DOF Subsea Quarterly Presentation Q2 2017 Sub/IR/2017/DOF Subsea Quarterly... · 2017-08-23 · DOF...
Transcript of DOF Subsea Quarterly Presentation Q2 2017 Sub/IR/2017/DOF Subsea Quarterly... · 2017-08-23 · DOF...
Quarterly Presentation Q2 2017
DOF Subsea Group
DOF Subsea highlights
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Attractive long-term market fundamentals supporting continued demand for subsea offshore solutions
A true global subsea IMR operator with strong project and execution capabilities
Unique strategic position providing integrated life-of-field subsea services
State-of-the-art subsea vessels, the world’s 4th largest ROV fleet and 1 288 subsea employees
Strong order intake through the down cycle securing tangible near-term growth and highly attractive financial profile
Resilient backlog as backbone for stable operating model – PLSV contracts in Brazil cementing strategic position
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DOF Subsea
DOF Subsea Group at a glance
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2005DOF Subseaestablished
NOK 1.2bn1)
RevenuesQ2’17
1 2882)
Subsea employeesworldwide Q2’17
NOK 17.7bnFirm backlog
Q2’17
263)
Subsea vessels714)
ROVsModern
State-of-the-art asset base
IntegratedSupplier of subsea offshore services
1) Note: According to management reporting2) Note: Excluding marine crew3) Note: Including newbuilds Skandi Olinda and Skandi Recife and chartered-in vessels Harvey Deep Sea and Skandi Chieftain
4) Note: Including 2 AUVs and 2 ROVs on orderDOF Subsea
11 1113
1618
2124 25 26 27
2421
24
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q2 2017
Owned vessels Chartered-in vessels Total
337553 563
8971014
12461492
1354
16671858
1566
1278 1288
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q2 2017
Focus on consolidation and streamlining of business operations to improve efficiency and
competitiveness in weak market
DOF Subsea established following the acquisition of Geoconsult. The Company was
listed second half 2005.
First Reserve acquires 49% of DOF Subsea, which in the following is delisted from the Oslo
Stock Exchange
Expanding organisation on the back of several large contract awards. Number of employees
and vessels peaking at 1,858 and 27, respectively
Delivery of two newbuilds entering into long-term contracts
Large and global organisation following multiple acquisitions from 2005-2010
2010 Century SubseaCovus SubseaCSL
2005
More than a decade of structural growth and consolidation
DOF Subsea 4
2008
2014
2016
2017
Development in # of Subsea Employees1)
Development in # of vessels in operation2)
# of vessels
# of FTEs
SEMAR
Awarded four PLSV long-term contracts in conjunction with TechnipFMC
2013
SWG Offshore
1) Note: Newbuilds not included2) Note: Marine crew not included
Global footprint
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ATLANTIC
NORTH AMERICA
BRAZILASIA PACIFIC
MacaéRio de Janeiro
BuenosAires
Houston
St John’s
Aberdeen
Bergen
Luanda
Singapore
Manila
Melbourne
Jakarta
BruneiKuala Lumpur
Darwin
Perth
3118
4528
2284
2974
DOF Subsea1) Note: Number of employees as at Q2’17, excluding marine crew2) Note: Vessels in operation, including 2 chartered-in vessels (not including newbuilds)
Several major and attractive contracts to commence in 2017
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ENI Angola
Jan 2017
• IMR contract offshore Angola
• 16 months + 3x4 months options
• Scope comprising project management, engineering, supply of vessels and ROVs
• Long-term charter with Petrobras• 18 months + 18 months options• On contract with Petrobras since
2010• Vessel co-owned on a 50% basis
through joint venture with TechnipFMC
• First-pipe lay vessel built in Brazil
• Long-term charter with Petrobras
• 8 years + 8 years options• Vessel co-owned on a 50%
basis through joint venture with TechnipFMC
• Built in Norway
• Long-term IMR contract offshore Eastern Canada
• 10 years + 10 years options• IMR scope comprising supply
of new well intervention vessel, two work class ROVs and personnel
