Prosafe Se · OSL:PRS
Prosafe — Q1 2014 Earnings Presentation
34 slides from Prosafe's earnings presentation, May 28, 2014
Slide 1: Q1 2014 results
28 May 2014 Q1 2014 results
Slide 2: Disclaimer
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 accurate.
Slide 3: Agenda
Agenda Recent developments Financial results Projects Outlook 3
Slide 4: Recent developments
Recent developments Q1 utilisation of 76 per cent High order intake in the quarter TSV-contract with firm value of USD 443 million Projects and new builds Safe Scandinavia completed life extension and SPS Regalia completed SPS New build projects progressing well New build financing in place for Safe
Slide 5: Agenda
Agenda Recent developments Financial results Projects Outlook 5
Slide 6: Income statement
Income statement (Unaudited figures in USD million) Q1 14 Q4 13 Q1 13 2013 Operating revenues 91.7 134.8 85.8 523.5 Operating expenses (53.6) (53.4) (52.4) (216.9) EBITDA 38.1 81.4 33.4 306.6 Depreciation (15.2) (14.4) (14.4) (61.5) Operating profit 22.9 67.0 19.0 245.1 Interest income 0.1 0.1 0.5 1
Slide 7: Operating revenues
Operating revenues (USD million) Q1 14 Q4 13 Q1 13 2013 Charter income 80.5 120.4 75.3 469.2 Mob/demob income 1.1 3.7 1.7 9.1 Other income 10.1 10.7 8.8 45.2 Total 91.7 134.8 85.8 523.5 7
Slide 8: Balance sheet
Balance sheet (Unaudited figures in USD million) 31.03.14 31.12.13 31.03.13 Goodwill 226.7 226.7 226.7 Vessels 981.3 946.9 926.3 New builds 260.3 248.9 142.0 Other non-current assets 5.1 4.9 20.3 Total non-current assets 1 473.4 1 427.4 1 315.3 Cash and deposits 57.6 113.4 81.5 Other current assets
Slide 9: Key figures
Key figures KEY FIGURES Q1 14 Q4 13 Q1 13 2013 Operating margin 25.0 % 49.7 % 22.1 % 46.8 % Equity ratio 43.9 % 45.7 % 42.0 % 45.7 % Return on equity 10.2 % 33.0 % -0.5 % 31.7 % Net interest bearing debt (USD million) 728.9 666.2 608.1 666.2 Number of shares (1 000) 235 973 235 973 242 937 235 973 A
Slide 10: New build financing in place
New build financing in place Prosafe has closed a seven-year term loan facility of USD 288 million for the post-delivery financing of Safe Notos and Safe Eurus The facility has an interest rate of 3-month USD LIBOR plus 2.25 per cent Repayment profile of 12 years The loan is provided by a syndicate
Slide 11: Interest-bearing debt portfolio
Interest-bearing debt portfolio Loan Commitment Maturity Margin USD 1100 million credit facility (2011-17) USD 723 million Q3 2017 187.5 bps USD 420 million credit facility (2012-17) USD 420 million Q4 2017 295 bps USD 288 million credit facility (2014-2021) USD 288 million Q2 2021 225 bps NOK 500 m
Slide 12: Steady growth in dividend
Steady growth in dividend Declared an interim dividend equivalent to USD 0.16 per share The shares will trade ex- dividend on 4 June The dividend will be paid in the form of NOK 0.95 per share on 18 June 12
Slide 13: Agenda
Agenda Recent developments Financial results Projects Outlook 13
Slide 14: Safe Scandinavia
Safe Scandinavia SPS and life extension completed in April Aim: operate in NCS or UK waters, with 12 point mooring for 20 years (2014-2034) Commenced accommodation contract in Norway end April Conversion in 2015 for TSV work for Statoil Engineering ongoing Long lead items ordered 14
Slide 15: Safe Boreas
Safe Boreas Living quarters and cabins installed Construction work in final phase Mechanical completion and commissioning commenced Ready for operations in 2015 Financial status Q1 14 USDm Book value o.b. 95 Book value c.b. 102 Capitalised in quarter 7 Estimated total cost 350 15
Slide 16: Safe Zephyrus
Safe Zephyrus Pontoons are now fully assembled Preparing for launch and docking in June Ready for operations in 2015 Financial status Q1 14 USDm Book value o.b. 69 Book value c.b. 72 Capitalised in quarter 3 Estimated total cost 350 16
Slide 17: Safe Notos and Safe Eurus
Safe Notos and Safe Eurus Strong capabilities The most advanced and flexible vessels for worldwide operations excluding Norway Number 3 and 4 in a series of Gusto MSC Ocean 500 units built by Cosco Ready for operations in 2016 Steel cutting Safe Notos in March Source: Gusto MSC 17
Slide 18: State of the art North Sea fleet
State of the art North Sea fleet Safe Boreas – new build Safe Zephyrus – new build Safe Notos – new build Safe Eurus – new build Safe Scandinavia – life extension in 2014 (20 years) Safe Caledonia – life extension in 2013 (20 years) Regalia – life extension in 2009 (20 years) Safe Bristolia – conver
Slide 19: Agenda
Agenda Recent developments Financial results Projects Outlook 19
Slide 20: Clear market leader in the high-end segment
