Subsea 7 S.a. · OSL:SUBC
Subsea 7 — DSND — Q2 2003 Earnings Presentation
15 slides from Subsea 7's earnings presentation, Aug 1, 2003
Slide 1: DSND Inc Presentation 2 Quarter 2003
DSND Inc Presentation 2 Quarter 2003 1 August 2003
Slide 2: Profit and Loss Account 2Q 2003 – DSND Inc
Profit and Loss Account 2Q 2003 – DSND Inc 2 Q 2003 2 Q 2002 YTD 30.06.03 YTD 30.06.02 2002 Operating revenues 7,201 56,382 16,176 108,737 135,244 Operating expenses -8,697 -50,180 -16,774 -95,501 -119,464 Ordinary depreciation -1,277 -5,734 -2,463 -12,819 -20,694 Total operating expenses -9,974 -55
Slide 3: Balance sheet 2Q 2003 – DSND Inc
Balance sheet 2Q 2003 – DSND Inc 30/06/2003 30/06/2002 31/12/2002 Fixed assets Intangible fixed assets 6,521 6,896 6,271 Tangible fixed assets 17,872 25,879 18,445 Investment in associated companies 109,157 110,954 109,101 Other financial fixed assets 126 1,129 137 Total fixed assets 133,676 144,858
Slide 4: DSND – debt per 30 June 2003
DSND – debt per 30 June 2003 • Convertible Bond: • NOK 300 million • Duration 3 years from 1/2003 • Strike: NOK 20.00 per DSND share • Conversion: At pre-determined date each month for the entire period • Interest: 8% coupon • BNDES (Brazil), Two loans: • USD 8.2 million (until 2012) • USD 1.7 milli
Slide 5: Profit and Loss Account 2Q 2003 – Subsea 7
Profit and Loss Account 2Q 2003 – Subsea 7 Subsea 7 Inc Profit & Loss Account In USD million 2Q 2003 YTD 30.06.03 23.05.02 - 31.12.02 Operating income 202.1 309.9 457.5 EBITDA 36.2 19.8 43.2 Depreciation & Amortisation (12.4) (24.6) (29.6) One time costs 0.0 0.0 (10.0) Gain on sale of assets 0.0 0.0
Slide 6: Balance sheet 2Q 2003 – Subsea 7
Balance sheet 2Q 2003 – Subsea 7 In USD million 30.06.2003 31.12.2002 Fixed Assets Intangible Assets 17.5 18.3 Tangible assets 344.5 355.3 362.1 373.6 Current Assets Other current assets 226.8 209.8 Cash in bank 26.4 30.6 253.2 240.4 Current Liabilities Trade Creditors (41.9) (40.3) Other current li
Slide 7: Backlog 2Q 2003 – Subsea 7
Backlog 2Q 2003 – Subsea 7 ! Subsea 7 had at the end of 2Q a worldwide order book of approx USD 653 million ! Geographical split of Backlog UK USD 302 million Norway USD 147 million Brazil USD 81 million GOM USD 75 million Asia Pac USD 48 million Total USD 653 million 7
Slide 8: 2Q result in Subsea 7 – comments to each region
2Q result in Subsea 7 – comments to each region ! North Sea • Main projects performed for ExxonMobil, BP, Shell and Statoil. • All projects undertaken during the period are progressing in line with expectations. • The pipelay vessel Skandi Navica completed a three month upgrade programme. • ROV util
Slide 9: 2Q result in Subsea 7 – comments to each region
2q result in Subsea 7 – comments to each region ! Asia Pacific • Completion of the Vanguard FPSO deployment. • Performing the Woodside Lambert Umbilical installation. • Commencement of work for SSB (Shell Malaysia) in Miri. ! Gulf of Mexico • Kick-off of the operational phase of the Shell Na'Kika pr
Slide 10: DSND – Non Subsea 7 assets
DSND – Non Subsea 7 assets ! Olympic Princess • Cable repair and maintenance • Contract to ACMA, an umbrella organization for 21 cable companies, until year-end 2003 plus options • The vessel is on lease from Olympic Shipping for the same period as its current contract ! Buccaneer • Well service • T
Slide 11: DSND – Non Subsea 7 assets
DSND – Non Subsea 7 assets ! Big Orange • Well maintenance • Contract to Dowell Schlumberger to August 2009 (certain rights to cancel from 2005) • 41% owned ! Supply fleet Brazil through DSND Consub • 10 owned supply-/crew vessels • 3 supply vessels on management • The fleet achieved a utilization r
Slide 12: 20 Largest shareholders per 31 July 2003
20 Largest shareholders per 31 July 2003 1 57,179,653 70.76% Siem Drilling Ltd 2 3,057,043 3.78% Odin Norge 3 3,055,883 3.78% Nordea Bank Denmark 4 2,894,884 3.58% Fidelity Funds 5 2,582,743 3.20% Odin Norden 6 2,373,320 2.94% JPMorgan Chase Bank Clients 7 726,000 0.90% Pumpøs AS 8 490,000 0.61% Tin
Slide 13: Market outlooks
Market outlooks • General • General market activity expected to remain relative strong • Oil price has been steady in excess of USD 20 per barrel • Substantial number of offshore projects committed or in the early stages of production • Subsea activities continues to grow though: • Development of sa
Slide 14: Market outlooks continued
Market outlooks continued • Brazil • Subsea capex spending leaped from approx USD 1.3 billion in 2002 to USD 2.2 billion in 2003 and is expected to be on this level towards 2006 • Large investments in deep waters as well as re-development of mature fields leading to a rising demand for opex support
Slide 15: Market outlooks continued
Market outlooks continued • Gulf of Mexico • Increasing US demand and concern over security of suppliers point to more activity in the region • Drilling activity in Mexico has seen seen significant growth • West-Africa • Planned major deep-water projects in the region expected to increase the need f