Prosafe Se · OSL:PRS
Prosafe — Q4 2013 Earnings Presentation
42 slides from Prosafe's earnings presentation, Feb 10, 2014
Slide 1: Q4 2013 results
10 February 2014 Q4 2013 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 Q4 2013 in brief Financial results Strategic repositioning Outlook 3
Slide 4: Q4 2013 in brief
Q4 2013 in brief Strong utilisation of 82 per cent High order intake in the quarter Three long-term contracts in Mexico Long-term contract extension in Brazil Contract for BP ETAP in UK Contract for Swiber in Indonesia Several shorter extensions for North Sea vessels Bond issue – NOK 700m, 5 years,
Slide 5: Agenda
Agenda Q4 2013 in brief Financial results Strategic repositioning Outlook 5
Slide 6: Income statement
Income statement (Unaudited figures in USD million) Q4 13 Q3 13 Q4 12 2013 2012 Operating revenues 134.8 159.4 113.1 523.5 510.4 Operating expenses (53.4) (50.8) (52.6) (216.9) (230.3) EBITDA 81.4 108.6 60.5 306.6 280.1 Depreciation (14.4) (18.2) (15.0) (61.5) (57.7) Operating profit 67.0 90.4 45.5
Slide 7: Operating revenues
Operating revenues (USD million) Q4 13 Q3 13 Q4 12 2013 2012 Charter income 120.4 146.0 94.0 469.2 423.9 Mob/demob income 3.7 0.0 0.0 9.1 2.0 Gain on sale of Safe Esbjerg 0.0 0.0 0.0 0.0 4.8 Other income 10.7 13.4 19.1 45.2 79.7 Total 134.8 159.4 113.1 523.5 510.4 7
Slide 8: Balance sheet
Balance sheet (Unaudited figures in USD million) 31.12.13 30.09.13 31.12.12 Goodwill 226.7 226.7 226.7 Vessels 946.9 926.2 896.3 New builds 248.9 152.5 135.6 Other non-current assets 4.9 16.5 21.9 Total non-current assets 1 427.4 1 321.9 1 280.5 Cash and deposits 113.4 118.0 103.6 Other current asse
Slide 9: Key figures
Key figures KEY FIGURES Q4 13 Q3 13 Q4 12 2013 2012 Operating margin 49.7 % 56.7 % 40.2 % 46.8 % 43.6 % Equity ratio 45.7 % 45.7 % 34.7 % 45.7 % 34.7 % Return on equity 33.0 % 49.9 % 34.6 % 31.7 % 48.4 % Net interest bearing debt (USD million) 666.2 613.7 706.8 666.2 706.8 Number of shares (1 000) 2
Slide 10: Shareholders
Shareholders SHAREHOLDERS AS AT 03.02.2014 No. of shares Ownership State Street Bank & Trust (nom) 32 323 779 13.7 % Folketrygdfondet 16 561 978 7.0 % State Street Bank & Trust (nom) 14 924 446 6.3 % Pareto 8 796 703 3.7 % Clearstream Banking (nom) 8 604 619 3.6 % FLPS 8 700 000 3.7 % JP Morgan Chas
Slide 11: 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 14 February The dividend will be paid in the form of NOK 1 per share on 28 February 11
Slide 12: Interest-bearing debt portfolio
Interest-bearing debt portfolio Loan Commitment Maturity Margin USD 1100 million credit facility (2011-17) USD 791 million Q3 2017 187.5 bps USD 420 million credit facility (2012-17) USD 420 million Q4 2017 295 bps NOK 500 million bond (2011-16) NOK 500 million Q1 2016 350 bps NOK 500 million bond (
Slide 13: Agenda
Agenda Q4 2013 in brief Financial results Strategic repositioning Outlook 13
Slide 14: Ambition – start of strategy process
Ambition – start of strategy process Lowest Best cost vessels Best client service Best operations 14
Slide 15: Strategic repositioning
Strategic repositioning 2009 2016 North Sea fleet refit and life extensions NCS new builds Assets UK/RoW new builds Re-organisation People and processes Ways of working 15
Slide 16: North Sea fleet – refit and life extension
North Sea fleet – refit and life extension Objective Ensure availability of versatile vessels with safe, efficient and comfortable facilities Actions Refurbish vessels to achieve renewal of hull, machinery and facilities for another 20 years of operation 16
Slide 17: Scandinavia SPS and life extension
Scandinavia SPS and life extension Aim: operate in NCS or UK waters, with 12 point mooring for 20 years (2014-2034) Five year Special periodic survey (SPS) Q1 2014 Including fatigue enhancement Increase vessel capabilities Improved station-keeping with new anchor windlasses & chain (best in class) M
