 640,0 Net cashflow from investment activities (13,6) (1,1) 2,5 (923,2) (706,7) Net cashflow from finance activities (134,7) (153,5) (365,8) 404,9 219,4 Net changes in cash holdings (78,5) 6,0 (158,9) (127,6) 152,7 Cash at beginning of period 621,9 416,0 702,3 549,6 549,6 Cash at end of period 543,4 422,0 543,4 422,0 702,3 Interest paid is categorized under financing activities, interest received is categorized under operating activities.
Balance (in million NOK) 7 000 6 000 Short-term liab. Current assets Short-term liab. Current assets 5 000 4 000 Long-term liabilities Long-term liabilities 3 000 Fixed assets Fixed assets 2 000 1 000 Equity Equity 0 Assets Equity and Assets Equity and 30.09.16 Liabilities 30.09.15 Liabilities 30.09.16 30.09.15 Equity ratio 30.09.16: 35 % (35 %)
800 Debt maturity profile 30.09.2016 Millions 700 600 300 500 416 400 300 200 361 356 316 256 34 100 99 0 Q4 2016 2017 2018 2019 2020 Instalments Balloons Bonds Debt on vessels held for sale
Segments Incl. Share of Joint Ventures (MNOK) 3rd Quarter 2016 Seismic Subsea Supply Other Revenue 72,3 110,3 65,6 4,4 Revenue Q3 EBITDA 70,1 53,7 20,7 -4,7 2016 EBIT 44,3 13,7 -210,4 -5,2 EBITDA margin 97% 49% 32% N/A EBIT margin 61% 12% -8%* N/A 3rd Quarter 2015 Seismic Subsea Supply Other Revenue 76,3 181,3 96,9 5,3 EBITDA 72,1 120,6 45,3 -1,3 EBIT 43,0 79,9 15,6 -1,7 EBITDA margin 94% 67% 47% N/A Seismic Subsea Supply EBIT margin 56% 44% 16% N/A *Excl. impairment
700 Contract Backlog 30.09.16 Millions 600 215 500 400 300 215 439 215 215 200 54 293 100 163 126 113 95 0 Q4 2016 2017 2018 2019 2020 From 2021 Consolidated Share of JV's
Market We do not see any improvement in the market segments where the company is exposed in the short term. The Board expect 2017 to be a difficult year within all segments. The PSV segment is still characterized of excess supply and companies accepting contracts at day rates below operational expenses. We think a significant number of vessels must be retired from the PSV market on a permanent basis in order to see a market improvement. The activity in the global seismic market is still on a low level, with many vessels being laid up. The improvement of this segment is conditional on when the oil companies will restart exploration in order to replace their diminishing reserves.
Thanks for Your attention!
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