Prosafe Se · OSL:PRS
Prosafe — Q4 2008 Earnings Presentation
34 slides from Prosafe's earnings presentation, Feb 12, 2009
Slide 1: Q4 2008 results
Oslo, 12 February 2009 Q4 2008 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: Highlights Q4 2008
3 Highlights Q4 2008 Financial results Operations Outlook Summary Attachments
Slide 4: The quarter in brief
4 The quarter in brief Strong operational performance Robust financial position Rig utilisation rate of 88% Several contract awards Solid order backlog Good market outlook Safe Caledonia at Dunbar Strong position in a stable accommodation market
Slide 5: Financial results
5 Highlights Q4 2008 Financial results Operations Outlook Summary Attachments
Slide 6: Income statement
6 Income statement (Unaudited figures in USD million) Q4 08 Q3 08 Q4 07 YTD 2008 2007 Operating revenues 134.2 126.0 106.4 491.1 376.7 Operating expenses (55.7) (52.8) (47.8) (210.1) (167.3) EBITDA 78.5 73.2 58.6 281.0 209.4 Depreciation (12.9) (12.0) (11.9) (48.8) (46.4) EBIT 65.6 61.2 46.7 232.2 1
Slide 7: Balance sheet
7 Balance sheet (Unaudited figures in USD million) 31.12.08 30.09.08 31.12.07 Goodwill 226.7 226.7 355.0 Rigs 828.4 800.0 749.6 Ships 0.0 0.0 926.5 Other non-current assets 3.8 3.4 304.6 Total non-current assets 1 058.9 1 030.1 2 335.7 Cash and deposits 115.6 116.3 162.0 Other current assets 139.4 1
Slide 8: Key figures
8 Key figures Q4 08 Q3 08 Q4 07 2008 2007 Operating margin 48.9 % 48.6 % 43.9 % 47.3 % 43.3 % Equity ratio 9.5 % 10.3 % 39.6 % 9.5 % 39.6 % Return on equity 101.4 % 142.1 % 12.9 % 46.5 % 13.5 % Net interest bearing debt 843.1 854.3 1 189.1 843.1 1 189.1
Slide 9: Shareholders
9 Shareholders AS AT 02.02.2009 No. of shares Ownership Folketrygdfondet 25 603 335 11.1 % GMO 9 647 438 4.2 % Brown Brothers Harriman 8 158 944 3.5 % Pareto 7 834 650 3.4 % Rasmussengruppen AS 7 023 500 3.1 % Prosafe SE 7 001 705 3.0 % Clearstream Banking (nom.) 6 261 554 2.7 % State Street Bank &
Slide 10: Operating revenues Offshore Support Services
10 Operating revenues Offshore Support Services (USD million) 2008 Q4 08 Q3 08 Q2 08 Q1 08 Charter income 388.0 113.2 102.4 98.6 73.8 Mob/demob income 17.2 1.3 2.5 0.7 12.7 Other income 79.5 19.8 21.1 27.2 11.4 Total 484.7 134.3 126.0 126.5 97.9
Slide 11: Tri-annual dividend
11 Tri-annual dividend § The board of directors will propose to the AGM on 14 May 2009 to amend the company’s articles of association to allow for a tri-annual distribution of dividends ú Better correlation between operating cash flow and dividend payments § Target 40-50% of net profit paid tri-annu
Slide 12: Operations
12 Highlights Q4 2008 Financial results Operations Outlook Summary Attachments
Slide 13: Rig utilisation rate
13 Rig utilisation rate 95 % 90 % 85 % 80 % 75 % 70 % 65 % 60 % 55 % 50 % 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1) 1) Contracted as per January 2009
Slide 14: Order backlog and rig utilisation rate
14 Order backlog and rig utilisation rate (firm contracts) 100 400 90 Firm order 350 80 Order backlog in MUSD Option 300 Utilisation rates in % 70 Rig util. rate firm contracts 250 60 50 200 40 150 30 100 20 50 10 0 0 2009 2010 2011 2012 2013
Slide 15: New contracts
15 New contracts One-year bareboat contract for Safe Bristolia in the GoM Six-month option for Safe Esbjerg in Denmark 685-day extension of the bareboat contract of Jasminia in the GoM Safe Bristolia
Slide 16: Contract status
16 Contract status Safe Astoria Asia Safe Esbje rg Safe Cale donia North Sea / Safe Scandinav ia Africa MSV Regalia Safe Bristolia Safe Concordia Safe Britannia ç 2001 Gulf of Safe Lancia ç 1998 Mexico Safe Re gency ç 1997 Jasminia ç 1998 Safe Hibernia ç 2002 2006 2007 2008 2009 2010 2011 2012 2013
