Q2 Financial Presentation 2015
DOF ASA
Highlights
- Q2 Presentation 2015 DOF ASA
Main highlights Q2 2015 EBITDA Q2 MNOK 976
Completed sale of 8 vessels so far in 2015 Good operational EBITDA in Q2 2015 MNOK 838 Good backlog for 2nd half 2015, 84% overall Contracts awarded recently on decent levels Challenging markets
3
- Q2 Presentation 2015 DOF ASA
Highlights Q2 2015
Subsea
Asia Pacific Variable utilisation in Q2 mainly due to idle time on two vessels between projects
North Sea - Good utilisation
US Gulf Variable utilisation
Brazil Good utilisation
AHTS/PSV
North Sea/ Mediterranean Low utilisation and low earnings from the spot market, but only 3 vessels exposed in the spot market in Q2
Brazil Good utilisation
Asia Pacific Good utilisation apart from one vessel that entered the spot market
Operational
4
- Q2 Presentation 2015 DOF ASA
Highlights Q2 2015
Contract awards
5
Skandi Pacific awarded 9 months + 3x1 months contract with Total Austral in Argentina
Harvey Deep Sea awarded IMR contract with Freeport McMoran, 6 months firm + 2 x 6 months options
Geoholm RSV contract extended with 18 months until Dec 2016
Skandi Peregrino, awarded a 2 yrs contract + 2x1 yrs options with Statoil firm until Dec 2017
Skandi Acergy, 3 yrs extention with Subsea 7 firm until Aug 2019
Skandi Skansen awarded a new contract with Subsea 7 for the summer 2016
Skandi Achiever extended by 7 months with Technip firm until February 2016
- Q2 Presentation 2015 DOF ASA
Highlights Q2 2015
Fleet
6
Financing
Five vessels sold:
Three last vessels, Skandi Leblon, Skandi Flamengo and Skandi Copacabana, sold in April as part of the Norskan sale transaction of 5 vessels
Shares in DOFTECH, owner of Skandi Arctic, sold to Technip in June
Skandi Angra delivered from yard and on-hire with Petrobras 18 May on a 8 yrs contract
Skandi Falcon sold and delivered to new owner in April
DOF & Norskan secured refinancing of all balloons in 2015 and 2016
A new loan drawn in Norskan upon delivery of Skandi Angra
A new loan drawn upon delivery of Skandi Hawk from DOF Rederi to DOF Subsea
One fleet loan refinanced in DOF Rederi
DOF Subsea repurchased bonds
Overview Group
- Q2 Presentation 2015 DOF ASA
DOF ASA in brief
Vessels
Fleet 70 vessels (wholly and partly owned) (20 PSV, 20 AHTS, 30 Subsea)
61 owned vessels in operation (excl. 1 in lay-up) 2 owned less than 50% 6 newbuildings; 1 AHTS, 5 Subsea
5 Subsea vessels chartered in from external owners
58 ROVs, 9 ROVs on order
NOK 31 bn in market value owned vessel in operation* (100% basis)
Average age 8.8 years, value adjusted fleet age of 6.5 years
Back log* Total NOK 64.4 bn
Firm contracts : NOK 30.6 bn Options: NOK 33.8 bn
Global organisation Head office in Norway Regional offices in Australia,
Singapore, UK, USA, Canada, Angola, Argentina and Brazil
Total of 5 167 employees* Subsea employees: 1 758 Marine personnel: 3 409 Share price* NOK 6.00 NAV per share NOK 69
(*As per 30.06.2015)
8
30
20
20
5 Subsea
AHTS
PSV
Chartered SubseaVessels
- Q2 Presentation 2015 DOF ASA
Fleet overview and contract coverage
*Including chartered vessels and Newbuilds **Ex Skandi Fjord, Skandi Iceman and Skandi Aukra
9
Good coverage in 2015: Minor time charter renewal risk in
2015 Important long term contracts
secured in 2015 Expectations for 2016: Despite highly competitive
markets, we see good progress in securing long-term work
Our global footprint and project capability will be vital for securing utilisation
PSV AHTS Subsea Total fleet
DOF ASA/DOF REDERI AS 17 4 2 23
NORSKAN OFFSHORE 1 10 2 13
DOF SUBSEA AS 0 0 29* 29
DOF INSTALLER ASA 0 0 2 2
