S.d. Standard Etc Plc · OSL:SDSD
S.d. Standard Etc — S.D. Standard Drilling — Q4 2017 Earnings Presentation
26 slides from S.d. Standard Etc's earnings presentation, Feb 27, 2018
Slide 1: S.D. Standard Drilling Plc. 4Q 2017 Presentation
S.D. Standard Drilling Plc. 4Q 2017 Presentation 27 February 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 Q4 2017
Highlights Q4 2017 • Profit after tax of USD 3.6m (3Q 17 USD (5.8)m) • Total cash balance of USD 15.2m end of 4Q17 (3Q17 USD 15.2m)(3) • Total EBITDA (adj) of USD (0.2)m (3Q17 USD 0.5m)(1) • Large-size – 5x Standard Vessels (100% owned) – EBITDA (adj) of USD (0.1)m (3Q17 USD 0.6m)(1) – Utilization o
Slide 5: Highlights Q4 2017 cont.
Highlights Q4 2017 cont. • Successful completion of NOK 200m equity offering • Acquisition of two large size PSVs for USD 22.2m • Positive fair value adjustment of financial assets of USD 4m • New World Supply Ltd. (26.2% owned) held as a financial investment • Total Book Value of Equity of USD 100.
Slide 6: Subsequent events
Subsequent events • Standard Supplier awarded a 3 month contract at day rates well above operating cost – Commenced 24 February 2018 – Daily options at increased day rates thereafter • Solid utilization for 5x large Standard Vessels (100% owned) through the winter season – Average utility of 87% for
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 40 45,000 27 30 40,000 USDm 20 10 35,000 0 Required rate: Company #1 Company #2 Company #3 Company #4 Avg. 30,
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 2.0 160 1.8 1.8 145 140 1.6 120 1.4 100 1.2 Active vessels USDm/vessel/year 92 1.0 0.9 80 0.9 0.8 0.8 0.7 60 0.6 0.6 40 37 0.4 34 0.25 25 20 0.2 6 7 0.0 0 SDSD*(1) NAO #1 Co
Slide 10: SDSD has a modern fleet of large PSV's - all working
SDSD has a modern fleet of large PSV’s- all working 3 SDSD has a competitive advantage compared to industry peers 90 A large share of all vessels laid-up in the North Sea are unlikely to return to the market • Many of the vessels laid up in the North 80 Sea are controlled by local/regional owners, b
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 PSV Opportunity III Vessels (7x) – 25.5% owned New World Supply Vessels (6x) – 26.2% owned 3x vessels 2x vessels 2x vessels 6x vessels Purchase price: Purchase price: Purchase price: Purchase price: ~USD 2.5m(1) ~USD 5.4m(1) ~USD 5.9m(1) ~USD 5.1m(1) Ownership: 25
Slide 14: Large-size PSV vessels – contract overview
Large-size PSV vessels – contract overview Standard Vessels (100% owned) 2018 2019 Vessel Built Client Country 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Large-size Vessels Standard Viking 2007 Peterson UK Standard Princess 2008 Premier Oil UK ~10 days in dry-dock Standard Supplier 2007 Decipher UK Standard Provider 2
Slide 15: Mid-size PSV vessels – contract overview
Mid-size PSV vessels – contract overview PSV Opportunity III (25.5% owned) 2018 2019 Vessel Built Client Country 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Mid-size Vessels FS Arendal 2006 Repsol UK FS Aberdour 2009 Centrica UK FS Balmoral 2008 Ineos (1) UK ~10 days in dry-dock FS Kristiansand 2005 TBN UK FS Braemar 2
Slide 16: Large-size PSV vessels – Utilization overview
Large-size PSV vessels – Utilization overview Historical utilization of operating vessels (%)(1) Utilization overview (weighted average) Standard Vessels (100% owned) 100% Weighted Utilization S.Viking S. Princess S. Supplier S.Provider S. Supporter average 90% 1Q17 n.a. 72 % n.a. n.a. n.a. 72 % 84%
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 III Vessels (25.5% owned) 100% FS Weighted Utilization FS Aberdour FS Arendal FS Balmoral FS Braemar Kristiansand average 90% 98% 1Q17 29 % 100 % n.a
Slide 18: Large-size PSV vessels – EBITDA overview
Large-size PSV vessels – EBITDA overview 5x Standard Vessels (100% owned) (1) Three months Three months Three months Standard Vessels (USD) ended, 4Q17 ended, 3Q17 ended, 2Q17 2017 Net hire (net of commission) 2 532 687 2 617 337 1 054 623 6 438 583 Admin expenses (38 401) (21 052) (28 659) (113 381
Slide 19: Mid-size PSV vessels – EBITDA overview
Mid-size PSV vessels – EBITDA overview 7x PSV Opportunity III Vessels (25.5% owned )(1), pro-rata overview Three months Three months Three months PSV Opportunity III Vessels (USD)(2), pro rata overview ended, 4Q17 ended, 3Q17 ended, 2Q17 2017 Net hire (net of commission) 580 849 606 521 316 949 1 78
Slide 20: Summary – EBITDA (adj) overview
Summary – EBITDA (adj) overview(1) Standard Vessels (100% owned) and PSV Opportunity III Vessels (25.5% owned), pro-rata Standard Vessels PSV Opportunity III, pro-rata (100% owned) (25.5% owned) 3,000 2,000 Adjusted EBITDA(1) (USD'000) 1,000 552 2Q17 3Q17 4Q17 2Q17 3Q17 4Q17 - (69) (85) (86) (427) (
Slide 21: Explanation of the fair value accounting gain in 4Q17
Explanation of the fair value accounting gain in 4Q17 • 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 4Q17 Twelve Months Three Months Ended Ended 2017 2016 2017 2016 (Amounts in USD 000) Q4 Q4 Q4 Q4 Unaudited Unaudited Unaudited Audited Income Changes in fair value on financial assets at fair value through profit or loss 4 001 193 (2 583
Slide 24: Balance sheet
Balance sheet S.D. Standard Drilling – Balance sheet for 4Q17 (Amounts in USD 000) 31.12.2017 31.12.2016 ASSETS Unaudited Audited Equipment and machinery 1 1 Financial asset at fair value through profit or loss 88 379 5 300 Total non-current assets 88 380 5 301 Trade and other receivables 42 144 Sen
Slide 25: Cash flow statement
Cash flow statement S.D. Standard Drilling – Cash flow statement for 4Q17 Twelve Months Ended 2017 2016 (Amounts in USD 000) Q4 Q4 Unaudited Unaudited CASH FLOWS FROM OPERATING ACTIVITIES Profit/(Loss) for the period before income tax (1 171) (277) Unrealised exchange gain (303) - Other gains and lo
Slide 26: Gd) stanvaro DRILLING
Gd) stanvaro DRILLING
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