Slide 17: Refurbishment and life extension projects
17 Refurbishment and life extension projects Refurbishment of MSV Regalia is progressing according to schedule Will be completed in May 2009 MSV Regalia
Slide 18: Outlook
18 Highlights Q4 2008 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 install
Slide 20: Market outlook
20 Market outlook Decline in total global E&P spending in 2009 However, majority of major and national oil companies indicate that they will maintain E&P spending levels in 2009 Traditionally, larger part of investments will go to fields already in production Safe Bristolia
Slide 21: Market outlook – North Sea
21 Market outlook – North Sea Extended lifetime for fields on the Norwegian Continental Shelf Source: Norwegian Petroleum Directorate
Slide 22: Market outlook - Mexico
22 Market outlook - Mexico Declining production Pemex will increase E&P spending in order to uphold and further enhance production Safe Britannia at Cantarell
Slide 23: Market outlook - Brazil
23 Market outlook - Brazil An emerging market for accommodation services Mature fields far from shore Upgrade and maintenance Logistics hub Hook-up and commissioning Tie-in of satellite fields to existing installations Good long-term outlook for accommodation services
Slide 24: Day rates for rigs with North Sea capabilities
24 Day rates for rigs with North Sea capabilities 400 000 Prosafe Others 350 000 300 000 250 000 USD/day 200 000 150 000 100 000 50 000 0 jun.03 jun.04 jun.05 jun.06 jun.07 jun.08 nov.08 okt.02 des.02 mar.03 sep.03 des.03 mar.04 sep.04 des.04 mar.05 sep.05 des.05 mar.06 sep.06 des.06 mar.07 sep.07 d
Slide 25: Summary
25 Highlights Q4 2008 Financial results Operations Outlook Summary Attachments
Slide 26: Main objectives going forward
26 Main objectives going forward Secure contract for: Safe Astoria and Safe Concordia in 2009 Safe Scandinavia in Q4 2009 Cost-efficient and safe operations Manage financial position to facilitate capital return to Safe Concordia shareholders and potential industrial consolidation
Slide 27: Summary
27 Summary Good market outlook Leading market position Unique, versatile rig fleet Sound track record Robust financial position Solid order backlog Strong position in a stable accommodation market
Slide 28: Attachments
28 Highlights Q4 2008 Financial results Operations Outlook Summary Attachments
Slide 29: Competitor situation
29 Competitor situation 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 most
Slide 30: Fleet overview
30 Fleet overview Name MSV Regalia Safe Scandinavia Safe Caledonia Geographical area Harsh environment, NCS Harsh environment, NCS Harsh environment Mooring system - 12 point chain winches 10 point wire winches Station keeping NMD3 Moored DP2 / TAMS No of beds 160/380 583 516 Deck area 3,250 m2 400
Slide 31: Fleet overview
31 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 245 612 139 Deck area 620 m2
Slide 32: Fleet overview
32 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 33: Fleet overview
33 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 DP1 DP2 Moored No of beds 771 390 535 Deck area 800 m2 1,300 m2 690 m2 P
Slide 34: Financial calendar and IR contacts
34 Financial calendar and IR contacts Financial calendar IR contacts 14 May 2009 Karl Ronny Klungtvedt Annual general meeting Exec. VP & CFO [email protected] 15 May 2009 Phone: +357 2462 1982 Publication, presentation and web cast Cell phone: +357 996 88 169 of Q1 2009 result 27 Aug