DOF DEEPWATER AS 0 5 0 5
Total fleet 18 19 35 72**
2nd half 2015 Firm 92 % 81 % 81 % 84 %
2nd half 2015 Including options 94 % 82 % 85 % 87 %
2016 Firm 63 % 53 % 48 % 54 %
2016 Including options 89 % 62 % 67 % 72 %
Contract coverage
No. of vessels
Sheet1
No. of vessels
PSVAHTSSubseaTotal fleet
DOF ASA/DOF REDERI AS174223
NORSKAN OFFSHORE110213
DOF SUBSEA AS0029*29
DOF INSTALLER ASA0022
DOF DEEPWATER AS0505
Total fleet18193572**
Contract coverage
2nd half 2015 Firm92%81%81%84%
2nd half 2015 Including options94%82%85%87%
2016 Firm63%53%48%54%
2016 Including options89%62%67%72%
* no options included
Sheet2
Sheet3
- Q2 Presentation 2015 DOF ASA
DOF backlog overview 2015 -2020+
3 717
4 800 4 840 4 206
3 579
263
1 410 1 416 1 805
2 118 9 421
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
-
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
9 000
10 000
2015 2016 2017 2018 2019 From 2020
Annu
al B
ackl
og (M
NO
K)
Annual backlog Annual option
Total value options from 2020 and onwards is MNOK 26,813 from 2020
26,813
- Q2 Presentation 2015 DOF ASA
A global player
11
FOCUS AREAS
Perth Rio de Janeiro
Buenos Aires
Singapore
Houston
St. Johns
Aberdeen
Cairo
Brunei
Maca Jakarta
Manila
Luanda
Moscow
Austevoll
Malaysia
34
3
23
8 3
Norway Brazil US/Canada UK Asia Pacific Angola Argentina Marine Crew Total
DOF employees 453 566 275 330 427 16 8 3 092 5 167
- Q2 Presentation 2015 DOF ASA
Vessel Yard Delivery Type Contract Financing
Skandi Paraty Vard Brazil Q1 2016 AHTS 4 yrs Petrobras Signed loan agreement
Skandi Africa Vard Norway Q1 and Q3 2015 CSV 5 yrs Technip Loan drawn on first delivery in March
Skandi TBN Vard 823 Vard Norway 2016 PLSV 8 yrs Petrobras
Skandi TBN Vard 824 Vard Norway 2016 PLSV 8 yrs Petrobras
Skandi TBN PLSV1 Vard Brazil 2016 PLSV 8 yrs Petrobras Loan agreement signed with BNDES
Skandi TBN PLSV2 Vard Brazil 2017 PLSV 8 yrs Petrobras Loan agreement signed with BNDES
Remaining newbuilding program
12
- Q2 Presentation 2015 DOF ASA
2007 2008 2009 2010 2011 2012 2013 2014 2015
Fleet: 45 vessels Fleet: 56 vessels Fleet: 69 vessels Fleet: 70 vessels Fleet: 63 vessels
DOF Installer founded DOFCON merged with DOF Subsea DOF Deepwater (ex Aker DOF
Deepwater) founded, a JV with Aker Solutions
Partnered with First Reserve to purchase DOF Subsea ASA and the company was taken private
Delivery of 9 new-builds from yard (2 PSVs, 1 AHTS and 6 subsea vessels)
3 vessels sold
Delivery and acquisition of 10 vessels (2 PSV, 2 AHTS and 6 subsea vessels)
DOF Subsea established 2 joint-ventures with Technip in Norway and in Brazil
1 vessel sold Acquired more engineering capacity in
Australia
Delivery of 12 new-builds from yards (4 PSVs, 3 AHTS, and 5 subsea vessels)
Purchased Skandi Constructor (subsea)
1 vessel sold 1 new-build (subsea vessel) sold
Delivery of 2 vessels (PSV and subsea vessel)
DOF Subsea &Technip JV won a USD 1,7 bn contract with Petrobras for 4 PLSVs
Signed newbuild contracts for 4 PLSVs Extensive growth in subsea project
activity Chartered four external subsea vessels
(incl. 3 Jones Act vessels) for the project activity
2 subsea vessels sold Signed new-build contract for one large
subsea construction vessel
Delivery of Skandi Angra (AHTS) 1st. delivery of Skandi Africa (Subsea) 5 vessels sold in Brazil Skandi Aker (subsea) sold Skandi Falcon (PSV) sold Skandi Arctic sold (50% share)
DOF ASA timeline DOF fleet evolution DOF Group employees
13
0
5000
10000
15000
20000
25000
30000
35000
40000
0
10
20
30
40
50
60
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80
2008 2009 2010 2011 2012 2013 2014 YTD 2015
MN
OK
No.