• High strategic importance through strengthened presence in the Canadian market
• Long-term FLNG IMR contract awarded in Australia with Shell
• 5 years + 4 years options• Scope comprising
underwater services and Multi-Purpose Vessel (MSVP) services spanning project management, engineering and supply of vessel and ROVs
Skandi Vitoria
Jan 2017
Skandi Buzios
Apr 2017Husky Energy
Jul 2017
Prelude FLNG
Oct 2017
DOF Subsea
Two business segments
DOF Subsea 7
DOF Subsea Group
Long-term Chartering1)
Revenues Q2’172)
NOK 331 millionEBITDA Q2’173)
NOK 273 million~82% margin
Firm backlog4)
NOK 13.4bn
1) Note: Long-term chartering comprises 5 PLSVs in operation, 2 PLSVs under construction, SkandiAcergy and Skandi Patagonia
2) Note: According to management reporting
3) Note: According to management reporting, and excluding gains from sales of assets4) Note: Firm backlog as at end of Q2’17 5) Note: Including 2 chartered-in vessels
2 newbuilds Q2’17
7 vessels in operation Q2’17
Long-term charters
Vessel capabilities
Capexspending
Subsea IMR Projects
Revenues Q2’172)
NOK 868 millionEBITDA3) Q2’17NOK 127 million
~15% margin
Firm backlog4)
NOK 4.3bn
1 288 Employees Q2’17
15 vessels in operation5) Q2’17
Engineering capabilities
Framework agreements
Opexspending
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Numerous projects completed worldwideBuilt a leading subsea projects division for over a decade• Subsea project activity established with a global footprint in all key offshore regions• High quality asset base leveraging unrivaled subsea and vessel operating competence
A clear action plan to pursue further opportunities• Continue to increase the scope and complexity of operations
− Strengthen presence in selected geographies− Further build project backlog with core focus on IMR projects
Subsea IMR Projects
Selected Mooring projects – Last 5 yearsSelected IMR projects – Last 5 years
Goliat Field support ENI (2016) Saipem CRX/Nene (2014) Call-off for Light Construction Services and Seabed
Survey Services Statoil (2012-2015) Technip Frame agreement (2012-2015) ConocoPhillips ROV Services (2012 and onwards) Freeport McMoran IMR support (2013-2016) Saipem JSM Export Line support (2014-2015) ROV Support vessel Petrobras (2011 and onwards)
Yinson OCTP FPSO Field Dev. (2016-2017) Bongkot Mooring Replacement PTTEP (2017) Raroa Mooring OMV (2016-2017) Gina Krog TMRS Teekay (2016) Catcher Mooring Installation BWO (2016) Goliat FPSO Marine Installation ENI (2011-2015) Lam Son Mooring Installation PTSC (2014) Knarr Mooring Project Teekay (2013-2014) Banff Re-instatement Project Teekay (2013-2014)
DOF Subsea
Selected contracts in backlog
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Location Client Scope Commencement Duration
Angola ENI Angola IMR 2017 16 months + 12 months
Eastern Canada Husky Energy IMR 2017 10 years + 10 years
Prelude Australia Shell Australia IMR 2017 5 years + 4 years
Brazil Petrobras Inspection 2016 1 year + 1 year
Gorgon, Janz and Wheatstone Chevron Australia IMR 2015 3 years + 2 years
Malampaya Shell Philippines IMR 2014 7 years + 3 years
Brazil Petrobras IMR 2012 6 years + 4 years
Brazil Petrobras IMR 2011 6.5 years + 4 years
North Sea Conoco Phillips IMR 2011 8 years + 13 years
Subsea IMR Projects
North America
Gradually built up the region, becoming a top three supplier of IMR services in the GoM
Brazil
Strong position being one of the major suppliers of
IMR services
North Sea / Atlantic
Leading supplier of mooring services in the
North Sea and West Africa
Asia Pacific
Leading supplier of IMR services in the region
DOF Subsea
DOF Subsea holds a leading position in the subsea IMR market through its global presence and integrated solutions offering
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Positioning DOF Subsea
• Improved competitive position for DOF Subsea when market normalises − multiple competitors have scaled down
operations or entered financial distress
• Favourable competitive dynamics in tendering for mid-sized subsea IMR projects− Larger EPCI providers typically invited to
