Slide 1: Presentation of 2Q 2017
Presentation of 2Q 2017 31 August 2017 CEO Lars Peder Solstad CFO Anders Hall Jomaas
Slide 2: Agenda
Agenda Financial Information Operational review and Integration Process Strategy 2
Slide 3: Creating the leading high-end OSV company
Creating the leading high-end OSV company LOCATION OVERVIEW FLEET OVERVIEW CSV AHTS PSV 26 16 17 59 7 27 22 56 0 12 25 37 Combined 33 55 64 152 KEY FACTS • Employees: > 3000 world wide • World leading within CSV, AHTS and PSV. • Operating vessels in all key offshore • Five vessels under construction
Slide 4: Key Financial Information
Key Financial Information From 22 June 2017 onwards Solstad Farstad ASA is a combination of these companies; • Solstad Offshore ASA • Rem Offshore ASA • Farstad Shipping ASA • Deep Sea Supply Plc 2Q 2017 P&L includes Solstad only • Period from 22 June until end of quarter considered to be immaterial
Slide 5: Income Statement Q2 2017
Income Statement Q2 2017 • OPEX per active vessel reduced, but total OPEX increased compared to Q2 16 due to REM aquisition • Purchase price allocation resulted in a gain of NOK 1 540 mill from the merger transaction • Loss of NOK 107 mill in Joint Venture is related to impairment of book value of a
Slide 6: Balance Sheet
Balance Sheet • Assets held for sale relates to vessels sold and delivered new owners in July 17. Sale gave net positive cash effect of NOK 50 mill and a reduction in long term debt of NOK 574 mill recorded in Q3 17. • Includes impairment of book values of Farstad Shipping ASA and Deep Sea Supply of
Slide 7: Cash Flow Statement
Cash Flow Statement • Cash balance end Q2 17 is the consolidated cash position of the SolstadFarstad Group • Cash position per 30 August 17 is approx. NOK 2 400 mill. • During July and August the company has paid NOK 242 mill in interest and installments 7
Slide 8: Income Statement – Incl 100% DESS & FAR
Income Statement – Incl 100% DESS & FAR • G&A expenses includes approx. NOK 70 mill in one-offs related to refinancing and merger 8
Slide 9: Financing
Financing Successful refinancing of the SolstadFarstad Group completed • Main terms aligned with the Farstad restructuring which was completed in March 2017 • Maturities of loan agreements extended until 2021 Financial structure of Equity raised during • Installments reduced to Solstad Farstad ASA m
Slide 10: Strategy assumes return to mid cycle by 2020 - use downturn to optimize operating model
Strategy assumes return to mid cycle by 2020 - use downturn to optimize operating model and strengthen company Highlevel Market Assumptions Global OSV demand Utilization # of units, AHTS + PSV Supply (LHS) Utilization (RHS) Demand (LHS) % 3 500 100% 90% 3 000 80% 2 500 70% 60% 2 000 50% 1 500 40% 1
Slide 11: Creating the world’s leading OSV company
Creating the world’s leading OSV company Strategy Description Largest high-end OSV company globally SUBSEA & RENEWABLE ENERGY AHTS/PSV AQUACULTURE • Maintain operational edge • Maintain strong position in NCS, • Transfer industrialized build-own- • Protect position with key AUS and Brazil operate mo
Slide 12: SolstadFarstad Segments
SolstadFarstad Segments AHTS & PSV Strategic Regions Head of Segment: Kenneth Lande Main Area of operations: Brazil, Australia and Norway • The company will continue to build on the strong market position in the three markets through efficient operations, local organisation and dedicated capacity al
Slide 13: SolstadFarstad Segments
SolstadFarstad Segments Subsea Construction & Renewable Energy Head of Segment: Hans Knut Skår Jr. Main Area of operations: Worldwide • The company will maintain its position as the world leading operator of subsea vessels through providing quality tonnage and efficient operations • Continue to deve
Slide 14: Contract Backlog
Contract Backlog Firm Contract Backlog (in MNOK) (JV incl 50%) 2 922 MNOK Aquaculture 57 Subsea Construction AHTS & PSV International • Total contract backlog of approx. 1 830 AHTS & PSV Strategic Regions 10 500 MNOK as per August 2017 MNOK 1 751 (incl 50% of JV backlog) 97 1 443 MNOK 1 186 116 MNOK
Slide 15: Integration Process
Integration Process Committed to reduce costs and New organization set by end realize synergy effects of NOK September 2017 450 – 600 mill • Process ongoing to reduce onshore • Reduction of onshore organization with organization globally 80-90 people on a worldwide basis • Combination of organizatio
Slide 16: Operations
Operations • Daily operations not effected by merger and integration • Limited operational interuption in the period • Good HSE results • Approx. 35 new term charter agreements (from 100 days to 5 years duration) signed year to date 2017 16
Slide 17: Commercial Update
Commercial Update • Experienced an uptick in the North Sea spot market in Q3 17 • Bidding activity so far 2017 significantly improved from 2016 • Term rates expected to remain low until meaningful improvement in utilization • Improved commercial flexibility through size and diversified fleet • Conti
Slide 18: Key Investor Highlights
Key Investor Highlights World’s largest high end OSV company with global operations Lean operating model exploiting high operational leverage Restructuring secures runway and financial flexibility Creating shareholder value through size and share liquidity Strong commitment from main shareholders He