Prosafe Se · OSL:PRS
Prosafe — Q2 2005 Earnings Presentation
21 slides from Prosafe's earnings presentation, Aug 5, 2005
Slide 1: Presentation of 2nd quarter 2005
Presentation of 2nd quarter 2005 Oslo, 5 August 2005
Slide 2: Agenda
Agenda The quarter in brief Financial result for 2nd quarter 2005 Business divisions status, strategy and outlook Summary 2
Slide 3: Q2 2005 in brief - financial
Q2 2005 in brief - financial Strong financial performance Drilling Services sold Expected sales proceeds of NOK 960 million, with a gain of about USD 80 million New contracts enhancing contract utilisation of the rig fleet to 90 per cent in 2005 Acquired VLCC M/T Apollo 1 year bareboat contract with
Slide 4: Q2 2005 in brief - operational
Q2 2005 in brief - operational Floating Production: Strong underlying performance high uptime Upgrade projects on time and better than budget Offshore Support Services: Strong underlying performance and high utilisation Overall good operating performance and solid contract coverage 4
Slide 5: Profit and loss account
Profit and loss account (Unaudited figures in USD million) Q2 05 Q1 05 Q2 04 1H 05 1H 04 2004 Operating revenues 81.2 64.9 68.1 146.1 123.1 257.6 Operating expenses (40.3) (33.7) (38.6) (74.0) (61.3) (122.0) Operating profit before depreciation 40.9 31.2 29.5 72.1 61.8 135.6 Depreciation (11.7) (12.
Slide 6: Floating Production
Floating Production (Unaudited figures in USD million) Q2 05 Q1 05 Q2 04 1H 05 1H 04 2004 Operating revenues 31.8 26.7 22.1 58.5 44.1 89.3 Operating expenses (18.2) (13.1) (9.5) (31.3) (18.9) (37.5) EBITDA 13.6 13.6 12.6 27.2 25.2 51.8 Depreciation (4.3) (4.4) (5.3) (8.7) (10.5) (19.9) EBIT 9.3 9.2
Slide 7: Offshore Support Services
Offshore Support Services (Unaudited figures in USD million) Q2 05 Q1 05 Q2 04 1H 05 1H 04 2004 Operating revenues 49.6 38.5 46.4 88.1 79.5 168.8 Operating expenses (21.3) (20.1) (28.6) (41.4) (41.3) (81.7) EBITDA 28.3 18.4 17.8 46.7 38.2 87.1 Depreciation (7.2) (7.8) (7.4) (15.0) (14.8) (30.6) EBIT
Slide 8: Balance sheet
Balance sheet (Unaudited figures in USD million) 30.06.05 31.03.05 01.01.05 30.06.04 Goodwill 128.3 128.3 128.3 128.3 Rigs 369.7 373.0 375.0 384.7 Ships 179.3 183.3 187.6 196.8 Other fixed assets 9.4 10.2 11.0 10.3 Total fixed assets 686.7 694.8 701.9 720.1 Other current assets 56.4 44.9 38.3 41.6 C
Slide 9: Cash flow
Cash flow (Unaudited figures in USD million) Q2 05 Q1 05 Q2 04 1H 05 1H 04 2004 Net cash flow from operating activities 18.5 31.8 9.8 50.3 27.1 116.6 Net cash flow from investing activities (3.6) (5.2) (8.5) (8.8) (0.9) (8.1) Net cash flow from financing activities (26.4) (0.3) (10.8) (26.7) (29.4)
Slide 10: Key figures
Key figures Q2 05 Q1 05 Q2 04 1H 05 1H 04 2004 Operating margin 36.0 % 29.1 % 24.4 % 32.9 % 29.3 % 32.8 % Equity ratio 46.7 % 47.1 % 44.5 % 46.7 % 44.5 % 45.8 % Return on equity 18.8 % 12.9 % 11.8 % 15.9 % 12.5 % 16.1 % Return on capital employed 15.0 % 9.8 % 8.2 % 12.1 % 8.9 % 10.5 % Net interest b
Slide 11: Shareholders at 26 July 2005
Shareholders at 26 July 2005 Shareholder No. of shares Ownership GMO 3 076 493 9.0 % Brown Brothers Harriman 2 805 520 8.2 % State Street Bank & Trust (nom.) 1 806 092 5.3 % JP Morgan Chase Bank 1 787 003 5.2 % Svenska Handelsbanken (nom.) 1 682 995 4.9 % Folketrygdfondet 1 281 877 3.8 % JP Morgan C
Slide 12: Gain on sale of Drilling Services
Gain on sale of Drilling Services Net proceeds from sale of shares USD 111 million - Book value USD 29 million = Gain USD 82 million + Cash at closing and I/C loan USD 33 million = Net proceeds from sale USD 144 million 12
Slide 13: Rationale for sale of Drilling Services to KCA Deutag
Rationale for sale of Drilling Services to KCA Deutag Enhanced managerial and financial focus on the Floating Production and Offshore Support Services divisions Drilling Services contributed only to 14.5% of the EBITDA while utilising 60% of the human resources A fair price Estimated sales proceeds
Slide 14: Offshore Support Services contract status
Offshore Support Services contract status Contract Option Safe Caledonia Shell Nigeria Encana Mobilisation Safe Scandinavia BP Tunisia ConocoPhillips ConocoPhillips MSV Regalia Nigeria Statoil Statoil BP Total Safe Britannia 2001 Ocean Oil / GoM Safe Lancia 1998 Ocean Oil / GoM Safe Regency 1997 Oce
Slide 15: Offshore Support Services
Offshore Support Services Accommodation/service rigs are required in all phases of an oilfield s lifecycle: Installation and commissioning of new installations Upgrade of installations Tie-in of satellite fields Maintenance Decommissioning New demand drivers arisen: FPSO New geographic regions 15
Slide 16: Offshore Support Services - rig utilisation
Offshore Support Services - rig utilisation 10 % 2005 90 % 2006 13.5 % 86.5 % 2007 38 % Contract 62 % Available 16
Slide 17: Offshore Support Services strategy and outlook
Offshore Support Services strategy and outlook Strategic focus: Maintain the world s largest and most versatile fleet of high-end accommodation and service rigs Maximise fleet utilisation and free cash flow at all times Short-term focus - swing factors: Ensure work for Safe Scandinavia in Q4 2005 an
Slide 18: Floating Production - contract status
Floating Production - contract status Production contract Options Abo Agip, Nigeria Espoir Ivoirien Canadian Natural Resources, Ivory Coast 2022 Petr. Nautipa (1) CNR, Angola Vaalco, Gabon Al Zaafarana (2) 1994 Zaafarana Oil Comp, Gulf of Suez Endeavor 1997 Aban Loyd Chiles Offshore, India Madura Ja
Slide 19: Floating Production status
Floating Production status Good operational performance and high uptime Upgrade of Espoir Ivoirien ongoing on time and better than budget All time high bidding activity Low cost base secures good profitability between conversion projects Solid performance 19
Slide 20: Floating Production strategy and outlook
Floating Production strategy and outlook Position the company as one of the leading suppliers and operators of high quality FPSOs in the world Strengthen competitive edge based on low cost base and application engineering Focus on West Africa, Southeast Asia and Brazil Ownership of 1 VLCC and option
Slide 21: Outlook summary
Outlook summary Oil price and increased spending and rates will provide increased demand and high activity going forward Financial performance is set to be strong based on current order backlog Short-term swing factors are mainly Safe Scandinavia and timing of new FPSO contract Strong cash-flow gene