Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Vard Holdings — Q3 2013 Earnings Presentation
27 slides from Singapore Exchange's earnings presentation, Nov 6, 2013
Slide 1: Built on trust – Vard, a Fincantieri company
built on trust’ VARD a Fincantieri company
Slide 2: Disclaimer
Disclaimer This presentation should be read in conjunction with Vard Holdings Limited’s results for the period ended 30 September 2013 in the SGXNet announcement. Financial figures are presented according to SFRS. This presentation may contain forward-looking statements that involve risks and uncert
Slide 3: 3Q 2013 Results Presentation
3Q 2013 Results Presentation Vard Holdings Limited 6 November 2013 European network for Health Technology Assessment | JA2 2012-2015 | www.eunethta.eu
Slide 4: Key messages
Key messages Revenue of NOK 2 370 million for 3Q 2013, down from NOK 2 457 million in 3Q 2012 EBITDA of NOK 103 million for 3Q 2013, down from NOK 332 million in 3Q 2012 EBITDA margin, representing EBITDA to total operating revenues, of 4.4% for 3Q 2013, down from 13.5% in 3Q 2012 Record order intak
Slide 5: Business update
built on trust 3Q 2013 Business update ILRD a Fincantieri company
Slide 6: Vessel deliveries and new contracts – 3Q 2013
Vessel deliveries and new contracts – 3Q 2013 Vessel deliveries New contracts 1 PSV Six new vessel contracts secured in 3Q 2013 Island Duke from Vard Brevik (Norway) to Island Offshore 4 OSCVs for DOF Subsea & Technip (Doftech) 1 OSCV for Farstad Shipping 1 OSCV 1 PSV for Carlotta Offshore Siem Dyna
Slide 7: Largest order in the Group's history secured during 3Q 2013
Largest order in the Group’s history secured during 3Q 2013 Aggregate order value approx. USD 1.1 billion (NOK 6.5 billion) Extending the order book to 2016-17 in both Europe and Brazil, and reversing a long downward order book trend Reinforcing key client relationships with DOF and Technip, and sec
Slide 8: Order book development
Order book development New order intake during the period (NOK million)1) 27 Vessels 12 Vessels 12 555 28 Vessels 11 941 11 117 16 Vessels 9 501 4 Vessels 5 692 8 Vessels 4 458 3Q 2013: NOK 7 950 million 1H 2013: NOK 3 991 million 2008 2009 2010 2011 2012 9M 2013 Order book value at the end of the p
Slide 9: Order book status
Order book status Delivery Norway / Brazil Vietnam Total Order book as of 30 September 2013 (# of vessels) year Romania 2017 1 2017 1 1 OSCV 2016 6 2016 6 2 OSCV 1 OSCV 3 Other 1 AHTS 1 PSV 2015 9 Delivery year 2015 9 3 OSCV 1 Other 3 Other 2 AHTS 2 AHTS 4 PSV 1 PSV 2 PSV 2014 21 2014 21 5 OSCV 3 Ot
Slide 10: Order book by region and vessel type
Order book by region and vessel type Order book Deliveries Order intake Order book By Region 30 June 2013 3Q 2013 3Q 2013 30 Sep 2013 Norway / Romania 28 4 3 27 Brazil 12 - 2 14 Vietnam 1 - 1 2 Total 41 4 6 43 Order book Deliveries Order intake Order book By Vessel Type 30 June 2013 3Q 2013 3Q 2013
Slide 11: Operations – Norway, Romania & Vietnam
Operations – Norway, Romania & Vietnam Operations in European shipyards generally stable Gradually reverting to normal load situation in Romania Effective cooperation in the Romania-Norway value chain, utilizing flexibility in the production system Commissioning of new piping pre-fabrication factory
Slide 12: Operations update – Brazil (Vard Niterói)
Operations update – Brazil (Vard Niterói) Vard Niterói still suffering from overload situation; further delays and cost overruns incurred Mitigating actions in progress, but taking longer time to show effect Organizational changes introduced Strengthening of project organization and reorganization i
Slide 13: Vard Niterói: Revised delivery schedule
