Swedbank First Securities' 2014 Nordic Energy Summit Presentation - - - PowerPoint PPT Presentation

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Swedbank First Securities' 2014 Nordic Energy Summit Presentation - - - PowerPoint PPT Presentation

Oct 09, 2022 405 likes •694 views

Swedbank First Securities' 2014 Nordic Energy Summit Presentation - March 20th CFO Torstein L. Stavseng Investing into offshore support vessels The first supply vessel, a AHTS, was delivered The latest AHTS is to be delivered April 2014. to the

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Swedbank First Securities' 2014 Nordic Energy Summit Presentation - March 20th CFO Torstein L. Stavseng

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Investing into offshore support vessels

The first supply vessel, a AHTS, was delivered to the Farstad-group in 1975.

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The latest AHTS is to be delivered April 2014.

Stad Sea: UT 704, loa 64,5 m, breadth 13,8 m, 7040 bhp, 88t BP Far tbn Sirius: UT 731 CD, loa:87,4m, breadth 21,0m, 24.400t bhp, 260t BP

Management of Shell in Aberdeen: ”This type of vessel is the Mercedes of the North Sea”

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Investing into SUBSEA vessels

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Delivery will take place in March and July 2015. Far tbn Sleipner loa:142,6 m, breadth 25,0 m

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Investing into offshore support vessels;

based upon our customer’s requirments and

  • ur focus on Safety, Quality, Environment, Health
  • Innovation is not made without competence.
  • Progress is not made without innovation.
  • Innovation is necessary to achieve sustainable development.
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Farstad Shipping – Focus on Safety

2 4 6 8 10 12 14

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTIF - (No of incidents per mill. work hours )

Farstad Fleet - Lost Time Incidents

Imroved: Vessels, Equipment, Procedures, Regulations, Safety Concious

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Values Business Focus

 To be a leading provider of

quality Support Vessel Services to the international Offshore Oil and Gas Industry

 To focus globally on the

larger and most advanced vessels in the:

  • Platform supply-,
  • Anchor Handling- , and
  • Sub-Sea segments.

 To maintain a long-term

chartering profile.

  • Safety Conscious
  • Value Productive
  • Reliable
  • Inclusive
  • Visible and Transparent

Farstad Shipping - International competitive position

backed by the Norwegian maritime cluster

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Farstad Shipping – Brief summary

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  • No of vessels in operation:

59

(31 AHTS, 25 PSV, 3 Subsea)

No of newbuilds: 5

(1 AHTS, 2 PSV, 2 Subsea)

  • No of employees offshore:

1.965

  • No of employees onshore:

235

  • Market value fleet (excl. newbuilds): Bln. NOK 17,7
  • Newbuilds:
  • Bln. NOK 3,0
  • Share price:

NOK 133

  • Market capitalization:
  • Bln. NOK 5,2
  • Book equity ratio (31.12.13):

39,2 %

  • Value adjusted equity ratio (31.12.13): 49,9 %
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Farstad Shipping – Contract Summary Fleet total*)

February 2014

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Options Term contracts

*) Actual no of days term contracts divided by no. of available days **) incl. options

42,9%**) 65,9%**) **) AHTS => 60,0% 36,2% 25,9% 20,8% 14,7% **) PSV => 70,0% 46,4% 27,6% 22,1% 18,8% **) SUBSEA => 91,8% 70,5% 60,0% 60,0% 60,0% 29,3%**) 24,4%**) 19,9%**)

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Farstad Shipping – fleet distribution

March 2014 - 59 vessels 4 AHTS

10 PSV •Aberdeen

  • Ålesund
  • Melbourne
  • Singapore
  • Macae

4 PSV 11 AHTS 11 AHTS 10 PSV

  • Perth
  • Rio

5 AHTS 3 SUBSEA 1 PSV

Northwest Eurpoe 20,3 % Brasil 29,6 % Indian Pacific 47,5 % Other Markets 2,6 % Operating income- sorted by segment

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EBIT margin development by segment (4Q preliminary)

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  • 40%
  • 30%
  • 20%
  • 10%

0% 10% 20% 30% 40% 50%

EBIT in % of income sorted by vessel type

AHTS PSV SUBSEA

  • 40%
  • 30%
  • 20%
  • 10%

0% 10% 20% 30% 40% 50%

EBIT in % of income sorted by regoin

Northwest Europe Brazil Indian Pacific

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Source: RS Platou

0% 10% 20% 30% 40% 50% 60% 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500

2005 2006 2007 2008 2009 2010 2011 2012 2013 Operating Income EBITDA EBIT EBITDA-Margin EBIT-Margin

Result 31.12. 2013 (preliminary)

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  • Sale of Lady Cynthia in January
  • Sale of Lady Kari Ann in May
  • Delivery of Far Spica in January
  • Delivery of Far Sitella in February
  • Delivery of Far Senator in March
  • Delivery of Far Starling in May
  • Delivery of Far Statesman in June
  • Ordering of 2 IMR new buildings in February and August
  • New Bond in May
  • Investments in fixed assets/new builds: NOK 2.278,9 mill.
  • New long term debt:

NOK 2.715,3 mill.

