S.d. Standard Etc Plc · OSL:SDSD
S.d. Standard Etc — S.D. Standard Drilling — Q1 2020 Earnings Presentation
34 slides from S.d. Standard Etc's earnings presentation, May 14, 2020
Slide 1: S.D. Standard Drilling Plc. 1Q 2020 Presentation
S.D. Standard Drilling Plc. 1Q 2020 Presentation 14 May 2020
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. Company III. PSV Fleet update IV. VLCC update V. Financial information 3
Slide 4: Highlights Q1 2020
Highlights Q1 2020 • Loss after tax of USD 10.6m (USD 3m)(1) due to unrealized loss on financial assets at fair value of USD 9.5m Operation of vessels – EBITDA adj Northern Supply 1Q20 vs 1Q19 • Standard vessels vessels, pro-rata Total cash balance of USD 18.8m (USD 26.3m)(2) (100% owned) (25.5% own
Slide 5: Highlights cont.
Highlights cont. • The situation related to the Covid 19 and the reduced oil price led to a reduced demand for PSV vessels • Zeta Owners Inc- Company has 33.3% ownership – New built VLCC ECO design, Gustavia S, delivered from Daewoo, Korea on 23 January 2020 – Purchase price for the vessel USD 106m
Slide 6: Subsequent events
Subsequent events • Covid-19 and reduced oil price are still heavily impacting the offshore market • Average utilization of 67% in April 20 for the large size Standard vessels • Average utilization of 84 % in April 20(1) for the medium size vessels in Northern Supply (25.5% owned) • SDSD has in the
Slide 7: Agenda
Agenda I. Highlights II. Company III. PSV Fleet update IV. VLCC 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 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 manageme
Slide 10: Agenda
Agenda I. Highlights II. PSV Fleet update III. VLCC investment update IV. Financial information 10
Slide 11: Impact of Covid-19 and reduced oil price - Increasing number of large size vessels in lay up
Impact of Covid-19 and reduced oil price - Increasing number of large size vessels in lay up Breakdown of laid up North Sea PSV fleet (4Q19) Breakdown of laid up North Sea PSV fleet A total of 26 North Sea spec vessels laid up – however, 18 of them are viewed as easy to Only 9 North Sea reactivate s
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 ~25% above Mar-17 levels 50 50 45 45 40 40 35 +25% 35 USD ('000) USD ('000) 30 30 25 25 Last 5yr avg. USD ~9.9k/d Last 10yr avg. ~USD 18.8k/d 20 20 15 15 Last 5yr avg. ~USD 10.6k/d 1
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 ~21% above Mar-17 35 35 30 30 +21% 25 25 Last 5yr avg. USD ~9.2k/d USD ('000) USD ('000) 20 20 15 Last 10yr avg. USD ~13.6k/d 15 10 10 Last 5yr avg. USD ~7.7k/d Current market rate
Slide 14: Large-size PSV vessels – 100% owned
Large-size PSV vessels – 100% owned Standard vessels (4x) Sales in 2019 Standard Viking Standard Supplier Standard Princess Standard Olympus Standard Provider Standard Supporter (2008) (2007) (2008) (2014) (2010) (2009) Purchase price: Purchase price: Purchase price: Purchase price: Purchase price:
Slide 15: 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 16: Large-size PSV vessels – Simplified contract overview
Large-size PSV vessels – Simplified contract overview Standard vessels (100% owned) Vessel Built Client Country Q1 Q2 Q3 Q4 Large-size Vessels Standard Viking 2007 Peterson UK Standard Princess 2008 Spot UK Standard Supplier 2007 Spot UK Standard Olympus 2014 Inhouse UK • Challenging markets with ma
Slide 17: Mid-size PSV vessels – Simplified contract overview
Mid-size PSV vessels – Simplified contract overview Northern Supply vessels (25.5% owned) Vessel Built Client Country Q1 Q2 Q3 Q4 Mid-size Vessels FS Arendal 2006 Inhouse UK FS Aberdour 2009 Inhouse UK FS Balmoral 2008 Ithaca UK FS Kristiansand 2005 Fletcher Offshore Limited UK FS Braemar 2007 Seric
