S.d. Standard Etc Plc · OSL:SDSD
S.d. Standard Etc — S.D. Standard Drilling — Q4 2016 Earnings Presentation
30 slides from S.d. Standard Etc's earnings presentation, February 2017
Slide 1: S.D. Standard Drilling Plc. 4Q 2016 Presentation
S.D. Standard Drilling Plc. 4Q 2016 Presentation
Slide 2: Agenda
Agenda I. Company overview II. Financial information III. Current investments IV. Appendix 2
Slide 3: SDSD – Highlights
SDSD – Highlights All-time low Low break-even Entry into the offshore market through All equity financed structure ensures no distressed situations debt costs and industry low break-even Access to opportunities Significant upside Sponsors and management with unique Recent PSV investments at ~68% ave
Slide 4: Strategy
SDSD – Strategy To own or control a large fleet of oil service assets purchased at low valuations Investment Recovery Monetizing Acquire high quality oil service Phase phase phase tonnage at all time low prices – current fleet of 16 wholly or partly owned Platform Supply Vessels Run assets for cas
Slide 5: Overview
SDSD – Overview Company overview Prior capital markets activity and dividends Company founded in 2010 The Company has since inception completed five (5) equity Cypriot public limited liability company private placements, totaling ~USD 439m: Listed on Oslo Axess since March 2011 (ticker: SDSD
Slide 6: Fleet overview
SDSD – Fleet overview • Avg. price: ~USD 13.3m(1) • Ownership: 100% Volstad • Deck-space: 1,060m2 (3x PSVs) • Design: ST-216 L CD Standard Viking (2007) Standard Supplier (2007) Standard Princess (2008) • Yard: Aker Brattvaag • Avg. price: USD 2.5m(1) • Ownership: 20% PSVOI • Deck-space: 700m2 (3x P
Slide 7: Balance Sheet as per Dec-16
SDSD – Balance Sheet as per 31 Dec-16 Balance Sheet as per 31 Dec-16 and pro-forma Commentary Net movement on corporate Cash position of USD 1.8 m as per 31 Dec-16 Investment Equity Equity Equity bonds USD PSV in New private private Subseque private Investment (3.2 million - Opportunity World plac
Slide 8: Realized jack-up investments 2010-2013
SDSD – Realized jack-up investments 2010-2013 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14 4Q14 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 11 months 179 220 125% B319 15 months 180 214 67% B324 16 months 180 213.5 63% B325 21 months 192 222.5 38% B337 23 months 192 215 26% B338 20 months 192 220 37% B339 26
Slide 9: Agenda
Agenda I. Company overview II. Financial information III. Current investments IV. Appendix 9
Slide 10: Financial information (1/4)
SDSD – Financial information (1/4) Financial highlights for 2016: Operating revenue of USD NIL. Negative EBITDA of USD (266) thousands and EBITDA-margin of 0 % Negative EBIT of USD (266) thousands and EBIT-margin of 0 % Net loss of USD (278) thousands Cash and cash equivalents of USD 1,8
Slide 11: Financial information (2/4)
SDSD – Financial information (2/4) Income Statement for 4Q 2016 Three Months Ended Twelve Months Ended 2016 2015 2016 2015 (Amounts in USD 000) Q4 Q4 Q4 Q4 Unaudited Unaudited Unaudited Unaudited Income Interest income 6 151 42 241 Net foreign currency gains or losses (9) 24 - (2 851) Other net chan
Slide 12: Financial information (3/4)
SDSD – Financial information (3/4) Balance Sheet Statement for 4Q 2016 (Amounts in USD 000) 31.12.2016 31.12.2015 ASSETS Unaudited Audited Equipment and machinery 1 1 Financial asset at fair value through profit or loss 5 300 - Total non-current assets 5 301 1 Trade and other receivables 144 35 Seni
Slide 13: Financial information (4/4)
SDSD – Financial information (4/4) Cash Flow Statement for 4Q 2016 Twelve Months Ended 2016 2015 Q4 Q4 (Amounts in USD 000) Unaudited Unaudited CASH FLOWS FROM OPERATING ACTIVITIES Profit/(Loss) for the period before income tax (277) (3 311) Unrealised exchange loss - 2 870 Payments to acquire finan
Slide 14: Agenda
Agenda I. Company overview II. Financial information III. Current investments IV. Appendix 14
Slide 15: PSV Volstad Vessels: purchased 47% below newbuild parity
PSV Volstad Vessels Vessels purchased 47% below newbuild parity Large PSV newbuild parity (1000m2) Large PSV values (1000m2) 40 40,00 39m 25 Year Parity 30 Year Parity 35 35,00 PSVVV: USD 13.3m per vessel 30 47% below the 25-year NB parity of a 9 year old 30,00 vessel with an implied value of USD 25
Slide 16: PSV Volstad Vessels: Depressed dayrate and asset value levels
