Mermaid Maritime Public Co., Ltd. · SGX:DU4
Mermaid Maritime Public — Mermaid Maritime — Non-Deal Roadshow (August 2014)
44 slides from Mermaid Maritime Public's roadshow presentation, Aug 22, 2014
Slide 1: Corporate Presentation – Non-deal Road Show
Mermaid Maritime Plc. Mermaid Maritime Plc. Corporate Presentation Non-deal Road Show 21 – 22 August 2014, Singapore “Delivering a world class service to the region from within the region” www.mermaid-maritime.com
Slide 2: Disclaimer
Mermaid Maritime Plc. Disclaimer This presentation has been prepared by Mermaid Maritime Plc. for shareholders, solely for information purposes. The views expressed here contain some information derived from publicly available sources that have not been independently verified. No representation or w
Slide 3: Agenda
Mermaid Maritime Plc. Agenda 1. Mermaid Business Overview 2. Market Outlook 3. Subsea Services 4. Drilling Services 5. Financial Review & Order Book 6. New Assets & Summary www.mermaid-maritime.com -3-
Slide 4: 1. Mermaid Business Overview
Mermaid Maritime Plc. Agenda 1. Mermaid Business Overview www.mermaid-maritime.com -4-
Slide 5: Who We Are & Our Leadership
Mermaid Maritime Plc. Who We Are & Our Leadership We are one of the world’s largest oil and gas diving services companies Mr. Prasert Bunsumpun Chairman of the Board Over 30 years experience in the offshore oil and gas industry. Distinguished career includes CEO of PTT Plc. and Chairman of PTT Explo
Slide 6: Mermaid Business Summary
Mermaid Maritime Plc. Mermaid Business Summary 30 5 1000+ years since Mermaid regions which skilled divers, crew, Maritime’s Mermaid technicians, support establishment operates service providers & management SUBSEA BUSINESS DRILLING BUSINESS 15 4 subsea vessels* tender rigs** North Sea Middle East A
Slide 7: Mermaid's Industry Positioning
Mermaid Maritime Plc. Mermaid’s Industry Positioning Specialist ‘below the water’ segment where barriers to entry are high Oil & Gas Shallow Upstream Offshore Production Sub Surface Industry Water Dual-portfolio ‘turnkey’ service offering Subsea Services Drilling Services Focus on production phase o
Slide 8: A Member of the Thoresen Group of Companies
Mermaid Maritime Plc. A Member of the Thoresen Group of Companies Corporate Chart Thoresen Thai Agencies Plc. PM Group (Group Holdings) Thoresen Shipping Unique Mining PM Thorsen Asia Mermaid Maritime Plc. Singapore Pte. Ltd. Services Plc. Holdings Ltd. (Offshore Services) (Dry Bulk Shipping) (Coal)
Slide 9: Board Members & Key Executives
Mermaid Maritime Plc. Board Members & Key Executives Board Members * Mr. Joseph Chia Dr. Jean Paul Thevenin Mr. Ng Cher Yan Mr. Joachim Toh Dr. Jan Skorupa Executive Director Non-Executive Director Independent Director Independent Director Independent Director The New Organization Structure Key Exec
Slide 10: High Quality Customer Base
Mermaid Maritime Plc. High Quality Customer Base www.mermaid-maritime.com - 10 -
Slide 11: Commitment to Customers
Mermaid Maritime Plc. Commitment to Customers Track record of successful Excellent health, safety and Strategic local partnerships projects with reputable clients environment track record in various geographies Fully compliant with First tier international Dynamic with quick internationa
Slide 12: 2. Market Outlook
Mermaid Maritime Plc. Agenda 2. Market Outlook www.mermaid-maritime.com - 12 -
Slide 13: Market Outlook
Mermaid Maritime Plc. Market Outlook Sustainable level of oil price leads to renewed confidence in exploration and production (E&P) spending by oil and gas companies. Prices above minimum rate of returns (hurdle rates) on new investments. (Source: Bloomberg) E&P spending continues to increase year-o
Slide 14: Population and income growth will drive more energy demand
Mermaid Maritime Plc. Population and income growth will drive more energy demand... By 2030 world population is World income in 2030 is expected Due to rapid industrialization, projected at 8.3 billion which to roughly double 2011 in real urbanization and motorization, means an additional 1.3 billio
Slide 15: Oil and Gas still dominating the energy market in long-term
