FY11 Results Presentation For personal use only2011/08/23 · FY11 Revenue Asia Australia Middle...

Miclyn Express OffshoreFY11 Results Presentation23 August, 2011

Live Webcast DetailsPresenter: CEO, Mr Diederik de Boer

Date: 23 August, 2011

Time: 11:00am AEST

Access: http://www.brr.com.au/event/84203

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www.miclynexpressoffshore.comMICLYN EXPRESS OFFSHORE

FY11US$m

FY10US$m Variance

Revenue 167.2 116.5 44%

EBITDA 77.6 59.0 32%

EBIT 61.0 45.6 34%

NPAT 54.7 27.5 99%

Financial Year 2011 Results

1

Strong growth in earnings for FY11

World class utilisation performance; up from 71% in FY10 to 80% in FY11

Upward trend across all vessel segments expected to continue

Key geographies all performing strongly

Strengthening demand for MEO’s services, Third Party Vessels chartered in to supplement the fleet

Increased Shipyard earnings due to vessel upgrades for Australian projects

Continued operational excellence, MEO is a provider of choice

Positive outlook for FY12 For

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FY11 FY10 Variance

Revenue (US$m) 64.3 57.5 12%

Gross Profit (US$m) 43.5 40.6 7%

Gross Margin (%) 67.6 70.6

91% utilisation in FY11

Reduction in Gross Margin percentage in FY11 due to increased exposure to Australia

Rebalance of OSV portfolio in FY11 with sale of MCII (Dec-10) and Miclyn Might (Dec-10), purchase of MEOTHAI1 (Feb-11), Seismic Supporter (Jun-11) and delivery of Magellan 1 (Jun-11)

New vessels entering the fleet in 1H FY12 include Magellan 2 and two new Multipurpose Offshore Terminal Tugs

Continued expansion planned for OSV fleet

Operational Highlights

Segment PerformanceOffshore Support Vessels (OSVs)

2

80

91 9093

26.2

31.3 31.233.2

0.0

5.0

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25.0

30.0

35.0

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FY11 FY10 Variance

Revenue (US$m) 49.1 42.4 16%



91% utilisation in FY11

Continued market dominance in this segment

Improving margins due to cost focus

Slightly lower earnings and improved utilisation in 2HFY11 vs 1HFY11 due to fleet rebalancing (7 sold in FY11)

Expect stronger earnings in 1HFY12 with 3 newbuildings delivered in 4QFY11 and 4 commissioned newbuildings to enter the fleet in July and August 2011

All 7 vessels contracted ahead of delivery; strong demand

Continued growth through fleet renewal strategy; drives up margins and utilisation in the segment


Segment PerformanceCrew/Utility Vessels

3

81 8489 92

20.222.2

24.8 24.3

0.0

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0102030405060708090

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FY11 FY10 Variance

Revenue (US$m) 20.7 10.3 100%



Earnings trending upwards

Utilisation of 53% in FY11, still room for improvement

Increasing demand in Australia and Middle East

Average contract duration of fleet is increasing as MEO wins civil construction projects with longer project timeframes; improved earnings visibility

Strategy to rebalance portfolio

Two 330ft barges and one Multicat Tug recently purchased

Plan to pare down exposure to smaller barges and towing tugs

Potential utilisation enhancement through new business Express Offshore Solutions


Segment PerformanceTugs and Barges

4

36 37

5056

5.3 5.0

9.3

11.4

-1.0

1.0

3.0

5.0

7.0

9.0

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Relatively small portion of the overall Australian fleet

Primarily involved in near-shore port development and dredging projects

Performing largely in line with expectations, rates and OPEX are increasing

Continued pipeline of opportunities for the fleet

Expecting stronger performance from this segment over the next twelve months


Segment PerformanceCoastal Survey Vessels

5

6472

65

0.9

2.3

2.6

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1.0

1.5

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2HFY10 1HFY11 2HFY11

Revenue (U

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Utilisation Revenue

FY11 FY10 Variance

Revenue (US$m) 5.0 0.9 468%



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Became a material component of MEO’s earnings in 2H FY11

Tracking performance of this segment separately from core fleet going forward due to different earnings profile (lower margins)

