Prosafe Se · OSL:PRS
Prosafe — Investor Presentation (February 2013)
38 slides from Prosafe's investor presentation, Feb 22, 2013
Slide 1: Company Presentation
19-22 February 2013 Company Presentation
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: Prosafe – the leading accommodation rig company
Prosafe – the leading accommodation rig company The world’s leading owner and operator of semi-submersible accommodation rigs in harsh environments Fleet growth in the high-end segment within the accommodation market Long track record with versatile operations for national and major oil companies Hi
Slide 4: Agenda
Agenda Positive outlook Attractive financials Steady operations Appendix 4
Slide 5: Offshore accommodation – a late cyclical market
Offshore accommodation – a late cyclical market Accommodation rig need Hook-up/ Explo- Develop- Decom- commis- Production ration ment misioning sioning Hook-up/commissioning of new installations Maintenance, modifications, IOR projects and tie-ins of satellite fields to existing installations Decomm
Slide 6: Norway – several commissioning projects planned
Norway – several commissioning projects planned Increase in field life expectancy Several hook-up and at selected fields in Norway commissioning projects in the coming years Latest year Brage of production Draugen as of 1992-95 Tie-ins and high focus on estimate Ekofisk improved recovery resulting G
Slide 7: UK – aging infrastructure supports demand
UK – aging infrastructure supports demand A significant amount of infrastructure in the UKCS is over 30 years old Focus on maintenance and renewal of existing facilities to sustain integrity and improve reliability Field developments and tie-ins will require additional accommodation in years to come
Slide 8: Positive development in North Sea demand index
Positive development in North Sea demand index North Sea accommodation rig demand index Growing underlying demand 110 101 100 trend 99 99 100 90 91 90 87 90 81 79 New prospects for 2014-2016 80 76 78 70 have appeared recently 70 65 67 64 60 Increasing amount of prospects 50 related to hook-up and Q1
Slide 9: 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 Safe Boreas Regalia Safe Caledonia Safe Scandinavia Safe Bristolia (DP3) (DP3) (DP2) (Moored) (Moored) 9
Slide 10: Mexico – stable outlook
Mexico – stable outlook Pemex investments Stable activity in Mexico Investment level estimated to increase going forward Should bode well for demand for offshore accommodation Exploration in deepwater areas in early stages Source: Pemex 10
Slide 11: 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 Safe Britannia Safe Regency Safe Lancia Safe Concordia Safe Bristolia Safe Hibernia Jasminia (DP2) (DP2) (DP2) (DP2) (Moored) (Moored)
Slide 12: Brazil – promising demand outlook
Brazil – promising demand outlook Currently three units working in the Campos basin Likely that more units are needed in the short- to medium-term In the long-term, there should be significant growth potential in other basins 12
Slide 13: Rest of World dayrates (time charter)
Rest of World dayrates (time charter) 13
Slide 14: Prosafe is the clear market leader
Prosafe is the clear market leader No. of accommodation semis by owner No. of accommodation semis by regional capabilities 26 26 Axis Off. 24 24 22 Yantai 22 20 ETESCO 20 18 FOE 18 16 16 Rest of World COSL 14 14 Pemex UK 12 12 10 Cotemar 10 Norway 8 Floatel Int. 8 6 6 Consafe 4 4 Prosafe 2 2 0 0 14
Slide 15: Agenda
Agenda Positive outlook Attractive financials Steady operations Appendix 15
Slide 16: Growth achieved with a robust financial position
Growth achieved with a robust financial position Growth achieved by: Good operating performance At all times, a robust financial position An efficient financing and tax structure (low cost of funding) Returning capital to shareholders (high Annual equivalent return since PRS listing in April 1997 di
Slide 17: Steady growth in dividend
Steady growth in dividend Dividend payments Policy of paying out up to 75 per 0,6 cent of previous year’s net profit in four quarterly payments 0,5 +11% Q4 Q1 2013 dividend of USD 0.15 0,4 Q4 per share – 13 per cent increase USD per share +70% Q3 over last year’s quarterly run rate 0,3 +22% Q4 Q3 0,
Slide 18: Dividend policy and growth investments
Dividend policy and growth investments Generic illustration 18
Slide 19: Financing for new builds in place
Financing for new builds in place 1. USD 420 million term loan Closing took place in mid-December 2012 To be drawn in connection with delivery of each rig Key terms: Tenor of five years Repayment profile 12 years Interest rate of 3-month USD LIBOR plus 2.95 per cent 2. Bond financing Four loans curr
Slide 20: Agenda
Agenda Positive outlook Attractive financials Steady operations Appendix 20
Slide 21: Consistent high fleet utilisation
Consistent high fleet utilisation Fleet size and utilization Considerable fleet size means lower risk Fleet utilisation has consistently been at high levels Low counter-party risk Clients are typically national oil companies, super majors and larger independents: 21