Mermaid Maritime Plc. …with Oil and Gas still dominating the energy market in long-term By 2030, energy demand is Energy used in power generation Renewable energy use will grow expected to be 36% higher than and directly in industry lead but oil and gas are expected to 2011 with almost all growth gr
Slide 16: 3. Subsea Services
Mermaid Maritime Plc. Agenda 3. Subsea Services www.mermaid-maritime.com - 16 -
Slide 17: Subsea dynamics reveals stable growth trends
Mermaid Maritime Plc. Subsea dynamics reveals stable growth trends … Increased E&P spending led Sustained growth in demand by sustainable level of oil for all types of subsea vessels price has driven up demand forecasted from 2014 - 2017. for offshore activities and subsea services. Global Demand by
Slide 18: Mermaid strategically positioned
Mermaid Maritime Plc. …with Mermaid strategically positioned Our Key Services Subsea inspection, Subsea Subsea remotely Subsea emergency Subsea cable laying repair and infrastructure operated vehicle callout service & maintenance installation support support salvage Our Edge Geographical Excellent S
Slide 19: New Integration and Rebranding
Mermaid Maritime Plc. …New Integration and Rebranding Our Subsea Brands New Integration and Rebranding With rebranding, we will now operate • Uncompromising quality of services under one new Subsea brand • Seamless services • Sharp focus across regions New Logo • Represents new Subsea unit as a whol
Slide 20: Updates on Mermaid's Subsea Fleet
Mermaid Maritime Plc. Updates on Mermaid’s Subsea Fleet Mermaid Endurer (DSV) • Has continued working actively in the North Sea on IRM contract with Bibby Offshore and will complete the contract before the end of 2014 with an option for extension. • Due to her excellent performance resulting in cust
Slide 21: Updates on Mermaid's Subsea Fleet
Mermaid Maritime Plc. Updates on Mermaid’s Subsea Fleet Mermaid Sapphire (Air • She has constantly been a very successful revenue generator for the Group. Diving and ROV vessel) • Now working in Russia while also having another repeating customer in the area who has continually awarded contracts for
Slide 22: Updates on Mermaid's Subsea Fleet
Mermaid Maritime Plc. Updates on Mermaid’s Subsea Fleet SS Barakuda (OSV) • Currently operating to support the Resolution on the IRM contract in Indonesia with 77 days of firmed project. *Mubarak Supporter (Construction barge) • She has already been delivered in August 2014 after project delayed by
Slide 23: Updates on Mermaid's Subsea Fleet
Mermaid Maritime Plc. Updates on Mermaid’s Subsea Fleet *Resolution (Air Diving and ROV Vessel) • She is currently operating in Indonesia on an IRM contract. • During 2014, she has been deployed as supporting vessel performing on various ROV works along with other Mermaid vessels in the Gulf of Thai
Slide 24: 4. Drilling Services
Mermaid Maritime Plc. Agenda 4. Drilling Services www.mermaid-maritime.com - 24 -
Slide 25: Tender rigs have their niche
Mermaid Maritime Plc. Tender rigs have their niche Tender Rig Statistics Tender Rig Market Outlook Tender rig fleet is aging with ~50% of the global fleet Established niche market and customer acceptance in at 30+ years old (dying fleet). South East Asia and West Africa. 49 tender rigs globall
Slide 26: Jack-up shows positive trends
Mermaid Maritime Plc. Jack-up shows positive trends Outstanding Demand (rig years) Jack-Up Market Supply/demand remains solid and utilization is at high level Demand expected to outstrip supply in next 1.5 years. Led by strong demand, Jack-up (Source: HIS- fleet is operating at strong Petrodat
Slide 27: Mermaid's Drilling Fleet & Investments
Mermaid Maritime Plc. Mermaid’s Drilling Fleet & Investments Tender Rigs (Existing) Tender Rigs (On Order) Premium Jack-Up Rigs AOD I Jack-up Rig* MTR-1 Barge MTR-3 Tender Drilling Rig AOD II Jack-up Rig* MTR-2 Tender Drilling Rig MTR-4 Tender Drilling Rig AOD III Jack-up Rig* *AOD performance illus
Slide 28: 5. Financial Review & Order Book
Mermaid Maritime Plc. Agenda 5. Financial Review & Order Book www.mermaid-maritime.com - 28 -
Slide 29: 3Q2014 Financial Highlights
Mermaid Maritime Plc. 3Q2014 Financial Highlights Year on Year Comparison Revenue of 3Q 2014 was USD 225.2 million increased from that of last year 25% due to improve in drilling Revenue (in USD millions) and subsea project in Middle East. EBITDA Net Profit of 3Q 2014 was USD 31.5 million increa
