S.d. Standard Etc Plc · OSL:SDSD
S.d. Standard Etc — S.D. Standard Drilling — Q2 2018 Earnings Presentation
26 slides from S.d. Standard Etc's earnings presentation, Aug 28, 2018
Slide 1: S.D. Standard Drilling Plc. 2Q 2018 Presentation
S.D. Standard Drilling Plc. 2Q 2018 Presentation 28 August 2018
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 Q2 2018
Highlights Q2 2018 • Profit after tax of USD (2.7)m (2Q 17 USD (0.7)m) • Total cash balance of USD 22.6m (2Q17 USD 14.9m)(3) • Total EBITDA (adj) of USD 0.2m (2Q17 USD (1.47)m)(1) • Large-size – 5x Standard Vessels (100% owned) – EBITDA (adj) of USD 0.4 (2Q17 USD (1.1)m) (1) – Utilization of ~95% (2
Slide 5: Highlights Q2 2018 cont.
Highlights Q2 2018 cont. • Standard Supporter – Enquest declared their 1st option well at increased rates. Estimated 60-90 days, commenced mid May-18 • Standard Viking; Peterson declared their 1st (of two) year option from 14 July 2018 at increased rates • FS Crathes/Carrick on hire for a 90 days fi
Slide 6: Subsequent events
Subsequent events • Solid utilization for 5x large Standard Vessels (100% owned) – Average utilization of 94% for the Company’s large PSV’s in Jul-18(1) • Total fleet of 20 vessels – 5 large sized PSV‘s 100% owned – 9 medium size PSV’s 25.5% owned – 6 medium size PSV’s 26.2% held as a financial inve
Slide 7: Competitive advantage in the current market
Competitive advantage in the current market 1 No debt 2 Low overhead costs 3 Modern fleet of large vessels Low-cost and flexible Modern fleet and attractive No interest cost structure tech. spec Outsourced operational No amortization High vessel utilization management Low break-even Outsourced techn
Slide 8: SDSD has no debt
SDSD has no debt 1 SDSD has a competitive advantage compared to industry peers A C Total debt per 1,000m2 PSV equivalent today Historical large PSV NSEA rates vs. required debt service rate 45 000 35 30 26 40 000 25 20 USDm 15 35 000 10 5 30 000 Required rate: ~USD 24k/day 0 Company #1 Company #2 Co
Slide 9: SDSD has low overhead costs
SDSD has low overhead costs 2 SDSD has a competitive advantage compared to industry peers Corporate overhead per active vessel 2.5 2.1 2 USDm/vessel/year 1.5 1 1.0 0.7 0.7 0.6 0.5 0.5 0.2 0 SDSD(1) SDSD NAO #1 Company SIOFF #2 Company SOFF #3 Company TDW*#4 Company GLF #5 Company HOS #6 Company (1)
Slide 10: SDSD has a modern fleet of large PSVs - all working
SDSD has a modern fleet of large PSV’s- all working 3 SDSD has a competitive advantage compared to industry peers Overview of PSVs in layups, no vessels can easily return to the North Sea 60 12 50 6 40 11 No. vessels 30 59 20 20 10 10 0 0 (2) North Sea PSVs in Layup (1) Non DP / DP1 +15 Yrs Old <700
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 (2008) (2007) (2008) (2009) (2010) Purchase price: Purchase price: Purchase price: Purchase price: Purchase price: ~USD 13.3m(1) ~USD 13.3m(1) ~USD 13.3m
Slide 13: Mid-size PSV vessels – partly owned
Mid-size PSV vessels – partly owned Northern PSV AS (2x) – New World Supply (6x) – 25.5% owned PSV Opportunity (7x) – 25.5% owned 26.2% owned 2x vessels 3x vessels 6x vessels 2x vessels 2x vessels Purchase price: Purchase price: Purchase price: Purchase price: Purchase price: ~USD 2.5m(1) ~USD 2.5m(
Slide 14: Large-size PSV vessels – contract overview
Large-size PSV vessels – contract overview Standard Vessels (100% owned) 2018 2019 Vessel Built Client Country 2Q 3Q 4Q 1Q 2Q 3Q 4Q Large-size Vessels Standard Viking 2007 Peterson UK Standard Princess 2008 Spot Market / Anasuria / Spot / TBC UK Standard Supplier 2007 Decipher / Spot / TBC UK Standa
Slide 15: Mid-size PSV vessels – contract overview
Mid-size PSV vessels – contract overview PSV Opportunity + Northern PSV (25.5% owned) 2018 2019 Vessel Built Client Country 2Q 3Q 4Q 1Q 2Q 3Q 4Q Mid-size Vessels FS Arendal 2006 Repsol UK FS Aberdour 2009 Centrica / In House UK FS Balmoral 2008 Premier Oil / Petrofac UK FS Kristiansand 2005 TBN UK F
Slide 16: Large-size PSV vessels – Utilization overview
Large-size PSV vessels – Utilization overview Historical utilization of operating vessels (%) Utilization overview (weighted average) Standard Vessels (100% owned) 100% Weighted Utilization S.Viking S. Princess S. Supplier S.Provider S. Supporter average 90% 95% 94% 93% 1Q17 n.a. 72 % n.a. n.a. n.a.
