S.d. Standard Etc Plc · OSL:SDSD
S.d. Standard Etc — S.D. Standard Drilling — Q3 2019 Earnings Presentation
27 slides from S.d. Standard Etc's earnings presentation, Nov 8, 2019
Slide 1: S.D. Standard Drilling Plc. 3Q 2019 Presentation
S.D. Standard Drilling Plc. 3Q 2019 Presentation 8 November 2019
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. Fleet update III. Financial information 3
Slide 4: Highlights Q3 2019
Highlights Q3 2019 • Profit after tax of USD 0.6m (USD (0.2)m) (1) OPERATION OF VESSELS EBITDA (adj) 3QSupply Northern 19 vs 3Q 18 Standard vessels vessels, pro-rata • Total cash balance of USD 28m (USD 23.3m)(2) 3 500 (100% owned) (25.5% owned) Total 3 290 2 945 • Book Value of Equity of USD 119.4
Slide 5: Subsequent events
Subsequent events • Sale of Standard Provider at a price of USD 13.5m – The transaction was completed end of October • Following the sale of Standard Provider the cash in SDSD and subsidiaries(1) end of October was USD 42.5m corresponding to ~NOK 0.68 per share(2) • Three (2) out of five (5) large s
Slide 6: Competitive advantage in the current market
Competitive advantage in the current market Modern fleet of large 1 No debt 2 Low overhead costs 3 vessels 4 Independent position Low-cost and flexible Modern fleet and attractive No interest cost Good cash position structure tech. spec Outsourced operational No amortization High vessel utilization
Slide 7: Low overhead costs and low breakeven rates
Low overhead costs and low breakeven rates • Average cash break-even for SDSD, all-in costs (USD / Day) for PSV vessels – Large-size: USD ~7,000 per day (1) – Mid-size: USD ~6,700 per day (1) • Overhead cost of ~USD 500 per vessel per day (1) • With competitive cost, all equity and no debt, SDSD is
Slide 8: Lack of modern large size vessels available in the market
Lack of modern large size vessels available in the market Breakdown of laid up North Sea PSV fleet (2Q19) Breakdown of laid up North Sea PSV fleet (3Q19) 50 45 40 35 Only 11 North Sea 30 Only 14 North Sea spec spec vessels laid up, Number of PSVs 8 vessels in lay-up – all of which only 1 is costly t
Slide 9: Signs of recovery – large vessels leading the way
Signs of recovery – large vessels leading the way Large-size PSV term rates (900m2) Large-size PSV spot rates (900m2) 55 55 Term rates have increased by ~99% since Mar-17 50 50 45 45 40 40 35 +99% 35 USD ('000) USD ('000) 30 30 25 25 Current market rate USD ~7.3k/d Last 10yr avg. ~USD 19.0k/d 20 20
Slide 10: Signs of recovery – significant improvement in the medium size segment
Signs of recovery – significant improvement in the medium size segment Mid-size PSV term rates (500-749m2) Mid-size PSV spot rates (500-899m2) 40 40 Term rates have increased by ~53% since Mar-17 35 35 30 30 +53% 25 25 USD ('000) USD ('000) 20 20 15 Last 10yr avg. USD ~13.7k/d 15 10 Current market r
Slide 11: Agenda
Agenda I. Highlights II. Fleet update III. Financial information 11
Slide 12: Large-size PSV vessels – 100% owned
Large-size PSV vessels – 100% owned Standard vessels (5x) Standard Viking Standard Supplier Standard Princess Standard Supporter Standard Provider Standard Olympus (2008) (2007) (2008) (2009) (2010) (2014) Purchase price: Purchase price: Purchase price: Purchase price: Purchase price: Purchase price
Slide 13: 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 14: Large-size PSV vessels – Simplified contract overview