tender, however less capable and willing to meet specific project requirements due to relatively small project size
− Vessel suppliers typically not invited to tenders due to lack of engineering capabilities
• DOF Subsea benefits from offering an integrated engineering and vessel solution
Loca
lM
ulti-
regi
onal
Glo
bal
Dayrate / Support services Small to medium EPCI contracts Larger EPCI contracts
Source: ABGSC
= Chapter 11 / financial distress
Geographies
Capabilities
Illustrative
DOF Subsea
DOF Subsea provides state-of-the-art vessels to leading players
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Skandi Acergy Skandi Acu Skandi Africa
Skandi Niteroi Skandi Patagonia Skandi Vitoria
Skandi Buzios Skandi Recife Skandi Olinda
Day-rate basedRemuneration
Strong long-term contract coverageContracts
High-end vessels operating advanced subsea projects for third party EPCI contractors
Operations
Selected clients
Construction support vessel
Construction & pipe laying vessel
Construction & pipe laying vessel
Construction & pipe laying vessel
Construction & pipe laying vessel
Construction & pipe laying vessel
Construction & pipe laying vessel
Dive support vessel
Construction & pipe laying vessel
7 vessels inoperation
2contractednewbuilds
NOK 13.4bnfirm backlog
per Q2’17
Long-term Chartering
DOF Subsea
15,5 1617
21,5
18,9
2012 2013 2014 2015 2016
Key financials1)
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Revenue EBITDA2) Backlog (excl. options)
5 249
6 579
7 422 7 251
5 426
2012 2013 2014 2015 2016
1 799
1 949
2 0972 041
1 733
2012 2013 2014 2015 2016
NOK million NOK million NOK billion
1) Note: Figures according to management reporting2) Note: EBITDA excl. profit from sale of non-current assetsDOF Subsea
2nd Quarter 2017
Highlights Q2 2017
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• The Norwegian-built PLSV Skandi Buzios, owned by JV with TechnipFMC, commenced her long-term charter contract with Petrobras on 13 April 2017
• In April, DOF Subsea purchased the remaining shares in Canadian Subsea Shipping Company AS, and in May, Canadian Subsea Shipping Company AS took delivery of a newbuild vessel, Skandi Vinland. The vessel commenced a 12-year bareboat charter contract with DOF Subsea Canada in July, and the vessel will be utilised on a 10-year IMR contract with Husky Energy off the East Coast of Canada
• In the North America region, DOF Subsea extended the charter party for chartered-in Jones Act compliant MPSV Harvey Deep Sea until the end of 2018, plus two one-year extension options
• The North America region was awarded for Harvey Deep Sea securing 70% contract coverage and NOK 150 million in backlog for the vessel through Q1 2018• Skandi Chieftain was awarded a 5-month contract in Canada with commencement in June 2017• The Asia Pacific region was awarded a diving contract, securing utilisation for Skandi Singapore• Skandi Skansen was awarded contracts on the UKSC and in the Norwegian Sea securing utilisation through most of Q3 2017• Geosund was awarded contracts to take part in a series of campaigns for a major operator undertaking trenching and survey support activities in the Norwegian Sea region,
securing 50 days’ utilisation until mid-August 2017• DOF subsea was awarded a contract in the Mediterranean by TMPC to undertake the pipeline inspection on the TMPC's Pipeline System in Q3 2017. DOF Subsea will deploy the
survey vessel Geosund• DOF Subsea was awarded a subsea oil field support project offshore Newfoundland for a Canadian operator. Skandi Neptune will be utilised on the project• DOF Subsea has been awarded a contract for Skandi Constructor by Siemens on the Galloper Offshore Wind Farm Project in the North Sea. The contract secures utilisation until
the end of the year• DOF Subsea announced that Fugro has extended the firm period of hire for the Skandi Carla time charter contract until end of October 2019• In Brazil, Petrobras has extended the contract for Skandi Salvador by 6 months from August 2017• In Asia Pacific and Atlantic, DOF Subsea has been awarded several contracts and work under existing frame agreements, securing utilisation of the vessels Skandi Singapore,