Of V
esse
ls
No. of operated Vessels MV of Fleet
0
1000
2000
3000
4000
5000
6000
2008 2009 2010 2011 2012 2013 2014 YTD 2015
No. Of employees
Financials- Management Reporting
- Q2 Presentation 2015 DOF ASA
All figures in NOK million Q2 2015 Q2 2014 2014
Operating income 2 778 2 791 10 681 Operating expenses -1 940 -1 925 -7 350 Net profit/loss from associates and joint ventures 0 -0 -9 Net gain on sale of vessel 138 -0 468 Operating profit before depreciation- EBITDA 976 866 3 790 Depreciation and write down -566 -258 -1 127 Operating profit- EBIT 410 608 2 663 Financial income 19 16 77 Financial costs -306 -344 -1 420 Net realized currency gain/loss -79 -52 -212 Net profit/loss before unrealised gain/loss long term debt 44 227 1 109
Net unrealized currency gain/loss 183 3 -441 Net unrealized gain/loss on market instruments 97 -30 -218 Profit/loss before tax 325 201 450 Tax -105 -13 50 Net profit/loss 219 188 500 Profit attributable to Non-controlling interest 152 96 419
Controlling interest 67 92 81
According to management reporting
Result Q2 2015 Comments result Q2 Operational performance: PSV: 95% utilisation PSV fleet One vessel in the spot market Three vessels sold and one vessel in lay-up AHTS: 87% utilisation AHTS fleet Two vessels in the spot market One vessel sold Subsea: 98% utilisation vessels on term contracts 78% utilisation project fleet Variable utilisation project fleet in APAC and
US-gulf Good utilisation in Atlantic and Brazil One vessel sold
Depreciation and write-down Include impairment loss of NOK 262 million Finance: Realized loss on currency due to repayment
on debt and after sale and refinancing NOK and BRL slightly stronger to USD in Q2 Tax: Represent taxes from various tax regimes
15
- Q2 Presentation 2015 DOF ASA 16
10 %
30 % 60 %
EBITDA Q2 2015
PSV
AHTS
Subsea
14 %
19 %
67 %
EBITDA Q2 2014
PSV
AHTS
Subsea
Segment reporting Q2 2015 PSV AHTS CSV Total
Amounts in NOK mill Q2 2015 Q2 2014 Q2 2015 Q2 2014 Q2 2015 Q2 2014 Q2 2015 Q2 2014
Operating income 301 296 400 393 2 076 2 102 2 778 2 791
Operating result before depreciation and write-down (EBITDA) *) 102 118 288 167 587 581 976 866
Operating result (EBIT) **) 40 47 72 115 297 446 410 608
EBITDA margin 34 % 40 % 72 % 42 % 28 % 28 % 35 % 31 % EBIT margin 13 % 16 % 18 % 29 % 14 % 21 % 15 % 22 % *) Ebitda includes gain on sale of vessels - - 96 - 42 - 138 - **) Ebit includes impairment loss 12 - 140 - 110 - 262 - According to management reporting
- Q2 Presentation 2015 DOF ASA
Historical Performance Group (excl gain from sale of assets)
17
0%
5%
10%
15%
20%
25%
30%
35%
40%
-
500
1 000
1 500
2 000
2 500
3 000
3 500
Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015
EBIT
DA
Mar
gin
%
MN
OK
Operating revenue EBITDA EBITDA margin
Q2 2012 Q2 2013 Q2 2014 Q2 2015 Operating revenue 2 119 2 493 2 791 2 778 EBITDA 742 770 866 838 EBITDA margin 35 % 31 % 31 % 30 %
Non-current assets 26 942 28 347 28 757 28 610 Current assets 4 394 4 727 4 861 4 976 Total Assets 31 336 33 074 33 617 33 586
Equity 6 490 6 408 7 365 6 592 Non-current debt 20 667 22 228 19 812 19 491 Current debt 4 179 4 438 6 441 7 503 Total Equity and Debts 31 336 33 074 33 617 33 586 according to management reporting
- Q2 Presentation 2015 DOF ASA
Balance Q2 2015 Comments balanse YTD June Assets 8 vessels sold YTD. Vessels sold in Q2:
Skandi Leblon, Flamengo, Copacabana sold in April
Skandi Falcon sold in May 50% share in Skandi Arctic sold in May
Skandi Angra delivered in May Newbuildings represent Skandi Africa and
