S.d. Standard Etc Plc · OSL:SDSD
S.d. Standard Etc — S.D. Standard Drilling — Q2 2021 Earnings Presentation
29 slides from S.d. Standard Etc's earnings presentation, Aug 26, 2021
Slide 1: S.D. Standard Drilling Plc. 2Q 2021 Presentation
S.D. Standard Drilling Plc. 2Q 2021 Presentation 26 August 2021
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation (the "Presentation") has been produced by S.D. Standard Drilling Plc. (the "Company", and together with its subsidiaries the "Group") solely for information purposes. This Presentation is dated 26 August 2021. The Company does not intend, and does not ass
Slide 3: 2Q21 Highlights
2Q21 Highlights Financials Adj. EBITDA PSVs – 2q21 vs. 2q20 • Profit after tax of USD 8.3m (USD -3.6m) incl. unrealized gains from investment portfolio and financial assets • Adj. EBITDA of USD 0.9m (USD -1.5m) (1) – whereof USD 0.8m from the large-sized PSVs • Total cash balance of USD 10.9m (USD 3
Slide 4: Subsequent events
Subsequent events Financials • Sold all shares in Noble Corporation, realizing a profit of USD 2m • Completed sale of Standard Olympus, receiving gross USD 7.5m • Cancelled 8m treasury shares, total number of outstanding shares are then 524.5m Commercial/ Investment update • Strengthened investment
Slide 5: Company update
Company update Investment Portfolio • Weatherford: Purchased 0.75m shares at USD 14.1 in 2q21 • Other investments • Cash of USD 25m per August (1) Asset portfolio • Investments in medium- and large size PSVs • Investment in the VLCC "Gustavia S" (1) Cash include SD Standard Drilling Plc only and the
Slide 6: Strategy update
Strategy update Investment theme • Previously: Playing the cycles through physical assets and levered cases Liquid investments • Future: Liquid investments within shipping, offshore, energy, renewables and commodities Focus areas Timing and • Opportunistically build portfolio of liquid investments S
Slide 7: Investment Universe – Playing the Different Cycles
Investment Universe – Playing the Different Cycles Liquid investments in shipping, offshore, energy and renewables Shipping/ Offshore/ Renewables Liquid investments in cyclical commodities ~200 companies / ~USD 2,000bn cap Commodities ~USD 20,000bn+ Source: Bloomberg 7
Slide 8: Investment Portfolio - Main investments
Investment Portfolio- Main investments Weatherford International Plc (WFRD) • Purchased 0.75m shares in Weatherford (WFRD) at USD 14.1/sh, corresponding to USD 10.6m • WFRD completed its restructuring- and Chapter 11 process in late 2019 • Leading wellbore- and production solution company • Has dive
Slide 9: PSVs – Contract overview
PSVs – Contract overview 2021 Vessel Built Client Country Q1 Q2 Q3 Q4 Large-size Vessels Standard Viking 2007 Shell UK UK Standard Princess 2008 CNR UK Standard Supplier 2007 ASCO UK Standard Olympus 2014 SOLD UK 2021 Vessel Built Client Country Q1 Q2 Q3 Q4 Mid-size Vessels FS Balmoral 2008 Serica E
Slide 10: PSVs – Commercial update large-size PSVs
PSVs – Commercial update large-size PSVs Large-size PSV term rates (900m2) Large-size PSV spot rates (900m2) 55 55 Term rates still ~47% above Mar-17 levels 50 50 45 45 40 40 +47% Current market rate ~USD 11.0k/d 35 35 USD ('000) USD ('000) 30 30 25 25 20 20 Current market Last 10yr avg. ~USD 16.6k/
Slide 11: PSVs – Commercial update mid-size PSVs
PSVs – Commercial update mid-size PSVs Mid-size PSV term rates (500-749m2) Mid-size PSV spot rates (500-899m2) 40 Term rates still ~28% above Mar-17 40 35 35 30 30 25 25 USD ('000) USD ('000) +28% 20 20 Current market rate. USD ~12.0k/d 15 15 Last 10yr avg. USD ~12.2k/d 10 10 Last 5yr avg. USD ~7.6k
Slide 12: PSVs – Fleet utilization
PSVs – Fleet utilization Combined fleet utilization 1Q17 to July-21 100% 90% 80% Utilization (%) 70% 60% 50% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q21 1Q21 2Q21 Jul-21 Large-size Mid-size Note: Standard vessels Northern Supply - Vessels unavailable due to dry do
Slide 13: VLCCs – Limited orderbook
VLCCs – Limited orderbook VLCC fleet by year of build and orderbook VLCC orderbook % of fleet 60% 80 Scrubber Fitted Scrubber Pending Non-scrubber 70 68 66 50% 3 61 60 53 40% 51 51 50 47 Number of VLCCs 37 34 39 39 30% 40 37 36 31 27 25 33 34 22 3 32 32 31 30 65 28 29 17 30 1 20% 24 12 12 31 1 1 4 1
Slide 14: VLCCs – Limited orderbook
VLCCs – Limited orderbook VLCC NB parity VLCC values last 5 years VLCC dayrates 120 0% 110 250 -10 % 100 97,0 100 200 -20 % 90 -30 % 80 80 -40 % 150 72,0 USDm 60 -50 % 70 -60 % 100 50,0 60 40 -70 % 36,0 50 25 -80 % 50 27,0 20 40 -90 % -5% -17% -30% -36% -34% 0 Aug-21 0 -100 % 30 Jan Feb Mar Apr May
Slide 15: Appendix