Slide 17: Mid-size PSV vessels – Utilization overview
Mid-size PSV vessels – Utilization overview Historical utilization of operating vessels (%)(1) Utilization overview (weighted average) PSV Opportunity + Northern PSV Vessels (25.5% owned) 100% FS FS FS FS FS FS FS Weighted Utilization Aberdour Arendal Balmoral Kr. Sand Braemar Carrick Crathes averag
Slide 18: Large-size PSV vessels – EBITDA overview
Large-size PSV vessels – EBITDA overview 5x Standard Vessels (100% owned) (1) Three months Three months Year to Year to Standard Vessels (USD) ended, 2Q18 ended, 2Q17 date, 1H18 date, 1H17 Net hire (net of commission) 3 704 545 1 054 623 7 278 898 1 288 559 Admin expenses (59 982) (28 659) (122 276)
Slide 19: Mid-size PSV vessels – EBITDA overview
Mid-size PSV vessels – EBITDA overview 7x PSV Opportunity Vessels (25.5% owned ) and 2x Northern PSV vessels (25.5% owned) (1), pro-rata overview Three months Three months Year to Year to Three months PSV Opportunity Vessels (USD) (2), pro rata overview ended, 2Q18 ended, 2Q17 date, 2H18 date, 1H17
Slide 20: 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 PSV Opportunity Vessels, Northern PSV Vessels (25.5% owned)(2), pro-rata Standard Vessels PSV Opportunity, pro-rata Northern PSV, pro-rata (100% owned) (25.5% owned) (25.5% owned) Standard vesse
Slide 21: Explanation of the fair value accounting gain in 2Q18
Explanation of the fair value accounting gain in 2Q18 • SDSD is classified as an investment entity in accordance with IFRS 10 – Investments, including subsidiaries, are not consolidated but measured at fair value trough profit and loss every quarter based on estimates made by reputable independent v
Slide 22: Agenda
Agenda I. Highlights II. Fleet update III. Financial information 22
Slide 23: Income statement
Income statement S.D. Standard Drilling – Income statement for 2Q18 Three Months Ended Six Months Ended 2018 2017 2018 2017 (Amounts in USD 000) Q2 Q2 Q2 Q2 Unaudited Audited Income Changes in fair value on financial assets at fair value through profit or loss (2 250) (1 218) (2 862) (82) Changes in
Slide 24: Balance sheet
Balance sheet S.D. Standard Drilling – Balance sheet for 2Q18 (Amounts in USD 000) 30.06.2018 31.12.2017 ASSETS Unaudited Audited Equipment and machinery 1 1 Financial assets at fair value through profit or loss 90 822 88 379 Total non-current assets 90 823 88 380 Trade and other receivables 62 42 S
Slide 25: Cash flow statement
Cash flow statement S.D. Standard Drilling – Cash flow statement for 2Q18 Six Months Ended 2018 2017 Q2 Q2 (Amounts in USD 000) Unaudited Unaudited CASH FLOWS FROM OPERATING ACTIVITIES Profit/(Loss) for the period before income tax (2 558) 983 Other gains/(losses) - (420) Unrealised exchange loss/(g
Slide 26: Gd) stanvaro DRILLING
Gd) stanvaro DRILLING
S.D. Standard Drilling — Q2 2018 Earnings Presentation on 6ix