prepayments 5 new-buildings (including 50% in JVs)
Financial assets: Financial assets mainly include minority
share in shipowning companies Receivables: Mainly from project activity (48% of total
revenue in Q4) Equity: Net impact from FX & CTA (MNOK- 478)
Current liabilities Current part long term debt includes bond
(MNOK 1 374), balloons (MNOK 2 282), and normal amortization
18
Amounts in NOK million 30.06.2015 30.06.2014 31.12.2014 ASSETS Intangible assets 1 404 724 1 103 Vessel and other tangible assets 24 006 26 766 26 204 Newbuildings 2 834 974 1 075 Financial assets 366 292 365 Non-current assets 28 610 28 757 28 747 Receivables 3 026 2 892 3 105 Cash and cash equivalents 1 951 1 969 2 696 Current assets 4 976 4 861 5 800 Total assets 33 586 33 617 34 547 EQUITY AND LIABILITIES Subscribted equity 1 452 1 452 1 452 Retained equity 1 543 2 569 1 958 Non-controlling equity 3 597 3 344 3 456 Equity 6 592 7 365 6 866 Provisions for commitments 130 146 133 Other non-current liabilities 19 361 19 665 19 599 Non-current liabilities 19 491 19 812 19 732 Current part of interest bearing debt 5 604 4 704 6 049 Other current liabilities 1 899 1 737 1 900 Current liabilities 7 503 6 441 7 949 Total equity and liabilities 33 586 33 617 34 547
According to management reporting
- Q2 Presentation 2015 DOF ASA
Cash Flow Q2 2015
19
Comments Q2 cash flow Operating activities: Improved cash flow mainly due to completion
several projects Investing activities: Five vessels sold during Q2 Skandi Angra delivered Financing activities Proceeds from borrowings:
a new loan of MUSD 110 drawn on delivery of Skandi Angra
New financing one subsea vessel Refinancing one fleet loan (4 PSVs)
Prepayment from borrowings:
repayment of secured debt after sale and refinancing MNOK 1 375
Amortization MNOK 579
Amounts in NOK million Q2 2015 Q2 2014 2014
Cash from operating activities 1 236 533 2 963 Net interest paid -276 -315 -1 352 Taxes paid -46 -13 -6 Net cash from operating activities 913 205 1 605
Sale of tangible assets 658 7 2 082 Purchase of tangible assets -1 183 -666 -2 345 Sale of shares 417 - - Other changes in investing activities -167 -6 -126 Net cash from investing activities -274 -666 -390 Proceeds from borrowings 1 757 1 616 4 036 Prepayment of borrowings -1 954 -1 312 -4 952 Payment from/to non-controlling interests -18 - -7 Net cash from financing activities -216 304 -923
Net changes in cash and cash equivaltents 423 -157 293
Cash and cash equivalents at the start of the period 1 522 2 126 2 314 Exchange gain/loss on cash and cash equivalents 5 -0 89 Cash and cash equivalents at the end of the period 1 951 1 969 2 696 According to management reporting
- Q2 Presentation 2015 DOF ASA
Key figures Q2 2015
20
Q2 2015 Q2 2014 2014
FINANCIAL RESULT EBITDA margin ex net gain on sale of vessel 30 % 31 % 31 % EBITDA margin 35 % 31 % 35 % EBIT margin 15 % 22 % 25 % Cashflow per share 1) 3,26 2,90 12,12 Profit per share ex. non-controlling interest 2) 0,60 0,83 0,73 Profit per share ex. unrealized loss/gain and taxes 3) -0,96 1,14 5,00 BALANCE Return on net capital 3 % 8 % 7 % Equity ratio 20 % 22 % 20 % Value adjusted equity 32 % 36 % 34 % Net interest bearing debt 22 843 22 067 22 686 Net interest bearing debt ex. unemployed capital 20 009 21 093 21 611 Capex -1 183 -666 -2 345 No of shares 111 051 348 111 051 348 111 051 348
