Q3 2016 - DOF Group Sub/IR/2016/DOF Installer...Q3 2016 DOF Installer ASA Alfabygget N-5392 Storebø...

DOF Installer ASA

financial report

Q3 2016

DOF Installer ASAAlfabygget N-5392 Storebø NORWAY

Index

Financial Report 3rd quarter 2016 4

Financial statements 3rd quarter 2016 6

Statement of comprehensive income 6

Statement of financial position 7

Statement of cash flows 9

Statement of changes in equity 10

Key figures 10

Notes to the financial statements 12

Note 1 Segment reporting 12

Note 2 Financial income and expenses 12

Note 3 Tangible assets 12

Note 4 Interest-bearing debt 13

Note 5 Transactions with related parties 14

Note 6 Events after balance date 14

Note 7 Shareholder information 14

Note 8 Taxes 15

Note 9 General 15

Note 10 Definitions 15

Supplemental information 16

Statement of comprehensive income 5 last quarters 16

Statement of financial position 5 last quarters 17

Financial Report Q3 2016 | DOF INSTALLER ASA

4

HeadlinesDuring 3rd quarter 2016 Skandi Hercules has conducted subsea construction work in the Asia Pacific region on charter to the DOF Subsea Group. Skandi Skansen has been working for Subsea 7 and for the DOF Subsea Group in the Atlantic region.

Operational eventsSkandi Hercules has been on charter to the Asia Pacific region during the quarter, doing mooring installation for Saipem on the Jangkrik field in Indonesia. The vessel further commenced the charter for the Amaniaga Bergading project in Malaysia before mobilizing for Chevron in Australia mid-September.

Skandi Skansen has been working for Subsea 7 until end August and went on charter to DOF Subsea working in the Atlantic region doing construction work from early September.

Statement of comprehensive incomeTotal operating income for the 3rd quarter of 2016 was NOK 59 million (vs. NOK 60 million in 3rd quarter 2015). EBITDA including profit from sale of non-current asset was NOK 54 million (NOK 49 million) whilst EBIT amounted to NOK -17 million (positive NOK 38 million) after depreciation and write-downs of NOK 71 million (NOK 11 million). Net financial loss was NOK 22 million (positive NOK 2 million), giving a pre-tax loss of NOK 39 million (positive NOK 40 million) and a loss after tax of NOK 39 million (positive of NOK 40 million).

Statement of financial position Total assets were NOK 2 223 million (NOK 2 397 million) where non-current assets amounted to NOK 1 668 million (NOK 1 772 million). Total current assets amounted to NOK 555 million (NOK 625 million) of which NOK 514 million (NOK 588 million) was cash and cash equivalents.

Total equity was NOK 1 259 million (NOK 1 495 million) and non-current liabilities were NOK 802 million (NOK 741 million). Current liabilities amounted to NOK 151 million (NOK 141 million) of which NOK 144 million (NOK 124 million) was short portion of debt to credit institutions. By 30th of September 2016 the book equity ratio was 56.6 %.

Statement of cash flowsNet cash flow from operating activities for the 3rd quarter of 2016 was NOK 53 million (NOK 37 million). Cash flow from investing activities was NOK 1 million (NOK 11 million).

Cash flow from financing activities was negative NOK 28 million (negative NOK 28 million). Net changes in cash and cash equivalents were NOK 26 million (NOK 20 million).

ShareholdersThe number of outstanding shares is 33 931 000, with a book value of NOK 37.10 per share. The value adjusted equity per share as per 30th of September was NOK 37.90.

DOF Subsea AS owns 84.92 % of the shares, with the remaining 15.08 % of the shares held by 46 shareholders. Of that State Street Bank and Trust Co. owns 4.43 %, MP Pensjon PK 1.50 %, Wimoh Invest AS 1.24 %, Clipper A/S 1.08 % and Straen A/S 1.08 %. The remaining shareholders own less than 1.00 %.

