Prosafe Se · OSL:PRS
Prosafe — Q4 2009 Earnings Presentation
38 slides from Prosafe's earnings presentation, Feb 18, 2010
Slide 1: Q4 2009 results
Oslo, 18 February 2010 Q4 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 Agenda n The quarter in brief n Financial results n Operations n Outlook n Summary n Attachments
Slide 4: The quarter in brief
4 The quarter in brief n Strong operational performance n Rig utilisation rate of 84 per cent in Q4 and 86 per cent in 2009 n NOK 500 million bond issue completed Leading position in a good accommodation market
Slide 5: Agenda
5 Agenda n The quarter in brief n Financial results n Operations n Outlook n Summary n Attachments
Slide 6: Income statement
6 Income statement (Unaudited figures in USD million) Q4 09 Q3 09 Q4 08 2009 2008 Operating revenues 106.7 123.7 134.2 397.9 491.1 Operating expenses (34.6) (31.5) (55.7) (123.6) (210.1) EBITDA 72.1 92.2 78.5 274.3 281.0 Depreciation (14.9) (15.1) (12.9) (55.7) (48.8) Operating profit 57.2 77.1 65.6
Slide 7: Operating revenues Offshore Support Services
7 Operating revenues Offshore Support Services (USD million) Q4 09 Q3 09 Q4 08 2009 2008 Charter income 92.8 116.7 113.2 368.5 388.0 Mobilisation/demobilisation income 0.6 2.3 1.3 4.0 17.2 Other income 13.3 4.7 19.8 25.4 79.5 Total 106.7 123.7 134.3 397.9 484.7
Slide 8: Balance sheet
8 Balance sheet (Unaudited figures in USD million) 31.12.09 30.09.09 31.12.08 Goodwill 226.7 226.7 226.7 Rigs 913.5 929.2 828.4 Other non-current assets 4.9 5.2 3.8 Total non-current assets 1 145.1 1 161.1 1 058.9 Cash and deposits 88.5 107.8 115.6 Other current assets 121.9 151.4 139.4 Total curren
Slide 9: Key figures
9 Key figures Q4 09 Q3 09 Q4 08 2009 2008 Operating margin 53.6 % 62.3 % 48.9 % 54.9 % 47.3 % Equity ratio 19.5 % 17.3 % 9.5 % 19.5 % 9.5 % Return on equity -15.0 % 121.4 % 101.4 % 87.3 % 46.5 % Net interest bearing debt (USD million) 826.6 873.3 843.1 826.6 843.1 Number of shares (1 000) 229 937 22
Slide 10: Shareholders
10 Shareholders AS AT 04.02.2010 No. of shares Ownership Folketrygdfondet 24 689 135 10.7 % Pareto 13 681 645 6.0 % Brown Brothers Harriman 8 574 884 3.7 % Clearstream Banking (nom.) 7 972 874 3.5 % State Street Bank & Trust (nom.) 7 076 270 3.1 % KAS Depositary Trust (nom.) 7 060 995 3.1 % Prosafe
Slide 11: Dividend
11 Dividend n Long-term dividend policy targeting 40-50% of net profit paid tri-annually the following year n Dividend expected to be paid in Q2, Q3 and Q4 2010 n In 2009, NOK 1.35 was paid in dividend
Slide 12: Agenda
12 Agenda n The quarter in brief n Financial results n Operations n Outlook n Summary n Attachments
Slide 13: Fleet utilisation rate
13 Fleet size and utilisation 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: Recent new contracts
14 Recent new contracts n BP exercised the six-month option with commencement in January 2011 for the continued use of MSV Regalia n Shell exercised the 30-day option with commencement early May 2010 for the continued use of Safe Astoria n Contract for Safe Lancia extended until mid April 2010
Slide 15: Utilisation rate and charter revenue
15 Utilisation rate and charter revenue 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 16: Contract status
16 Contract status Safe Astoria Safe Esbjerg Safe Caledonia Safe Scandinavia MSV Regalia Safe Bristolia 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 2010 2011 2012 2013 Contract Option Yard Mobilisation Standby d
Slide 17: Agenda
17 Agenda n The quarter in brief n Financial results n Operations n Outlook n Summary n Attachments
Slide 18: Global operations
