Prosafe SE · OSL:PRS
Prosafe — Q3 2005 Earnings Presentation
21 slides from Prosafe's earnings presentation, Oct 21, 2005
Slide 1: Presentation of 3rd quarter 2005
Presentation of 3rd quarter 2005 Oslo, 21 October 2005
Slide 2: Agenda
Agenda § The quarter in brief § Financial result for 3rd quarter 2005 § Business divisions – status, strategy and outlook § Status – Norwegian Tonnage Tax regime § Summary 2
Slide 3: Q3 2005 in brief
Q3 2005 in brief § Best quarterly result ever § Strong operational performance § New FPSO project in Brazil § New accommodation contract with all-time high day rate § Sale of Drilling Services completed Strong performance, active FPSO market and high rig utilisation 3
Slide 4: Profit and loss account
Profit and loss account (Unaudited figures in USD million) Q3 05 Q2 05 Q3 04 YTD 05 YTD 04 2004 Operating revenues 73.8 81.2 73.0 219.9 196.1 257.6 Operating expenses (29.1) (40.3) (29.7) (103.1) (91.0) (122.0) Operating profit before depreciation 44.7 40.9 43.3 116.8 105.1 135.6 Depreciation (11.6)
Slide 5: Floating Production
Floating Production (Unaudited figures in USDm) Q3 05 Q2 05 Q3 04 YTD 05 YTD 04 2004 Operating revenues 24.1 31.8 21.6 82.6 65.7 89.3 Operating expenses (10.9) (18.2) (8.9) (42.2) (27.8) (37.5) EBITDA 13.2 13.6 12.7 40.4 37.9 51.8 Depreciation (3.7) (4.3) (4.9) (12.4) (15.4) (19.9) EBIT 9.5 9.3 7.8
Slide 6: Offshore Support Services
Offshore Support Services (Unaudited figures in USDm) Q3 05 Q2 05 Q3 04 YTD 05 YTD 04 2004 Operating revenues 49.1 49.6 51.3 137.2 130.8 168.8 Operating expenses (16.9) (21.3) (20.0) (58.3) (61.3) (81.7) EBITDA 32.2 28.3 31.3 78.9 69.5 87.1 Depreciation (7.9) (7.2) (7.9) (22.9) (22.7) (30.6) EBIT 24
Slide 7: Balance sheet
Balance sheet (Unaudited figures in USD million) 30.09.05 30.06.05 01.01.05 30.09.04 Goodwill 128.3 128.3 128.3 128.3 Rigs 363.8 369.7 375.0 380.7 Ships 198.3 179.3 187.6 192.0 Other fixed assets 9.5 9.4 11.0 10.5 Total fixed assets 699.9 686.7 701.9 711.5 Other current assets 44.0 56.4 38.3 53.5 Ca
Slide 8: Cash flow
Cash flow (Unaudited figures in USD million) Q3 05 Q2 05 Q3 04 YTD 05 YTD 04 2004 Net cash flow from operating activities 63.2 18.5 39.3 113.5 66.3 116.6 Net cash flow from investing activities (22.8) (3.6) (6.3) (31.6) (7.2) (8.1) Net cash flow from financing activities (9.8) (26.4) (1.4) (36.5) (3
Slide 9: Key figures
Key figures Q3 05 Q2 05 Q3 04 YTD 05 YTD 04 2004 Operating margin 44.9 % 36.0 % 41.6 % 36.9 % 34.0 % 32.8 % Equity ratio 55.0 % 46.7 % 45.7 % 55.0 % 45.7 % 45.8 % Return on equity 85.0 % 18.8 % 22.6 % 38.0 % 15.5 % 16.1 % Return on capital employed 16.0 % 15.0 % 14.9 % 12.7 % 10.9 % 10.5 % Net inter
Slide 10: Shareholders at October 2005
Shareholders at 17 Oct 2005 SHAREHOLDERS No. of shares Ownership Brown Brothers Harriman 2 745 330 8.1 % JP Morgan Chase Bank 2 020 180 5.9 % State Street Bank & Trust (nom.) 1 813 345 5.3 % Svenska Handelsbanken (nom.) 1 593 363 4.7 % Odin 1 548 268 4.5 % GMO 1 472 343 4.3 % Morgan Stanley & Co (no
Slide 11: Norwegian tonnage tax regime
Norwegian tonnage tax regime § Prosafe’s rig business will no longer qualify for the Norwegian tonnage tax regime from 1 January 2006 § Proposed transitional rules are not favorable § Taxable gain on exit depends on market value of rigs, USD/NOK exchange rate and retained earnings § Accounting tax e