Appendix Gd) stanvarp DRILLING
Slide 16: Income statement
Income statement S.D. Standard Drilling – Income statement for 2Q21 Three Months Ended Six Months Ended 2021 2020 2021 2020 (Amounts in USD 000) Q2 Q2 Q2 Q2 Unaudited Unaudited Unaudited Unaudited Income Changes in fair value on financial assets at fair value through profit or loss 2 166 (7 307) 89
Slide 17: Balance sheet
Balance sheet S.D. Standard Drilling – Balance sheet for 2Q21 (Amounts in USD 000) Note 30.06.2021 31.12.2020 ASSETS Unaudited Audited Equipment and machinery 1 1 Financial assets at fair value through profit or loss 4.1 59 568 58 862 Total non-current assets 59 569 58 863 Trade and other receivable
Slide 18: Cash flow statement
Cash flow statement S.D. Standard Drilling – Cash flow statement for 2Q21 Six Months Ended 2021 2020 Q2 Q2 (Amounts in USD 000) Unaudited Unaudited CASH FLOWS FROM OPERATING ACTIVITIES Profit/(Loss) for the period before income tax 8 283 (14 169) Unrealised exchange (gain)/loss 5 627 Payments to acq
Slide 19: Large-size PSV vessels – 100% owned
Large-size PSV vessels – 100% owned (4x) Standard vessels (3x) Standard Viking Standard Supplier Standard Princess Standard Olympus (2008) (2007) (2008) (2014) Purchase price: Purchase price: Purchase price: Purchase price: ~USD 13.3m(1) ~USD 13.3m(1) ~USD 13.3m(1) ~USD 8.1m(1) Ownership: 100% Owner
Slide 20: Mid-size PSV vessels – Partly owned
Mid-size PSV vessels – Partly owned Northern Supply vessels (6x) – 28.1% owned 1x vessel 1x vessel 2x vessels 2x vessels Purchase price: Purchase price: Purchase price: Purchase price: ~USD 2.5m(1) ~USD 2.5m(1) ~USD 5.4m(1) ~USD 5.9m(1) Ownership: 25.5% Ownership: 25.5% Ownership: 25.5% Ownership: 2
Slide 21: Large-size PSV vessels – EBITDA overview
Large-size PSV vessels – EBITDA overview 4x Standard vessels (100% owned) (1) Three months Three months Standard Vessels (USD) ended, 2Q21 ended, 2Q20 2021 YTD 2020 YTD Net hire (net of commission) 3 618 993 1 415 259 6 310 102 3 671 917 - - - - Admin expenses (52 784) (60 569) (100 067) (108 420) T
Slide 22: Mid-size PSV vessels – EBITDA overview
Mid-size PSV vessels – EBITDA overview 8x Northern Supply vessels (28.1% owned) (1), pro-rata overview Three months Three months Northern Supply Vessels ended, 2Q21 ended, 2Q20 2021 YTD 2020 YTD Net hire (net of commission) 862 692 741 519 1 606 819 1 788 098 - - - - Admin expenses (24 112) (24 843)
Slide 23: Summary – Adj. EBITDA excluding dry docking and non-recurring costs
Summary – Adj. EBITDA excluding dry docking and non-recurring costs (1) Standard vessels (100% owned) and Northern Supply vessels (28.1% owned), pro-rata 2Q20 vs. 2Q21 2020 vs. 2021 Standard vessels Northern Supply Total, pro-rata Standard vessels Northern Supply Total, pro-rata (100% owned) vessels
Slide 24: Large-size PSV vessels – Utilization overview
Large-size PSV vessels – Utilization overview Historical utilization of operating vessels (%) Weighted Utilization S.Viking S. Princess S. Supplier S.Provider (1) S. Supporter (1) S. Olympus average 1Q19 100 % 100 % 88 % 79 % 78 % n.a. 89 % 2Q19 100 % 99 % 100 % 98 % 86 % 63 % 93 % 3Q19 99 % 100 % 1
Slide 25: Mid-size PSV vessels – Utilization overview
Mid-size PSV vessels – Utilization overview Historical utilization of operating vessels (%) FS FS FS FS FS FS FS FS Weighted Utilization Aberdour Arendal Balmoral Kr. Sand Braemar Carrick Crathes Aberg. average 1Q19 - 100 % 53 % 81 % 90 % 94 % - 65 % 80 % 2Q19 89 % 100 % 89 % 100 % 92 % 82 % - 79 %
Slide 26: VLCC «Gustavia S» - Commercial
VLCC «Gustavia S»- Commercial – Purchase price of USD 106m – The Joint Venture owning company (“JV”) of “Gustavia S”, secured in 2020 a senior secured loan facility of up to USD 60 million, resulting to a distribution to SDSD received of total USD 19.67 million. The accumulated investment in the JV
Slide 27: VLCC «Gustavia S» - Technical
VLCC «Gustavia S»- Technical • Builder : Daewoo Shipbuilding & Marine Engineering • Built : January 2020 • Ship Type: Oil Tanker • Classification Society: DNVGL • Class Notations : +1A Tanker for oil, BIS, BWM (T), Clean, CMON, COAT-PSPC(B,C), CSR, E0, ESP, LCS, NAUT (NAV), Recycable, SPM, TMON (oil
Slide 28: Explanation of the fair value accounting loss in 2Q21
Explanation of the fair value accounting loss in 2Q21 • SDSD is classified as an investment entity in accordance with IFRS 10 – Investments, including subsidiaries, are not consolidated but measured at fair value through profit and loss every quarter based on estimates made by reputable independent
Slide 29: Gd) stanvarp DRILLING
Gd) stanvarp DRILLING
S.D. Standard Drilling — Q2 2021 Earnings Presentation on 6ix