S.d. Standard Etc Plc · OSL:SDSD
S.d. Standard Etc — S.D. Standard Drilling — Q1 2018 Earnings Presentation
26 slides from S.d. Standard Etc's earnings presentation, May 15, 2018
Slide 1: S.D. Standard Drilling Plc. 1Q 2018 Presentation
S.D. Standard Drilling Plc. 1Q 2018 Presentation 15 May 2018
Slide 2: Important Information
Important Information This presentation may contain statements about future events and expectations that are forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as “believes”, “expects”, “anticipates”, “intends”, “es
Slide 3: Agenda
Agenda I. Highlights II. Fleet update III. Financial information 3
Slide 4: Highlights Q1 2018
Highlights Q1 2018 • Profit after tax of USD 0.1m (4Q 17 USD 3.6m) • Successful completion of NOK 100m equity offering • Total cash balance of USD 25.7m (4Q17 USD 15.2m)(3) • Total EBITDA (adj) of USD 0.2m (4Q17 USD 0.1m)(1) • Large-size – 5x Standard Vessels (100% owned) – EBITDA (adj) of USD 0.4 (
Slide 5: Highlights Q1 2018 cont.
Highlights Q1 2018 cont. • Acquisition of two medium size PSV’s of the UT755 LN design at attractive levels – Purchase price for the vessels were USD 2.45 each – Participated in a USD 6.75m equity issue in Northern PSV AS, investing USD 1.72m corresponding to 25.5% ownership • Standard Supplier awar
Slide 6: Subsequent events
Subsequent events • Solid utilization for 5x large Standard Vessels (100% owned) – Average utilization of 98% for the Company’s large PSV’s in April 2018(1) – Standard Supporter – Enquest declared their first well option at increased rates. Estimated 60-90 days – Remaining two well options at increa
Slide 7: Competitive advantage in the current market
Competitive advantage in the current market 1 No debt 2 Low overhead costs 3 Modern fleet of large vessels Low-cost and flexible Modern fleet and attractive No interest cost structure tech. spec Outsourced operational No amortization High vessel utilization management Low break-even Outsourced techn
Slide 8: SDSD has no debt
SDSD has no debt 1 SDSD has a competitive advantage compared to industry peers A C Total debt per 1,000m2 PSV equivalent today Historical large PSV NSEA rates vs. required debt service rate 40 45 000 27 30 40 000 USDm 20 10 35 000 0 Required rate: Company #1 Company #2 Company #3 Company #4 Avg. 30
Slide 9: SDSD has low overhead costs
SDSD has low overhead costs 2 SDSD has a competitive advantage compared to industry peers Corporate overhead per active vessel 2,5 2,1 2,0 USDm/vessel/year 1,5 1,0 1,0 0,8 0,7 0,6 0,6 0,5 0.2 0,0 SDSD SDSD (1) NAO #1 Company SIOFF #2 Company TDW*#3 Company SOFF#4 Company GLF#5 Company HOS Company #6
Slide 10: SDSD has a modern fleet of large PSVs - all working
SDSD has a modern fleet of large PSV’s- all working 3 SDSD has a competitive advantage compared to industry peers Overview of key characteristics of North Sea PSVs in layup 70 12 60 11 50 40 10 No. vessels 69 30 21 20 10 11 4 0 (1) (2) North Sea PSVs in Layup DP1 +15 yrs old <700 m2 deck size Laid-u
Slide 11: Agenda
Agenda I. Highlights II. Fleet update III. Financial information 11
Slide 12: Large-size PSV vessels – 100% owned
Large-size PSV vessels – 100% owned Standard Vessels (5x) Standard Viking Standard Supplier Standard Princess Standard Supporter Standard Provider (2008) (2007) (2008) (2009) (2010) Purchase price: Purchase price: Purchase price: Purchase price: Purchase price: ~USD 13.3m(1) ~USD 13.3m(1) ~USD 13.3m
Slide 13: Mid-size PSV vessels – partly owned
Mid-size PSV vessels – partly owned Northern PSV AS (2x) – New World Supply (6x) – 25.5% owned PSV Opportunity III (7x) – 25.5% owned 26.2% owned 2x vessels 3x vessels 6x vessels 2x vessels 2x vessels Purchase price: Purchase price: Purchase price: Purchase price: Purchase price: ~USD 2.5m(1) ~USD 2
Slide 14: Large-size PSV vessels – contract overview
