Bw Offshore Limited · OSL:BWO
Bw Offshore — Q4 2010 Earnings Presentation
32 slides from Bw Offshore's earnings presentation, Feb 22, 2011
Slide 1: BW Offshore Q4 2010 presentation
BW Offshore Q4 2010 presentation 22 February 2011
Slide 2: Disclaimer
Disclaimer This Presentation has been produced by BW Offshore Limited ( “BW Offshore”) exclusively for information purposes. This presentation may not be redistributed, in whole or in part, to any other person. This document contains certain forward-looking statements relating to the business, finan
Slide 3: Highlights
Highlights Q4 2010 EBITDA of USD 87.6 million excluding non-recurring items Acquisition of Prosafe Production completed Received payment of USD 531.5 million for the sale of the APL division Uptime of 98.6% after downtime on Ningaloo Vision Start of day rate payments for BW Pioneer under discussion
Slide 4: Status
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Slide 5: Fleet
Fleet Unit Type Contract 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Sendje Berge FPSO Lease Addax/Sinopec, Nigeria: 2005-2013 Berge Helene FPSO Lease Petronas, Mauritania: 2006-2013 (2021) Yùum K'ak'Náab FPSO Lease Pemex, Mexico: 2007-2022 (2025) BW Cidade d
Slide 6: Backlog and counterparties
Backlog and counterparties USD 8.2 billion backlog Robust counterparties 9,000 8,000 7,000 6,000 35 % 5,000 Option Petrobras 4,000 Fixed Other NOCs * 3,000 53 % 2,000 Independents ** 1,000 MUSD- Revenue 12 % * e.g.Pemex, Petronas **e.g.Apache, Murphy, Kangean, Ithaca, Devon, AWE, CNR, Agip 22 Februa
Slide 7: Operations
Operations Q4 2010 uptime of 98.6% Production uptime 100.0% − 5 year average uptime is 99.0% 99.0% 98.0% Ningaloo Vision downtime in part of 97.0% Q4 2010 and Q1 2011 96.0% 95.0% − Caused by swivel and mooring system 94.0% 93.0% − Temporary repairs carried out – 92.0% permanent repairs under plannin
Slide 8: Projects (I)
Projects (I) FPSO BW Pioneer for Petrobras − Disconnect system and hook-up of flow lines completed − Unit ready for production − Start of day rate payments under discussion FPSO BW Athena for Ithaca Energy - Drydocks World, Dubai − Fabrication of new ship section and buoy well underway − Progress 40
Slide 9: Projects (II)
Projects (II) FPSO BW Joko Tole (TSB) for Kangean Energy - Sembawang, Singapore − Structural work and steel replacement ongoing, detailed engineering being completed − Progress 37% per end January and in line with plan FPSO P-63 (Papa Terra) for Petrobras - COSCO Dalian, China − Structural work and
Slide 10: Integration and synergies
Integration and synergies Goals − Business as usual on all units − Move to one business-platform Progress − Carve out of APL organisation completed − Singapore organisation integrated and relocated − Integration of regional offices starting − Best practice process started Current realised cost syner
Slide 11: Finance
FINANCE |
Slide 12: Key takeaways
Key takeaways Consolidated accounts − Prosafe Production consolidated from and including Q4 2010 − Purchase Price Allocation (PPA) analysis of Prosafe Production performed − Booked net impairment charges of USD 85.0 million − APL division presented as discontinuing business from and including Q3 201
Slide 13: P&L
P&L USD million Q4 10 Q3 10 Q4 09 2010 2009 Operating revenue 255.8 139.0 57.7 549.3 219.9 Operating expenses -216.9 -59.7 -26.4 -382.2 -112.5 Share of profit from associates 0.0 -16.4 -10.7 -14.8 -6.1 EBITDA 38.9 62.9 20.6 152.3 101.3 Depreciation -44.3 -13.1 -13.4 -83.1 -40.6 Amortisations -1.2 -0
Slide 14: Balance sheet
Balance sheet Equity ratio 37.5% Existing loan facilities classified as short-term debt due to refinancing Net interest bearing debt USD 1,401.5 million USD million 31.12.10 30.09.09 31.12.09 Total non-current assets 3,287.4 1,791.0 2,134.8 Assets of disposal group held for sale 7.1 498.4 0.0 Total
Slide 15: Cash status
Cash status Cash at 31 December 2010 USD 228.2 million Operating cash flow USD 140.1 million in Q4 2010 Repayment of USD 370.2 million in interest bearing debt Run-rate EBITDA on current portfolio is USD 500 million − Includes BW Pioneer, BW Athena and BW Joko Tole (ex P-63 and OSX) Remaining net ca
