S.d. Standard Etc Plc · OSL:SDSD
S.d. Standard Etc — S.D. Standard Drilling — Q4 2018 Earnings Presentation
26 slides from S.d. Standard Etc's earnings presentation, Feb 14, 2019
Slide 1: S.D. Standard Drilling Plc. 4Q 2018 Presentation
S.D. Standard Drilling Plc. 4Q 2018 Presentation 14 February 2019
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 Q4 2018
Highlights Q4 2018 • Profit after tax of USD 1.56m (4Q 17 USD 3.6m) • Total cash balance of USD 25.6m (4Q17 USD 15.2m)(1) • Total Book Value of Equity of USD 111.3m (NOK 1.68 per share) (2) • Total EBITDA (adj) of USD 0.3m (4Q17 USD (0.1)m)(3) • Large-size – 5x Standard vessels (100% owned) – EBITDA
Slide 5: Highlights Q4 2018 cont.
Highlights Q4 2018 cont. • SDSD increased its ownership in New World Supply Ltd from 26.2% to 34.4% at attractive levels – Purchase price Nov 18 for 8.2% was USD 1.83m – Weighted average implicit purchase price of USD 4.4m per vessel • Standard Supporter awarded a 1x well (estimated 100 days) contra
Slide 6: Full year 2018
Full year 2018 • Profit after tax of USD (1.2)m (2017 USD (1.2)m) • Total EBITDA (adj) of USD 0.9m (2017 USD (1.3)m)(1) • Large-size – 5x Standard vessels (100% owned) – EBITDA (adj) of USD 1.7 (2017 USD (0.6)m) (1) – Utilization of ~91% (2017 ~80%) (2) • Mid-size – 9x Northern Supply vessels (25.5%
Slide 7: Subsequent events
Subsequent events • Average utilization of 87% in Jan-19 for the large size Standard vessels (100% owned) • Average utilization of 72 % in Jan-19(1) for the medium size vessels in Northern Supply (25.5% owned) • Standard Supporter commenced on a ~100 day contract with Repsol 21 Jan 19 — Charter rate
Slide 8: 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 9: Low overhead costs and low breakeven rates
Low overhead costs and low breakeven rates SDSD has a competitive advantage compared to industry peers Corporate overhead per active vessel per year Average cash Break-even for SDSD 1,8 8 000 Average cash break-even for SDSD, all-in 1,6 costs (USD / Day) for PSV vessels 1,6 7 000 – Large-size: USD
Slide 10: Lack of modern large size vessels available in the market
Lack of modern large size vessels available in the market SDSD has a competitive advantage compared to industry peers Overview of PSV in layup in the North Sea 60 11 50 9 40 No. vessels 9 30 57 20 22 10 2 4 0 (1) PSV Layups Non DP / DP1 >15 Yrs Old <700m² Deck >2 Yrs Layup Require Survey Low Risk to
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 New World Supply (4x) – Northern Supply vessels (9x) – 25.5% owned 34.4% owned(3) 2x vessels 3x vessels 4x vessels 2x vessels 2x vessels Purchase price: Purchase price: Purchase price: Purchase price: Purchase price: ~USD 2.5m(1) ~USD 2.5m(1) ~USD 4.4m(1)(3) ~USD
Slide 14: Large-size PSV vessels – Simplified contract overview
Large-size PSV vessels – Simplified contract overview Standard vessels (100% owned) 2019 Vessel Built Client Country 1Q 2Q 3Q 4Q Large-size Vessels Standard Viking 2007 Peterson UK Standard Princess 2008 Allseas UK Standard Supplier 2007 Allseas UK Standard Provider 2010 Allseas UK Standard Supporte
Slide 15: Mid-size PSV vessels – Simplified contract overview
Mid-size PSV vessels – Simplified contract overview Northern Supply vessels (25.5% owned) 2019 Vessel Built Client Country 1Q 2Q 3Q 4Q Mid-size Vessels FS Arendal 2006 Repsol UK FS Aberdour 2009 Warm Lay Up UK FS Balmoral 2008 Spot UK FS Kristiansand 2005 Spot UK FS Braemar 2007 Enquest/Spot UK FS B
Slide 16: Large-size PSV vessels – Utilization overview
Large-size PSV vessels – Utilization overview Historical utilization of operating vessels (%) Utilization overview (weighted average) Weighted 100% 93% Utilization S.Viking S. Princess S. Supplier S.Provider S. Supporter average 95% 90% 1Q17 n.a. 72 % n.a. n.a. n.a. 72 % 90% 90% 2Q17 39 % 96 % 12 %
Slide 17: Mid-size PSV vessels – Utilization overview
Mid-size PSV vessels – Utilization overview Historical utilization of operating vessels (%)(1) Utilization overview (weighted average) 100% 98% FS FS FS FS FS FS FS FS Weighted Utilization Aberdour Arendal Balmoral Kr. Sand Braemar Carrick Crathes Aberg. average 98% 1Q17 29 % 100 % n.a 100 % n.a. n.
Slide 18: Large-size PSV vessels – EBITDA overview
Large-size PSV vessels – EBITDA overview 5x Standard vessels (100% owned) (1) Three months Three months Standard vessels (USD) ended, 4Q18 ended, 4Q17 2018 2017 Net hire (net of commission) 4 456 512 2 532 687 15 421 401 6 438 583 Admin expenses (66 770) (38 401) (235 195) (113 381) Technical and Co
Slide 19: Mid-size PSV vessels – EBITDA overview
Mid-size PSV vessels – EBITDA overview 9x Northern Supply vessels (25.5% owned) (1), pro-rata overview Three months Three months Northern Supply vessels (USD) ended, 4Q18 ended, 4Q17 2018 2017 Net hire (net of commission) 820 431 580 849 3 331 397 1 787 716 Admin expenses (28 746) (21 354) (117 272)
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 Northern Supply vessels (25.5% owned), pro-rata Northern Supply Northern Supply Standard vessels 4Q17 vs.pro-rata vessels, 4Q18 Standard vessels 2017 vessels,vs. 2018 pro-rata (100% owned) (25.5
Slide 21: Explanation of the fair value accounting gain in 4Q18
Explanation of the fair value accounting gain in 4Q18 • 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 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 4Q18 Three Months Ended Twelve Months Ended 2018 2017 2018 2017 (Amounts in USD 000) Q4 Q4 Q4 Q4 Unaudited Audited Income Changes in fair value on financial assets at fair value through profit or loss 2 303 4 001 (694) (2 583) Changes in
Slide 24: Balance sheet
Balance sheet S.D. Standard Drilling – Balance sheet for 4Q18 (Amounts in USD 000) 31.12.2018 31.12.2017 ASSETS Unaudited Audited Equipment and machinery 1 1 Financial assets at fair value through profit or loss 94 966 88 379 Total non-current assets 94 967 88 380 Trade and other receivables 25 42 S
Slide 25: Cash flow statement
Cash flow statement S.D. Standard Drilling – Cash flow statement for 4Q18 Twelve Months Ended 2018 2017 (Amounts in USD 000) Q4 Q4 Unaudited Unaudited CASH FLOWS FROM OPERATING ACTIVITIES Profit/(Loss) for the period before income tax (1 235) (1 171) Unrealised exchange loss/(gain) 698 (303) Other g
Slide 26: Gd) stanvaro DRILLING
Gd) stanvaro DRILLING
S.D. Standard Drilling — Q4 2018 Earnings Presentation on 6ix