Skandi Hercules and Skandi Neptune in Q3 and into Q4 2017.• In the North America region, DOF Subsea has been awarded several contracts for the Diving Support Vessel Skandi Achiever in the Gulf of Mexico and Trinidad and Tobago. The
contracts secure utilisation of the vessel until mid October 2017
Subsea IMR Projects
Long-term Chartering
• The shareholders have concluded to await an improvement in stock market conditions before initiating an IPO• During the quarter, DOF Subsea secured financing and took delivery of the newbuild Skandi Vinland
Financing
DOF Subsea
Condensed Profit & Loss1)
DOF Subsea 151) Note: Financial statement according to IFRS. Condensed financial statement according to management reporting is included in the DOF Subsea Quarterly Financial Report
Condensed Balance Sheet1)
DOF Subsea 161) Note: Financial statement according to IFRS. Condensed financial statement according to management reporting is included in the DOF Subsea Quarterly Financial Report
Quarterly performance1)
DOF Subsea 171) Note: Figures according to management reporting, and excluding profit from sale of non-current assets
0%
5%
10%
15%
20%
25%
30%
35%
40%
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500
1 000
1 500
2 000
2 500
Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017
EBIT
DA
mar
gin
NO
K m
illio
n
Operating income EBITDA EBITDA margin
NOK million Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017Operating income 1 679 1 804 1 871 1 530 1 963 1 904 2 025 1 656 1 962 1 991 1 642 1 406 1 660 1 232 1 128 982 1 199 EBITDA 471 595 550 502 543 552 502 458 515 553 516 456 510 447 320 279 400 EBITDA margin 28,1% 33,0% 29,4% 32,8% 27,7% 29,0% 24,8% 27,7% 26,2% 27,8% 31,4% 32,4% 30,7% 36,3% 28,4% 28,4% 33,4%
Current assets 3 319 3 119 3 470 3 247 3 252 2 998 4 223 3 414 3 414 3 674 3 752 2 900 3 010 2 742 2 483 2 808 2 595 Non-current assets 16 344 16 330 16 340 16 012 16 151 16 215 15 796 16 726 16 578 16 447 16 818 17 652 18 206 18 514 18 043 18 087 18 428
Total assets 19 663 19 450 19 810 19 258 19 403 19 213 20 019 20 140 19 992 20 121 20 570 20 552 21 216 21 256 20 526 20 896 21 023
Current liabilities 2 805 2 808 3 167 3 470 3 741 3 607 4 505 4 139 4 577 4 492 3 650 2 991 3 022 2 645 2 478 2 444 3 010 Non-current liabilities 11 862 11 474 11 427 10 126 9 701 9 668 9 402 9 924 9 009 9 988 11 228 11 482 11 864 12 174 11 993 12 503 11 942 Equity 4 996 5 167 5 216 5 662 5 962 5 938 6 112 6 077 6 405 5 641 5 692 6 078 6 330 6 437 6 055 5 948 6 071
Total equity and liablilites 19 663 19 449 19 810 19 258 19 404 19 213 20 019 20 140 19 991 20 121 20 570 20 551 21 216 21 256 20 526 20 896 21 023
Debt maturity profile
DOF Subsea 18
Debt maturity profile, 2017E – 2021E
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500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
2017E 2018E 2019E 2020E 2021E ThereafterBond Loan Bank Debt Balloons
The figures reflect amortisation and balloon payments on outstanding debt
Backlog1)
DOF Subsea 19
As at 30 June 2017, the Group’s firm contract backlog was NOK 17.7 billion
2017 2018 2019 2020 2021 ThereafterOption 0,3 0,8 0,9 0,7 0,8 15,9Firm 1,7 2,5 2,6 2,4 2,0 6,5Total 2,0 3,3 3,5 3,0 2,8 22,4
2,0 3,3 3,5 3,0 2,8
22,4
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5,0
10,0
15,0
20,0
25,0
NO
K b
illio
n
1) Note: Figures based on remaining backlog as at end of Q2’172) Note: Contract backlog excludes master service agreements (MSAs) within the Subsea IMR Projects segment – only confirmed POs are included in the backlog
Modern high-end fleet
Majority of the fleet delivered from 2007 and onwardsModern fleet with a value adjusted average fleet age of 6.0 yearsHigh-end vessels, capable of a wide scope of worldwide operations
DOF Subsea 20
Skandi Africa, Ship of the Year 2015
Skandi Acu, PLSV built 2016
Skandi Buzios, PLSV built 2017
Newbuilds8 %
2007-201567 %
2000-200625 %
Year of delivery DOF Subsea fleet
-
1,0
2,0
3,0
4,0
5,0
6,0
7,0
8,0
9,0
Year
s
Fleet age
Average fleet ageValue adjusted average fleet age
Thank you!