Bw Offshore Limited · OSL:BWO
Bw Offshore — Q3 2012 Earnings Presentation
24 slides from Bw Offshore's earnings presentation, Nov 26, 2012
Slide 1: BW Offshore Q3 2012 presentation
BW Offshore Q3 2012 presentation 26 November 2012
Slide 2: Disclaimer
Disclaimer This Presentation has been produced by BW Offshore Limited ( “BW Offshore”) exclusively for information purposes. This presentation may not be redistributed, in whole or in part, to any other person. This document contains certain forward-looking statements relating to the business, finan
Slide 3: Main statements
Main statements Q3 2012 EBITDA of USD 35.1 million P-63 (Papa Terra) revised forecast giving USD 75 million in negative contribution Espoir Ivoirien and Berge Helene extensions Dividend payment of USD 0.01 per share 26 November 2012 3
Slide 4: Operation
OPERATION
Slide 5: Operational statements
Operational statements Uptime HSSEQ performance 100.0% 98.0% − Lost time injuries (LTI) of 0.6 96.0% 94.0% 92.0% Fleet uptime 99.5% 90.0% 88.0% 86.0% 84.0% P-63 has left COSCO Dalian 82.0% 80.0% 2005 2006 2007 2008 2009 2010 2011 2012 Espoir Ivoirien fixed contract YTD extended by four years Berge H
Slide 6: Fleet performance
Fleet performance Improved regularity on all units Ongoing discussions for extensions Consistent technical standard implemented and gaps ̶ Sendje Berge identified and actioned ̶ Abo Optimising fleet overhead Technical and commercial support functions strengthened 26 November 2012 6
Slide 7: Espoir Ivoirien contract extension
Espoir Ivoirien contract extension Firm period extended until 2017 Option period extended until 2036 Life extension and equipment renewal, no change of capacity Equipment renewal/replacement to be paid by client on cost-plus basis Client: CNR, Ivory Coast Oil production capacity: 40,000 bbl/d Gas co
Slide 8: Fleet overview
Fleet overview U ni t T yp e C o nt r act 2 00 9 2 0 10 2 0 11 2 0 12 20 13 2 014 2 0 15 2 0 16 2 0 17 20 18 2 0 19 2020 2021 2022 2 02 3 2 0 24 2025 Sendje Berge FPSO Lease Addax/ Sinopec, Nigeria: 2005-2013 Berge Helene FPSO Lease Pet ronas, M aurit ania: 2006-2015 (2021) Yùum K'ak'Náab FPSO Lease
Slide 9: Papa Terra status
Papa Terra status P-63 (Papa Terra) left COSCO Dalian Shipyard on 20 November − Estimated arrival in Brazil is February 2013 Project cost increased by USD 75 million to USD 450 million − Increased engineering, construction, procurement and commissioning cost and increased yard costs associated with
Slide 10: Finance
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Slide 11: Financial statements
Financial statements Q3 2012 EBITDA of USD 35.1 million − Negative contribution from the Papa Terra-project − Full contribution from BW Athena and BW Joko Tole Linear booking of revenue and EBITDA for BW Joko Tole Finalised depreciation schedule for the three new units in production; BW Pioneer, BW
Slide 12: P&L
P&L USD million Q3 12 Q2 12 Q3 11 2011 Operating revenue 235.9 222.5 216.1 846.2 Operating expenses -200.9 -195.9 -138.9 -534.0 Share of profit from associates 0.1 0.3 -0.5 -0.3 EBITDA 35.1 26.9 76.7 311.9 Depreciation -63.9 -53.5 -46.3 -178.6 Amortisations -0.6 -0.7 -1.0 -4.5 Gain (loss) on sale of
Slide 13: Balance sheet
Balance sheet Equity ratio 30.4% Net interest bearing debt USD 1,662.4 million USD million 30.09.12 30.06.12 30.09.11 31.12.11 Total non-current assets 3 021.1 3 067.9 3 359.0 3 009.6 Assets of disposal group held for sale - - 7.1 185.0 Total current assets 353.3 422.2 367.1 607.0 Total assets 3 374
Slide 14: Financial covenants
Financial covenants BW Offshore has agreed with its lending banks on a waiver for the USD 2,400 million loan facility and the Umuroa loan − The waiver applies for the equity ratio covenant, the leverage covenant and the interest cover ratio Carve out of the Q2 2012 loss on Papa Terra of USD 50 milli
Slide 15: Debt and instalment profile
Debt and instalment profile Gross debt of USD 1,750.3 million per 30 September 2012 Gross debt (USD million) Instalments (USD million) 2000 500 1800 450 1600 400 Bond 350 Bond 1400 Petroleo CIRR 300 1200 Nautipa Petroleo Nautipa Umuroa 250 1000 Umuroa 200 RCF 800 RCF 150 Term loan/NV 600 Term loan T
Slide 16: Orderbook
Orderbook Orderbook of USD 8.5 billion − Whereof USD 4.5 billion are firm contracts New orders of USD 800 million in Q3 High value cashflow and backlog from solid counterparties Orderbook (USD million) Clients 9 000 NOC 8 000 Petrobras 24 % 7 000 30 % 6 000 5 000 4 000 3 000 2 000 1 000 0 E&P Firm O
Slide 17: Market
MARKET
Slide 18: Market statements
Market statements Large number of prospects Contract extensions on existing fields have very high probability Flat to slightly increasing demand (contracts) expected near term Yard capacity is very good due to lower shipbuilding activity Number of active competitors still reducing FPSO orders 25 20
Slide 19: FPSO fleet development
FPSO fleet development Number of FPSOs expected to grow significantly Relative share of conversions vs newbuilds unchanged Contractor owned FPSOs limited by financial resources Oil companies’ contracting strategies FPSO fleet – ownership 2005 FPSO fleet – units & type 180 47% 160 53% 140 38% 120 100
Slide 20: Selected opportunities
Selected opportunities Project Name Operator Country Indicated award Madura FPSO CNOOC Indonesia Q2 2013 Leviathan FPSO Noble Energy Israel Q3 2013 Catcher FPSO Premier Oil UK North Sea Q3 2013 Ande Ande FPSO AWE Indonesia Q3 2013 Cameia FPSO Cobalt Energy Angola Q3 2013 Lakhsa FPSO Shell Brunei Q4
Slide 21: Summary
SUMMARY
Slide 22: Focus areas
Focus areas Papa Terra (P-63) project completion and start-up Operational improvements in fleet Extensions for Sendje Berge and Abo Selective market opportunities 26 November 2012 22
Slide 23: Q&A
Q&A 23 Picture:: Petrobras
Slide 24: Further information and IR contact
Further information: www.bwoffshore.com IR contact: Kristian Flaten, Vice President IR and Corporate Finance kristian.flaten[a]bwoffshore.com 26 November 2012 24