DeepOcean Presentation - Pareto Securities Conference

4 September 2013

DeepOcean Presentation

Pareto Conference - Oslo

Back on Track

An integrated provider of comprehensive

subsea engineering solutions and a leading

subsea contractor

Market leader in subsea IMR in the Greater

North Sea and global leader of trenching

services

Demonstrated track record of highly-

engineered, complex subsea construction

projects for the oil & gas, offshore wind and

telecommunication industries

Corporate office in Amsterdam. Main

execution centers in Haugesund Norway and

Darlington UK. Global presence with offices in

Trondheim Norway, Aberdeen UK, Macae

Brazil, Ciudad del Carmen Mexico, Singapore

and Den Helder the Netherlands

www.deepoceangroup.com 1

DeepOcean

Back on Track

HSEQS

2

Back on Track

www.deepoceangroup.com

Through 31 July 2013

Leading Indicators

HSEQS

Lagging Indicator

3

Back on Track


Through 31 July 2013

Lagging Indicators

A Decade of Transformation

2005

IPO at OSE

2006 2011

Acquires

CTC Marine

Projects Ltd

Acquired by

Trico for

~NOK3.5 billion

2008 2009 2010 2007 2012 2013

Trico files for

bankruptcy

protection in US

DeepOcean completes

restructuring process

and appoints new Board

Appoints new CEO

and CFO

Delivers strong

EBITDA growth in

2H2012 - 1H2013

Acquires

Oceanteam AS


Back on Track

Despite turbulence in 2009-2011 period the company didn’t loose any key employees

Back on Track

Awarded a 5-year firm IMR contract from Statoil for the Rem Ocean valued between

~$265 and ~$350 million depending on options and additional services

Awarded a contract by Statoil for the procurement, installation and burial of the 140

km. Aasta Hansteen Fiber Optics Cable

Closed new €125 million Credit Facility with 5 banks

Secured extensions of Atlantic Challenger and Arbol Grande vessel charters through

2014

Acquired a 50% interest in ADUS DEEPOCEAN

Chartered new vessels for 2014 and beyond, namely Havilia Phoenix, Rem Ocean

and Deep Helder

Opened Engineering Office in Trondheim and staffed up

Reported a record and high quality backlog of $814(1) million effective 31 March ‘13

Achieved one continuous year on hire of the Edda Fauna without any off hire

breakdown

Awarded Most Innovative Subsea Technology Provider at the Deepwater Excellence

Awards ceremony at the 7th Annual Deepwater China Convention in May 2013

Recruited 158 (>10% increase) new employees and experienced turnover of less

than 3% YTD


Recent Events in 2013

1) Unaudited

Back on Track


Leadership Team

Bart Heijermans

CEO

20+ years of global

oil & gas industry

experience

Shell E&P, Enterprise

Products LP USA

EVP & COO Helix

2005 -2011

Dennis de Vreede

CFO

20+ years of

financial,

accounting

experience

CFO Redevco

Mads Bårdsen

President

DeepOcean AS

20+ years of

oil & gas industry

experience

Stolt Offshore

Tony Inglis

MD

DeepOcean UK

30+ years of

global oil & gas

industry

experience

Clough - SaiClo

Ottar Mæland

Ops. Director

DeepOcean AS

13+ years of

oil & gas industry

experience

Norsk Hydro

Pierre Boyde

Com. Director

DeepOcean UK

15+ years of

oil & gas industry

experience

EMC

Owned vessels: 7

Long Term Charters: 8 (+3 in

2014)

Spot charters: 2

28 ROVs

5 ROVs to be delivered in 2H2013

33 ROVs at 2013 year-end

> 4 ROVs to be delivered in 2014

7 ploughs

6 jet trenchers (+1 in 2014)

4 mechanical cutters

Ultimate trenching spread with T3200

and T1000 to be introduced in 2014

Vessels ROVs Trenchers & Ploughs

Company snapshot

~1200 employees

~250 agency personnel

Talent


Revenue: $513m

Adj. EBITDA: $54m (10%)

ROCE: 7%

Net Debt < $0

CAPEX: $72m

2012 Financials (Audited) 1H2013 Financials (un-audited)

Revenue: $294m

Adj. EBITDA: $51m (17%)