PSV Volstad Vessels Depressed dayrate and asset value levels Large PSV secondhand values (1,000m2) Large PSV term rates (900m2) 80 55 50 70 45 60 40 50 35 USD ('000) 30 USDm 40 Last 10yr avg. ~USD 25k/d 25 Last 5yr avg. ~USD 21k/d 30 20 15 20 PSVVV: USD 13.3m, 9yr old vessels (avg.) 10 Current marke
Slide 17: PSV Opportunity I, II & III DIS and NWS Vessels
PSV Opportunity I, II & III DIS and NWS Vessels Vessels purchased at significant discounts to newbuild parity Mid-size PSV newbuild parity (500-750m2) Mid-size PSV values (500-750m2) 30 30 25 Year Parity 30 Year Parity NWS: USD 4.6m per vessel 25 76% below the 25-year NB parity of a 4 year old 25 ve
Slide 18: PSV Opportunity and NWS: Depressed dayrate and asset value levels
PSV Opportunity I, II & III DIS and NWS Vessels Depressed dayrate and asset value levels Mid-size PSV secondhand value (500-750m2) Mid-size PSV term rates (500-750m2) 45 35 40 30 35 25 30 20 25 USD('000) Last 10yr avg. ~USD 17.9k/d USDm Last 5yr avg. ~USD 15.6k/d 20 15 15 PSVOIII: USD 5.9m, 9yr old
Slide 19: Agenda
Agenda I. Company overview II. Financial information III. Current investments IV. Appendix 19
Slide 20: Timeline of events
SDSD – Timeline of events 2010: 2012-2013: 2016: Ordered and initiated the construction of one (1) KFELS Sold the remaining six (6) Keppel 20% investment in PSV Opportunity I & II DIS, and MOD V-B jack-up rig (B319) FELS jack-up rigs (B324, B325, received corresponding ownership in five (5) mi
Slide 21: Legal structure
SDSD – Legal structure S.D. Standard Drilling Plc. (Cyprus) 100% 15.6% Wanax AS New World Supply Ltd. (Norway) (Cayman Island) 20% 100% 100% 100% Investment in PSV Investment in SPV Investment in SPV Investment in SPV Opportunity I DIS Standard Princess World Diamond World Emerald (3x mid-size PSVs)
Slide 22: Management and Board of Directors
Management and Board of Directors Evangelia Panagide- General Manager Martin Nes – Chairman of the Board Ms. Panagide was elected general manager in Sept-13 Mr. Nes has been involved in the company since its incorporation in 2010 and was Mr. Panagide is based in the Company's headquarter in Cy
Slide 23: Top shareholders – February 2017
Top 20 shareholders – 24 February 2017 Shareholder Shares Percent 1 SAGA TANKERS ASA 157 298 663 15,39 % 2 DEUTSCHE BANK AKTIENGESELLSCHAFT 102 251 334 10,01 % 3 ARCTIC FUNDS PLC 57 162 177 5,59 % 4 J.P. MORGAN SECURITIES LLC 45 042 800 4,41 % 5 J.P. MORGAN SECURITIES PLC 41 001 910 4,01 % 6 JPMORGA
Slide 24: 100% acquisition of the PSV Volstad vessels
100% acquisition of the PSV Volstad vessels PSV Volstad Vessels Aker Brattvaag-built vessels specs Yard Aker Brattvag Built: 2008 Ship Type ST-216 L CD Location: Norwegian Continental Shelf Deck Space 1060 m² Status: On charter Deck Cargo Max 2,950 t Purchase price: USD 13.3m Dwt/GT/NT 5000
Slide 25: 20% investment in PSV Opportunity I DIS
20% investment in PSV Opportunity I DIS PSV Opportunity I DIS Kleven-built sister vessel specs Yard Kleven, Norway Built: 2005 Ship Type VS 470 MK II (23 pax accommodation) Location: UK Continental Shelf Deck Space 700 m², 51m x 13.8m Status: On a 3-6 month time charter Deck Load 5t/m² Purch
Slide 26: 20% investment in PSV Opportunity II DIS
20% investment in PSV Opportunity II DIS PSV Opportunity II DIS Aukra-built sister vessel specs Yard Aukra, Norway Built: 2008 Ship Type UT 755 LN Location: Trinidad & Tobago Deck Space 680 m², 51m x 13.3m Status: About to relocate to North Sea Deck Load 5t/m² Purchase price: USD 5.1m Dwt/GT
Slide 27: 35% investment in PSV Opportunity III DIS
35% investment in PSV Opportunity III DIS PSV Opportunity III DIS Aker Brevik built sister vessel specs Yard Aker Brevik, Norway Built: 2007 Ship Type UT 755 LN Location: Edinburgh (Leith), Scotland Deck Space 710 m² Status: Warm lay-up Dwt/GT/NT 3,130 mt/2,050/1143 Purchase price: USD 5.85m
Slide 28: 15.6% investment in New World Supply Ltd.
15.6% investment in New World Supply Ltd. New World Supply Vessels Damen Shipyard-built vessel specs Yard Damen Shipyards Galati, Romania Built: 2013 Built 2013 Location: Ålesund, Norway Ship Design Damen PSV 3300 CD Status: Laid-up Deck Space 728 m² Purchase price: USD 4.6m Deck Cargo Max 1
Slide 29: 15.6% investment in New World Supply Ltd.
15.6% investment in New World Supply Ltd. New World Supply Vessels Damen Shipyard-built vessel specs Yard Damen Shipyards Galati, Romania Built: 2013 Built 2013 Location: Cadiz, Spain Ship Design Damen PSV 3300 CD Status: Laid-up Deck Space 728 m² Purchase price: USD 4.6m Deck Cargo Max 1,52
Slide 30: Gd) stanvaro DRILLING
Gd) stanvaro DRILLING
S.D. Standard Drilling — Q4 2016 Earnings Presentation on 6ix