1) Pre-tax result + depreciation and write downs +/- unrealized gain/loss on currencies +/- net changes in fair value of financial instruments/average no of shares. 2) Net profit excl. non controlling interest/average no of shares 3) Net profit excl.unrealized currency gain/loss on debt and market instruments and taxes/average no of shares
According to management reporting
- Q2 Presentation 2015 DOF ASA
Net interest bearing debt 30.06.2015
21
Comments balanse 30 June 2015: Current interest bearing debt: Bonds DOFSUB06 MNOK DOFSUB 05 MNOK Debt to credit institutions Balloons MNOK 2 880
DOFSUB MNOK 966 DOF MNOK 1 315 Amortization
Cash and derivatives: MNOK 576 represent cash deposit Derivatives represent interest and FX
derivatives
Newbuilds: Skandi Africa classified as newbuild
Amounts in NOK million 30.06.2015 30.06.2014 31.12.2014
Bond loan 3 378 4 820 4 124 Debt to credit institutions 15 725 14 439 15 057 Total non-current interest bearing liabilities 19 102 19 258 19 181 Bond loan 1 374 339 1 039 Debt to credit institutions 3 983 3 686 4 328 Utilized credit facilities 52 453 455 Total current interest bearing liabilities 5 409 4 478 5 822 Total interest bearing liabilities 24 511 23 737 25 003 Cash and cash equivalents 1 951 1 969 2 696 Net derivatives -282 -299 -379 Non-current receivables - - - Total net interest bearing liabilities 22 843 22 067 22 686
Newbuilds 2 834 974 1 075
Net interest bearing liabilities, excluding unemployed capital 20 009 21 093 21 611 According to management reporting
- Q2 Presentation 2015 DOF ASA 22
RESULT Q2 2015 Q2 2014
Amounts in NOK mill Management
reporting Variance Financial reporting
Management reporting Variance
Financial reporting
Operating income 2 778 -129 2 648 2 791 -122 2 669 Operating expenses -1 940 20 -1 920 -1 925 26 -1 900 Net profit from associated and joint ventures 0,03 104 104 - 35 35 Net gain on sale of tangible assets 138 -43 95 - - -
Operating profit before depreciation EBITDA 976 -48 928 866 -61 804 Depreciation and impairment -566 23 -543 -258 21 -237 Operating profit - EBIT 410 -25 384 608 -40 568 Financial income 19 4 23 16 3 19 Financial costs -306 13 -293 -344 16 -329 Net realized gain/loss on currencies -79 13 -67 -52 7 -45 Net unrealized gain/loss on currencies 183 -27 156 3 -2 2 Net changes in fair value of financial instruments 97 -2 96 -30 1 -29 Net financial costs -85 0 -85 -407 24 -383 Profit (loss) before taxes 325 -25 300 201 -16 185
Taxes -105 25 -81 -13 17 3
Profit (loss) 219 0 219 188 0.4 188
Management reporting vs Financial reporting
- Q2 Presentation 2015 DOF ASA 23
Management reporting vs Financial reporting
BALANCE 30.06.2015 30.06.2014
Amounts in NOK mill Management
reporting Variance Financial reporting
Management reporting Variance
Financial reporting
ASSETS Intangible assets 1 404 -91 1 313 724 -9 715 Tangible assets 26 840 -2 796 24 044 27 740 -3 226 24 515 Non-current financial assets 366 1 011 1 377 292 1 398 1 690 Total non-current assets 28 610 -1 877 26 733 28 757 -1 837 26 920 Receivables 3 026 -73 2 953 2 892 -53 2 838 Cash and cash equivalents 1 951 -76 1 874 1 969 -85 1 884 Total current assets 4 976 -149 4 827 4 861 -138 4 723 Total assets 33 586 -2 026 31 560 33 617 -1 975 31 642 EQUITY AND LIABILITIES Equity 6 592 - 6 592 7 365 - 7 365 Non-current provisions and commitments 130 -30 101 146 -28 118 Non-current liabilities 19 361 -1 767 17 594 19 665 -1 745 17 920 Current liabilities 7 503 -229 7 274 6 441 -202 6 240 Total liabilities 26 994 -2 026 24 968 26 253 -1 975 24 277 Total equity and liabilities 33 586 -2 026 31 560 33 617 -1 975 31 642