  • Repayment of long term mortgage debt: NOK 1.087,9 mill.
  • Payment of dividends:

NOK 117,0 mill.

  • EQ%:

39.2 % (4Q-12: 43.4%)

  • Value adjusted EQ% (*): 49.9 % (4Q-12: 55.1%)

(*) Based upon values as per 31.12.13

Currency - Interest bearing mortgage debt 31.12.13

NOK 80,2 % AUD 3,9 % GBP 7,6 % USD 8,3 %

Balance Sheet 31.12.13 (preliminary)

ASSETS 31.12.2013 31.12.2012 31.12.2011 Goodwill 96,8

100,0 112,1

Vessels etc. 13 871,2

12 120,7 11 524,0

Deferred maintenance 307,8

273,3 235,8

Contracts newbuilds 333,6

528,0 358,9

Other long-term receivables 87,2

105,3 134,1

Total fixed assets 14 696,7

13 127,4 12 365,0

Account receivables, freight income 616,9

624,1 555,7

Other short-term receivables 343,8

286,7 222,6

Cash and cash equivalents 1 879,7

1 567,1 1 448,9

Total current assets 2 840,4

2 477,8 2 227,2

Total assets 17 537,1

15 605,2 14 592,2

EQUITY AND LIABILITIES 31.12.2013 31.12.2012 31.12.2011 Total equity capital 6 878,0

6 775,8 6 820,2

Other long-term liabilities 146,1

167,3 115,0

Tax liabilities 41,8

43,6 48,1

Interest-bearing debt and lease 8 702,7

6 595,6 5 855,7

Total long-term liabilities 8 890,6

6 806,5 6 018,8

Accounts payables 281,6

224,2 234,2

Other short-term liabilities 541,1

502,8 506,8

Short-term interest bearing debt 945,8

1 295,9 1 012,1

Total short-term liabilities 1 768,5

2 022,8 1 753,1

Total liabilities 10 659,1

8 829,4 7 771,9

Total equity and liabilities 17 537,1

15 605,2 14 592,2

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Market values vessels

  • free of charter and available in the market

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25 50 75 100 125 150 175 200 225 250 275 300 325 350 375 400 425 450 475 500 525 550 575 25 50 75 100 125 150 175 200 225 250 275 300 325 350 375 400 425 450 475 500 525 550 575

  • Mill. NOK
  • Mill. NOK

Far Scandia(PSV,1991) Far Service(PSV,1995) Far Star (PSV,1999) Far Senior (AHTS,1998) Far Sovereign (AHTS,1999) Far Sword (AHTS, 2006)

*) average values, based upon estimates from 3 shipbrokers per 31.12/30.06. **) vessel’s first value is building cost

Average decrease in values of Farstad fleet in 2008: 2,5%

(Values peaked summer 2008)

Average decrease in values of Farstad fleet in 2009: 15,4%. Average decrease in values of Farstad fleet in 2010: 0,8%. Average decrease in values of Farstad fleet in 2011: 0,8%. Average decrease in values of Farstad fleet in 2012: 1,0%. Average decrease in values of Farstad fleet in 2013: 3,9%.

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Farstad Shipping - Values

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2005 2006 2007 2008 2009 2010 2011 2012 2013*) Dividend 3,00 3,00 4,00 5,00 3,00 4,00 5,00 3,00 3,00 Book value 79,13 90,61 87,95 113,85 160,31 168,78 174,88 173,74 176,36 Share price 97,00 135,50 148,00 67,50 128,50 175,00 151,00 134,50 133,00 Value adjusted Equity 115,28 170,87 218,06 248,06 249,45 262,98 273,34 277,94 271,99 50 100 150 200 250 300 0,00 1,00 2,00 3,00 4,00 5,00 6,00

Values NOK/ share NOK dividend/ share Value Adjusted Equity is based upon average market values of the fleet from 3 shipbrokers per 31.12/30.06. *) Proposed Dividend for 2013 by the Board of Directors

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Farstad Shipping ASA

Listed since 1988 Largest shareholders (24 February 14)

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Farstad Shipping - Summary

  • FS – strong financial position
  • FS – strong position in our core markets.
  • FS – experienced staff onshore/offshore.
  • FS – strong focus on human resources/HSEQ.
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Fleet Structure – Supply Vessels Worldwide

23.01.06 Torstein L. Stavseng

PSV>2.000 dwt AHTS>10.000 bhp 895 vessels + 331 newbuilds (37%) 503 vessels + 48 newbuilds (9,5%)

DWT BHP

Approx. 45%

  • Approx. 3.100

vessels worldwide

Source: IHS/Platou/ Farstad – January-14

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AHTS> 10.000 BHP and PSV> 2.000 DWT Worldwide and the Northwest Europe *)

