S.d. Standard Etc Plc · OSL:SDSD
S.d. Standard Etc — S.D. Standard Drilling — Q3 2021 Earnings Presentation
21 slides from S.d. Standard Etc's earnings presentation, Nov 11, 2021
Slide 1: S.D. Standard Drilling Plc. 3Q 2021 Presentation
S.D. Standard Drilling Plc. 3q 2021 Presentation 11 November 2021 1
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation (the "Presentation") has been produced by S.D. Standard Drilling Plc. (the "Company", and together with its subsidiaries the "Group") solely for information purposes. The Company does not intend, and does not assume any obligation, to update or correct an
Slide 3: 3Q21 Highlights
3Q21 Highlights Financials • Loss after tax of USD 2.7m (loss of USD 6.1m) incl. USD -0.8m from the sale of Gustavia S and USD - 2.0m from unrealized loss on fair value accounting on PSV fleet • Adj. EBITDA (1) from PSVs of USD 0.4m (USD -0.9m) • Completed sale of Standard Olympus for USD 7.5m (1) E
Slide 4: Transforming to an ETC (Energy/Transportation/Commodities) investment company
Transforming to an ETC (Energy/ Transportation/ Commodities) investment company Commercial/ Investment highlights Portfolio comparison – Des 2020 vs. Current (2) 110 • Building investment company within energy, 100 transportation and commodities (ETC) • Value of ETC investment portfolio of c. USD 65
Slide 5: Investment universe
Investment universe Liquid investments in energy and transportation Energy and transportation Liquid investments in cyclical commodities 300+ companies / USD 3,000bn+ cap Commodities USD 20,000bn+ Source: Bloomberg 5
Slide 6: Is the era of low US natural gas prices over?
Is the era of low US natural gas prices over? • Example of investment theme – US nat gas Historical US natural gas prices ➢Lowest emission- and cost priced hydrocarbons, 10 representing 1/4th of global natural gas supply 9 ➢Priced 4-5x lower than European- and Asian prices, and c. USD 30/bbl in oil
Slide 7: Natural gas – Competitive landscape
Natural gas – Competetive landscape US offers the lowest cost energy resource that is exportable 30 25 USD/MMBtu 20 15 10 5 0 HHI TTF JKM Oil Parity Source: EIA, IEA, Energy Aspects Note: HHI is the US henry hub, TTF is the Dutch Title Transfer Facility, JKM is the Japan Korea Market benchmark and O
Slide 8: Higher prices required to meet US demand growth 2020-2025
Higher prices required to meet US demand growth 2020-2025 Nat gas prices through ’25 supported by 20-25 Bcf/d of demand growth ~23 Bcf/d Source: EIA, IEA, Energy Aspects, Range Resources 8
Slide 9: Supply response limited due to pervasive capital discipline
Supply response limited due to pervasive capital discipline Rig count yet to recover to pre-Covid levels Activity held up by DUCs – for now 100 400 1600 90 1400 350 80 1200 300 1000 Steady state: 70 ~800 wells mmcf/d 250 800 60 Number 50 200 600 40 400 150 30 200 100 20 0 50 -200 10 -400 0 0 Jan-14
Slide 10: Companies can repurchase entire EV through FCF in 5-10 yrs
Companies can repurchase entire EV through FCF in 5-10 yrs Forward strip of USD 4.2/ 3.5/MMBTU in ’22-23 – providing c. 40% FCF yield Years required for E&Ps to repurchase all debt and equity basis ’23 strip 4,5 12 4,0 10 3,5 3,0 8 USD/MMBTU 2,5 Years 6 2,0 4 1,5 1,0 2 0,5 0 0,0 GPO EQT CHK CRK AR T
Slide 11: CHK US – Unchanged production capacity, revamped capital structure
CHK US – Unchanged production capacity, revamped capital structure Historical capital structure and production (mboe/d) FCF yield of c. 20-30% on USD 4-5/MMBtu gas prices (basis 2023) 35 800 45% 42% 700 40% 30 36% 35% 600 31% 25 30% 500 25% EV (USDbn) 20 25% FCF yield Mboe/d 20% 400 20% 15 14% 300 1
Slide 12: Appendix
Appendix Gd) stanvaro DRILLING
Slide 13: PSVs – Contract overview
PSVs – Contract overview 2021 Vessel Built Client Country Q1 Q2 Q3 Q4 Large-size Vessels Standard Viking 2007 Shell UK UK Standard Princess 2008 CNR UK Standard Supplier 2007 Enquest UK Standard Olympus 2014 SOLD UK 2021 Vessel Built Client Country Q1 Q2 Q3 Q4 Mid-size Vessels FS Balmoral 2008 Saipe
Slide 14: PSVs – Fleet utilization
PSVs – Fleet utilization Combined fleet utilization 1Q17 to Oct-21 100% 90% 80% Utilization (%) 70% 60% 50% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q21 1Q21 2Q21 3Q21 Oct-21 Large-size Mid-size Standard vessels Northern Supply Note: (100% owned) vessels - Vessels
Slide 15: Large-size PSVs – Commercial update
Large-size PSVs – Commercial update Large-size PSV term rates (900m2) Large-size PSV spot rates (900m2) 55 Term rates still ~58% above Mar-17 levels 55 50 50 45 45 40 40 +58% Current market rate ~USD 11.8k/d 35 35 USD ('000) USD ('000) 30 30 25 25 20 20 Current market rate USD ~15.5k/d 15 Last 10yr
Slide 16: Summary – Adj. EBITDA excluding dry docking and non-recurring costs
Summary – Adj. EBITDA excluding dry docking and non-recurring costs (1) Standard vessels (100% owned) and Northern Supply vessels (28.1% owned), pro-rata 6 000 1 500 3Q20 vs. 3Q21 2020 vs. 2021 5 000 1 000 4 000 3 000 Adj. EBITDA(1) (USD'000) 500 394 2 000 Adj. EBITDA(1) (USD'000) 304 1 073 1 175 1
Slide 17: Income statement
Income statement S.D. Standard Drilling – Income statement for 3Q21 Three Months Ended Nine Months Ended 2021 2020 2021 2020 (Amounts in USD 000) Q3 Q3 Q3 Q3 Unaudited Unaudited Unaudited Unaudited Income Changes in fair value on financial assets at fair value through profit or loss (3 086) (6 195)
Slide 18: Balance sheet
Balance sheet S.D. Standard Drilling – Balance sheet for 3Q21 (Amounts in USD 000) 30.09.2021 31.12.2020 ASSETS Unaudited Audited Equipment and machinery 1 1 Financial assets at fair value through profit or loss 56 651 58 862 Total non-current assets 56 651 58 863 Trade and other receivables 84 14 C
Slide 19: Cash flow statement
Cash flow statement S.D. Standard Drilling – Cash flow statement for 3Q21 Nine Months Ended 2021 2020 Q3 Q3 (Amounts in USD 000) Unaudited Unaudited CASH FLOWS FROM OPERATING ACTIVITIES Profit/(Loss) for the period before income tax 3 506 (20 314) Unrealised exchange (gain)/loss (24) 469 Payments to
Slide 20: Explanation of the fair value accounting loss in 3Q21
Explanation of the fair value accounting loss in 3Q21 • SDSD is classified as an investment entity in accordance with IFRS 10 – Investments, including subsidiaries, are not consolidated but measured at fair value through profit and loss every quarter based on estimates made by reputable independent
Slide 21: Gd) stanvaro DRILLING
Gd) stanvaro DRILLING
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