Slide 12: Offshore Support Services - Status
Offshore Support Services - Status § Good operating performance § Entry of new market in US Gulf of Mexico ú Prosafe won a competitive bid due to innovative mooring arrangements and diverse operating experience 12
Slide 13: Offshore Support Services – contract status
Offshore Support Services – contract status Contract Option Mobilisation Safe Caledonia Shell Nigeria Encana Safe Scandinavia BP Tunesia Shell / US GoM ConocoPhillips BP MSV Regalia Nigeria Statoil Statoil Total Safe Britannia ç 2001 Ocean Oil / GoM Safe Lancia ç 1998 Ocean Oil / GoM Safe Regency ç
Slide 14: Offshore Support Services - rig utilisation
Offshore Support Services - rig utilisation 2005 8% 92 % 11 % 2006 89 % 2007 38 % Contract 62 % Available 14
Slide 15: Offshore Support Services – strategy and outlook
Offshore Support Services – strategy and outlook Strategic focus: § Maintain the world’s largest and most versatile fleet of high-end accommodation and service rigs Medium term outlook: § Clients have tendered early for 2006 work, and Prosafe has been very successful in winning contracts § Remaining
Slide 16: Floating Production – status
Floating Production – status § New FPSO for the Polvo field offshore Brazil § Good operational performance and high uptime § Upgrade of Espoir Ivoirien completed – on time and better than budget § All time high bidding activity Solid performance 16
Slide 17: Floating Production - contract status
Floating Production - contract status Project phase Production contract Options Polvo Devon, Brazil è 2022 Abo Agip, Nigeria Espoir Ivoirien Canadian Natural Resources, Ivory Coast è 2022 Petr. Nautipa (1) CNR, Angola Vaalco, Gabon Al Zaafarana (2) ç 1994 Zaafarana Oil Comp, Gulf of Suez Endeavor ç
Slide 18: The Polvo project
The Polvo project § VLCC with storage capacity of 1.6 mill barrels § Prosafe turret and swivel with deepwater capacity § Large process capacity 150 000 Bfpd, of which max 90 000 Bopd (with 60 000 Bwpd) or 135 000 Bwpd (with 15 000 Bopd) § High power generation (>20Mw) § Water injection of 100 000 Bw
Slide 19: Prosafe Production track record
Prosafe Production track record Year Unit name Client Type Mooring/Comment 1 1985 Asoka Kodeco Energy FSO Spread 2 1991 Camar Enterprise Oil FSO Turret - external 3 1994 Camar Ayu GFB Resources FSO SALM buoy 4 1994 Al Zaafarana Zaafarana Oil Co (25% BG) FPSO Turret – external 5 1997 Endeavor Tata Oi
Slide 20: Floating Production – strategy and outlook
Floating Production – strategy and outlook § Positioned as one of the leading suppliers and operators of high quality FPSOs in the world § Strong competitive edge based on in-house technology and application engineering § Entering a new region with the Polvo FPSO § Several FPSO studies for existing
Slide 21: Summary and outlook
Summary and outlook § Best quarterly result ever § Financial performance is set to be strong based on current order backlog § New contracts for both business units § Bid still outstanding for new FPSO, capacity for simultaneous projects § Well positioned to take part in the growing FPSO market A foc