Boa Offshore
Pareto Oil & Offshore Conference – 4 Sept 2013
Helge Kvalvik, CEO
This presentation is made by Boa Offshore (or the ”Company”). The information contained herein
include statements that are ”forward-looking” in their nature. These forward-looking statements include
all matters that are not historical facts and are based on the Company’s current intentions, believes
and expectations about among other things, the Company’s results of operations, financial condition,
prospects, growth, strategies and the industry in which the Company operates. Such forward-looking
information and statements reflect current views with respect to future events. The Company cannot
give any assurance as to the correctness of information and statements related to such future events.
Furthermore, these forward-looking statements involve known and unknown risks, uncertainties and
other factors that are in many cases beyond the Company’s control that could cause the actual results
of operations, financial condition, liquidity and the development of the industry in which the Company’s
businesses operate to differ materially from the impression created by the forward-looking statements
contained herein, because they relate to events and depend on circumstances that may or may not
occur in the future. Although the Company believes that its intentions, beliefs and expectations, and
the statements in this presentation, are based on reasonable assumptions as of today, the Company
can not give any assurance that the actual results will be as set out in this presentation. Financing the
Company involves risks, and several factors could cause the actual results, performance or
achievements of the Company to be materially different from the impression created by the forward-
looking statements contained herein. Neither the Company, nor any company within the Boa Offshore
Group, is making any representation or warranty (express or implied) as to the accuracy, reliability or
completeness of the information and statements in this presentation, and neither the Company, any
company within the Boa Group, nor any of their directors, officers or employees will have any liability
to any persons resulting from the possible use of information in the presentation.
Disclaimer
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5 Market overview and outlook
3 Financials
2 Boa Offshore overview
4 Boa Offshore Subsidiaries
Contents
3
1 Boa Offshore summary
BOA Offshore Group summary
• Currently operates around 35 different vessels world wide with a market leading position in
specific offshore segments:
Subsea installation and construction (Boa OCV/BMSI)
Seismic EM vessel operations (Boa SBL)
Sea transportation and load-out and launching of heavy objects (Boa Barges/BMSI)
Rig moves (NFDS AHTS)
Harbor and costal towage and Salvage operations (Boa Tugs)
• Further improvement in 1H 2013 EBITDA from 1) recent years restructuring and streamlining
of Boa Offshore Group and 2) improved underlying operations.
EBITDA 1H 13 of NOKm 209, up from NOKm 179 in 1H 12 and NOKm 204 in 2H 12.
• Improved balance sheet and liquidity situation.
NIBD/EBITDA 1H 13 of < 4.2x, down from 4.6x YE 12 and 7.4x YE 11
• Current initiated newbuilding program fully financed.
• Promising outlook for remainder of 2013 and in the years ahead.
4
Three outstanding Bonds – Face value of NOKbn 1.6
• BOA OCV 1 pri bond
Issued NOKm 1,200 in April 2011 at NIBOR +550 bps
Maturity April 2016, 6.25% annual amortization
NOKm 1,050 outstanding per 30.06.13 post amortization
1 pri in vessels Boa Deep C and Boa Sub C
Currently trading at around 101 - 102 – YTM ca NIBOR + 480bps
• Boa Offshore unsecured
Issued NOKm 150 in total November 2012/June 2013 at NIBOR + 675 bps
Maturity March 2015
Currently trading at around 100– YTM ca NIBOR + 675 bps
• Boa SBL 1 pri bond
Issued NOKm 400 in April 2013 at NIBOR + 550 bps
Maturity April 2018, 5% annual amortization
1 pri in vessels Boa Galatea and Boa Thalassa
Currently trading at 100 – 101 – YTM ca NIBOR + 530
Source: Boa, Pareto, Sparebank1 Markets, Arctic 5
5 Market overview and outlook
3 Financials
2 Boa Offshore overview
4 Boa Offshore Subsidiaries
Contents
6
1 Boa Offshore summary
Boa Offshore in short
• Boa Group and Boa Offshore is controlled by Ole T. Bjørnevik and his family.
• Boa Offshore currently operates and manages a fleet of approximately 35 units in various segments.
• Performs the technical, commercial and operational tasks on behalf of all its subsidiaries, with approximately 350 employees.
• Global presence and operations.
• Engineering and Project Management capacity out of Trondheim and Houston.
• Leading player in the global market for heavy lift barges.
• Head Office in Trondheim/Norway, and offices in Houston/USA and Gdynia/Poland.
• Fleet value of NOKbn 3.6 per 30.06.13 (excl’ newbuilds).