Net interest bearing liabilities 22 843 -1 862 20 981 22 067 -1 735 20 332
- Q2 Presentation 2015 DOF ASA
Debt maturity profile
DO
F ex
Sub
sea
DO
F S
ubse
a
ECA mainly represent long term funding with BNDES and GIEK
Bonds: DOFSUB06 due in Oct 2015, DOFSBUB05 due in April
total MNOK 1 374. Total repurchased MNOK 76
Bank debt: Total balloons of MNOK 2,282:
DOF ASA MNOK 1 315 secured DOFSUB MNOK 966, in process and partly secured
DOF GROUP COUNTERPARTY EXPOSURE Q2 2015
24
36%
21%
43%
ECA
Bonds
Other Banks -
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
4 500
2015 2016 2017 2018 2019 After
Bank Debt
Bond
Balloons
-
500
1 000
1 500
2 000
2 500
3 000
2015E 2016E 2017E 2018E 2019E 2020E After
Bank Debt
Bond
Balloons
- Q2 Presentation 2015 DOF ASA
Total Fleet Values
Vessels & new-buildings (100% Basis) MNOK 44 616
Equipment (subsea) MNOK 1 550
Total Fleet MNOK 46 166
Note: Vessels based on fair market values as of 30 June 2015
The figures reflects amortization and balloon payments on total debt drawn as per 30 June 2015 and onwards
Combined market value DOF Group fleet including newbuild is NOK 44.6 bn (JV adjusted, total value 100% NOK 36.8 bn) as per 30.06.2015
New-building program to be completed in 2017 (including 50% in 4 PLSVs)
Asset-level gearing on the existing fleet is 68%, decreasing to 36% in 2019
Significant gearing reduction forecasted
DOF ASA Asset coverage
25
Gearing forecast summary
0%
20%
40%
60%
80%
100%
2015E 2016E 2017E 2018E 2019E
68% 59%
51% 45% 36%
32% 41%
49% 55% 64%
Debt Equity
- Q2 Presentation 2015 DOF ASA
Sale of 9 vessels since November 2014
26
Total net cash proceeds after sales NOK 2.0 bn
Design Built Type Delivery
Skandi Skolten STX AH04 2010 AHTS/Subsea November 2014
Skandi Aker OSCV 06 L 2010 Subsea Q1 2015
Skandi Stolmen UT 755 1997 PSV Q1 2015
Skandi Yare UT 755 2001 PSV Q1 2015
Skandi Leblon UT 755 L 2004 PSV April 2015
Skandi Flamengo UT 755 L 2003 PSV April 2015
Skandi Copacabana UT 722 L 2005 AHTS April 2015
Skandi Falcon UT 705 1990 PSV April 2015
Skandi Arctic OSCV 06 L 2009 DSV June 2015
- Q2 Presentation 2015 DOF ASA
Continuous cost focus
Adjusting the organization Several improvement projects started in 2013 and 2014
Focus on realizing efficiency gains from improvement projects
Going forward - strong focus on efficiency targets and cost reduction
We have adjusted the capacity in the organisation and will continue this process going forward
Adjusting the fleet Sale of several vessels over past 12 months
Potential to redeliver chartered-in vessels
Flexible business model Will move vessels between subsea project and time charter business in order to secure
utilization
27
DOF Subsea
- Q2 Presentation 2015 DOF ASA
DOF Subsea Group In brief
29
Norway Brazil Canada US UK Asia Pacific Angola
319 421 49 226 318 409 16
Fleet One of the largest subsea vessel owners in the world
Owns and operates a fleet of 22 vessels, plus 4 newbuilds on order In addition 5 vessels on long-term charter The market value of owned vessels in operation is NOK 16.0 billion, with a value adjusted age of approx. 5.8
years Operates 58 ROVs and 8 ROVs and 1 AUV on order
Global organization Head office in Bergen
Regional offices in Australia, Singapore, Norway, UK, Angola, US, Canada and Brazil
Total of 1 758 employees Subsea employees: 1 758
Of which offshore engineers and project staff: 1 370
- Q2 Presentation 2015 DOF ASA
DOF Subsea Group In brief
Key figures
Quarterly figures