Forward looking statementThe Skandi Hercules will continue to do construction work for the Asia Pacific region and Skandi Skansen will be operating in the North Sea and West Africa market conducting subsea work for the Atlantic region.

With an oil price of about USD 45 per barrel, the current cost focus in the oil industry and the over-supply of vessels, the Board of Directors expect a weak subsea market for the next 12 months.

Financial Report 3rd quarter 2016

DOF Installer ASA15th of November 2016

Contact information: Mons S. Aase, Chairman +47 916 61 012 DOF Installer ASA Alfabygget 5392 Storebø NORWAY

| Financial Report Q3 2016DOF INSTALLER ASA

5


6

Amounts in NOK million

Financial statements 3rd quarter 2016

Statement of comprehensive income

Note 3Q 2016 3Q 2015 YTD 2016 YTD 2015 2015

Operating income 59 60 143 157 203

Other operating expenses -4 -11 -11 -35 -51

Total operating expenses -4 -11 -11 -35 -51

Operating profit before depreciation (EBITDA) 54 49 132 122 152

Depreciation and impairment 3 -71 -11 -232 -33 -44

Operating profit (EBIT) -17 38 -99 89 108

Financial income 2 3 1 6 9 11

Financial expenses 2 -17 -16 -41 -48 -63

Realized gain / loss on financial instruments 2 -14 15 -28 21 30

Unrealized gain / loss on financial instruments 2 5 2 9 5 5

Net financial income / loss -22 2 -54 -14 -17

Profit / loss before tax -39 40 -153 76 90

Tax expense - - - - -

Profit / loss for the period -39 40 -153 76 90

Cash flow hedges - - - 4 8

Other comprehensive income - - - 4 8

Total comprehensive income for the period -39 40 -153 80 98


7


Statement of financial position

Assets Note 30.09.2016 30.09.2015 31.12.2015

Vessels 3 1 668 1 772 1 852

Tangible assets 1 668 1 772 1 852

Non-current assets 1 668 1 772 1 852

Current receivables from Group companies 37 33 34

Other current receivables 3 4 3

Total receivables 40 37 37

Unrestricted cash and cash equivalents 514 588 570

Cash and cash equivalents 4 514 588 570

Current assets 555 625 607

Total assets 2 223 2 397 2 459


8


Equity and liabilities Note 30.09.2016 30.09.2015 31.12.2015

Paid-in equity 7 1 106 1 106 1 106

Other equity 152 389 407

Total equity 1 259 1 495 1 514

Financial non-current derivatives 12 21 21

Non-current provisions for commitments 12 21 21

Debt to credit institutions 4 802 741 714

Non-current liabilities 802 741 714

Short portion of debt 4 144 124 123

Trade payables 2 2 76

Current liabilities to Group companies 5 10 11

Financial current derivatives - 4 -

Current liabilities 151 141 210

Total liabilities 964 902 945

Total equity and liabilities 2 223 2 397 2 459

Statement of financial position


9


Statement of cash flows

Note 3Q 2016 3Q 2015 YTD 2016 YTD 2015 2015

Operating profit (EBIT) -17 38 -99 89 108

Depreciation and impairment 3 71 11 232 33 44

Change in trade payables -2 -1 -74 - 74

Changes in other accruals 13 1 -9 1 5

Exchange rate effect on operating activities - 3 - 4 4

Cash flow from operating activities 66 51 49 127 235

Interest received 3 1 6 9 11

Interest paid -16 -16 -45 -49 -64

Net cash flow from operating activities 53 37 10 87 182

Sale of tangible assets 3 - - - 6 6

Purchase of tangible assets 3 1 -1 -48 -5 -95

Change in other receivables / debt - 12 - 3 -

Cash flow from investing activities 1 11 -48 5 -89

Proceeds of interest-bearing debt - - 206 - -

Instalments on non-current liabilities -28 -28 -94 -84 -111

Dividend paid - - -102 -102 -102

Cash flow from financing activities -28 -28 10 -186 -213

Net change in cash and cash equivalents 26 20 -28 -94 -120

Cash and cash equivalents at the beginning of the period 501 556 570 664 664