Large-size PSV vessels – Simplified contract overview Standard vessels (100% owned) 2019 2020 Vessel Built Client Country Q2 3Q 4Q 1Q 2Q 3Q Large-size Vessels Standard Viking 2007 Peterson UK Standard Princess 2008 Allseas UK Standard Supplier 2007 Allseas UK Standard Provider 2010 N/A | Standard Su
Slide 15: Mid-size PSV vessels – Simplified contract overview
Mid-size PSV vessels – Simplified contract overview Northern Supply vessels (25.5% owned) 2019 2020 Vessel Built Client Country 2Q 3Q 4Q 1Q 2Q 3Q Mid-size Vessels FS Arendal 2006 Repsol UK FS Aberdour 2009 Spirit Energy UK FS Balmoral 2008 Spot UK FS Kristiansand 2005 Spot UK FS Braemar 2007 Peterso
Slide 16: 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 S. Supporter S. Olympus average 1Q18 100 % 100 % 65 % 100 % 100 % n.a. 93 % 2Q18 100 % 73 % 98 % 100 % 99 % n.a. 95 % 3Q18 100 % 81 % 61 % 88
Slide 17: Mid-size PSV vessels – Utilization overview
Mid-size PSV vessels – Utilization overview Historical utilization of operating vessels (%)(1) 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 %
Slide 18: Combined fleet – Utilization overview large-and medium size PSV's
Combined fleet – Utilization overview large-and medium size PSV’s Combined fleet utilization 1Q17 to Oct-19 100% 90% 88% 80% 80% 70% 60% Utilization (%) 50% 40% 30% 20% 10% 0% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 Oct-19 Large-size Mid-size Standard vessels Northern Supply (100% own
Slide 19: Large-size PSV vessels – EBITDA overview
Large-size PSV vessels – EBITDA overview 6x Standard vessels (100% owned) (1) Three months Three months Standard vessels (USD) ended, 3Q19 ended, 3Q18 2019 YTD 2018 YTD Net hire (net of commission) 6 883 485 3 685 991 16 851 600 10 964 889 - - - Admin expenses (102 916) (46 150) (205 269) (168 425)
Slide 20: 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, 3Q19 ended, 3Q18 2019 YTD 2018 YTD Net hire (net of commission) 1 436 774 1 052 077 3 922 231 2 510 966 - - - Admin expenses (28 915)
Slide 21: 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 3Q18 vs. 3Q19 2018 YTD vs. 2019 YTD Northern Supply Northern Supply Standard vessels vessels, pro-rata Standard vessels vessels, pro-rata (100% ow
Slide 22: Explanation of the fair value accounting gain in 3Q19 [updated]
Explanation of the fair value accounting gain in 3Q19 [updated] • 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 in
Slide 23: Agenda
Agenda I. Highlights II. Fleet update III. Financial information 23
Slide 24: Income statement
Income statement S.D. Standard Drilling – Income statement for 3Q19 Three Months Ended Nine Months Ended 2019 2018 2019 2018 (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 1 031 (135) 8 653 (2 997) Changes in
Slide 25: Balance sheet
Balance sheet S.D. Standard Drilling – Balance sheet for 3Q19 (Amounts in USD 000) 30.09.2019 31.12.2018 ASSETS Unaudited Audited Equipment and machinery 2 1 Financial assets at fair value through profit or loss 98 464 94 966 Total non-current assets 98 466 94 967 Trade and other receivables 18 25 C
Slide 26: Cash flow statement
Cash flow statement S.D. Standard Drilling – Cash flow statement for 3Q19 Nine Months Ended 2019 2018 Q3 Q3 (Amounts in USD 000) Unaudited Unaudited CASH FLOWS FROM OPERATING ACTIVITIES Profit/(Loss) for the period before income tax 8 116 (2 791) Unrealised exchange (gain)/loss 303 72 Payments to fi
Slide 27: Gd) stanvaro DRILLING
Gd) stanvaro DRILLING
S.D. Standard Drilling — Q3 2019 Earnings Presentation on 6ix