* According to internal Management reporting
Back-log incl. options NOK 36 billion
Market value of fleet NOK 16 billion
Number of shares 119 733 714
Total Per share
Book equity NOK 6.4 billion NOK 53.49
Value adj. equity NOK 8.4 billion NOK 70.27
Book equity ratio 34.5 %
Value adj. equity ratio 40.9 %
3.1 % CAGR
12.3 % CAGR
0%
5%
10%
15%
20%
25%
30%
35%
40%
-
500
1 000
1 500
2 000
2 500
Q2 2012 Q2 2013 Q2 2014 Q2 2015
NO
K m
illio
n Operating revenue EBITDA EBITDA margin
30
- Q2 Presentation 2015 DOF ASA 31
Key credit metrics
-
0,50
1,00
1,50
2,00
2,50
3,00
2009 2010 2011 2012 2013 2014 Last 12months
Interest Coverage (EBIT / Interest cost)
-
2,00
4,00
6,00
8,00
10,00
12,00
2009 2010 2011 2012 2013 2014 Last 12months
NIBD/EBITDA
-
0,20
0,40
0,60
0,80
1,00
2009 2010 2011 2012 2013 2014 Last 12months
NIBD/Total assets
-
0,20
0,40
0,60
0,80
1,00
2009 2010 2011 2012 2013 2014 Last 12months
Debt/Total assets
- Q2 Presentation 2015 DOF ASA
Q2 2013 Q2 2014 Q2 2015Subsea projects 1 261 1 390 1 327Chartering of vessels 417 574 634Total 1 679 1 963 1 962
1 500
1 550
1 600
1 650
1 700
1 750
1 800
1 850
1 900
1 950
2 000
0
500
1 000
1 500
2 000
2 500
Chartering of vessels Subsea projects
DOF Subsea Projects
DOF Subsea has built a global presence over the last 9 years
DOF Subsea has developed the project business gradually
Increased project activity and complexity driving growth
Project business going forward Gradually increase the
complexity of work done (Step by Step)
Build a larger project back-log Mix between owned and
chartered in vessels
* According to internal Management reporting
2012 2013 2014Subsea projects 3 776 4 971 5 378Chartering of vessels 1 472 1 609 2 044Total 5 248 6 580 7 422
-
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
NO
K m
illio
n
Chartering of vessels Subsea projects
32
- Q2 Presentation 2015 DOF ASA
Subsea: APAC market Construction in Australia slowing down, but being replaced by IRM Reduced spending from operators Competition scene changing
DOF SUB: Still good long term opportunities
Brazil market We expect a slow 2015, with few new tenders and pressure on rates
DOF SUB: In general good backlog, but challenging for vessels that are up for renewal Important with Brazilian flag
Market and outlook
33
- Q2 Presentation 2015 DOF ASA
Market and outlook continued
34
Subsea: North America market Increased bidding activities IMR and light construction vessels to support tie-back
and commissioning operation Increased competition in the spot market, looking for utilisation Several major capital projects are in Tendering stage for 2017
DOF SUB: Maintaining our position. We expect gradually increased market share Flexible business model with chartered-in vessels
Atlantic market We expect Norway to be weak in 2015 We expect UK to be weak in 2015 DOF SUB: Only 3 vessels in the North Sea in 2015. Decent backlog in Q3 but Q4 expected to
be challenging
- Q2 Presentation 2015 DOF ASA
Market and outlook continued
35
Supply: Brazil: We expect a slower 2015, with fewer new tenders, increased competition, pressure
on rates and redelivery of international flagged vessels Expect Petrobras to reduce current fleet size DOF: 1 PSV and 1 AHTS up for renewal late in 2015. Brazilian built and flagged. There are
some opportunities for international vessels using REB flag import capacity
North Sea: We expect the North Sea market for both AHTS and PSV to be weak DOF: Low spot exposure in 2015