Historical segment numbers in previous slides have been reworked to reflect this change

Ramp up in Third Party Vessel Charters indicate strengthening demand for our services

Opportunity to purchase vessels against Third Party Vessel charter slots if vessel is conducive to desired fleet mix (e.g. recent Barge purchases)

Strong earnings expected from Third Party Vessel in the next 12 months with ongoing projects in Australia and Middle East

Expected to be a recurring revenue stream due to pipeline of projects

New Segment Overview

Segment PerformanceThird Party Vessels

6

FY11 FY10 Variance

Revenue (US$m) 15.1 3.9 283%



2.1 1.92.9

12.2

8

16

12

28

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15

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25

30

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6.0

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argin (%)R

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Remains an important strategic internal asset; control over cost and scheduling of fleet maintenance and newbuilding program

MEO leveraged its Shipyard to win Gorgon transportation project between Australia and South East Asia; stringent Australian environmental and quarantine regulation

As a result, significant increase in third party repair, maintenance and upgrade jobs in 2H FY11

Newbuilding activity continues; Magellan 2 to be delivered in 1H FY12; Sovereign 1 and 2 scheduled for completion in 1H FY13

Strong pipeline of opportunities for the next phase of the newbuilding program

Plan to invest a modest amount of CAPEX into upgrading the facility over the next three years to improve efficiency and expand capacity

Shipyard Overview

Segment PerformanceShipyard

7

FY11 FY10 Variance

Revenue (US$m) 12.9 1.4 805%


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41%

36%

22%

FY11 Revenue

AsiaAustraliaMiddle EastOther

Regional Update and Outlook

Australia was our biggest growth region in FY11, with a number of MEO vessels re-deployed into our Samson Express Offshore platform

Middle East performing strongly with high utilisation; continued deployment of vessels into the region

Asia remains our number one region, Thailand operations still key

OSV deployed into Thailand in FY11 with two additional OSV’s scheduled for deployment in FY12

Continued growth in customer operations expected

Ramping up exposure in targeted markets in FY11

Indonesia - one OSV and two crewboats recently awarded contracts

Vietnam - OSV Miclyn Grand relocated for 3 year contract

Malaysia - newbuilding Magellan 1 deployed against 3 year contract

Regional Update

FY12 OutlookStrong pipeline of opportunities across all regions, financial capacity to fund growth

Continued earnings growth expected in FY12

8

Point Samson Support Base – North West Australia

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Working Capital Facility of US$30m fully undrawn at 30 June 2011

Capacity for strong future growth

Funding and CAPEX

9

Strong balance sheet, conservative gearing

Capacity to pay dividend to shareholders Final dividend of 2.6 US cents per share declared (unfranked); 25% of 2H FY11 NPAT

Record date 31 Aug 2011; payment date 12 Sep 2011

11% growth over previous dividend (2.3 US cents per share pro rata for 6 months NPAT)

Shareholders participating in the growth of the Company through dividend appreciation

Cash headroom to fund CAPEX and drive organic growth

1. Debt / (Debt + Equity)

FY11 FY10

Net Debt 116.3 121.4

Net Debt / EBITDA 1.5 2.0

Gearing (%)1 32.5 36.5

Free cash at 30 June almost immediately deployed into contract backed vessel acquisitions in Jul / Aug 2011

Vessel acquisitions must meet minimum 15% unlevered IRR hurdle rate

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Strong result for FY11

Financial capacity to fund strong growth

Ideally positioned in a growth industry

Attractive pipeline of opportunities

Proven operational excellence

Strong balance sheet

Summary

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Appendix 1Statement of Financial Performance

US$m FY11 Actual FY10 Actual Variance %Revenue 167.2 116.5 44%Operating Costs (77.6) (48.0) 62% Gross Profit 89.5 68.5 31%GP Margin 53.6% 58.5%

Other Income 1.9 1.7 11% Overheads (19.4) (15.5) 25% Forex 0.1 0.8 (85%)Operating Earnings 72.1 55.5 30%

Gain on disposal of vessels 5.5 3.8 46% EBITDA 77.6 59.3 31% EBITDA Margin 46.4% 50.9%

