Prosafe Se · OSL:PRS
Prosafe — Q2 2009 Earnings Presentation
38 slides from Prosafe's earnings presentation, Aug 27, 2009
Slide 1: Q2 2009 results
Oslo, 27 August 2009 Q2 2009 results
Slide 2: Disclaimer
2 Disclaimer All statements in this presentation other than statements of historical fact are forward-looking statements, which are subject to a number of risks, uncertainties, and assumptions that are difficult to predict and are based upon assumptions as to future events that may not prove accurat
Slide 3: Agenda
3 § The quarter in brief § Financial results § Operations § Outlook § Summary § Attachments
Slide 4: The quarter in brief
4 The quarter in brief § Strong operational performance § Rig utilisation rate of 86 per cent § Two contract awards § MSV Regalia refurbishment completed Leading position in a good accommodation market
Slide 5: Financial results
5 § The quarter in brief § Financial results § Operations § Outlook § Summary § Attachments
Slide 6: Income statement
6 Income statement (Unaudited figures in USD million) Q2 09 Q1 09 Q2 08 1H 2009 1H 2008 2008 Operating revenues 85,9 81,6 125,9 167,5 230,9 491,1 Operating expenses (26,2) (31,3) (50,6) (57,5) (101,6) (210,1) EBITDA 59,7 50,3 75,3 110,0 129,3 281,0 Depreciation (12,9) (12,8) (11,9) (25,7) (23,9) (48
Slide 7: Operating revenues – Offshore Support Services
7 Operating revenues – Offshore Support Services (USD million) Q2 09 Q1 09 Q2 08 1H 2009 1H 2008 2008 Charter income 83.0 76.0 98.6 159.0 172.4 388.0 Mobilsaton/demobilisation income 0.0 1.1 0.7 1.1 13.4 17.2 Other income 2.8 4.6 27.2 7.4 38.6 79.5 Total 85.8 81.7 126.5 167.5 224.4 484.7
Slide 8: Balance sheet
8 Balance sheet (Unaudited figures in USD million) 30.06.09 31.03.09 31.12.08 30.06.08 Goodwill 226.7 226.7 226.7 226.7 Rigs 916.3 884.1 828.4 760.7 Other non-current assets 5.0 4.3 3.8 3.2 Total non-current assets 1 148.0 1 115.1 1 058.9 990.6 Cash and deposits 127.3 122.7 115.6 118.6 Other current
Slide 9: Key figures
9 Key figures Q2 09 Q1 09 Q2 08 1H 2009 1H 2008 2008 Operating margin 54.5 % 46.0 % 50.4 % 50.3 % 45.6 % 47.3 % Equity ratio 13.7 % 10.4 % 14.7 % 13.7 % 14.7 % 9.5 % Return on equity 104.4 % 79.5 % 36.8 % 88.1 % 35.7 % 46.5 % Net interest bearing debt (USD million) 877.1 858.8 842.3 877.1 842.3 843.