Slide 30: 3Q2014 Financial Highlights – Cash Position
Mermaid Maritime Plc. 3Q2014 Financial Highlights CASH POSITION Sep 2013 Jun 2014 Cash and cash CASHFLOWS equivalents decreased Cash & Cash Equivalents 148.8 61.4 58.7% by USD 87.4 million due mainly to All units in USD millions Restricted Deposits at 4.0 4.0 deposit of new build Financial Instituti
Slide 31: 3Q2014 Sector Breakdown
Mermaid Maritime Plc. 3Q2014 Sector Breakdown All units in USD millions Revenue Breakdown Operating Profit Breakdown Subsea & Drilling, Survey, 75.2% 3Q2014 10.8% Subsea & Survey, Drilling, 24.8% 89.2% Not to scale. For illustrative purpose only. www.mermaid-maritime.com - 31 -
Slide 32: Sector Order Book
Mermaid Maritime Plc. Sector Order Book* Overall ~USD 480 Million* * Order book from 1 July 2014 not including AOD pro-rata contribution of an additional ~USD 127 million (USD 607 million total) Drilling www.mermaid-maritime.com - 32 -
Slide 33: Sector Order Book – Subsea
Mermaid Maritime Plc. Sector Order Book* Subsea Customer Breakdown Customer Breakdown 2013 2014 42% 48% from others from others 52% 58% from from Repeating Repeating Customers Customers Value Growth 5% www.mermaid-maritime.com
Slide 34: 2Q2014 Associate Performance: Asia Offshore Drilling
Mermaid Maritime Plc. 2Q2014 Associate Performance : Asia Offshore Drilling All units in USD millions 2Q2013 (Jan-Jun) Service Income Net Profit/Loss Net Profit Utilization 2Q2014 (Jan-Jun) Margin Rate 100.0% 109.1 93.6% 45.1% AOD* 49.2 3.9% 13.0 0.5 *Based on AOD performance (before pro-rating of 3
Slide 35: Group Statement of Financial Position
Mermaid Maritime Plc. Mermaid Group Statement of Financial Position USD FY2012 FY2013 3Q2014 30 Sept 2012 30 Sept 2013 30 Jun 2014 Cash & Equivalents 62.3 148.8 61.4 Current Assets 136.5 267.0 212.3 Non-Current Assets 399.7 443.3 519.2 Current Liabilities 33.9 73.0 71.8 Non-Current Liabilities 126.4
Slide 36: Debt Structure
Mermaid Maritime Plc. Debt Structure Units in USD millions Loan Maturity Gross D/E (Times) Low D/E ratio < 1 year allows financial < 1 year flexibility 0.35 19.3 12.3 0.33 0.26 0.22 556.7 109.2 117.4 363.5 > 1 year > 1 year 4Q2013 3Q2014 FY2011 FY2012 FY2013 3Q2014 Loan Outstanding 31.5 Repayment Lo
Slide 37: Debt Maturity Profile and Gearing Ratio
Mermaid Maritime Plc. Debt Maturity Profile and Gearing Ratio www.mermaid-maritime.com - 37 -
Slide 38: Group Profit and Loss Highlights
Mermaid Maritime Plc. Group Profit and Loss Highlights CAGR 21% CAGR 53% CAGR 26% CAGR 180% 1 Fiscal year ended 30 September 2 Net profit attributable to owners of the parent 3 Gross profit included depreciation & amortization www.mermaid-maritime.com - 38 -
Slide 39: Group Balance Sheet Highlights
Mermaid Maritime Plc. Group Balance Sheet Highlights 1 Fiscal year ended 30 September 2 Excluding non-controlling interest www.mermaid-maritime.com - 39 -
Slide 40: Group Financial Ratios
Mermaid Maritime Plc. Group Financial Ratios Net debt to equity (1)(2)(3) Interest cover (1)(2)(3) 0.23 13.9 0.18 10.8 0.11 5.5 5.3 0.04 4.8 (0.02) FY2010 FY2011 FY2012 (restated) FY2013 3Q2014 FY2010 FY2011 FY2012 (restated) FY2013 3Q2014 Note: 1 Fiscal year ended 30 September 2 Defined as ratio of
Slide 41: 6. New Assets & Summary
Mermaid Maritime Plc. Agenda 6. New Assets & Summary www.mermaid-maritime.com - 41 -
Slide 42: New Assets Under Construction
Mermaid Maritime Plc. New Assets Under Construction January 2014: Secured 3x new build orders with China Merchants worth USD 436 million for delivery to Mermaid in 2016. Performance Class Tender Drilling Rigs 2x Larger deck & storage space More accommodation onboard & 21st century design Drill
Slide 43: Updates on the New Builds
Mermaid Maritime Plc. Updates on the New Builds The Two New Build Tender • After contract signing in January 2014, up until now, we Drilling Rigs – MTR 3 & 4 are still on track in terms of timeline and currently about to complete the basic design phrase. • We are in the process of building up a new
Slide 44: Summary
Mermaid Maritime Plc. Summary Strong position in Thailand, Indonesia, Middle East Management Proven assets, team driven for technical and growth and operational value-added capabilities service wins Record contract Robust balance order book with sheet and reputable clients prudent financial for earn