Depreciation & Amortisation (16.6) (13.5) 23%EBIT 61.0 45.8 33%

Net Finance Costs (4.9) (14.9) (67%)Income Tax Expense (1.5) (2.8) (46%)Income Tax Expense Rate 2.7% 9.1%PAT 54.6 28.1 95%

Minority Interest 0.0 (0.3) (105%) NPAT 54.7 27.7 97% NPAT Margin 32.7% 23.8%

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Appendix 2Statement of Financial Position

(US$’000) As at 30 Jun 2011 As at 30 Jun 2010Current assetsCash and cash equivalents 24.9 14.8 Trade receivables 48.4 29.7Other receivables and prepayments 16.4 7.1 Inventories 5.5 4.6Assets held for sale 5.4 0.4Total current assets 100.6 56.6Non-current assetsProperty, plant and equipment 326.9 302.6Other assets 2.6 0.3 Goodwill 51.4 47.7Intangible assets 0.9 0.9Total non-current assets 381.8 351.5TOTAL ASSETS 482.4 408.1 Current liabilitiesTrade and other payables 40.5 21.7Current tax payable 5.0 5.6 Loans and borrowings 18.4 9.1Other liabilities 0.6 5.7 Total current liabilities 64.6 42.1Non-current liabilitiesLoans and borrowings 122.7 127.1 Other non-current liabilities 1.5 2.1 Total non-current liabilities 124.3 129.2 TOTAL LIABILITIES 188.8 171.3NET ASSETS 293.6 236.8Shareholders equityShare capital 176.8 170.8 Other equity reserves (44.5) (44.9)Translation reserve 4.5 (1.2)Retained earnings 156.4 111.4 Minority interests 0.4 0.7 TOTAL EQUITY 293.6 236.8

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Appendix 3Cash Flow Statement

US$m FY11 FY10EBIT 61.0 45.6

Depreciation and amortisation 16.6 13.5

EBITDA 77.6 59.0

Vessel disposal gains (5.6) (3.8)

Non-cash and other items (0.4) (1.0)

Working capital movement (11.9) (16.2)

Cash flows available from operations 59.7 37.9

Proceeds from sale of property, plant and equipment (including vessels) 35.7 7.8

Capital expenditure - growth (61.5) (28.9)

Capital expenditure - maintainance (9.8) (4.2)

Other investing activities (2.6) (19.1)

Cash flows before financing and tax 21.5 (6.4)

Financing (13.6) (5.3)

Debt repayment1 (9.8) (6.3)

Debt drawndown1 12.9 10.9

Tax (1.3) (1.4)

Cash flows after financing and tax 9.6 (8.5)

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1. Drawdown and repayment of US$30 million working capital revolver excluded. Facility was undrawn as at 30 June 2011.

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Appendix 4Fleet Composition as at 30 June 20111

14

113 vessels + 11 under

construction / to be delivered

Vessels under construction / to be delivered

1. Excludes Third Party Vessels

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Reliance on Third Party InformationThe views expressed here contain information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. This presentation should not be relied upon as a recommendation or forecast by Miclyn Express Offshore Limited (“Miclyn Express Offshore”).

Forward Looking StatementsSome of the information contained in this document may constitute forward-looking statements that are subject to various risks and uncertainties. Nothing in this document is a promise or representation as to the future. Statements or assumptions in this document as to future matters may prove to be incorrect. Miclyn Express Offshore does not make any representation or warranty as to the accuracy of such statements or assumptions. You acknowledge that circumstances may change and the contents of this document may become outdated as a result. You also acknowledge that no audit or review has been undertaken by an independent third party of the assumptions, data, results, calculations and forecasts contained in or referred to in this document. You should make your own independent assessment of the information.

No WarrantiesWe makes no warranty, express or implied, nor assumes any responsibility in its contents for its accuracy, completeness, its use for any general of particular purpose, nor that such items or use of such items would not violate or infringe rights of others.

No Offer of SecuritiesNothing in this release should be construed as either an offer to sell or a solicitation of an offer to buy or sell Miclyn Express Offshore securities in any jurisdiction.

Important notice and disclaimer

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FY11 Results Presentation For personal use only2011/08/23 · FY11 Revenue Asia Australia Middle...

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