Slide 22: Solid contract backlog with tier clients
Solid contract backlog with tier 1 clients Order backlog Order backlog 1 000 Firm contracts USD 720m + Options USD 107m = Total contract backlog USD 827m 900 800 700 2015 600 17 % USD million 500 2013 44 % 400 300 2014 39 % 200 100 Options Firm contracts 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 23: Recent contract awards
Recent contract awards Rig Client Country Contract year Duration Dayrate (USD) Safe Bristolia BG International UK 2014 197 days 295,000 Safe Bristolia BG International UK 2015 197 days 297,000 Safe Bristolia Elf Exploration (Total) UK 2013 173 days 285,000 Safe Scandinavia ConocoPhillips UK 2013 187
Slide 24: High North Sea contract coverage for 2013-15
High North Sea contract coverage for 2013-15 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 24
Slide 25: Safe Boreas progress
Safe Boreas progress Semi-submersible to be built as NCS compliant/ harsh environment Striking of steel in October 2012 Scheduled delivery from yard summer 2014 Awarded a six-month firm contract (+ options) by Lundin Financial status Q4 12 USDm for operations in Norway in 2015 Book value o.b. 71 Boo
Slide 26: Safe Zephyrus
Safe Zephyrus Contract signed with Jurong in Q4 2012 Similar design as Safe Boreas DP3 and 12-point mooring Ready for operations in the North Sea for the summer season of 2015 Three options Financial status Q4 12 USDm Units for either Book value o.b. 0 NCS/North Sea or world- Book value c.b. 63 wide
Slide 27: Safe Caledonia refurbishment and life extension
Safe Caledonia refurbishment and life extension Rig now in very good condition and life extended by 20 years Longer yard stay than initially planned due to increased scope Capex USD 125 million, of which USD 25 million in Q1 2013 Contract with BP in the UK North Sea expected to commence end-February
Slide 28: Summary
Summary Tight accommodation market with a high number of prospects Fleet growth in the high-end segment of the market Prosafe is well positioned Clear market leader High-quality, diversified fleet Strong cash flow Robust financial position High dividend combined with fleet growth 28
Slide 29: Agenda
Agenda Positive outlook Attractive financials Steady operations Appendix 29
Slide 30: Income statement
Income statement (Unaudited figures in USD million) Q4 12 Q3 12 Q4 11 2012 2011 Operating revenues 113.1 142.3 121.7 510.4 449.6 Operating expenses (52.6) (61.4) (53.2) (230.3) (192.0) EBITDA 60.5 80.9 68.5 280.1 257.6 Depreciation (15.0) (14.4) (16.7) (57.7) (65.3) Operating profit 45.5 66.5 51.8 2
Slide 31: Operating revenues
Operating revenues (USD million) Q4 12 Q3 12 Q4 11 2012 2011 Charter income 94.0 111.7 106.6 423.9 400.7 Mob/demob income 0.0 0.0 2.0 2.0 4.1 Gain on sale of Safe Esbjerg 0.0 4.8 0.0 4.8 0.0 Other income 19.1 25.8 13.1 79.7 44.8 Total 113.1 142.3 121.7 510.4 449.6 31
Slide 32: Balance sheet
Balance sheet (Unaudited figures in USD million) 31.12.12 30.09.12 31.12.11 Goodwill 226.7 226.7 226.7 Rigs 896.3 876.9 893.7 New builds 135.6 71.1 58.3 Other non-current assets 21.9 22.2 5.1 Total non-current assets 1 280.5 1 196.9 1 183.8 Cash and deposits 103.6 103.2 93.4 Other current assets 103
Slide 33: Key figures
Key figures KEY FIGURES Q4 12 Q3 12 Q4 11 2012 2011 Operating margin 40.2 % 46.7 % 42.6 % 43.6 % 42.8 % Equity ratio 34.7 % 34.5 % 33.6 % 34.7 % 33.6 % Return on equity 34.6 % 43.1 % 33.5 % 48.4 % 36.2 % Net interest bearing debt (USD million) 706.8 661.5 667.1 706.8 667.1 Number of shares (1 000) 2
Slide 34: Credit facility
Credit facility Total commitments end of Q4 2012: USD 927 million Maturity: August 2017 The current applicable credit margin on the credit facility is 1.875% The availability under the credit facility is reduced semi-annually with USD 68 million. Balloon of USD 247 million Financial covenants: Maxim
Slide 35: Capital expenditure
Capital expenditure 2012: USD 190 million Major items: Safe Caledonia life extension Safe Zephyrus initial instalment Safe Boreas project Safe Astoria upgrade 2013: USD 100 million + Includes new builds, Regalia SPS, Safe Scandinavia SPS and Safe Caledonia completion 35
Slide 36: Current bond loan portfolio
Current bond loan portfolio Bond loans Outstanding Maturity Margin NOK 500 million bond (2009-13) NOK 204.5 million Q4 2013 400 bps NOK 500 million bond (2011-16) NOK 500 million Q1 2016 350 bps NOK 500 million bond (2012-17) NOK 500 million Q1 2017 375 bps NOK 500 million bond (2013-20) NOK 500 mil
Slide 37: Shareholders
Shareholders SHAREHOLDERS AS AT 30.01.2013 No. of shares State Street Bank & Trust (nom) 28 612 129 12.4 % Folketrygdfondet 15 801 685 6.9 % State Street Bank & Trust (nom) 15 518 309 6.7 % Pareto 9 884 210 4.3 % FLPS 7 900 000 3.4 % Prosafe SE 6 963 731 3.0 % JP Morgan Chase Bank (nom) 6 388 984 2.
Slide 38: Largest shareholders as of October 2012
The table below shows the 20 largest shareholders as of 31 October 2012 and the change from the previous analysis dated 22 August * Fund Manager Shares Absolute % at * The data are provided by RD IR and are change 31 Oct. 12 obtained through an analysis of beneficial M&G Investment Management 22,235