Large-size PSV vessels – contract overview Standard Vessels (100% owned) 2018 2019 Vessel Built Client Country 2Q 3Q 4Q 1Q 2Q 3Q 4Q Large-size Vessels Standard Viking 2007 Peterson UK Standard Princess 2008 Spot Market UK ~19 days in dry-dock Standard Supplier 2007 Decipher UK Standard Provider 2010
Slide 15: Mid-size PSV vessels – contract overview
Mid-size PSV vessels – contract overview PSV Opportunity III + Northern PSV (25.5% owned) 2018 2019 Vessel Built Client Country 2Q 3Q 4Q 1Q 2Q 3Q 4Q Mid-size Vessels FS Arendal 2006 Repsol UK FS Aberdour 2009 Centrica UK FS Balmoral 2008 Spot Market UK FS Kristiansand 2005 TBN UK FS Braemar 2007 Ine
Slide 16: Large-size PSV vessels – Utilization overview
Large-size PSV vessels – Utilization overview Historical utilization of operating vessels (%) Utilization overview (weighted average) Standard Vessels (100% owned) 100% Weighted 98% Utilization S.Viking S. Princess S. Supplier S.Provider S. Supporter average 90% 93% 1Q17 n.a. 72 % n.a. n.a. n.a. 72
Slide 17: Mid-size PSV vessels – Utilization overview
Mid-size PSV vessels – Utilization overview Historical utilization of operating vessels (%)(1) Utilization overview (weighted average) PSV Opportunity III + Northern PSV Vessels (25.5% owned) 100% FS FS FS FS FS FS Weighted Utilization Aberdour Arendal Balmoral Braemar Kr. Sand Carrick average 90% 9
Slide 18: Large-size PSV vessels – EBITDA overview
Large-size PSV vessels – EBITDA overview 5x Standard Vessels (100% owned) (1) Three months Three months Three months Three months Standard Vessels (USD) ended, 1Q18 ended, 4Q17 ended, 3Q17 ended, 2Q17 2017 Net hire (net of commission) 3 574 353 2 532 687 2 617 337 1 054 623 6 438 583 Admin expenses
Slide 19: Mid-size PSV vessels – EBITDA overview
Mid-size PSV vessels – EBITDA overview 7x PSV Opportunity III Vessels (25.5% owned )(1), pro-rata overview(5) Three months Three months Three months Three months PSV Opportunity III Vessels (USD) (2), pro rata overview ended, 1Q18 ended, 4Q17 ended, 3Q17 ended, 2Q17 2017 Net hire (net of commission)
Slide 20: 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 PSV Opportunity III Vessels (25.5% owned)(2), pro-rata Standard Vessels PSV Opportunity III, pro-rata (100% owned) (25.5% owned) Standard vessels PSV Opportunity III, pro-rata (100% owned) (25.5
Slide 21: Explanation of the fair value accounting gain in 1Q18
Explanation of the fair value accounting gain in 1Q18 • SDSD is classified as an investment entity in accordance with IFRS 10 – Investments, including subsidiaries, are not consolidated but measured at fair value trough profit and loss every quarter based on estimates made by reputable independent v
Slide 22: Agenda
Agenda I. Highlights II. Fleet update III. Financial information 22
Slide 23: Income statement
Income statement S.D. Standard Drilling – Income statement for 1Q18 Three Months Ended 2018 2017 (Amounts in USD 000) Q1 Q1 Unaudited Audited Income Changes in fair value on financial assets at fair value through profit or loss (612) 1 136 Interest income 14 9 Net foreign currency gains or (losses)
Slide 24: Balance sheet
Balance sheet S.D. Standard Drilling – Balance sheet for 4Q17 (Amounts in USD 000) 31.03.2018 31.12.2017 ASSETS Unaudited Audited Equipment and machinery 1 1 Financial asset at fair value through profit or loss 91 945 88 379 Total non-current assets 91 946 88 380 Trade and other receivables 62 42 Se
Slide 25: Cash flow statement
Cash flow statement S.D. Standard Drilling – Cash flow statement for 1Q18 Three Months Ended 2018 2017 (Amounts in USD 000) Q1 Q1 Unaudited Unaudited CASH FLOWS FROM OPERATING ACTIVITIES Profit/(Loss) for the period before income tax 145 1 691 Unrealised exchange (gain)/loss (402) 119 Payments to ac
Slide 26: Gd) stanvaro DRILLING
Gd) stanvaro DRILLING
S.D. Standard Drilling — Q1 2018 Earnings Presentation on 6ix