30 slides from S.d. Standard Etc's earnings presentation, May 2017
Slide 1: S.D. Standard Drilling Plc. 1Q 2017 Presentation
S.D. Standard Drilling Plc. 1Q 2017 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 ~65% ave
Slide 4: Strategy
SDSD – Strategy To own or control a large fleet of oil service assets purchased at low valuations Investment Recovery Monetizing Goal to acquire high quality oil Phase phase phase service tonnage at all time low prices Grown fleet to 16 wholly or Run assets for cash yield partly owned Platform S
Slide 5: SDSD – 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 440m: Platform that invests directly into established com
Slide 6: SDSD – Fleet overview
SDSD – Fleet overview • Avg. price: ~USD 13.3m(1) • Ownership: 100% Standard • 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
Slide 7: SDSD – Contract overview
SDSD – Contract overview Contract overview as of 29th May-17 Vessel Built Client Country 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Medium PSV 2007 FS Kristiansand 2005 Perenco UK 1 well + 1 well option FS Bergen 2006 - UK Warm lay-up FS Arendal 2006 Repsol UK 18 month contract FS Abergeldie 2008 - Trinidad/Tobago War
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 1Q 2017: Total net income of USD 1854 thousands Profit for the period after tax of USD 1691 thousands Cash and cash equivalents of USD ~16 million at 31 Mar-17 Equity-ratio close to 100% at 31 Mar-17 Completed a ~NOK 100 million
Slide 11: Financial information (2/4)
SDSD – Financial information (2/4) Income Statement for 1Q 2017 Three Months Ended (Amounts in USD 000) 2017 Q1 2016 Q1 Unaudited Unaudited Income Changes in fair value on financial assets and financial liabilities at fair value through profit or loss 1 136 - Interest income 9 12 Net foreign currenc
Slide 12: Financial information (3/4)
SDSD – Financial information (3/4) Balance Sheet Statement for 1Q 2017 (Amounts in USD 000) 31.03.2017 31.12.2016 ASSETS Unaudited Audited Intangible assets 2 - Equipment and machinery 1 1 Financial asset at fair value through profit or loss 63 662 5 300 Total non-current assets 63 665 5 301 Trade a
Slide 13: Financial information (4/4)
SDSD – Financial information (4/4) Cash Flow Statement for 1Q 2017 Three Months Ended (Amounts in USD 000) 2017 Q1 2016 Q1 Unaudited Unaudited CASH FLOWS FROM OPERATING ACTIVITIES Profit/(Loss) for the period before income tax 1 691 (146) Unrealised exchange loss 119 - Payments to acquire financial
Slide 14: Agenda
Agenda I. Company overview II. Financial information III. Current investments IV. Appendix 14
Slide 15: PSV Standard Vessels: Vessels purchased 47% below newbuild parity
PSV Standard Vessels Vessels purchased 47% below newbuild parity Large PSV newbuild parity (1,000m2) Large PSV values (1,000m2) 40 40.0 39m 25 Year Parity 30 Year Parity 35 35.0 PSVVV: USD 13.3m per vessel 30 47% below the 25-year NB parity of a 9 year old 30.0 vessel with an implied value of USD 25
Slide 16: PSV Standard Vessels: Depressed dayrate and asset value levels
PSV Standard Vessels Depressed dayrate and asset value levels Large PSV secondhand values (1,000m2) Large PSV term rates (900m2) 55 80 50 70 45 40 60 35 50 USD ('000) 30 USDm Last 10yr avg. 40 25 ~USD 23.8k/d 20 30 Last 5yr avg. ~USD 19.4k/d 15 20 Current market rate PSVVV: USD 13.3m, 9yr old vessel
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 5.1m per vessel 25 73% 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) 35 45 40 30 35 25 30 20 USD ('000) 25 Last 10yr avg. USDm USD ~17.3k/d 20 15 Last 5yr avg. USD ~14.6k/d 15 10 PSVOIII: USD 5.9m, 9yr
Slide 19: Agenda
Agenda I. Company overview II. Financial information III. Current investments IV. Appendix 19
Slide 20: SDSD – 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 FELS 20% investment in PSV Opportunity I & II MOD V-B jack-up rig (B319) jack-up rigs (B324, B325, B337, B338, DIS, and received corresponding ownership
Slide 21: Legal structure
SDSD – Legal structure S.D. Standard Drilling Plc. (Cyprus) 100% 26.2% 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 as per May-17
Top 20 shareholders as per May-17 No. Name of shareholder # of shares % of shares 1 SAGA TANKERS ASA 56,099,555 15.73 % 2 EUROCLEAR BANK S.A./N.V. 34,043,725 9.54 % 3 HOLBERG NORGE 16,666,667 4.67 % 4 ARCTIC FUNDS PLC 16,220,726 4.55 % 5 J.P. MORGAN SECURITIES LLC 13,122,527 3.68 % 6 J.P. MORGAN SEC
Slide 24: 100% acquisition of the PSV Standard vessels
100% acquisition of the PSV Standard vessels PSV Standard Vessels Aker Brattvaag-built vessels specs Yard Aker Brattvag Built: 2008 Ship Type ST-216 L CD Location: Aberdeen, UK Deck Space 1060 m² Status: On charter Deck Cargo Max 2,950 t Purchase price: USD 13.3m Dwt/GT/NT 5000 mt/4,183/1,25
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: Great Yarmouth, UK Deck Space 700 m², 51m x 13.8m Status: On a 3-6 month time charter Deck Load 5t/m² Purchas
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: Warm lay-up Deck Load 5t/m² Purchase price: USD 5.1m Dwt/GT/NT 3,270 mt/2,180/
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), UK Deck Space 710 m² Status: Warm lay-up Dwt/GT/NT 3,130 mt/2,050/1143 Purchase price: USD 5.85m Dynam
Slide 28: 26.2% investment in New World Supply Ltd.
26.2% 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 5.1m Deck Cargo Max 1
Slide 29: 26.2% investment in New World Supply Ltd.
26.2% 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 5.1m Deck Cargo Max 1,52
Slide 30: Gd) stanvaro DRILLING
Gd) stanvaro DRILLING