Slide 10: Shareholders
10 Shareholders AS AT 17.08.2009 No. of shares Ownership Folketrygdfondet 28 396 735 12.3 % Pareto 8 411 487 3.7 % GMO 8 314 338 3.6 % Brown Brothers Harriman 8 057 345 3.5 % Clearstream Banking (nom.) 7 309 231 3.2 % Prosafe SE 7 001 705 3.0 % State Street Bank & Trust (nom.) 5 817 592 2.5 % RBC De
Slide 11: Interim dividend approved
11 Interim dividend approved § The Board resolved on 26 August 2009 to pay NOK 0.35 per share in dividend § Ex-dividend date 7 September, to be paid 23 September § In June 2009 NOK 0.30 was paid in dividend § Long-term dividend policy targeting 40-50% of net profit paid tri-annually the following ye
Slide 12: Operations
12 § The quarter in brief § Financial results § Operations § Outlook § Summary § Attachments
Slide 13: Fleet utilisation rate
13 Fleet size and utilisation (at end Q2 2009) 95 % 14 90 % 12 85 % 10 80 % Fleet utilisation rate 8 75 % Fleet size 70 % 6 65 % 4 60 % 2 55 % 50 % 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Fleet size Fleet utilisation
Slide 14: Utilisation rate and charter revenue
14 Utilisation rate and charter revenue (at end Q2 2009) 100 % 450 90 % 400 80 % 350 70 % 300 Charter revenue (USD m) 60 % Utilisation rate 250 50 % 200 40 % 150 30 % 100 20 % 10 % 50 0% 0 2009 2010 2011 2012 2013 Firm Option Firm charter charter utilisation revenue revenue rate
Slide 15: New contracts in the quarter
15 New contracts in the quarter § Eight-month bareboat contract for Safe Concordia in the GoM § Contract for Safe Astoria in the Philippines § Recently the contract was extended to a 243- day contract with start-up early October
Slide 16: Contract status
16 Contract status Safe Astoria Safe Esbjerg Contract Option Safe Caledonia Mobilisation Safe Scandinavia Yard MSV Regalia Standby Safe Bristolia Termination dayrate Safe Concordia Safe Britannia ç 2001 Safe Lancia ç 1998 Safe Regency ç 1997 Jasminia ç 1998 Safe Hibernia ç 2002 2006 2007 2008 2009 2
Slide 17: MSV Regalia refurbishment completed
17 MSV Regalia refurbishment completed Refurbishment completed - modifications & life extension New and upgraded accommodation Received Acknowledgement of Compliance (AoC) for working offshore Norway 5 year SPS approved Improved fuel efficiency and 40 per cent reduction in NOx emissions through engi
Slide 18: Outlook
18 § The quarter in brief § Financial results § Operations § Outlook § Summary § Attachments
Slide 19: Robust to oil price fluctuations
19 Robust to oil price fluctuations Pre-eng./ Seismic E&D concept Hook-up/ Operations & De- drilling studies commissioning maintenance commissioning § Hook-up and commissioning of new installations § Tie-in of satellite fields to existing installations § Maintenance, upgrade and repair of existing i
Slide 20: Market outlook – Supply
20 Market outlook – Supply Dynamically positioned semi rigs Anchored semi rigs Advanced units with high operational Primary strengths: versatility: Shallow to medium waterdepths All water depths Fixed installations Any seabed infrastructure Some floaters, e.g. TLPs Against fixed installations and mo
Slide 21: Market outlook – Demand
21 Market outlook – Demand UK and Norwegian North Sea Mature basin Increased recovery Extended lifetime for fields Maintenance, modification and upgrade work required in years to come Currently, two of our rigs operating offshore UK and one rig operating offshore Norway Source: www.acorn-ps.com
Slide 22: Market outlook – Demand
22 Market outlook – Demand Mexico High construction and maintenance activity offshore Pemex maintain spending in order to keep up production at Cantarell Future new developments & exploration in deep waters Currently seven of our rigs operating in Mexico
Slide 23: Market outlook – Demand
23 Market outlook – Demand Emerging markets/deepwater regions Southeast Asia and Australia West Africa Brazil Potential growth regions
Slide 24: North Sea dayrates (time charter)
24 North Sea dayrates (time charter) 400,00 350,00 300,00 250,00 USD k 200,00 150,00 100,00 50,00 0,00 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 MSV Regalia Safe Caledonia Safe Scandinavia (NMD3) (DP2/TAMS) (Moored)
Slide 25: Gulf of Mexico dayrates (bareboat)
25 Gulf of Mexico dayrates (bareboat) 100,00 90,00 80,00 70,00 60,00 USD k 50,00 40,00 30,00 20,00 10,00 0,00 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Safe Britannia Safe Regency Safe Lancia Safe Concordia Safe Bristolia Safe Hibernia Jasminia (DP2/TAMS) (DP2/TAMS) (DP2)
Slide 26: Summary
26 § The quarter in brief § Financial results § Operations § Outlook § Summary § Attachments
Slide 27: Summary
27 Summary § Good market outlook § Leading market position § Unique, versatile rig fleet § Robust financial position § Solid order backlog Leading position in a good accommodation market
Slide 28: Attachments
28 § The quarter in brief § Financial results § Operations § Outlook § Summary § Attachments
Slide 29: Debt
29 Debt § Credit facility § Credit facility was initially drawn in May 2008 at USD 1.1 billion § Maturity of seven years § The applicable margin on the credit facility will vary in the range from 0.65% to 0.95% per annum depending on the leverage ratio. Currently credit margin 0.85% above USD LIBOR.
