BW Offshore Limited · OSL:BWO
BW Offshore — Q1 2014 Earnings Presentation
21 slides from BW Offshore's earnings presentation, May 26, 2014
Slide 1: BW Offshore Q1 2014 presentation
BW OFFSHORE Q1 2014 presentation CEO Carl K. Arnet CFO Knut R. Sæthre
Slide 2: Disclaimer
Disclaimer This Presentation has been produced by BW Offshore Limited ( “BW Offshore”) exclusively for information purposes. This presentation may not be redistributed, in whole or in part, to any other person. This document contains certain forward-looking statements relating to the business, finan
Slide 3: Highlights Q1 2014
Highlights Q1 2014 EBITDA ■ Stable operations with an uptime of 99.5% USD million ■ EBITDA of USD 112.9 million 140.0 Reported One-offs ■ Long-term extension for FPSO Sendje Berge 120.0 ■ Signed contract for the Catcher FPSO 100.0 ■ Completed NOK 750 million bond issue 80.0 ■ Dividend of USD 0.03 pe
Slide 4: Operations
Ye, BW Offshore
Slide 5: Operational highlights
Operational highlights ■ HSSEQ performance Uptime − Lost time injuries (LTI*) frequency of 0.58 100% ■ Fleet uptime − 99.5% in Q1 2014 98% ■ Extension for FPSO Sendje Berge − Firm period to Q1 2018 − Options to Q1 20120 96% ■ Extension for FPSO Abo to end Q4 2014 94% ■ FPSO Azurite has arrived in Si
Slide 6: Catcher project
Catcher project ■ Contract signed − Total project duration 38 months − First oil mid 2017 − 7 years fixed + 18 years options − Contract value of a 10 year charter is USD 2.3 billion ■ Extensive pre-planning and engineering started with FEED award Q4 2012 ■ North Sea specification FPSO − Processing c
Slide 7: Fleet overview
Fleet overview U nit T yp e C o nt r act 2 0 13 2 0 14 2 0 15 2 0 16 2 0 17 2 0 18 2 0 19 2020 2021 2022 2023 2024 2025 Sendje Berge FPSO Lease & Operate Addax/Sinopec, Nigeria: 2005-2018 (2020) Berge Helene FPSO Lease & Operate Petronas, M auritania: 2006-2015 (2021) Yùum K'ak'Náab FPSO Lease & Ope
Slide 8: Financials
Ye, BW Offshore
Slide 9: Financials
Financials Net debt and equity ratio ■ EBITDA of USD 112.9 million in Q1 2014 USD million and percentage ■ EBIT of USD 57.2 million in Q1 2014 Net debt (USD mill, LHS) Equity ratio (RHS) 2 000 40% ■ Revised useful life of fleet based on 1 800 35% extension and redeployment track-record 1 600 1 400 3
Slide 10: Income statement
Income statement USD million Q1 2014 Q4 2013 Operating revenues 237.3 260.6 Operating expenses -125.0 -156.8 Share of profit from associates 0.6 3.6 EBITDA 112.9 107.4 Depreciation -55.3 -66.5 Amortisations -0.5 -0.5 Gain (loss) from sale of assets / impairments 0.1 -0.2 EBIT 57.2 40.2 Net interest
Slide 11: Statement of financial position
Statement of financial position USD million 31.03.2014 31.12.2013 Total non-current assets 2,986.4 86.6% 2,918.5 87.4% Total current assets 461.9 13.4% 421.9 12.6% Total assets 3,448.3 100.0% 3,340.4 100.0% Total equity 1,142.4 33.1% 1,124.1 33.7% Total non-current liabilities 1,733.0 1,713.4 Total
Slide 12: Cash flow statement
Cash flow statement USD million Q1 2014 Q4 2013 Net cashflow from operating activities 146.1 83.2 Net cashflow from investing activities -126.0 -25.8 Net cashflow from financing activities 29.3 -32.2 Net change in cash and cash equivalents 49.4 25.3 Cash and cash equivalent at start of period 132.4
Slide 13: Financial strength
Financial strength ■ Available liquidity of USD 420 million ■ USD 800 million bank financing for the Catcher project ■ Fully financed by operational cashflow, existing liquidity and new bank loan Gross debt Instalments USD million Per 31.03.2014 USD million Per 31.03.2014 Term loan 600 RCF 500 BW Jo
Slide 14: Orderbook
Orderbook ■ Orderbook of USD 9.9 billion as of 31 Total orderbook and clients March 2014 − Whereof USD 4.9 billion are firm contracts ■ Long term lease contracts with solid counterparties 21 % 19 % − Visible and sustainable revenue ■ Portfolio with solid EBITDA-margins USD − EBITDA margin of 48% in
Slide 15: Future
We BW Offshore
Slide 16: Prospects
Prospects ■ Leviathan FPSO – EPCI prospect − Gas FPSO (1.6 BCFD) in 1,700 m water depth offshore Israel − Participated in a FEED from October 2012 to August 2013 − BW Offshore has been requested by Noble Energy to update the FEED ■ Kudu FPSO – lease prospect − Gas FPSO in 170 m water depth offshore
Slide 17: Expanding execution capabilities
Expanding execution capabilities ■ Continue to expand our hubs in Onshore headcount (excluding consultants) − Singapore 600 − Oslo − Rio de Janeiro 550 − Lagos ■ Planning a new technical hub in Houston 500 ■ Recruitment profile − Engineering 450 − Procurement − Construction 400 − Planning − Controll
Slide 18: Current priorities
Current priorities ■ Catcher project ■ Leviathan FEED ■ Execute life extension programs ■ Conclude new project opportunities ■ Operational improvements in fleet ■ Recruitment and strengthening of project and technical staff 26 May 2014 18
Slide 19: Capital Markets Day 12 June 2014 Oslo
Capital Markets Day 12 June 2014 Oslo 26 May 2014 19
Slide 20: BW Offshore
BW Offshore 3 £ : . y § 5 & = * é pss = as nee Me ee
Slide 21: Further information and IR contact
Further information: www.bwoffshore.com IR contact: Kristian Flaten, Vice President IR and Corporate Finance [email protected] 26 May 2014 21