S.d. Standard Etc Plc · OSL:SDSD
S.d. Standard Etc — S.D. Standard Drilling — Q1 2021 Earnings Presentation
35 slides from S.d. Standard Etc's earnings presentation, May 20, 2021
Slide 1: S.D. Standard Drilling Plc. 1Q 2021 Presentation
S.D. Standard Drilling Plc. 1Q 2021 Presentation 20 May 2021
Slide 2: Important Information
Important Information 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 20 May 2021. The Company does not intend, and does not assume any
Slide 3: Agenda
Agenda I. Highlights II. Company III. PSV Fleet update IV. VLCC and Noble Corp investment update V. Financial information 3
Slide 4: Highlights Q1 2021
Highlights Q1 2021 • Loss after tax of USD 2.1m (USD (10.6)m) due to unrealized loss on financial assets at fair value of USD 2.1m Operation of vessels – EBITDA adj 1Q20 vs 1Q21 • Total cash balance of USD 32.7m (USD 18.8m) (2) • Book Value of Equity of USD 83.5m ~NOK 1.36 per share (3) • Negative E
Slide 5: Highlights cont.
Highlights cont. • Invested USD 9.25 million in Noble Corporation (1) • FS Carrick and FS Aberdour sold for enbloc USD 6.6 million (2) • Term contracts – Standard Viking commenced on a 1 year term contract in February. 1+1 year option periods at increased rates – Standard Olympus commenced on a 60 d
Slide 6: Subsequent events
Subsequent events • Average utilization of 100 % in April 21(1) for the large size Standard vessels, with all the vessels in operation • Average utilization of 89 % in April 21(1) for the medium size vessels in Northern Supply • The Covid-19 is still impacting the offshore market. As the demand for
Slide 7: Agenda
Agenda I. Highlights II. Company III. PSV Fleet update IV. VLCC and Noble Corp investment update V. Financial information 7
Slide 8: Asset Play - following the strategy
Asset Play - following the strategy Timing and executing Low break-even transactions Access to opportunities Modern assets Solid cash position No debt 8
Slide 9: Competitive advantages
Competitive advantages 1 No debt (1) 2 Low overhead costs 3 Modern fleet of vessels 4 Independent position Low-cost and flexible Modern fleet and attractive No interest cost Good cash position structure tech. spec Outsourced operational Efficient and lean No amortization High vessel utilization mana
Slide 10: Agenda
Agenda I. Highlights II. Company III. PSV Fleet update IV. VLCC and Noble Corp investment update V. Financial information 10
Slide 11: Large size vessels in lay up
Large size vessels in lay up Breakdown of laid up North Sea PSV fleet (4Q20) Breakdown of laid up North Sea PSV fleet (currently) A total of 32 North A total of 26 North Sea spec vessels laid Sea spec vessels laid up – however, 24 of up – however, 17 of them are viewed as them were viewed as easy to
Slide 12: Large size vessel dayrates
Large size vessel dayrates Large-size PSV term rates (900m2) Large-size PSV spot rates (900m2) 55 55 Term rates still ~41% above Mar-17 levels 50 50 45 45 40 40 35 +41% 35 USD ('000) USD ('000) 30 30 25 25 20 Last 10yr avg. ~USD 17.1k/d 20 Current market rate USD ~15.1k/d 15 15 Last 5yr avg. ~USD 10
Slide 13: Mid-size vessel dayrates
Mid-size vessel dayrates Mid-size PSV term rates (500-749m2) Mid-size PSV spot rates (500-899m2) 40 40 Term rates still ~31% above Mar-17 35 35 30 30 +31% 25 25 USD ('000) USD ('000) 20 20 Current market rate. USD ~11.6k/d 15 Last 10yr avg. USD ~12.5k/d 15 10 10 Last 5yr avg. USD ~7.5k/d Current mar
Slide 14: Large-size PSV vessels – 100% owned
Large-size PSV vessels – 100% owned Standard vessels (4x) 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% Ownership:
Slide 15: 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 16: Large-size PSV vessels – Simplified contract overview
Large-size PSV vessels – Simplified contract overview Standard vessels (100% owned) 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 Serica Energy (UK) Limited UK Standard Olympus 2014 Kinsale UK • S
Slide 17: Mid-size PSV vessels – Simplified contract overview