Vard Niterói: Revised delivery schedule 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 Pro30 Pro31 Pro32 Pro33 EP01 (outfitting only) EP02 (outfitting only) jun-13 sep-13 dec-13 mar-14 jun-14 sep-14 dec-14 mar-15 6.11.2013 | Page 13
Slide 14: Operations update – Brazil (Vard Promar)
Operations update – Brazil (Vard Promar) Key shipyard infrastructure completed within 3Q 2013 Shipbuilding works in progress on LPG carrier number 3 for Transpetro; pending start-up for vessel number 4 First blocks produced Productivity in hull production for LPG carriers number 1 and 2 built at ext
Slide 15: Vard Promar – Key yard infrastructure completed
Vard Promar – Key yard infrastructure completed Outfitting quay Floating dock 05.11.2013 | Page 15
Slide 16: Vard Promar - Production at new yard ramping up
Vard Promar - Production at new yard ramping up Production halls Production of ring blocks 6.11.2013 | Page 16
Slide 17: Financial highlights
Q3 2013 Financial highlights
Slide 18: Revenues and margins
Revenues and margins Revenues (NOK million) EBITDA (NOK million) and EBITDA Margin (%) 10 000 1 400 8 605 13.8% 9 000 8 062 1 200 8 000 7 000 1 000 332 2 457 2 370 6 000 800 6 148 5 000 854 5 692 6.6% 600 4 000 103 3 000 400 2 000 425 200 1 000 0 0 9M 2012 9M 2013 9M 2012 9M 2013 6.11.2013 | Page 18
Slide 19: Statement of income – major items
Statement of income – major items 3Q ended 30 September 9M ended 30 September (NOK million) D(%) D(%) 2013 2012 2013 2012 Revenue 2 370 2 457 -3.5% 8 062 8 605 -6.3% Materials, subcontract cost and others (1 627) (1 594) 2.1% (5 613) (5 696) -1.5% Salaries and related costs (527) (429) 22.8% (1 530)
Slide 20: Cash and cash equivalents, and construction loans
Cash and cash equivalents, and construction loans Net Cash (NOK million)1 Construction Loans (NOK million) 2 000 1 858 4 500 4 199 4 000 3 351 1 500 3 500 3 000 2 500 1 000 864 2 000 1 500 500 1 000 500 0 0 31 Dec 2012 30 Sept 2013 31 Dec 2012 30 Sept 2013 (1) Cash and cash equivalents less sum of s
Slide 21: Major balance sheet items
Major balance sheet items As at (NOK million) 30 September 2013 31 December 2012 Non-current assets 3 130 2 410 Current assets 9 884 10 404 Total assets 13 014 12 814 Total equity 3 532 3 227 Loans and borrowings and construction loans 4 483 3 385 Trade and other payables and construction work in pr
Slide 22: Cash flow highlights
Cash flow highlights 3Q ended 30 September 9M ended 30 September (NOK million) 2013 2012 2013 2012 Cash flows from operating activities (107) (168) (384) 840 Cash flows from investing activities (350) (156) (678) (466) Cash flows from financing activities 208 (637) 372 (1 065) Net change in cash and
Slide 23: Earnings per share
Earnings per share 3Q ended 30 September 9M ended 30 September 2013 2012 2013 2012 Earnings for the period (NOK millions) 76 228 244 778 Earnings for the period (SGD millions) 16 49 51 167 Weighted average number of shares (millions) 1 180 1 180 1 180 1 180 Earnings per share (NOK) 0.06 0.19 0.21 0.
Slide 24: Net asset value per share
Net asset value per share As at 30 September 2013 31 December 2012 Net asset value at the end of the period (NOK millions) 3 513 3 162 Net asset value at the end of the period (SGD millions) 734 694 Number of shares (millions) 1 180 1 180 Net asset value per ordinary share (NOK) 2.98 2.68 Net asset
Slide 25: Outlook
built on trust 3Q 2013 Outlook VARD a Fin fieri company
Slide 26: Outlook
Outlook Growth in Exploration & Production (E&P) spending expected to continue in 2014 North Sea the largest offshore market globally, measured by E&P spending High growth in Barents Sea and other challenging environments drive the need for new technology Positive outlook for new order wins for the
Slide 27: Built on trust – Vard, a Fincantieri company
built on trust VARD a Fincantieri company