Approximately NOKbn 5.1 fully invested (incl’ newbuilds).
• 1H 2013 Net Interest Bearing Debt of NOKbn 1.7.
Value adjusted equity ratio of 52,5% per 30.06.13.
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Boa office
Geographical presence
Houston
, USA
Trondheim,
Norway
• OCVs on contract in West Africa
and Asia/Australia
• Tugs located in North Europe
• Two heavy lift, semi submersible
barges in GoM
• Two large heavy lift, semi
submersible barges in Australia
• SBL EM vessels in Brazil & Asia
Site offices,
China
Gdynia,
Poland
Global presence
Business overview – Concentrated in three segments
8 Tugs 19 Barges 9 Offshore Vessels
• 3 ASD escort tugs
• 4 harbour / towage tugs
• 1 harbour tug
• 8 semisubmersible barges
• 8 deck cargo barges
• 2 other barges
• Options for more new barges, BB 37 now signed
• OCV – Boa Sub C
• OCV – Boa Deep C
• SBL – Boa Thalassa
• SBL – Boa Galatea
• New building program
Mid-Norway and North Sea operations
Tugs has been the primary business of Boa since inception
Revitalization of this business segment with a substantial fleet renewal 2010-2012
World Wide operations
Leading player in the global heavy lift market
Continuous new building program since 1999
Management of Myklebusthaug Dina Lifter/Launcher
World wide operations
Ongoing modernization of the fleet, incl NFDS
Successfully owns and operates two of the world’s most high spec OCVs
Tonnage provider and solution/ project provider for:
• Salvage operations
• Turn key towage / transport / handling operations
Tonnage provider, also solution/ project provider for:
• All engineering related to barges. In house design
• Turn key transportation projects
• Load out and launching
• Dry docking operations
• Float over
BMSI, also solution/ project provider for:
• SURF (subsea, umbilicals, risers and flowlines)
• IRM (inspection, repair and maintenance) of platforms
• Floater moves and installations
• Also use of 3rd party vessels
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Assets
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5 Market overview and outlook
3 Financials
2 Boa Offshore overview
4 Boa Offshore Subsidiaries
Contents
10
1 Boa Offshore summary
Boa Offshore consolidated historical financials
• Boa Offshore has streamlined its
business model, now showing results.
• Boa Offshore 1H 2013 EBITDA increased
to NOKm 209.
2H 12 EBITDA of NOKm 204.
1H 12 EBITDA of NOKm 179.
1H 11 EBITDA of NOKm 155.
• Modest negative impact from lower
sequential USD/NOK in 1H 13.
• Boa Tugs AB shut down 2H 12, positively
impacting EBITDA.
• Record strong Boa OCV.
• Boa SBL slightly below expectations, but
less in USD.
• Net interesting bearing debt reduced to
NOKbn 1.7 bn. despite payments for
newbuilding program during 2013.
• Improved key credit matrices.
Value adjusted equity 52.5%
Annualized NIBD/EBITDA 4.16x
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Boa Offshore key P&L items NOKm
Boa Offshore key balance sheet items NOKm
Note: NGAAP reported figures
+35%
-8%
Key figures (NIBD/EBITDA, ROA)
• Boa Offshore consolidated NIBD/EBITDA
1H 13 < 4.2x.
“IFRS adjusted” at around 3.8x**
• The lowest multiple in the Norwegian
supply vessel sector.
• Sector average of around 7.5x.
** = NB: Boa Offshore EBITDA figure includes P&L
expensed provision for class/periodical maintenance
(NGAAP)
NIBD/EBITDA 1H 2013 Return on Assets* 1H 2013
Source: Boa, Company Reports
• Boa Offshore consolidated Return on
Assets* (ROA) on active fleet of 12%.
• Highest in the Norwegian supply vessel
sector.
• Sector average of around 6%.
* = EBIT/ Fixed Tangible Assets adj for newbuilds on
balance sheet - annualized (1Hx2)
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Vessel Design Yard Delivery/status Debt Financing Ownership (subsidiary) Other
AHTS #1 VS 491, 28,000 bhp
Fosen/China
hull 1Q 2014
60% guaranteed SMN/GIEK,
Eksportkreditt funding
NFDS Offshore 1 AS, 76%
owned by Boa Offshore 600t winch, ROV Hangar
AHTS #2 VS 491, 28,000 bhp
On hold until
financing in place Boa Shipping AS
MPSV #1 VS 495 Chinese 2H 14 70% bank, CDB & Sinosure Boa PSV AS IMR/Light Construction
MPSV #2 VS 495 Chinese 2H 14 70% bank, CDB & Sinosure Boa PSV AS IMR/Light Construction
Boa Barge 43 Boa Chinese 2H 13 SMN Boa Barges AS 300 ft Flat top
Boa Barge 44 Boa Chinese 2H 13 SMN Boa Barges AS 300 ft Flat top
Boa Offshore initiated newbuild program - fully financed
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Boa Heron/Pelican MPSV VS 495
NFDS AHTS #1 VS 491
*
• * = AHTS #2 will not be initiated until total finance solution is in place.