18 Global operations North Sea Russia Gulf of Mexico West Africa SE Asia and Australia Brazil Current operations/location Previous operations
Slide 19: Offshore accommodation markets
19 Offshore accommodation markets Harsh environment North Sea (often complex seabed infrastructure) Australia and Competitive advantage for semi- certain regions in Asia Brazil submersible (and certain periods, i.e cyclone season) accommodation rigs Gulf of Mexico (often complex seabed infrastructur
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, any seabed Fixed installations infrastructure Some floaters, e.g. TLPs Against fixed installations and m
Slide 21: Market outlook – demand
21 Market outlook – demand UK and Norwegian North Sea Maintenance, upgrade and tie-in work required in coming years Four of our semi rigs will operate in the North Sea in 2010 We expect tenders in 2010 for contracts commencing in 2011 and 2012
Slide 22: Market outlook – demand
22 Market outlook – demand Mexico High construction and maintenance activity offshore Currently five of our rigs are operating in Mexico
Slide 23: Market outlook - demand
23 Market outlook - demand Emerging markets North Sea Mexico West Africa Southeast Asia Brazil and Australia Mature regions 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 Safe Bristolia (NMD3) (DP2/TAMS) (Moored) (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: Agenda
26 Agenda n The quarter in brief n Financial results n Operations n Outlook n Summary n Attachments
Slide 27: Summary
27 Summary n Good market outlook n Leading market position n Unique, versatile rig fleet n Robust financial position n Solid order backlog Leading position in a good accommodation market
Slide 28: Agenda
28 Agenda n The quarter in brief n Financial results n Operations n Outlook n Summary n Attachments
Slide 29: Debt as of end Q4 2009
29 Debt as of end Q4 2009 n Credit facility q Credit facility was initially drawn in May 2008 at USD 1.1 billion q Maturity of seven years q 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 q Current credit margin 0.85%
Slide 30: Debt as of end Q4 2009
30 Debt as of end Q4 2009 n Total interest-bearing debt USD 915.1: q Credit facility: USD 740 million (long-term) q Bond loan: USD 50 million (long-term) q Bond loan: NOK 222.5 million (current) q Bond loan: NOK 500 million (long-term) n Long-term interest-bearing debt USD 876.6 million: q Credit fa
Slide 31: Financial covenants as of end Q4 2009
31 Financial covenants as of end Q4 2009 n Financial covenants in the credit facility: q Minimum cash of USD 65 million in the group q Maximum leverage ratio of 5.0 (4.5 following the second anniversary of the loan agreement, i.e. May 2010) q Minimum value adjusted equity ratio of 35 per cent q Mark
Slide 32: Rig contract history
32 Rig name Location Client name Type of contract Firm contract Option Dayrate Current contract MSV Regalia Norwegian North Sea, Valhall BP Time charter Jan 11 - Jul 11 Jan 12 USD 242 000 Jan 10 - Jan 11 USD 231 000 Jul 09 - Jan 10 USD 220 000 Yard/mobilisation Dec 08 - Jul 09 UK North Sea, MCP-01 A
Slide 33: Rig contract history
33 Safe Concordia Interpetroleum Services GoM, Cantarell (for Pemex) Bareboat May 09 - Oct 09 USD 75 000 US, Tahiti spar ChevronTexaco Time charter Aug 08 - Jan 09 USD 225 000 Interpetroleum Services GoM, Cantarell (for Pemex) Bareboat May 06 - Jun 08 USD 75 000 Jasminia Interpetroleum Services GoM,
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 n 12 May 2010 Annual general meeting Karl Ronny Klungtvedt Exec. VP Strategy and Corporate planning n 12 May 2010 [email protected] Publication and presentation of Q1 Phone: +47 51 64 25 81 2010 result Cell phone: +