Slide 18: Regalia SPS
Regalia SPS Five-year special periodic survey (SPS) Q1 2014 Including fatigue enhancement Increase vessel capabilities More functional cranes Gangway improvements Augment the health and safety of those working and living onboard Refurbishment of some interiors 18
Slide 19: New builds compliant with Norwegian regulations
New builds compliant with Norwegian regulations Objectives Be the most cost effective and versatile vessels for year-round operations in the Norwegian waters in terms of: Positioning, either through DP3 or 12 point wire-moored Marine capabilities/motions and gangway uptime Safe working environment –
Slide 20: Prosafe new builds aim at being the best - Norway
Prosafe new builds aim at being the best - Norway Thruster power (kW) Combined mooring strength (tonnes) 25000 10000 24000 9000 23000 8000 22000 7000 21000 6000 20000 5000 19000 4000 18000 3000 17000 2000 16000 1000 15000 0 Safe Safe Floatel Floatel Axis Nova Axis Vega Safe Safe Floatel Floatel Axis
Slide 21: Safe Boreas
Safe Boreas Pontoons launched 5 and 9 Nov 2013 – then docked First 2 columns raised on pontoons in dock Nov 2013 LQ mega blocks transported from subcontractor to Jurong for outfitting Cabin fabrication in Korea, first batch has arrived in Singapore Financial status Q4 13 USDm Book value o.b. 84 Book
Slide 22: Safe Zephyrus
Safe Zephyrus Keel lay – 18 November 2013 Good progress in block fabrication Outfitting started Financial status Q4 13 USDm Book value o.b. 68 Book value c.b. 69 Capitalised in quarter 1 Estimated total cost 350 22
Slide 23: Newbuilds for UK/RoW, excl. Norway
Newbuilds for UK/RoW, excl. Norway Objectives Be the most versatile vessels for year-round operations in UK/RoW , excl. Norway in terms of: Positioning, either DP3 or 10 point chain-moored Marine capabilities/motions and gangway uptime Safe working environment Accommodation facilities Crane capacity
Slide 24: Safe Eurus and Safe Notos
Safe Eurus and Safe Notos Strong capabilities The most advanced and flexible vessels for worldwide operations excluding Norway Low risk Number 3 and 4 in a series of Gusto MSC Ocean 500 units built by Cosco Ready for operations in 2016 Source: Gusto MSC 24
Slide 25: Prosafe newbuilds aim at being the best – UK/RoW
Prosafe newbuilds aim at being the best – UK/RoW Thruster power (kW) Combined mooring strength (tonnes) 23000 8000 22000 7000 21000 6000 20000 5000 19000 4000 18000 3000 17000 2000 16000 1000 15000 0 Safe TBN1 Safe TBN2 Floatel Floatel Cotemar Cotemar Safe TBN1 Safe TBN2 Floatel Floatel Cotemar Cote
Slide 26: Large and versatile North Sea fleet in good condition
Large and versatile North Sea fleet in good condition 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) Sa
Slide 27: Capital expenditure 2013
Capital expenditure 2013 Capex in line with indication of USD 130-150 million In addition, Safe Eurus/Notos first yard instalments paid in December 2013 Total of USD 223 million in 2013 Major items Safe Caledonia life extension completion Safe Scandinavia SPS, mooring winches and life extension Rega
Slide 28: Capital expenditure 2014
Capital expenditure 2014 Total capex USD 420-480 million General indication of yearly average fleet capex of USD 50-60 million, excluding new builds and special projects/items New builds and special projects Safe Boreas new build, 80 per cent of yard cost to be paid at delivery Safe Zephyrus new bui
Slide 29: Agenda
Agenda Q4 2013 in brief Financial results Strategic repositioning Outlook 29
Slide 30: Clear market leader in the high-end segment
Clear market leader in the high-end segment No. of accommodation semis by owner* No. of accommodation semis by regional capabilites* 34 34 32 POSH 32 30 30 Axis Off. 28 28 26 Jasper 26 24 24 22 CIMC 22 Rest of World 20 ETESCO 20 18 18 16 FOE 16 UK 14 COSL 14 12 12 Norway 10 Pemex 10 8 8 Cotemar 6 6