• Construction of BB 37 has now been signed with contract secured for un-named client starting 2015 .
Source: Boa Offshore
5 Market overview and outlook
3 Financials
2 Boa Offshore overview
4 Boa Offshore Subsidiaries
Contents
14
1 Boa Offshore summary
Boa OCV AS – Summary and key financials
• Record 1H 13 numbers for Boa OCV.
• Account for > 50% of Boa Offshore
values and EBITDA.
• 1H 13 EBITDA of NOKm 128, up from
NOKm 117 in 1H 12.
• NOKm 1,050 gross debt and NIBD of
Nokm 918 per 1H 13.
NIBD/EBITDA of 3,6x.
• Shipbrokers average valuation per
30.06.13 of NOKbn 2 both vessels.
• Gross/net LTV per 1H 13 of 53/46%.
• Strong outlook for subsea construction
vessels.
• Identified a number of attractive
possibilities for Deep C from contract
expiry October 2013.
10 year class of vessel to be
performed before new contract.
See coming slides.
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Boa Offshore key P&L items NOKm
Boa Offshore key balance sheet items NOKm
Note: NGAAP reported figures
16
Boa OCV: BOA DEEP C/ BOA SUB C – state of the art
vessels
Length overall 120 m
Breadth 27 m
Positioning DP-III
Deck Space 1150 m2
Deck Strength 15 t/m2
Main Crane 250 t
Crane Depth 2000 m
Main Winch 500 t
Bollard Pull 229 t
Accommodation 90-100
Available End 2013/Early 2014
Particulars
Source: Boa Offshore, Shipbroker Reports/Valuation
Length overall 138.5 m
Breadth 30.6 m
Positioning DP-III
Deck Space (free) 1885 m2
Deck Strength 20 t/m2
Main Crane 400 t
Crane Depth 3000 m
Main Winch 600 t
Bollard Pull 220 t
Accommodation 135
Available Mid 2015/16
Particulars
Boa SBL - Summary and key financials
• Owns two modern seismic vessels being the
world’s first custom built vessels for “EM”
seismic, built 2008/2009. On long term contracts
to EMGS:
Thalassa firm until Dec’ 2014 + 2x12
months options.
Galatea firm until July 2015 + 2x12 months
options.
• 1H 13 EBITDA of NOKm 26 slightly down Y/Y
from NOKm 27.
Slightly lower USD/NOK sequentially.
Secured at higher USD/NOK in 2H 13.
• Average shipbroker values* slightly up H/H to
NOKm 620. NIBD of NOKm 357 = LTV 58%.
• Although purpose built for EMGS, vessel design
is generic (MT 6000 series) and vessels can be
converted into:
Traditional 3D seismic/OBN/OBC seismic
Survey/ROV support
IMR/light construction
Offshore Wind Farm support
* Source: According to average of two independent shipbroker valuations
Boa SBL key P&L items NOKm
Note: NGAAP reported figures
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Boa Offshore – The barge experts
• BOA has since 1998 had continuous new
building program for barges in China.
• Boa Offshore Group today operates 19 barges of
different capabilities (incl newbuilds).
• Management of Myklebusthaug Dina Lifter/
Launcher.
• Built up an in-house engineering capacity that is
unique in the industry.
• From 2002 BOA developed its own in-house
design, giving substantial cost savings.
• Boa can offer in additional to “the steel”:
• Total turn key projects for transportation or
dry docking operations by barges.
• All engineering services related to barges.
• Hydrostatics & Hydrodynamics.
• Structural & Operational.
• Engineering and project management performed
from Trondheim and Houston.
• Has been in involved in several major Field
Developments world wide.
• Currently two barges on Gorgon LNG Field
Development Australia.
Source: Boa Offshore 18
BMSI – SURF/IMR
• Boa Marine Services, Inc (BMSI) is a Texas
corporation and subsidiary of Boa Offshore with
its main office in Houston, USA.
• Established in May 2009 to expand and
strengthen Boa Offshore’s global presence and
complement its fleet of construction vessels,
MPSV, AHTS, and submersible barges.