ROCE: 19%

Net Debt: $2m

CAPEX: $29m

Back on Track

Survey, inspect and

map terrain prior to

the installation of

new subsea systems

More than 50 000

km pipeline

surveyed

Water depth to

2100 m

ROV and vessel

based

Co-owner of ADUS

DeepOcean

Installation of

subsea structures

SURF

Power Cables

and umbilicals

Structures

Module

replacement

Life of Field

Seismic cables

Leading provider of

subsea trenching and

protection services

Global leader

Largest portfolio of

seventeen

trenching assets

with wide range of

capabilities

Subsea Installation Trenching

Service lines

Survey and Seabed

Mapping

DeepOcean is the

largest subsea IMR

service provider in the

Greater North Sea

Largest subsea IMR

Contractor in

Greater North Sea

More than 1200

vessel days per

year and 700 call-

offs per year

Long term service

contracts

Inspection,

Maintenance and

Repair (IMR)

ROV based subsea

decommissioning

Lead contractor

on subsea

decommissioning

projects

Decommissioning


Back on Track

../Animations & Video/UT-1 Animation/Archive/CTC UT1 June09.mpg

Confidential – Not for Public Dissemination

Arbol Grande

Deep Endeavour CBO Isabella

Edda Flora Edda Fauna

Edda Fonn

Deep Vision Volstad Surveyor

Northern Wave

Volantis

Maersk Recorder

Rem Forza

Vessel and project activity

T1

Office locations

Northern Commander

Northern Supporter

Back on Track

Maersk Responder

Maersk Assister

Excludes:

Walker I

Havila Phoenix (2014)

Rem Ocean (2014)

Deep Helder (2014)

TBD (2014)

www.deepoceangroup.com 9 Atlantic Challenger

Activity on 6 continents managed by regional offices through two execution centres


Proprietary visualization

software and data

acquisition methodology

Decommissioning of Statfjord Loading Buoy. Novel technology used

to disconnnect chains from buoy

Installation of X-MAS tree with

Edda Fauna IMR vessel

ADUS DEEPOCEAN STATFJORD LOADING BUOY DECOMMSSIONING AND REMOVAL

Clamp Installation on Glitne

Selection of recent projects

Back on Track

Flexible Riser End Replacement

IMR


Trenching of pipelines by AMP500 plough

Snoree LOFS / PRM

Macedon and Gorgon Ithaca Stella

Burial of umbilicals offshore Australia

Selection of recent projects

Back on Track

Installation and burial of 80 array cables

in German sector of North Sea

BARD

Installation and burial of ~535km of cables

and umbilicals on Snorre PRM project

More subsea wells

Increased demand for construction, IMR and decommissioning

Bigger and more complex subsea structures

Need for larger and more capable vessels

More pro-active and critical maintenance requirements

Ageing Infrastructure

Increased requirements for IMR and replacement scope

Focus on IOR (Increased Oil Recovery)

Installation, IMR and change-out of subsea production systems

Well intervention (downhole IMR)

Permanent Reservoir Monitoring (PMR)

Electrification projects

Renewables

Increase in number of Offshore wind farms

IMR market for remedial trenching

West European Grid

New interconnector power cables

Subsea trends

Back on Track


Oil & Gas vs. Renewables revenue

CAPEX vs. OPEX funded revenue

Day-rate vs. qualified lumpsum or

qualified EPCI

Differentiated services vs. differentiated

assets

Large number of relatively inexpensive

assets vs. small number of expensive

assets

Global vs. regional strategy


Trade Offs for DeepOcean to achieve predictable and sustainable growth

Back on Track

World’s most capable trencher - T3200

Our Focus

Zero incidents as the result of thorough preparations, training, development and ACT for Safety

Retain and attract talent through investment, development and empowerment and become an

Employer of Choice, that is admired by its peers

Deliver high quality and reliable services to our Customers

Grow ROCE

Manage balance sheet to withstand and take advantage of opportunities during downturns

Credibility – Say what you do and do what you say


Back on Track


High ambitions - Deep knowledge!


DeepOcean Presentation - Pareto Securities Conference

Technology

Transcript of DeepOcean Presentation - Pareto Securities Conference