Slide 16: Refinancing
Refinancing Refinancing of BW Offshore and Prosafe Production’s corporate debt Seven year secured loan of USD 2.4 billion – syndication completed Predictable terms and flexibility for both growth and dividend Completing loan documentation in Q1 2011 22 February 2011 16
Slide 17: Outlook
OUTLOOK
Slide 18: Focus and strategic direction
Focus and strategic direction Market demand supports accretive organic growth Existing portfolio enables quarterly dividend payments Continue to play an active part in further industry consolidation 22 February 2011 18
Slide 19: Dividend and shareholder return
Dividend and shareholder return BW Offshore proposes new dividend policy to AGM in May − 20-25% of EBITDA − Quarterly payments BW Offshore has as an objective to generate competitive long-term total shareholder returns. This return will be achieved through sustainable growth and stable dividend paym
Slide 20: Market
Market Increasing activity levels in all markets Final contract negotiations for Bien Dong FSO in Vietnam Target selection criteria − Financial return − Client/field robustness − Technical complexity − Country and regulatory requirements 22 February 2011 20
Slide 21: Q&A, Capital Markets Day
Q&A Capital Markets Day Oslo - 22 March Singapore - 29 March 22 February 2011
Slide 22: 22 February 2011
22 February 2011 22
Slide 23: Appendix
APPENDIX
Slide 24: Units on contract – in operation
Units on contract – in operation Sendje Berge, FPSO Sinopec, Nigeria • 60,000 bpd oil processing • 55 mmscfd gas compression • 2,000,000 bbls storage • Spread mooring Yùum K’ak’Náab, FPSO Pemex, Mexico • 600,000 bpd oil handling • 200,000 bpd oil processing • 2,500,000 bbls storage • Disconnectable
Slide 25: Units on contract – in operation
Units on contract – in operation Belokamenka, FSO Sovkomflot, Russia • 2,400,000 bbls storage • Cargo heating system • Spread mooring BW Pioneer, FPSO Petrobras, US • 80,000 bpd oil processing • 25.6 mmscfd gas export • 600,000 bbls storage • Disconnectable turret mooring BW Cidade de São Vicente, F
Slide 26: Units on contract – in operation
Units on contract – in operation Ningaloo Vision, FPSO Apache, Australia • 63,000 bpd oil processing • 80 mmscfd gas compression • 620,000 bbls storage • Disconnectable turret Espoir Ivorien, FPSO CNR, Ivory Coast • 40,000 bpd oil processing • 60 mmscfd gas compression • 1,100,000 bbls storage • Tur
Slide 27: Units on contract – in operation
Units on contract – in operation Umuroa, FPSO AWE, New Zealand • 50,000 bpd oil processing • 25 mmscfd gas compression • 775,000 bbls storage • Turret mooring Abo, FPSO Agip, Nigeria • 44,000 bpd oil processing • 44 mmscfd gas compression • 930,000 bbls storage • Spread mooring Petróleo Nautipa, FPS
Slide 28: Units on contract – in operation
Units on contract – in operation Azurite, FDPSO Murphy, Congo • 40,000 bpd oil processing • 18 mmscfd gas compression • 1,400,000 bbls storage • Spread mooring Cidade de São Mateus, FPSO Petrobras, Brazil • 35,000 bpd oil processing • 353 mmscfd gas compression • 700,000 bbl storage Endeavor, FSO Ab
Slide 29: Units on contract - project
Units on contract - project OSX-1, FPSO OSX, Brazil • 42,000 bpd liquid processing • 40,000 bpd oil processing • 60,000 pbd water injection • 53 mmscfd gas compression • 950,000 bbls storage • Turret mooring BW Joko Tole (TSB), FPSO Kangean Energy, Indonesia • 7,000 bpd fluids processing • 340 mmscf
Slide 30: Units on contract - project
Units on contract - project P-63 (Papa Terra), FPSO Petrobras, Brazil • 2,200,000 bbls storage capacity • Ex BW Nisa (ULCC) 22 February 2011 30
Slide 31: Conversion candidates
Conversion candidates BW Ara • VLCC • 2,000,000 bbls storage capacity Takama • VLCC • 1,900,000 bbls storage capacity 22 February 2011 31
Slide 32: Further information
Further information: www.bwoffshore.com IR contact: Kristian Flaten, VP Finance & IR kristian.flaten@bwoffshore.com 22 February 2011 32