Exchange rate gain / loss on cash and cash equivalents -13 12 -27 18 27

Cash and cash equivalents at the end of the period 514 588 514 588 570


10


Statement of changes in equity

30.09.2016 30.09.2015 31.12.2015

Equity at period start 1 514 1 517 1 517

Profit / loss for the period -153 76 90

Cash flow hedges - 4 8

Total comprehensive income for the period -153 80 98

Dividend -102 -102 -102

Equity at period end 1 259 1 495 1 514

Key figures

30.09.2016 30.09.2015 31.12.2015

Profit per share ¹ -4.50 2.24 2.66

Profit per share excl. unrealized currency loss / gain ² -4.77 2.09 2.52

Cash flow per share 3 -1.65 -3.13 -2.76

Cash flow from operating activities before interest and tax per share 4 1.44 3.75 6.93

EBITDA margin 5 92.4 % 77.9 % 74.9 %

EBIT margin 6 -69.3 % 56.9 % 53.1 %

Return on net capital 7 -12.1 % 5.1 % 6.0 %

Book equity ratio 8 56.6 % 62.4 % 61.6 %

Value adjusted equity ratio 9 57.2 % 63.4 % 61.1 %

Book equity per share 10 37.10 44.06 44.61

Value adjusted equity per share 11 37.90 46.14 43.82

No. of shares 33 931 000 33 931 000 33 931 000

Face value per share 1 1 1

1) Result / average number of shares2) Result excl. unrealized currency gain / loss / average number of shares3) Changes in cash and cash equivalents / average number of shares4) Changes in cash and cash equivalents from operating activities before interest and tax / average number of shares5) Operating profit before depreciation / operating income (excl. profit from sale of non-current asset)6) Operating profit / operating income (excl. profit from sale of non-current asset)7) Profit after tax / booked equity8) Book equity / total capital9) Value adjusted equity / value adjusted total capital10) Booked value of equity / no. of shares11) Value adjusted equity / no. of shares


11


12


Notes to the financial statements

Note 1 Segment reporting

Skandi Hercules and Skandi Skansen are operating in the subsea project and in the AHTS sport market through the DOF Subsea Group and third parties.

Note 2 Financial income and expenses

3Q 2016 3Q 2015 YTD 2016 YTD 2015 2015

Interest income 3 1 6 9 11

Financial income 3 1 6 9 11

Interest expenses -16 -15 -40 -47 -61

Other financial expenses - -1 -1 -1 -2

Financial expenses -17 -16 -41 -48 -63

Realized gain / loss on currencies -14 15 -28 21 30

Realized gain / loss on financial instruments -14 15 -28 21 30

Unrealized gain / loss on derivative financial instruments 5 2 9 5 5

Unrealized gain / loss on currencies - - - - -

Unrealized gain / loss on financial instruments 5 2 9 5 5

Net financial income / loss -22 2 -54 -14 -17

Note 3 Tangible assets 30.09.2016

Vessels

Periodic maintenance

Total

Net booked value 01.01. 1 837 15 1 852

Additions 22 25 48

Depreciation -30 -5 -36

Impairment -196 - -196

Net booked value 30.09. 1 633 35 1 668

30.09.2015

Vessels

Periodic maintenance

Total

Net booked value 01.01. 1 794 13 1 807

Additions 3 2 5

Disposals - -6 -6

Depreciation -28 -5 -33

Net booked value 30.09. 1 769 3 1 772


13


Note 4 Interest-bearing debt

30.09.2016 30.09.2015 31.12.2015

Debt to credit institutions* 809 746 719

Total non-current interest-bearing debt 809 746 719

Debt to credit institutions* 132 110 110

Total current interest-bearing debt 132 110 110

Total non-current and current interest-bearing debt 941 856 829

Cash and cash equivalents 514 588 570

Interest-bearing receivables from Group companies - - -

Total net interest-bearing debt 426 269 259

* ) Non-current interest-bearing debt in the statement of financial position includes amortized cost. Amortized costs and accrued interest expenses are

excluded in the figures above.