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 1Q18 100 % 100 % 65 % 100 % 100 % n.a. 93 % 2Q18 100 % 73 % 98 % 100 % 99 % n.a. 95 % 3Q18 100 % 81 %
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 1Q18 100 % 99 % 100 % 100 % 69 % n.a. n.a. n.a. 98 % 2Q18 100 % 100 % 63 % 100 % 100 % 62
Slide 20: Combined fleet – Utilization overview
Combined fleet – Utilization overview large-and medium size PSV’s Combined fleet utilization 1Q17 to Apr-20 100% 90% 80% 70% 60% Utilization (%) 50% 40% 30% 20% 10% 0% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 Apr-20 Large-size Mid-size Standard vessels Northern Supply (100% o
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, 1Q20 ended, 1Q19 2019 2018 Net hire (net of commission) 2 256 658 4 134 429 20 889 109 15 421 401 - - - Admin expenses (47 851) (56 943) (267 813) (235 195) Technical
Slide 22: 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, 1Q20 ended, 1Q19 2019 2018 Net hire (net of commission) 1 046 579 895 341 4 978 926 3 331 397 - - - Admin expenses (27 094) (25 506) (
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 (25.5% owned), pro-rata 1Q19 vs. 1Q20 Full year 2018 vs. 2019 Northern Supply Northern Supply Standard vessels vessels, pro-rata Standard vessels vessels, pro-rata (100%
Slide 24: Explanation of the fair value accounting gain in 1Q20
Explanation of the fair value accounting gain in 1Q20 • 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. PSV Fleet update III. VLCC investment update IV. Financial information 25
Slide 26: VLCC «Gustavia S»- Commercial
VLCC «Gustavia S»- Commercial – Purchase price for the vessel USD 106m – Commenced on a fixed charter contract mid April with completion mid of June 2020 – From Mexico to Korea – TCE estimate of approx. USD 35 000 from the delivery of Gustavia S end of January to mid June 2020 – Opex of ~USD 8 100/d
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 Fleet status mid-Feb 2020: 813 VLCCs on the water 63 VLCCs on order 82 non-scrubber VLCCs turning 20-years old 2020-2022 302 VLCCs will have scrubbers (34%) Ageing asset profile and low net fleet growth Source: Clarksons
Slide 29: VLCC demand
VLCC demand VLCC NB parity VLCC values last 5 years VLCC dayrates 120 100 % 110 250 100 80 % 100 100 60 % 200 90 40 % 80 20 % 80 75 150 USDk/day USDm USDm 60 0% 70 -20 % 52 60 100 40 -40 % 40 50 -60 % 20 50 25 -80 % 40 0 -100 % 30 0 -2 0 2 4 6 8 1012141618202224 Age scrap Premia (%) VLCC VLCC VLCC 5
Slide 30: Agenda
Agenda I. Highlights II. PSV Fleet update III. VLCC investment update IV. Financial information 30
Slide 31: Income statement
Income statement S.D. Standard Drilling – Income statement for 1Q20 Three Months Ended 2020 2019 (Amounts in USD 000) Q1 Q1 Unaudite d Unaudited Income Changes in fair value on financial assets at fair value through profit or loss (9 461) 2 948 Interest income 37 45 Net foreign currency (losses) or
Slide 32: Balance sheet
Balance sheet S.D. Standard Drilling – Balance sheet for 1Q20 (Amounts in USD 000) 31.03.2020 31.12.2019 ASSETS Unaudited Audited Equipment and machinery 1 1 Financial asset at fair value through profit or loss 101 257 76 751 Total non-current assets 101 258 76 752 Trade and other receivables 27 10
Slide 33: Cash flow statement
Cash flow statement S.D. Standard Drilling – Cash flow statement for 1Q20 Three Months Ended 2020 2019 Q1 Q1 (Amounts in USD 000) Unaudited Unaudited CASH FLOWS FROM OPERATING ACTIVITIES Profit/(Loss) for the period before income tax (10 583) 2 984 Unrealised exchange (gain)/loss 1 039 (87) Payments
Slide 34: Gd) stanvaro DRILLING
Gd) stanvaro DRILLING
S.D. Standard Drilling — Q1 2020 Earnings Presentation on 6ix