S.d. Standard Etc Plc · OSL:SDSD
S.d. Standard Etc — S.D. Standard Drilling — Q3 2020 Earnings Presentation
34 slides from S.d. Standard Etc's earnings presentation, Nov 6, 2020
Slide 1: S.D. Standard Drilling Plc. 3Q 2020 Presentation
S.D. Standard Drilling Plc. 3Q 2020 Presentation 6 November 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 Q3 2020
Highlights Q3 2020 • Loss after tax of USD 6.1m (USD 0.6m positive) due to unrealized Operation of vessels – EBITDA adj loss on financial assets at fair value of USD 6.2m 3Q20 vs 3Q19 Northern Supply Standard vessels vessels, pro-rata • (100% owned) (25.5% owned) Total Total cash balance of USD 38.6
Slide 5: Highlights cont.
Highlights cont. • The situation related to the Covid 19, the reduced oil prices and the general reduced activity led to a reduced demand for PSV vessels • The Joint Venture (“JV”) VLCC ”Gustavia S”- Company has 33.3% ownership – Distributed USD 3.67 million to SDSD in the third quarter – In total U
Slide 6: Subsequent events
Subsequent events • The Covid-19 and the reduced oil price are still heavily impacting the offshore market • SDSD has in October purchased 2.6% of Northern Supply AS, increasing its ownership from 25.5% to 28.1% • Average utilization of 78 % in October 20 for the large size Standard vessels • Averag
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 (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 investment update V. 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 (2Q20) Breakdown of laid up North Sea PSV fleet (current) A total of 32 North A total of 24 North Sea spec vessels laid Sea spec vessels laid up – however, 24 of up –
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 ~12% above Mar-17 levels 50 50 45 45 40 40 35 +12% 35 USD ('000) USD ('000) 30 30 25 25 20 Last 10yr avg. ~USD 18.1k/d 20 Sept market rate USD ~12.2k/d 15 15 Last 5yr avg. ~USD 10.4k
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 Term rates still ~9% above Mar-17 40 35 35 30 30 +9% 25 25 USD ('000) USD ('000) 20 20 15 Last 10yr avg. USD ~13.1k/d 15 Sept. USD ~12.3k/d 10 Last 5yr avg. USD ~7.5k/d 10 Current market rate USD ~6.5
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) – 28.1% 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) 2020 Vessel Built Client Country Q1 Q2 Q3 Q4 Large-size Vessels Standard Viking 2007 Spot UK Standard Princess 2008 Spot UK Standard Supplier 2007 Equinor UK Standard Olympus 2014 Inhouse UK • Many available vessels
Slide 17: Mid-size PSV vessels – Simplified contract overview
Mid-size PSV vessels – Simplified contract overview Northern Supply vessels (28.1% owned) 2020 Vessel Built Client Country Q1 Q2 Q3 Q4 Mid-size Vessels FS Aberdour 2009 Inhouse UK FS Balmoral 2008 Serica Energy (UK) Limited UK FS Kristiansand 2005 Fletcher Offshore Limited UK FS Braemar 2007 Serica
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 Oct-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 2Q20 3Q20 Oct-20 Large-size Mid-size Standard vessels Northern Supp
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, 3Q20 ended, 3Q19 2020 YTD 2019 YTD Net hire (net of commission) 1 198 759 6 883 485 4 870 676 16 851 600 - - - - Admin expenses 272 571 (102 916) 164 151 (205 269) Te
Slide 22: Mid-size PSV vessels – EBITDA overview
Mid-size PSV vessels – EBITDA overview 8x Northern Supply vessels (25.5% owned) (1), pro-rata overview Three months Three months Northern Supply vessels (USD) ended, 3Q20 ended, 3Q19 2020 YTD 2019 YTD Net hire (net of commission) 798 277 1 436 774 2 586 375 3 922 231 - - - - Admin expenses (25 052)
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 3Q19 vs. 3Q20 Year to date 2019 vs. 2020 Northern Supply Northern Supply Standard vessels vessels, pro-rata Standard vessels vessels, pro-rata (10
Slide 24: Explanation of the fair value accounting loss in 3Q20
Explanation of the fair value accounting loss in 3Q20 • 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 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”, has secured a senior secured loan facility of up to USD 60 million. As result SDSD received in total USD 19.67 million. The accumulated investment in the JV was USD 36.78m. – TCE est
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 60% 50% 40% 30% 20% 10% 0% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Ageing asset profile and low net fleet growth Source: Clarksons Plat
Slide 29: VLCC demand
VLCC demand VLCC NB parity VLCC values last 5 years VLCC dayrates 100 100 % 110 250 90,0 90 80 % 100 80 60 % 200 90 70 40 % 80 60 65,0 20 % 150 USDm 50 0% 70 40 -20 % 100 43,0 60 30 -40 % 30,0 50 20 -60 % 50 22,0 16 40 10 -80 % 5,9% -8,8% -25,2% -31,4% -26,5% 0 -100 % 30 0 -2 0 2 4 6 8 10 12 14 16 1
Slide 30: Agenda
Agenda I. Highlights II. Company III. PSV Fleet update IV. VLCC investment update V. Financial information 30
Slide 31: Income statement
Income statement S.D. Standard Drilling – Income statement for 3Q20 Three Months Ended Nine Months Ended 2020 2019 2020 2019 (Amounts in USD 000) Q3 Q3 Q3 Q3 Unaudited Unaudited Income Changes in fair value on financial assets at fair value through profit or loss (6 195) 1 031 (22 963) 8 653 Changes
Slide 32: Balance sheet
Balance sheet S.D. Standard Drilling – Balance sheet for 3Q20 (Amounts in USD 000) 30.09.2020 31.12.2019 ASSETS Unaudited Audited Equipment and machinery 1 1 Financial assets at fair value through profit or loss 68 078 76 751 Total non-current assets 68 079 76 752 Trade and other receivables 30 10 C
Slide 33: Cash flow statement
Cash flow statement S.D. Standard Drilling – Cash flow statement for 3Q20 Nine Months Ended 2020 2019 Q3 Q3 (Amounts in USD 000) Unaudited Unaudited CASH FLOWS FROM OPERATING ACTIVITIES (Loss)/Profit for the period before income tax (20 314) 8 116 Unrealised exchange (gain)/loss 469 303 Payments to
Slide 34: Gd) stanvaro DRILLING
Gd) stanvaro DRILLING
S.D. Standard Drilling — Q3 2020 Earnings Presentation on 6ix