DOF Installer ASA long-term financing agreements include the following covenants:

- The Company shall have value adjusted equity to value adjusted assets of 25 %.- The Company shall have positive liquidity at all times.- The Company shall have positive working capital at all times, working capital does not include short term portion of debt to credit institutions.- The fair value of the Company’s vessels shall always be at least 110-130 % of the outstanding loan amount.

In addition to the above-mentioned financial covenants, the guarantor (DOF Subsea AS) on a consolidated basis should fulfil the following covenants:

- The Group shall have value adjusted equity to value adjusted assets of at least 30 %- The Group shall have a minimum book equity of NOK 3 000 million- The Group shall have free cash of minimum NOK 500 million

DOF Installer ASA is in compliance with all covenants.

Debt repayment profile

Remaining

balance 2016

2017

2018

2019

2020

Thereafter

Total

Debt to credit institutions 38 132 132 132 201 305 941

Total repayment 38 132 132 132 201 305 941

The challenging market condition for offshore service vessels has continued. In 3rd quarter 2016 DOF Installer ASA faced lowermarket values for the Company`s vessels. Impairment indicators are observed and an impairment test for vessels inthe Company has been performed. Impairment tests are performed in line with accounting principle presented in annual reportfor 2015. Impairment of NOK 59 million has been recognized in 3rd quarter 2016. YTD the Company has recognized animpairment of NOK 196 million.


14


Note 7 Shareholder information

Shareholders at 30.09.2016 No. shares Shareholding Voting shares

DOF SUBSEA AS 28 815 295 84.92 % 84.92 %

STATE STREET BANK & TRUST COMPANY 1 501 800 4.43 % 4.43 %

MP PENSJON PK 508 190 1.50 % 1.50 %

WIMOH INVEST AS 420 000 1.24 % 1.24 %

CLIPPER A/S 366 100 1.08 % 1.08 %

STRAEN A/S 364 915 1.08 % 1.08 %

AUDLEY A/S 225 750 0.67 % 0.67 %

EUROMAR LQ AS 220 700 0.65 % 0.65 %

METEVA AS 210 000 0.62 % 0.62 %

PROFOND AS 179 000 0.53 % 0.53 %

SUNDT AS 140 000 0.41 % 0.41 %

SNIPTIND INVEST AS 129 560 0.38 % 0.38 %

SECURUS AS 113 380 0.33 % 0.33 %

LANDE UTVIKLING AS 75 000 0.22 % 0.22 %

SLETHEI AS 69 500 0.20 % 0.20 %

HOLMEDAL 60 000 0.18 % 0.18 %

BARQUE AS 56 500 0.17 % 0.17 %

BYGGEVIRKSOMHET AS 56 000 0.17 % 0.17 %

Total 33 511 690 98.76 % 98.76 %

Other shareholders 419 310 1.24 % 1.24 %

Total number of shares 33 931 000 100.00 % 100.00 %

Note 5 Transactions with related parties

Transactions with related parties is described in the Annual Report for 2015. There are no major changes in type of transactions between related parties.

Note 6 Events after balance date

There were not any subsequent events following the balance date.


15


Note 8 Taxes

Taxes are estimated.

Note 9 General

This interim report has been prepared in accordance with the standard for interim reporting (IAS34).Amendments to the standards and their interpretation may result in amended figures.The accounting principles and calculation methods applied for the last annual accounts published have been applied to this document. The quarterly report is unaudited.

Note 10 Definitions

The Company`s financial information is prepared in accordance with international reporting standards (IFRS). It is management`s intent to provide additional performance measures that are regularly reviewed to provide an enhanced insight into the operating performance and financial positions. Additional performance measures presented may be determined orcalculated differently by other companies.

