Solstad Offshore Asa · OSL:SOFF
Solstad Offshore Asa — Q1 2017 Earnings Presentation
13 slides from Solstad Offshore Asa's earnings presentation, May 10, 2017
Slide 1: Solstad Offshore ASA Presentation of 1Q 2017
Solstad Offshore ASA Presentation of 1Q 2017 – 10.5.2017 By CEO Lars Peder Solstad and Deputy CEO Sven Stakkestad
Slide 2: Agenda
Agenda Financial – 1st quarter 2017 in-brief Market development Update on merger process Solstad Offshore – Farstad Shipping – Deep Sea Supply
Slide 3: 1Q – In Brief
1Q – IN BRIEF Financial Good earning margins and stable Net revenues 1Q NOK 567 million underlying values Adjusted EBITDA 1Q NOK 147 million Adjusted EBITDA margin 1Q 26% Solstad – Farstad – Deep Sea Supply merger (see separate slides) Commercial & operational Strong contract Total backlog
Slide 4: Operating Revenue and EBITDA
OPERATING REVENUE AND EBITDA (EX. GAIN / LOSS ON SALE OF ASSET / INCL. SHARE IN JV’s)
Slide 5: Profit & loss accounts
Profit & loss accounts (NOK million) Q1 Q1 YTD 4Q 2017 2016 2016 Total operating income (1) 568 752 2.581 Operating expenses -439 -500 -1.706 Ordinary depreciation -162 -109 -477 Impairment -1.199 Joint Venture & Associated Companies 11 21 62 Operating res ult - 22 164 - 739 Net agio 14 304 291 Othe
Slide 6: Balance
Balance (NOK million) Q1 Q1 YTD 4Q 2017 2016 2016 Total fixed assets 18.989 13.954 19.317 Total current assets (1) 2.561 1.768 2.774 Assets held for sale 216 194 TOTAL ASSETS 21.765 15.722 22.285 Total equity 3.210 3.914 3.456 Total long-term debt 17.571 9.118 17.823 Total current liabilities (2) 98
Slide 7: Market development
Market development Tenders and awards Significantly more activity compared with 1 year ago PSV - Oilcompanies renewing their term fleet - well by well CSV - projects, long- and short term - renewables AHTS – low activity in term market, but several project opportunities for the largest ves
Slide 8: Contract updates
Contract updates «N.Server» – ConocoPhillips, 4 years 8 months «N.Supporter» – ConocoPhillips, 4 years 8 months «N.Oceanic» - Typhoon Offshore, 3 years «N.Poseidon» – Allseas, 3 years «N.Jarl» – Dong Energy, abt. 2 years «N.TBN» – Dong Energy, abt 1 year «N.Cutter» – Saipem, 4 year Fra
Slide 9: Merger with Deep Sea Supply and Farstad Shipping
Merger with Deep Sea Supply and Farstad Shipping MERGER CHECKLIST 7and February: Signed restructuring agreement to refinance Farstad Shipping subsequent merger with Solstad Offshore and Deep Sea Supply 28 February, 3 March : Restructuring approved by Farstad Shipping's senior lenders and bondhol
Slide 10: Creating the leading high end OSV company through merger
Creating the leading high end OSV company through merger of Farstad Shipping and Deep Sea Supply with Solstad Offshore LOCATION OVERVIEW FLEET OVERVIEW CSV AHTS PSV 26 16 19 61 7 27 22 56 0 12 25 37 KEY FACTS • Employees: > 3000 world wide • Operating vessels in all key offshore regions Combined 33
Slide 11: Significant synergies
Strong fundamentals underlying transaction DESCRIPTION COMPLEMENTARY • Highly complementary combination STRENGTHS • DESSC's cost leading PSV operating model • Solstad’s world leading subsea operation • Farstad’s AHTS experience COST • Onshore SG&A cost • Reduced opex through tailoring operating SIGN
Slide 12: Transaction structure designed to limit process risk
Transaction structure designed to limit process risk and create an efficient and shareholder friendly structure CORPORATE STRUCTURE HIGHLIGHTS • Farstad restructured through Hemen Aker Solstad Other combination of debt conversion and family new equity fully funded by Hemen/Aker 16.1%1 20.1%1 7.2% 56
Slide 13: Value proposition
Value proposition • Long history and solid track record in OSV market • Three companies with strong heritage • Leading company in global high end OSV industry • Successful refinancing, strong industrial partners • Secured solution through 2021 with creditors for all companies • Hemen and Aker contri