143 156 180 209 222 227 244 258 266 290 314

330 372 408 464 508 612 732 849 883 946 1084

200 400 600 800 1000 1200 1400 1600

No of vessels

Other markets Northwest Europe *) Excl newbuilds

Source: IHS/Platou/ Farstad – January-14

Number of players 2004: 59 Number of players 2014: 207 Number of vessels 2004: 473+ 83 Number of vessels 2014: 1398+379

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AHTS> 10.000 BHP Worldwide – sorted by regions

50 25 43 44 19 13 20 64 116 158 56 19 15 41 64 104 165 67 21 17 43 69 95 185 70 23 15 46 20 40 60 80 100 120 140 160 180 200

No of vessels

Jan.-04 Jan.- 12 Jan.-13 Jan.-14

Source: IHS/Platou/ Farstad – January-14

Number of players 2004: 40 Number of players 2014: 105 Number of vessels 2004: 214+32 Number of vessels 2014: 503+48

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PSV> 2.000 DWT Worldwide – sorted by regions

93 73 25 30 24 10 4 202 114 152 97 78 45 4 226 149 152 90 88 46 4 245 190 169 120 115 52 4

50 100 150 200 250 300

No of vessels

Jan.-04 Jan.-12 Jan.-13 Jan.-14

Source: IHS/Platou/ Farstad – January-14

Number of players 2004: 45 Number of players 2014: 158 Number of vessels 2004: 259+51 Number of vessels 2014: 895+331

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Newbuildings – sorted by regions

AHTS> 10.000 BHP, PSV> 2.000 DWT and Subsea

15 2 5 4 8 1 6 1 2 1 2 1 147 71 36 16 21 10 10 5 5 4 1 2 1 2 9 4 3 23 5 1 9 2 1 3 2 1 1

20 40 60 80 100 120 140 160 180

No of vessels

AHTS = 48 vessels PSV = 331 vessels Subsea=64

Source: IHS/Platou/ Farstad – January-14

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20 40 60 80 100 120 140 160

No of vessels

AHTS = 503 vessels PSV = 895 vessels Newbuilds = 379 vessels

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AHTS> 10.000 BHP and PSV> 2.000 DWT Worldwide – sorted by owners/ managers

Source: IHS/Platou/ Farstad – January-14 Total fleet incl. newbuild count 1777 vessels – 207 owners. The 43 largest owners – having 10 or more vessels control 72 % of the fleet

  • incl. newbuilds.

142 owners have 5 vessels/newbuilds

  • r less – 19 % of the fleet – 339

vessels. The 43 largest owners have ordered 227 newbuilds – 60 %.

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Northwest Europe – sorted by owners/managers*)

AHTS> 10.000 BHP and PSV> 2.000 DWT

*) Excl newbuilds

1 2 2 5 9 4 4 9 6 1 5 2 2 1 1 1 2 23 17 14 10 6 10 10 3 6 11 10 5 6 6 7 5 5 6 6 4 5 10 15 20 25 30 No of vessels No of PSV=245 No of AHTS=69

Number of players: 55 Number of vessels: 314 (22,5%) Number of newbuilds: 20 (5,3%)

Source: IHS/Platou/ Farstad – January-14

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7 1 13 2 11 11 5 5 4 2 6 2 1 1 1 37 17 3 14 4 4 15 6 10 3 3 4 5 2 4 3 2 2 5 10 15 20 25 30 35 40 45 50 No of vessels No of PSV=161 No of AHTS=84

Brazil – sorted by owners/managers*)

AHTS> 10.000 BHP and PSV> 2.000 DWT

*) Excl newbuilds

Number of players: 40 Number of vessels: 245 (17,5%) Number of newbuilds: 41 (10,8%)

Source: IHS/Platou/ Farstad – January-14

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15 14 11 11 6 8 2 9 7 4 7 6 6 4 2 2 5 3 4 3 3 2 2 10 7 7 7 8 4 8 2 4 1 2 3 3 2 4 1 1 2 2

5 10 15 20 25 30

No of vessels No of PSV=120 No of AHTS=185

Indian Pacific/China – sorted by owners/managers*)

AHTS> 10.000 BHP and PSV> 2.000 DWT

*) Excl newbuilds Number of players: 76 Number of vessels: 305 (21,8%) Number of newbuilds 226 (59,6%)

Source: IHS/Platou/ Farstad – January-14

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11 4 5 3 3 1 1

10 2 2 1 2 1 1 1 5 10 15 20 25

No of vessels

No of PSV=20 No of AHTS=28

Australia/New Zealand – sorted by owners/managers*)

AHTS> 10.000 BHP and PSV> 2.000 DWT

*) Excl newbuilds Number of players: 11 Number of vessels: 48 (3,4%) Number of newbuilds

Source: IHS/Platou/ Farstad – January-14

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Market Summary

  • Oil price in a positive territory.
  • Increased demand in the offshore market.
  • Continued growth in subsea segment.
  • Increased customer cost focus
  • AHTS segment still under pressure.
  • Oversupply in PSV segment.
  • Limited availability of competent resources.
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Better by Far

Thank you for your attention