Operating profit before depreciation (EBITDA)Operating profit before depreciation (EBITDA) is defined as operating profit including gains and losses on sale of non-currentassets less impairment of tangible- and intangible assets, depreciation of tangible assets and amortizations on contract assets.Earnings before interest, tax, depreciations and amortization (EBITDA) are a key financial parameter for the Group. Thismeasure is useful in evaluating operating profitability on a more variable cost basis as it excludes depreciations, impairmentsand amortization expenses related primarily to capital expenditures and acquisitions that occurred in the past.The EBITDA margin presented is defined as operating profit before depreciation (EBITDA) divided by total revenues.

Operating profit (EBIT)Operating profit (EBIT) is defined as “operating profit before depreciation (EBITDA)” after depreciations, impairments andamortizations but before net financial income/loss items and tax expenses.

Net interest-bearing debtNet interest-bearing debt consists of both current and non-current interest-bearing liabilities less interest bearing financialassets, cash and cash equivalents. Cash and cash equivalent will include restricted cash. Current interest-bearing debt includes interest-bearing debt related to asset held for sale.Net interest-bearing debt is a measure of the Group’s net indebtedness that provides an indicator of the overall statementof financial position strength. The use of the term ‘net debt’ does not necessarily mean that the cash included in the netdebt calculation is available to settle the liabilities included in this measure.

Equity ratioEquity ratio is defined as total equity divided by total assets at the reporting date.


16


Supplemental information

Statement of comprehensive income 5 last quarters

3Q 2016 2Q 2016 1Q 2016 4Q 2015 3Q 2015

Operating income 59 55 30 45 60

Other operating expenses -4 -4 -2 -16 -11

Total operating expenses -4 -4 -2 -16 -11

Operating profit before depreciation (EBITDA) 54 50 28 29 49

Depreciation and impairment -71 -68 -92 -11 -11

Operating profit (EBIT) -17 -18 -65 18 38

Financial income 3 1 1 2 1

Financial expenses -17 -13 -11 -15 -16

Realized gain / loss on financial instruments -14 4 -17 9 15

Unrealized gain / loss on financial instruments 5 1 3 - 2

Net financial income / loss -22 -7 -24 -4 2

Profit / loss before tax -39 -25 -89 14 40

Tax expenses - - - - -

Profit / loss for the period -39 -25 -89 14 40


17


Statement of financial position 5 last quarters

Assets 3Q 2016 2Q 2016 1Q 2016 4Q 2015 3Q 2015

Tangible assets 1 668 1 741 1801 1 852 1 772

Non-current assets 1 668 1 741 1801 1 852 1 772

Total receivables 40 59 33 37 37

Cash and cash equivalents 514 501 429 570 588

Current assets 555 560 463 607 625

Total assets 2 223 2 300 2264 2 459 2 397

Equity and liabilities 3Q 2016 2Q 2016 1Q 2016 4Q 2015 3Q 2015

Paid-in equity 1 106 1 106 1 106 1 106 1 106

Other equity 152 191 318 407 389

Total equity 1 259 1 298 1 425 1 514 1 495

Non-current provisions for commitments 12 16 17 21 21

Debt to credit institutions 802 829 686 714 741

Non-current liabilities 814 845 703 735 762

Short portion of debt 144 144 120 123 124

Other current liabilities 7 14 15 87 16

Current liabilities 151 157 135 210 141

Total liabilities 964 1 003 839 945 902

Total equity and liabilities 2 223 2 300 2 264 2 459 2 397

AUSTRALIA

DOF Subsea Australia Pty Ltd181 St. Georges TcePerth, Wa 6000, AUSTRALIAPhone: +61 8 9278 8700Fax: +61 8 9278 [email protected]

DOF Management Australia Pty LtdLevel 1, 441 South RoadBentleigh, Vic. 3204, AUSTRALIAPhone: +61 3 9556 5478Mobile: +61 418 430 939

