S.d. Standard Etc Plc · OSL:SDSD
S.d. Standard Etc — S.D. Standard Drilling — Q3 2018 Earnings Presentation
26 slides from S.d. Standard Etc's earnings presentation, Nov 8, 2018
Slide 1: S.D. Standard Drilling Plc. 3Q 2018 Presentation
S.D. Standard Drilling Plc. 3Q 2018 Presentation 8 November 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 Q3 2018
Highlights Q3 2018 • Profit after tax of USD (0.2)m (3Q 17 USD (5.8)m) • Total cash balance of USD 23.3m (3Q17 USD 15.2m)(1) • Total Book Value of Equity of USD 110m (NOK 1.56 per share) (2) • Total EBITDA (adj) of USD 0.2m (3Q17 USD 0.7m)(3) • Large-size – 5x Standard vessels (100% owned) – EBITDA
Slide 5: Highlights Q3 2018 cont.
Highlights Q3 2018 cont. • Standard Supplier and Standard Princess – Both awarded a firm contract to 15 Feb-19 + 4 week options with Allseas. Commencement 30 Sep-18 and 1 Oct-18 • Negative fair value adjustment of financial assets of USD 0.1m • Northern Supply AS (SDSD has 25.53% ownership) – Comple
Slide 6: Subsequent events
Subsequent events • New World Supply Ltd sold 2x of its 6x medium size PSV’s (“World Emerald” and “World Sapphire”) – Sold at a level that reflects significantly higher vessel value compared to SDSD’s book value • Solid utilization for 5x large Standard vessels (100% owned) – Average utilization of
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 45 000 35 30 25 40 000 25 20 USDm 15 35 000 10 5 30 000 Required rate: ~USD 24k/day 0 Company #1 Company #2 Co
Slide 9: Low overhead costs and low breakeven rates
Low overhead costs and low breakeven rates 2 SDSD has a competitive advantage compared to industry peers Corporate overhead per active vessel Average cash Break-even for SDSD 1.6 8 000 1.5 Average cash break-even for SDSD, all-in costs (USD / Day) for PSV vessels 1.4 7 000 – Large-size: USD 7,000
Slide 10: SDSD has a modern fleet of large PSVs - all working
SDSD has a modern fleet of large PSV’s- all working 3 SDSD has a competitive advantage compared to industry peers Overview of PSVs in layups, no vessels can easily return to the North Sea 60 12 50 6 40 11 No. vessels 30 59 20 23 10 7 0 0 (2) PSV Layups (1) Non DP / DP1 >15 Yrs Old <700m² Deck >2 Yrs
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 New World Supply (4x) – Northern Supply vessels (9x) – 25.5% owned 26.2% owned 2x vessels 3x vessels 4x vessels 2x vessels 2x vessels Purchase price: Purchase price: Purchase price: Purchase price: Purchase price: ~USD 2.5m(1) ~USD 2.5m(1) ~USD 5.1m(1) ~USD 5.4m(1
Slide 14: Large-size PSV vessels – contract overview
Large-size PSV vessels – contract overview Standard vessels (100% owned) 2018 2019 Vessel Built Client Country 2Q 3Q 4Q 1Q 2Q 3Q 4Q Large-size Vessels Standard Viking 2007 Peterson UK Standard Princess 2008 Allseas UK Standard Supplier 2007 Allseas UK Standard Provider 2010 Shell / Spot UK Standard
Slide 15: Mid-size PSV vessels – contract overview
Mid-size PSV vessels – contract overview Northern Supply vessels (25.5% owned) 2018 2019 Vessel Built Client Country 2Q 3Q 4Q 1Q 2Q 3Q 4Q Mid-size Vessels FS Arendal 2006 Repsol UK FS Aberdour 2009 Saipem UK FS Balmoral 2008 Spot UK FS Braemar 2007 Enquest/Spot UK FS Carrick 2009 Petrofac / Saipem U
Slide 16: Large-size PSV vessels – Utilization overview
Large-size PSV vessels – Utilization overview Historical utilization of operating vessels (%) Utilization overview (weighted average) Standard vessels (100% owned) 100% Weighted 93% 95% 90% Utilization S.Viking S. Princess S. Supplier S.Provider S. Supporter average 90% 1Q17 n.a. 72 % n.a. n.a. n.a.
Slide 17: Mid-size PSV vessels – Utilization overview
Mid-size PSV vessels – Utilization overview Historical utilization of operating vessels (%)(1) Utilization overview (weighted average) Northern Supply vessels (25.5% owned) 100% 98% FS FS FS FS FS FS FS Weighted Utilization Aberdour Arendal Balmoral Kr. Sand Braemar Carrick Crathes average 88% 90% 9
Slide 18: Large-size PSV vessels – EBITDA overview
Large-size PSV vessels – EBITDA overview 5x Standard vessels (100% owned) (1) Three months Three months Year to Year to Standard vessels (USD) ended, 3Q18 ended, 3Q17 date, 3Q18 date, 3Q17 Net hire (net of commission) 3 685 991 2 617 337 10 964 889 3 905 896 Admin expenses (46 150) (21 052) (168 425
Slide 19: Mid-size PSV vessels – EBITDA overview
Mid-size PSV vessels – EBITDA overview 9x Northern Supply vessels (25.5% owned) (1), pro-rata overview Three months Three months Year to Year to Northern Supply vessels (USD) ended, 3Q18 ended, 3Q17 date, 3Q18 date, 3Q17 Net hire (net of commission) 1 052 077 606 521 2 510 966 1 206 867 Admin expens
Slide 20: 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 (25.5% owned), pro-rata Standard vessels Northern Supply vessels, pro-rata (100% owned) (25.5% owned) Standard vessels Northern Supply vessels, pro-rata (100% owned) (25.
Slide 21: Explanation of the fair value accounting gain in 3Q18
Explanation of the fair value accounting gain in 3Q18 • 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 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 3Q18 Three Months Ended Nine Months Ended 2018 2017 2018 2017 (Amounts in USD 000) Q3 Q3 Q3 Q3 Unaudited Audited Income Changes in fair value on financial assets at fair value through profit or loss (135) (6 502) (2 997) (6 584) Changes
Slide 24: Balance sheet
Balance sheet S.D. Standard Drilling – Balance sheet for 3Q18 (Amounts in USD 000) 30.09.2018 31.12.2017 ASSETS Unaudited Audited Equipment and machinery 1 1 Financial assets at fair value through profit or loss 90 687 88 379 Total non-current assets 90 688 88 380 Trade and other receivables 54 42 S
Slide 25: Cash flow statement
Cash flow statement S.D. Standard Drilling – Cash flow statement for 3Q18 Nine Months Ended 2018 2017 (Amounts in USD 000) Q3 Q3 Unaudited Unaudited CASH FLOWS FROM OPERATING ACTIVITIES Profit/(Loss) for the period before income tax (2 791) (4 775) Unrealised exchange loss/(gain) 72 (418) Other gain
Slide 26: Gd) stanvaro DRILLING
Gd) stanvaro DRILLING
S.D. Standard Drilling — Q3 2018 Earnings Presentation on 6ix