Slide 30: Debt as of end Q2 2009
30 Debt as of end Q2 2009 § Total debt: § Credit facility: USD 890 mill (USD 820 mill. long-term, USD 70 mill. current) § Bond loan: USD 50 mill. (long-term) § Bond loan: NOK 411 mill. (current) § Long-term debt USD 870 mill.: § Drawn on credit facility: USD 820 mill. § Bond loan: USD 50 mill. § Cur
Slide 31: Financial covenants
31 Financial covenants § Financial covenants on the credit facility: § minimum cash of USD 65 million in the group § maximum leverage ratio of 5 (4.5 starting from May 2010) § minimum value adjusted equity ratio of 35% § market value vessels/total commitments above 150% § working capital (incl. unut
Slide 32: Rig contracts by rig, location and client
32 Rig name Location Client name Type of contract Firm contract Option Dayrate Current contract MSV Regalia Norwegian North Sea, Valhall BP Time charter Jul 09 - Jan 11 Jul 11 USD 220 000 - 231 000, option USD 242 000 Yard/mobilisation Dec 08 Jun 09 UK North Sea, MCP-01 Aker Kværner Time charter Feb
Slide 33: Rig contracts by rig, location and client
33 Rig name Location Client name Type of contract Firm contract Option Dayrate Safe Concordia GoM, Cantarell Interpetroleum Services (for Pemex) Bareboat May 09 - Dec 09 USD 75 000 US, Tahiti spar ChevronTexaco Time charter Aug 08 - Jan 09 USD 225 000 GoM, Cantarell Interpetroleum Services (for Peme
Slide 34: Fleet overview
34 Fleet overview Name MSV Regalia Safe Scandinavia Safe Caledonia Geographical area Harsh environment, NCS Harsh environment, NCS Harsh environment Mooring system DP 12 point chain winches 10 point wire winches Station keeping NMD3 Moored DP2 / TAMS No of beds 300 583 495 Deck area 3,250 m2 400 m2
Slide 35: Fleet overview
35 Fleet overview Name Safe Astoria Safe Bristolia Safe Esbjerg Geographical area Moderately harsh env. Moderately harsh env. Harsh environment Mooring system 8 point wire winches 8 point wire winches 4 point wire winches Station keeping Moored Moored Jack-up No of beds 245 587 139 Deck area 620 m2
Slide 36: Fleet overview
36 Fleet overview Name Safe Britannia Safe Lancia Safe Hibernia Geographical area Harsh env. Moderately harsh env. Harsh environment Mooring system 9 point wire winches 8 point chain winches 12 point wire winches Station keeping DP2 / TAMS DP2 Moored No of beds 812 600 500 Deck area 1,300 m2 1,100 m
Slide 37: Fleet overview
37 Fleet overview Name Safe Regency Safe Concordia Jasminia Geographical area Harsh environment Benign environment Benign environment Mooring system 8 point wire winches 4 point wire winches 8 point wire winches Station keeping DP2 DP2 Moored No of beds 771 390 535 Deck area 800 m2 1,300 m2 690 m2 P
Slide 38: Financial calendar and IR contacts
38 Financial calendar and IR contacts Financial calendar IR contacts § 5 November 2009 Karl Ronny Klungtvedt Publication, presentation and web cast Exec. VP Strategy and Corporate planning of Q3 2009 result [email protected] Phone: +47 51 64 25 81 § 18 February 2010 Cell phone: +47 9