Mid-size PSV vessels – Simplified contract overview Northern Supply vessels (28.1% owned) 2021 Vessel Built Client Country Q1 Q2 Q3 Q4 Mid-size Vessels FS Balmoral 2008 Serica Energy (UK) Limited UK FS Kristiansand 2005 Perenco UK FS Braemar 2007 Spot UK FS Bergen 2006 Lay-up UK FS Abergeldie 2008 S
Slide 18: 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 19: 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 20: Combined fleet – Utilization overview large-and medium size PSV’s
Combined fleet – Utilization overview large-and medium size PSV’s Combined fleet utilization 1Q17 to April-21 Standard vessels Northern Supply (100% owned) vessels (28.1% owned) Note: - Vessels unavailable due to dry docking, maintenance, class renewal and other. Utilization does not include vessels
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, 1Q21 ended, 1Q20 2020 2019 Net hire (net of commission) 2 691 109 2 256 658 6 392 401 20 889 109 - - - - Admin expenses (47 283) (47 851) 123 087 (267 813) Technical
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, 1Q21 ended, 1Q20 2020 2019 Net hire (net of commission) 744 127 1 046 579 3 330 101 4 978 926 - - - - Admin expenses (28 905) (27 094) (110
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 1Q20 vs. 1Q21 2019 vs. 2020 Standard vessels Northern Supply Total, pro-rata Standard vessels Northern Supply Total, pro-rata (100% owned) vessels
Slide 24: Explanation of the fair value accounting loss in 1Q21
Explanation of the fair value accounting loss in 1Q21 • 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 25: Agenda
Agenda I. Highlights II. Company III. PSV Fleet update IV. VLCC and Noble Corp investment update V. Financial information 25
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: VLCC supply
VLCC supply VLCC fleet by year of build and orderbook VLCC orderbook % of fleet 80 Scrubber Fitted Scrubber Pending Non-scrubber 60% 70 68 65 3 50% 3 59 60 52 49 50 40% 50 47 Number of VLCCs 37 32 40 39 39 40 37 30% 36 35 34 30 25 22 26 3 30 30 28 28 29 29 18 62 18 24 15 20% 4 22 31 2 20 4 4 18 18 1
Slide 29: VLCC demand
VLCC demand VLCC NB parity VLCC values last 5 years VLCC dayrates 250 100 94,0 100 % 110 90 80 % 100 80 60 % 200 90 70 40 % 69,0 80 150 60 20 % USDm 50 0% 70 40 46,0 -20 % 100 60 30 -40 % 32,5 50 20 1,1% 24,0 21-60 % 50 40 10 -80 % -12,2% -28,2% -34,5% -31,8% 0 -100 % 30 0 -2 0 2 4 6 8 10 12 14 16 1
Slide 30: Ownership of Noble Corporation
Ownership of Noble Corporation – Purchased 500,000 shares in Noble Corporation (“Noble”) at USD 18.5 per share – Noble completed its restructuring-and Chapter 11 process in February – On 25 March Noble announced the acquisition of Pacific Drilling Company LLC – After the acquisition Noble has a flee
Slide 31: Agenda
Agenda I. Highlights II. Company III. PSV Fleet update IV. VLCC and Noble Corp investment update V. Financial information 31
Slide 32: Income statement
Income statement S.D. Standard Drilling – Income statement for 1Q21 Three Months Ended 2021 2020 (Amounts in USD 000) Q1 Q1 Unaudited Unaudited Income Changes in fair value on financial assets at fair value through profit or loss (2 077) (9 461) Changes in fair value on financial assets at fair valu
Slide 33: Balance sheet
Balance sheet S.D. Standard Drilling – Balance sheet for 1Q21 (Amounts in USD 000) Note 31.03.2021 31.12.2020 ASSETS Unaudited Audited Equipment and machinery 1 1 Financial assets at fair value through profit or loss 4.1 56 785 58 862 Total non-current assets 56 785 58 863 Trade and other receivable
Slide 34: Cash flow statement
Cash flow statement S.D. Standard Drilling – Cash flow statement for 1Q21 Three Months Ended 2021 2020 Q1 Q1 (Amounts in USD 000) Unaudited Unaudited CASH FLOWS FROM OPERATING ACTIVITIES Loss for the period before income tax (2 050) (10 583) Unrealised exchange (gain)/loss 3 1 039 Payments to financ
Slide 35: Gd) stanvaro DRILLING
Gd) stanvaro DRILLING
S.D. Standard Drilling — Q1 2021 Earnings Presentation on 6ix