Clear market leader in the high-end segment No. of accommodation semis by owner Overview of incoming vessels 2012-2016 34 32 POSH 30 Jasper 28 26 OOS POSH; 2 24 Axis Off. 22 20 Jasper; 1 Prosafe; 4 ETESCO 18 16 FOE 14 OOS; 2 COSL 12 10 Pemex Floatel Int. ; 3 8 Cotemar Axis Off.; 2 6 4 Floatel Int. 2
Slide 21: Vessel motion characteristics
Vessel motion characteristics Six degrees of freedom refers to the freedom of movement of a rigid body in a three-dimensional space The body is free to move (translation) along three axes Surge (forward/backward or forward/astern) Sway (left/right or port/starboard) Heave (up/down) The body is free
Slide 22: Vessel motion characteristics
Vessel motion characteristics Gangway connecting to a fixed target Connect the gangway – Maintain position Accommodation vessel should move as little as possible Gangway connecting to a moving target Connect the gangway – Follow target Accommodation vessel should move as required Key variables for o
Slide 23: Maneuverability
Vessel motion characteristics DP vessels 0,9 Conventional semis, smallest wind and current exposure area Safe Boreas/Zephyrus Floatel Endurance 0,8 Dan Swift Regalia Edda Fides 0,7 Floatel Victory/Triumph Safe Concordia Axis Nova/Vega Safe Eurus/Notos Maneuverability Floatel Superior CSS Olympia 0,6
Slide 24: Harsh environment capabilities
Harsh environment capabilities DP vessels Airgap in operation (m) 14,0 12,0 11,0 11,5 9,5 9,5 10,0 10,0 9,5 7,6 8,0 meters 8,0 6,7 6,7 7,0 6,0 4,0 2,0 0,0 Floatel Reliance Safe Concordia Floatel CSS Olympia Regalia Posh Xanadu Floatel Superior Floatel Endurance Safe Eurus/Notos Safe Axis Nova/Vega V
Slide 25: North Sea – robust demand
North Sea – robust demand North Sea accommodation demand index Maintenance and modification 120 112 Aging infrastructure 106 109 110 101100 103 99 100 100 Strong focus on IOR 100 90 91 90 87 Accommodation demand should 90 81 79 77 78 remain robust 76 80 70 65 67 64 Hook-up and commissioning 60 The p
Slide 26: North Sea dayrates (time charter)
North Sea dayrates (time charter) 26
Slide 27: Mexico – high activity level
Mexico – high activity level All accommodation vessels currently operates in mature shallow-water areas at Cantarell and adjacent fields Steep rise in drilling jack-up count indicates increasing activity in shallow waters New legislation opens up for participation of international companies in deep
Slide 28: Gulf of Mexico dayrates (bareboat)
USD k 100 Gulf of Mexico dayrates (bareboat) 90 80 70 60 50 40 30 20 10 0 T Jan-04 Jan-05 === Safe Britannia (9-point mooring & DP2) Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 qm Safe Regency (8-point mooring & DP2) ====Safe Lancia (7-point mooring & DP2) Jan-11 Jan-12 Jan-13 Jan-14 === Safe Concordia (4-po
Slide 29: Brazil – continued growth
Brazil – continued growth High activity in the Campos basin Primarily maintenance requirements Santos basin opportunities Multiple FPSOs due to be commissioned in coming years Operators other than Petrobras showing interest in accommodation vessels Competitive and fragmented market The nine contract
Slide 30: Rest of the world – interesting opportunities
Rest of the world – interesting opportunities Australia Accommodation vessel activity within 2015 and 2016 although declining number of prospects thereafter South East Asia Some demand for semis related to mid and deep water work Safe Astoria operations in Indonesia extended through into May and fro
Slide 31: Rest of World dayrates (time charter)
USD k Rest of World dayrates (time charter) 300 250 200 —=_ 150 100 —= LI 50 0 7 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 comm Regalia === Safe Caledonia === Safe Concordia Safe Scandinavia === Safe Bristolia === Safe Astoria (DP3) (10-
Slide 32: High contract visibility
High contract visibility Safe Zephyrus | isl Gl el Safe Boreas | | | Safe Scandinavia [J Hs & || | hf hf Regalia =a — S| | Safe Notos | Safe Eurus | | Safe Caledonia i i a = — | | safe Sistine ee a sate Astoria — | = | Safe Concordia mo | | Safe Hibemia Safe Bntannia Safe Regency Safe Lancia Jasmini
Slide 33: Record high contract backlog
Record high contract backlog Status end Q1 14 2 500 Firm contracts USD 1,192m + Letter of Intent USD 443m + Options (1) USD 874m = Total USD 2,509m 2 000 Options Letter of Intent Firm contracts 2014 2014 USD million 1 500 17 17 % % 2018-22 2018-22 28 % 28 % 1 000 2015 2015 22 22 % % 2017 2017 14 14
Slide 34: Prosafe is well positioned
Prosafe is well positioned Record high order backlog Robust demand High quality vessels Strong financial position New build financing in place Steadily increase in dividend payments 34