BRAZIL

DOF Subsea Brasil Serviços LtdaMacae address:Rua Fiscal Juca, 330 Q: W2 – L: 0001 Loteamento Novo Cavaleiros Vale Encantado – Macaé/RJ BRAZIL - CEP 27933-450 Rio address:Rua Lauro Muller, 116 Salas 2802 a 2805,Torre do Rio Sul - Botafogo22290-160, Rio de Janeiro, R.J.,BRAZIL - CEP: 27910-000Phone: +55 22 2123-0100Fax: +55 22 [email protected]

CANADA

DOF Subsea Canada26 Allstone Street, Unit 2Mount Pearl, NewfoundlandCANADA, A1N 0A4Phone: +1 709 576 2033Fax: +1 709 576 [email protected]

SINGAPORE

DOF Subsea Asia Pacific Pte Ltd460 Alexandra Road# 15-02PSA Building, 119963SINGAPOREPhone: +65 6561 2780Fax: +65 6561 [email protected]

GLOBAL HQ

DOF Subsea ASThormøhlensgate 53 C5006 Bergen NORWAYPhone: +47 55 25 22 00Fax: +47 55 25 22 [email protected]

NORWAY

DOF Subsea Norway ASThormøhlensgate 53 C5006 Bergen NORWAYPhone: +47 55 25 22 00Fax: +47 55 25 22 [email protected]

SEMAR ASOksenøystein 121366 Lysaker NORWAYPhone: +47 67 12 40 06Fax: +47 67 12 40 06 [email protected]

DOF Management ASAlfabygget5392 StorebøNORWAY

Thormøhlensgate 53 C5006 Bergen NORWAYPhone: +47 56 18 10 00Fax: +47 56 18 10 [email protected]

ANGOLA

DOF Subsea AngolaBelas Business Park-Talatona Edificio Bengo, 1º AndarSala 106/107, LuandaRepublic of AngolaPhone: +244 222 43 28 58Fax: +244 222 44 40 68Mobile: +244 227 28 00 96 +244 277 28 00 [email protected]

DOF Management Australia Pty Ltd460 Alexandra Road# 15-02PSA Building, 119963SINGAPOREPhone: +65 6868 1001Fax: +65 6561 2431

UNITED KINGDOM

DOF Subsea UK LtdHorizons House, 81-83 Waterloo Quay Aberdeen, AB11 5DE UNITED KINGDOMPhone: +44 1224 614 000Fax: +44 1224 614 [email protected]

DOF Subsea S&P UK LtdHorizons House, 81-83 Waterloo Quay Aberdeen, AB11 5DE UNITED KINGDOMPhone: +44 1224 614 000Fax: +44 1224 614 [email protected]

CSL EngineeringHorizons House, 81-83 Waterloo Quay Aberdeen, AB11 5DE UNITED KINGDOMPhone: +44 1224 285 566Fax: +44 1224 285 [email protected]

DOF (UK) LtdHorizons House, 81-83 Waterloo Quay Aberdeen, AB11 5DEUNITED KINGDOMPhone: +44 12 24 58 66 44Fax: +44 12 24 58 65 [email protected]

USA

DOF Subsea USA Inc5365 W. Sam Houston Parkway N Suite 400Houston, Texas, 77041USAPhone: +1 713 896 2500Fax: +1 713 726 [email protected]

DOF Installer ASAAlfabygget

N-5392 Storebø NORWAY

Rep

ort

desi

gn: D

OF

Cor

pora

te C

omm

unic

atio

n D

epar

tmen

t

Q3 2016 - DOF Group Sub/IR/2016/DOF Installer...Q3 2016 DOF Installer ASA Alfabygget N-5392 Storebø...

Documents

Transcript of Q3 2016 - DOF Group Sub/IR/2016/DOF Installer...Q3 2016 DOF Installer ASA Alfabygget N-5392 Storebø...