• BMSI is a full-service deepwater construction
solution provider with an experienced in-house
engineering group, project managers and
execution staff.
• Capable of supporting vast offshore installation
campaigns including: IMR, SURF, and mooring
installations.
• Built strong project track record.
• Two vessels, Polar Queen and Topaz Captain
are currently chartered to support BMSI business
strategy.
• Currently working in US GoM and Mexico.
• Ambition to grow further.
Source: Boa Offshore 19
5 Market overview and outlook
3 Financials
2 Boa Offshore overview
4 Boa Offshore Subsidiaries
Contents
20
1 Boa Offshore summary
Industry Book to Bill as leading indicator for Barges, OCV,
and BMSI
• Offshore Construction backlogs
currently at all-time high (Saipem,
Subsea7, Technip).
• The book-to-bill (B-t-B) ratio
currently at 1.5x.
• Above 1.0 indicates future growth
as order intake exceeds turnover.
• Lead time for the major projects
are in general 2-3 years.
• Indicates higher subsea/offshore
construction activity in years to
come, and most likely demand for
construction vessels and also
Barges.
Source: Pareto Research, company reports, Boa Offshore
Industry Book to bill
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22 Source: ODS/IHS, Boa Offshore
Strong growth in subsea wells and FPSOs expected:
OCV, BMSI
Subsea tree installations World Wide
• Subsea tree awards and estimated subsea tree installations is a key indicator for vessel activity.
• Number of tree installations likely to increase from an average of < 300 p.a. in 2010-2012 to around 500 within 3-5 years (IHS/ODS-Petrodata).
• Even stronger growth in +2000m water depth.
• Most important markets are North Sea, Brazil, and West Africa with US GoM and Australia as runners up.
FPSO installations World Wide
• OCV: Boa Sub C and Boa Deep C also well suited for FPS installation due to bollard pull capacity.
• Average number of FPS installations p.a. around 20 last 5 years, and below this level in 2011/2012.
• Prospect list indicate > 30 per year on average next five years (IHS/ODS-Petrodata). Some projects will be postponed/turned down.
• Includes FPSO, FSRU, FSO, Semi, TLP and Spars.
23 Source: ODS/IHS, Boa Offshore, UNO
Very few available OCVs in 115-140m category with
DP2/3 and 250t crane – Boa Deep C
OCV fleet 115-140m LOA/min’ DP2
• Current Fleet of offshore construction vessels (all modes) count around 50 vessels in category 115-140m LOA and min’ DP 2 capabilities.
• Fleet will increase to around 65 in 2015.
• Some vessels uncertain of timing of delivery.
• Fleet growth matching demand drivers (subsea wells, FPSOs etc).
Available OCVs 115-140m LOA/250t crane
• Narrowing it down to vessels with Crane > 250t only a few vessels available before YE 13, with Boa Deep C one of them.
• Vessels available before mid 2014 most likely < 10 (including newbuilds).
• 15-20 estimated charter contract awards/optional extensions since July 2012*.
• Boa Deep C (27m) only available vessel with Beam wider than 25m.
• Together with bollard pull capacity etc, Boa Deep C is uniquely positioned.
North Sea AHTS > 20k bhp spot market dayrates
Source: ODS Petrodata, Boa
North Sea AHTS spot Market > 20,000bhp
• Boa Offshore has one large AHTS 28,000
bhp under construction through NFDS
with delivery 1Q14.
• Average dayrate last 9 years around NOK
400,000.
• Average dayrate 2005-2008 was NOK
550,000.
• Dayrates significantly down in 2009-10 in
a combination of falling demand (rig count
etc) and too many new vessels delivered
to the market.
• Dayrates have recovered in 2013 in a
combination of:
• Stable/decreasing North Sea AHTS
fleet (few newbuilds delivered) and
• Rising demand, rig moves.
• Improved PSV market, spill-over
effect.
• Correlation between bhp/vessel and
achieved dayrate in 2013.
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Supportive demand factors:
Number of floater/semisubmersible drilling rigs working up in 1Q13 vs 2012 (red mark).
New floater rigs entering 2013-2016: Island Innovator, Songa x4, Sedco 712, Stena Carron,
Blackford, Ocean Patriot, DS Aberdeen, Bollista, North Dragon?, COSL Promoter, COSL
Prospector, 1x Seadrill?.
Ca 15 rigs = 37,5% increase.
On top comes potential Offshore Greenland rig campaigns and more FPSO/
Construction support.
Source: ODS Petrodata, Pareto
North Sea AHTS Market: Floater Rigs working
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