Slide 1: Presentation of Q4 2017 results
Presentation of Q4 2017 results 22 February 2018
Slide 2: Quarter highlights
Quarter highlights • Drop in revenues and EBITDA largely REVENUES PER QUARTER – NOKm driven by seasonal lower activity 1 444 1 516 • Realization of merger synergies – cost-out 1 158 1 167 target increased • Continuous focus on cutting costs, and increase efficiency • Operating costs expected to come
Slide 3: Q4 2017 in numbers – Income statement
Q4 2017 in numbers – Income statement • Total operating income as presented in the income statement is net of • Excess values from freight contracts (ref. note 3 in 4Q Financial report) • income from Joint Ventures. 3
Slide 4: Q4 2017 in numbers – Balance sheet
Q4 2017 in numbers – Balance sheet 4
Slide 5: Q4 2017 in numbers – Cash flow
Q4 2017 in numbers – Cash flow CASH FLOW Q3’17-Q4’17 COMMENTS NOKm • Company’s overall cash position of reduced over the Cash, end Q3’17 2 114 quarter by MNOK 238 to MNOK 1,875 from MNOK 2,114 CF Ops. 276 • Net cash flow from CF Inv. 54 operations positive MNOK 276 Installments/new debt 165 • Net ca
Slide 6: Net interest bearing debt
Net interest bearing debt NET INTEREST BEARING DEBT NOK bln. COMMENTS • Net MNOK 165 installments paid during 4Q 2017 • Cash reduced by MNOK 238 Q2’17 28.4 • Negative currency effect of MNOK 482 • NIBD increased from NOK bln 26.9 to 27.3 • Total interest bearing debt of NOK bln 31.2 for the Q3’17 26
Slide 7: Merger synergies – target increased to NOKm 700-800 end of 2018
Merger synergies – target increased to NOKm 700-800 end of 2018 • Detailed synergy assessment run in parallel with integration process • Revised top down view of potential of NOKm 700-800 • Plan for synergy realization currently being implemented POTENTIAL SPLIT IN THREE BROAD NEW COST RUN-RATE TARG
Slide 8: Merger synergies case study: Reduced vessel OPEX
Merger synergies case study: Reduced vessel OPEX CONTEXT EXAMPLES OF VESSEL OPEX REDUCTIONS • Vessel OPEX reduced REFERENCE -28% over time, largely driven by new crew composition CASE #1: and negotiations with key 2007 built PSV operating 100 suppliers 72 UKCS, & • Focus on continuous International
Slide 9: Solid backlog situation
Solid backlog situation BACKLOG COMMENTS NOK bln. Aquaculture AHTS & PSV International • Total contract backlog of Subsea AHTS & PSV Strategic regions NOKbln. ~9.3 as per February 2018 (incl 50% of JV backlog) 3 213 • NOKbln. ~3.2 in firm contract 42 backlog Feb to Dec 2018 • Aquaculture has total b
Slide 10: Q4’17 contract awards in excess of MNOK 700, positive outlook for Spring/Summer 2018
Q4’17 contract awards in excess of MNOK 700, positive outlook for Spring/Summer 2018 SELECTED CONTRACT AWARDS DURING Q4’18 KEY OBSERVATIONS • Early signs of recovery in selected regions • Increased number of tenders, with improved terms and Normand Commander 5+3 attractive contract Sea Brasil 2 year
Slide 11: Segment in details – Fleet status
Segment in details AHTS PSV CSV Wellboats Harvest vessels SUBSEA AHTS & PSV AHTS & PSV CONSTRUCTION & DESS AQUACULTURE STRATEGIC REGIONS INTERNATIONAL RENEWABLE ENERGY TOTAL # 34 17 1 0 VESSELS 32 31 32 0 FLEET STATUS IN 25 2 1 0 OPERATION 21 18 20 0 9 15 0 0 IN LAY-UP 11 13 12 0 0 0 0 4 NEWBUILDS 0
Slide 12: Thank you!
Thank you! 12