Slide 31: North Sea - robust demand
North Sea - robust demand Ivar Aasen development solution Good demand for hook-up work Driven by exploration success, particularly in Norway Prosafe already has contracts in place for Edvard Grieg (Lundin), Ivar Aasen (Det norske) and Mariner (Statoil) hook-up and commissioning projects Existing inf
Slide 32: North Sea - robust demand
North Sea - robust demand High order intake in the North North Sea accommodation demand index Sea in Q4 2013 and in 2013 in 120 112 109 general 110 101100 103 106 99 100 Good contract visibility in the 100 90 91 90 87 90 North Sea 77 81 79 76 78 80 70 65 67 64 60 Demand index shows robust 50 demand
Slide 33: North Sea dayrates (time charter)
North Sea dayrates (time charter) 400 350 300 250 USD k 200 150 100 50 0 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 Safe Boreas Safe Zephyrus Regalia Safe Caledonia Safe Scandinavia Safe Bristolia (12-point mooring & DP3) (12-point moorin
Slide 34: Mexico - stable demand outlook
Mexico - stable demand outlook Continued stable outlook in Mexico demonstrated by recent contracts for Regency, Lancia, and Jasminia Multiple years contract renewals, but slightly lower dayrates Currently accommodation vessels in operation at the Cantarell field and adjacent areas Longer term it is
Slide 35: Gulf of Mexico dayrates (bareboat)
Gulf of Mexico dayrates (bareboat) 100 90 80 70 60 USD k 50 40 30 20 10 0 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 Safe Britannia Safe Regency Safe Lancia Safe Concordia Safe Bristolia Safe Hibernia Jasminia (9-point mooring & DP2) (8-p
Slide 36: Brazil – growth market
Brazil – growth market Long-term requirements, mainly driven by maintenance Hook-up work can appear longer term Many different types of accommodation solutions in operation/contracted in Brazil All vessels required so far have gone to the Campos basin Concordia, three-year contract extension from Ju
Slide 37: Rest of the world – interesting opportunities
Rest of the world – interesting opportunities Australia Sporadic activity although the area is evolving Several contract awards at attractive economics South East Asia Dominated by low dayrate, basic barges due to benign weather conditions Some demand for semis related to mid and deep water work Saf
Slide 38: Rest of world dayrates (time charter)
Rest of world dayrates (time charter) 300 250 200 USD k 150 100 50 0 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 Regalia Safe Caledonia Safe Concordia Safe Scandinavia Safe Bristolia Safe Astoria (DP3) (10-point mooring & DP2) (4-point moo
Slide 39: Consistent high fleet utilisation
Consistent high fleet utilisation High fleet utilisation Considerable fleet size means lower risk and less volatility Low counter-party risk Clients are typically national oil companies, super majors and larger independents 39
Slide 40: High contract visibility
High contract visibility Safe Zephyrus Safe Boreas Safe Scandinavia Regalia Safe Notos Safe Eurus Safe Caledonia Safe Bristolia Safe Astoria Safe Concordia Safe Hibernia Safe Britannia Safe Regency Safe Lancia Jasminia 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Contra
Slide 41: Record high contract backlog
Record high contract backlog 1 600 Firm contracts USD 1,258m + Options USD 431m 1 400 = Total contract backlog USD 1,689m 1 200 2013 0% 1 000 2017-19 2017-19 21 % 2014 USD million 21 % 29 % 800 600 2016 212016 % 21 % 400 2015 29 % 200 Options Firm contracts 0 Q2 Q3 Q3Q4Q4Q1Q1Q2Q2Q3Q3Q4Q4 Q1Q1Q2Q2 Q3
Slide 42: Prosafe is well positioned
Prosafe is well positioned Well positioned to meet a potential increase in demand and competition, by having: a record high order backlog the largest and most versatile fleet the best and longest operational and HSEQ track-record the most efficient cost and financing structure 42