S.d. Standard Etc Plc · OSL:SDSD
S.d. Standard Etc — S.D. Standard Drilling — Q1 2019 Earnings Presentation
27 slides from S.d. Standard Etc's earnings presentation, May 15, 2019
Slide 1: S.D. Standard Drilling Plc. 1Q 2019 Presentation
S.D. Standard Drilling Plc. 1Q 2019 Presentation 15 May 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 Q1 2019
Highlights Q1 2019 • Profit after tax of USD 3m (USD 0.1m) (1) • Total cash balance of USD 26.3m (USD 25.7m)(2) • Total Book Value of Equity of USD 114.3 m ~NOK 1.71 per share (3) • Total EBITDA (adj) of USD 0.5m (USD 0.2m)(4) • Large-size – 5x Standard vessels (100% owned) – EBITDA (adj) of USD 0.6
Slide 5: Highlights Q1 2019 cont.
Highlights Q1 2019 cont. • SDSD secured term contracts and backlog at rising rates – Standard Princess firm 185 day contract with direct continuation from 1 April o Total option period ~ 14 weeks with a mix of monthly, weekly and daily options – Standard Supplier firm 185 day contract with commencem
Slide 6: Subsequent events
Subsequent events • Acquisition of an additional large size PSV – Standard Olympus – Purchase price uf USD 8.1m through a court process – 2014 Norwegian built, 800 m2 deck space of the Havyard 832 design – 100% owned by SDSD through its wholly owned subsidiary Wanax AS • Sale of four (4) medium size
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: Low overhead costs and low breakeven rates
Low overhead costs and low breakeven rates • Average cash break-even for SDSD, all-in costs (USD / Day) for PSV vessels – Large-size: USD 7,000 per day – Mid-size: USD 6,700 per day • Overhead cost of ~USD 550 per vessel per day • With competitive cost, all equity and no debt, SDSD is positioned to
Slide 9: Lack of modern large size vessels available in the market
Lack of modern large size vessels available in the market Breakdown of laid up North Sea PSV fleet 50 45 12 40 35 8 Number of PSVs 30 Only 18 North Sea spec vessels in lay-up 25 47 9 20 15 11 10 5 6 0 1 Total layup >= 15 years old No DP2 <700m2 deck area >=3 years stacked Overdue survey Easily react
Slide 10: Signs of recovery – large vessels leading the way
Signs of recovery – large vessels leading the way Increased tender activity Increased rig activity Large-size PSV term rates (900m2) Mid-size PSV term rates (500-750m2) 55 35 Term rates have increased by ~91% since Mar-17 Term rates have increased by ~53% since Mar-17 50 30 45 40 25 35 +91% +53%
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 (6x) Standard Viking Standard Supplier Standard Princess Standard Supporter Standard Provider Standard Olympus (2008) (2007) (2008) (2009) (2010) (2014) Purchase price: Purchase price: Purchase price: Purchase price: Purchase price: Purchase price
Slide 13: Mid-size PSV vessels – Partly owned
Mid-size PSV vessels – Partly owned Northern Supply vessels (8x) – 25.5% owned 2x vessels 2x vessels 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:
Slide 14: Transactions in April 2019
Transactions in April 2019 • Sale of vessels – In April 2019 NWS sold the remaining four (4) medium size vessels o Sold at significantly higher value compared to SDSD’s acquisition price o 2013 built at Damen SG yard with the 3300 CD design o Vessels have been in lay up in Norway since late 2016 o I
Slide 15: Large-size PSV vessels – Simplified contract overview
Large-size PSV vessels – Simplified contract overview Standard vessels (100% owned) 2019 2020 Vessel Built Client Country 1Q 2Q 3Q 4Q 1Q Large-size Vessels Standard Viking 2007 Peterson UK Standard Princess 2008 TBD UK Standard Supplier 2007 TBD UK Standard Provider 2010 Ithaca UK Standard Supporter
Slide 16: Mid-size PSV vessels – Simplified contract overview
Mid-size PSV vessels – Simplified contract overview Northern Supply vessels (25.5% owned) 2019 2020 Vessel Built Client Country 1Q 2Q 3Q 4Q 1Q Mid-size Vessels FS Arendal 2006 Repsol UK FS Aberdour 2009 Spirit Energy UK FS Balmoral 2008 Spot UK FS Kristiansand 2005 GAC UK FS Braemar 2007 Peterson UK
Slide 17: Large-size PSV vessels – Utilization overview
Large-size PSV vessels – Utilization overview Historical utilization of operating vessels (%) Utilization overview (weighted average) 99% Weighted 100% Apr-19 93% Utilization S.Viking S. Princess S. Supplier S.Provider S. Supporter average 95% 90% 1Q18 100 % 100 % 65 % 100 % 100 % 93 % 90% 90% 2Q18
Slide 18: 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% 1Q18 100 % 99 % 100 % 100 % 69 %
Slide 19: 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, 1Q19 ended, 1Q18 2018 2017 Net hire (net of commission) 4 134 429 3 574 353 15 421 401 6 438 583 Admin expenses (56 943) (62 294) (235 195) (113 381) Technical and Co
Slide 20: 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, 1Q19 ended, 1Q18 2018 2017 Net hire (net of commission) 895 341 569 163 3 331 397 1 787 716 Admin expenses (25 506) (18 290) (117 272)
Slide 21: 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 1Q18 vs.pro-rata vessels, 1Q19 Full year Standard vessels 2017 vessels, vs. 2018 pro-rata (100% o
Slide 22: Explanation of the fair value accounting gain in 1Q19
Explanation of the fair value accounting gain in 1Q19 • 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 23: Agenda
Agenda I. Highlights II. Fleet update III. Financial information 23
Slide 24: Income statement
Income statement S.D. Standard Drilling – Income statement for 1Q19 Three Months Ended 2019 2018 (Amounts in USD 000) Q1 Q1 Unaudited Unaudited Income Changes in fair value on financial assets at fair value through profit or loss 2 948 (612) Interest income 45 14 Net foreign currency gains or (losse
Slide 25: Balance sheet
Balance sheet S.D. Standard Drilling – Balance sheet for 1Q19 (Amounts in USD 000) 31.03.2019 31.12.2018 ASSETS Unaudited Audited Equipment and machinery 1 1 Financial asset at fair value through profit or loss 98 162 94 966 Total non-current assets 98 163 94 967 Trade and other receivables 39 25 Cu
Slide 26: Cash flow statement
Cash flow statement S.D. Standard Drilling – Cash flow statement for 1Q19 Three Months Ended 2019 2018 Q1 Q1 (Amounts in USD 000) Unaudited Unaudited CASH FLOWS FROM OPERATING ACTIVITIES Profit/(Loss) for the period before income tax 2 984 145 Unrealised exchange (gain)/loss (87) (402) Payments to f
Slide 27: Gd) stanvaro DRILLING
Gd) stanvaro DRILLING
S.D. Standard Drilling — Q1 2019 Earnings Presentation on 6ix