Caverton Offshore Support Group Plc · NSENG:CAVERTON
Caverton Offshore Support — FY2015 & Q1 2016 Earnings Presentation
26 slides from Caverton Offshore Support's earnings presentation, May 10, 2016
Slide 1: FY 2015 & Q1 2016 Results Presentation 10th May 2016
Caverton Offshore Support Group Facts Behind the Listing Presentation 20th May 2014 FY 2015 & Q1 2016 Results Presentation 10th May 2016
Slide 2: Important Notice
Important Notice This presentation includes forward-looking statements. Forward-looking statements include all matters that are not historical facts and include, by way of example, statements concerning our plans, objectives, goals, strategies, future events, future performance, capital expenditures
Slide 3: Caverton Helicopters
J caverton HELICOPTERS™
Slide 4: Operational Review
Operational Review
Slide 5: 2015: Operational Highlights
2015: Operational Highlights • 2015 was a year of depressed oil prices and major cutbacks for IOC’s and NOC’s which resulted in a reduction in offshore service costs and vessel day rates. • Despite the tough global and macroeconomic conditions in 2015, we were able to maintain profitability due to c
Slide 6: Helicopter Contracts Won
Helicopter Contracts Won Number of Helicopter Contracts Won 4 4 3.5 3 3 2.5 2 2 2 1.5 1 1 1 0.5 0 2010 2011 2012 2013 2014 2015 5
Slide 7: Flight Hours
Flight Operating Statistics - 2015 Despite the significant decline in helicopter charter activities, the increase in Airplane/Helicopter contracts from new clients such as Folawiyo Aje, CAMAC, NNPC and Aiteo reduced the overall impact on our total flight hours; this declined by 3% relative to FY 201
Slide 8: Q1 2016: Operational Highlights
Q1 2016: Operational Highlights • Industry rates continue to trend lower as IOC’s feel the brunt of the persisting low oil price environment. • We have taken a cue from this and intensified efforts to diversify into other sectors of the economy. • At the tail end of Q1,we signed a new 5 –yr contract
Slide 9: Safety Statistics - YTD
Safety Statistics - YTD KPI Result Lost Time Injury Frequency (LTI / 200,000 man hours worked) 0.00 Engine in flight shutdown/failure rate per 1,000 flying hours 0.00 Average Accident rate per 100,000 flying hours 0.00 Average Incident rate per 100,000 flying hours 0.00 8
Slide 10: Financial Review
Financial Review
Slide 11: 2015: Financial Highlights
2015: Financial Highlights • Group revenue down 7% YoY to NGN23.2bn vs. NGN24.9bn in the same period last year. • Revenue from Airplane/Helicopter contracts rose by 18% YoY driven by the sign on of new clients; this increased the contribution of this segment to group revenues to 88% from 70% in FY 2
Slide 12: FY 2015 – P & L Accounts
FY 2015 – P & L Accounts Income Statement Dec-15 Dec-14 % N'000 N'000 Change Revenue 23,219,777 24,900,083 -7% Direct Operating expenses (14,605,040) (13,968,291) 5% Gross Profit 8,614,737 10,931,792 -21% Gross Margin 37% 44% Indirect Operating Expenses (6,092,902) (7,217,932) -15% Operating Profit
Slide 13: % Contribution to Revenue by Segment
% Contribution to Revenue by Segment 100% 0% 0% 10% 9% 90% 80% Significant drop in income from 70% Others charter businesses; on CML side, charter income dipped 60% Charter Income 16% while helicopter charter 70% declined by 87% YoY. 50% Helicopter /Airplane 88% Contract 40% Helicopter Maintenance 3
Slide 14: Abridged Statement of Financial Position
Abridged Statement of Financial Position BALANCE SHEET DEC 2015 DEC 2014 % CHANGE Assets N'000 N'000 Non current assets 26,551,927 24,699,006 8% Cash 2,763,217 2,146,545 29% Trade & Other Receivables 8,632,289 6,985,401 24% Current assets 12,955,863 11,926,593 9% Total assets 39,507,790 36,625,599 8
Slide 15: Breakdown of Borrowings
Breakdown of Borrowings Shell Advance Payment Naira Denominated Loans Our weighted average cost of capital 20,000 Dollar Denominated Loans remained in the low teens at c.11% 18,000 16,000 35% 14,000 18% A significant portion of the FOREX 12,000 23% translation loss was as a result of the 10,000 40%
Slide 16: Q1 2016: Financial Highlights
Q1 2016: Financial Highlights • Group revenue down 26% YoY to NGN4.4bn vs. NGN5.9bn in the same period last year. • Revenue from Airplane/Helicopter contracts dipped by 8% YoY to N4.2bn largely on the back of a reduction in rates of some existing contracts. • Overall reduction in group revenues was
Slide 17: Q1 2016 – P & L Accounts
Q1 2016 – P & L Accounts Income Statement Mar -16 Mar -15 % N'000 N'000 Change Revenue 4,415,639 5,964,239 -26% Direct Operating expenses (2,914,564) (3,630,074) -20% Gross Profit 1,501,075 2,334,165 -36% Gross Margin 34% 39% Indirect Operating Expenses (1,083,337) (1,694,075) -36% Operating Profit
Slide 18: % Contribution to Group Revenue
% Contribution to Group Revenue REVENUE SEGMENTS Q1 2016 Q1 2015 Helicopter Charter 2.17% 8.5% Helicopter/Airplane contract now accounts for over 95% of Helicopter maintenance group revenue; the ad hoc 0.08% 1.6% charter market continues to be slow in both our helicopter and marine businesses Helico
Slide 19: Improving Operational Efficiencies
Improving Operational Efficiencies • Total operating costs for the group are down 25% YoY to NGN5.3bn in Q1 relative to previous year. • We continue to manage our costs by continuously re-evaluating our cost base to curb wastage in the system. • In line with this, we have embarked on operational res
Slide 20: Outlook
Outlook
Slide 21: On-going Projects
On-going Projects For the MRO, the foundation bases and walls have been completed. We have also taken delivery of structural steel and cladding materials at the site in Ikeja as pictured below. We are still on track for having the maintenance centre fully operational by FY 2017. 20
Slide 22: Expansion of our NAF Base
Expansion of our NAF Base We embarked on an expansion of our NAF Base in Port Harcourt in a bid to service our growing clientele base better; Construction has advanced and the new site is expected to be fully operation by end of Q22016. 21
Slide 23: 2016 & Beyond
2016 & Beyond • We will continue to maintain a strategic balance between our owned and leased aircraft which gives us flexibility to reduce our fixed cost base in a period of economic downturn. • Whilst a significant portion of our revenues are dollar denominated; our foreign currency exposure still
Slide 24: For further information please contact
For further information please contact: Oyindamola Kazeem Head, Investor Relations Caverton Offshore Support Group Plc +234 809 396 9092 [email protected] www.caverton-offshore.com
Slide 25: Appendix
Appendix
Slide 26: COSG – Key Financial Trends
COSG – Key Financial Trends Revenue EBITDA & EBITDA Margin NGN BN 25.0 7 50% 23.0 CHL CML 6.0 6.0 45% 21.0 6 5.5 19.0 40% 17.0 5 4.5 35% NGN BN 15.0 4 30% 13.0 25% 11.0 3 2.4 2.7 9.0 20% 7.0 2 1.5 1.5 15% 5.0 10% 3.0 1 5% 1.0 -1.0 0 0% 08A 09A 10A 11A 12A 13A 14A 15A 08A 09A 10A 11A 12A 13A 14A 15A
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