Asia Pacific: We see modest tender activity in the region within supply The AHTS/PSV market is holding up, but downward pressure on rates DOF: 3 vessels in the region after Skandi Pacific left for Argentina
- Q2 Presentation 2015 DOF ASA
Guidance Q3 2015:
Good backlog in Q3 2015
All 8 vessels sold were delivered to new owners in YTD 2015, no contribution from them in Q3
Operational EBITDA guidance Q3 2015 in line or slightly weaker than Q2 2015
No change in guidance for full year 2015
Market and outlook continued
36
Thank you Presented by Mons Aase - CEO Hilde Drnen - CFO
- Q2 Presentation 2015 DOF ASA
DISCLAIMER This presentation by DOF ASA designed to provide a high level overview of aspects of the operations of the DOF ASA Group. The material set out in the presentation is current as at 13 Aug 2015. This presentation contains forward-looking statements relating to operations of the DOF ASA Group that are based on managements own current expectations, estimates and projections about matters relevant to DOF ASAs future financial performance. Words such as likely, aims, looking forward, potential, anticipates, expects, predicts, plans, targets, believes and estimates and similar expressions are intended to identify forward-looking statements. References in the presentation to assumptions, estimates and outcomes and forward-looking statements about assumptions, estimates and outcomes, which are based on internal business data and external sources, are uncertain given the nature of the industry, business risks, and other factors. Also, they may be affected by internal and external factors that may have a material effect on future business performance and results. No assurance or guarantee is, or should be taken to be, given in relation to the future business performance or results of the DOF ASA Group or the likelihood that the assumptions, estimates or outcomes will be achieved. While management has taken every effort to ensure the accuracy of the material in the presentation, the presentation is provided for information only. DOF ASA , its officers and management exclude and disclaim any liability in respect of anything done in reliance on the presentation. All forward-looking statements made in this presentation are based on information presently available to management and DOF ASA assumes no obligation to update any forward looking- statements. Nothing in this presentation constitutes investment advice and this presentation shall not constitute an offer to sell or the solicitation of any offer to buy any securities or otherwise engage in any investment activity. You should make your own enquiries and take your own advice (including financial and legal advice) before making an investment in the company's shares or in making a decision to hold or sell your shares.
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DOF ASAHighlightsMain highlights Q2 2015EBITDA Q2 MNOK 976Highlights Q2 2015Highlights Q2 2015Highlights Q2 2015Overview GroupSlide Number 8Slide Number 9Slide Number 10A global playerSlide Number 12Slide Number 13Financials-Management ReportingSlide Number 15Slide Number 16Slide Number 17Slide Number 18Slide Number 19Slide Number 20Slide Number 21Slide Number 22Slide Number 23Slide Number 24Slide Number 25Slide Number 26Slide Number 27DOF Subsea DOF Subsea Group In briefDOF Subsea Group In briefSlide Number 31DOF Subsea ProjectsSlide Number 33Slide Number 34Slide Number 35Slide Number 36Slide Number 37Slide Number 38
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