Prosafe Se · OSL:PRS
Prosafe — Q1 2009 Earnings Presentation
37 slides from Prosafe's earnings presentation, May 15, 2009
Slide 1: Q1 2009 results
Oslo, 15 May 2009 Q1 2009 results
Slide 2: Disclaimer
2 Disclaimer All statements in this presentation other than statements of historical fact are forward-looking statements, which are subject to a number of risks, uncertainties, and assumptions that are difficult to predict and are based upon assumptions as to future events that may not prove accurat
Slide 3: Highlights Q1 2009
3 Highlights Q1 2009 Financial results Operations Outlook Summary Attachments
Slide 4: The quarter in brief
4 The quarter in brief Strong operational performance Robust financial position Rig utilisation rate of 77% Several contract awards Solid order backlog Good market outlook Safe Britannia Strong position in a stable accommodation market
Slide 5: Financial results
5 Highlights Q1 2009 Financial results Operations Outlook Summary Attachments
Slide 6: Income statement
6 Income statement (Unaudited figures in USD million) Q1 09 Q4 08 Q1 08 2008 Operating revenues 81.6 134.2 105.0 491.1 Operating expenses (31.3) (55.7) (51.0) (210.1) Operating profit before depreciation 50.3 78.5 54.0 281.0 Depreciation (12.8) (12.9) (12.0) (48.8) Operating profit 37.5 65.6 42.0 23
Slide 7: Balance sheet
7 Balance sheet (Unaudited figures in USD million) 31.03.09 31.12.08 31.03.08 Goodwill 226.7 226.7 355.0 Rigs 884.1 828.4 753.6 Ships 0.0 0.0 1 146.1 Other non-current assets 4.3 3.8 318.8 Total non-current assets 1 115.1 1 058.9 2 573.5 Cash and deposits 122.7 115.6 128.5 Other current assets 105.6
Slide 8: Key figures
8 Key figures Q1 09 Q4 08 Q1 08 2008 Operating margin 46.0 % 48.9 % 40.0 % 47.3 % Equity ratio 10.4 % 9.5 % 37.5 % 9.5 % Return on equity 79.5 % 101.4 % 19.2 % 46.5 % Net interest bearing debt 858.8 843.1 1 327.3 843.1
Slide 9: Shareholders
9 Shareholders AS AT 06.05.2009 No. of shares Ownership Folketrygdfondet 28 555 535 12.4 % GMO 9 801 438 4.3 % Brown Brothers Harriman 8 094 295 3.5 % Pareto 7 884 750 3.4 % Prosafe SE 7 001 705 3.0 % Clearstream Banking (nom.) 6 180 930 2.7 % RBC Dexia (nom.) 5 468 304 2.4 % Storebrand 5 155 585 2.
Slide 10: Operating revenues Offshore Support Services
10 Operating revenues Offshore Support Services (USD million) Q1 09 Q4 08 Q1 08 2008 Charter income 76.0 113.2 73.8 388.0 Mob/demob income 1.1 1.3 12.7 17.2 Other income 4.6 19.8 11.4 79.5 Total 81.7 134.3 97.9 484.7
Slide 11: Interim dividend approved
11 Interim dividend approved § The AGM resolved on 14 May 2009 to amend the company’s articles of association to allow for interim distribution of dividends § First dividend distribution: NOK 0.30 per share § Long-term dividend policy targeting 40-50% of net profit paid tri-annually the following ye
Slide 12: Operations
12 Highlights Q1 2009 Financial results Operations Outlook Summary Attachments
Slide 13: Rig utilisation rate
13 Rig utilisation rate 1) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1) Contracted as per May 2009
Slide 14: New contracts
14 New contracts One-year bareboat contract for Safe Bristolia in the GoM LoI for 2 times six months for Safe Scandinavia in the Norwegian North Sea Eight-month bareboat contract for Safe Concordia in the GoM 212-day contract for Safe Astoria in the Safe Astoria Philippines
Slide 15: Contract status
Contract status Safe Astoria Asia Safe Esbjerg Safe Caledonia North Sea / Safe Scandinavia Africa MSV Regalia Safe Bristolia Safe Concordia Safe Britannia ç 2001 Gulf of Safe Lancia ç 1998 Mexico Safe Regency ç 1997 Jasminia ç 1998 Safe Hibernia ç 2002 2006 2007 2008 2009 2010 2011 2012 2013 Contrac
Slide 16: MSV Regalia refurbishment
16 MSV Regalia refurbishment Refurbishment of MSV Regalia is progressing according to schedule Regalia has come out of the dry-dock Sea trials to commence in June MSV Regalia at Keppel Verolme
Slide 17: Outlook
17 Highlights Q1 2009 Financial results Operations Outlook Summary Attachments
Slide 18: Robust to oil price fluctuations
18 Robust to oil price fluctuations Pre-eng./ Seismic E&D concept Hook-up/ Operations & De- drilling studies commissioning maintenance commissioning Hook-up and commissioning of new installations Tie-in of satellite fields to existing installations Maintenance, upgrade and repair of existing install
Slide 19: Market outlook – majors and NOCs continue to spend
19 Market outlook – majors and NOCs continue to spend 50 50 2009E capex budget NOC s CNPC Majors 40 Russian 40 G azprom Other E&P 2008 capex spe nding ($mm) Shell Petro-China 30 30 Petrobras ExxonMobil Chevron StatoilHydro BP C onocoPhillips 20 20 ENI Total Pemex BG PDVSA Canadian Nat. Res. Devon En
Slide 20: Market outlook - North Sea
20 Market outlook - North Sea Mature basin Increased recovery Extended lifetime for fields Maintenance, modification and upgrade work required in years to come Source: www.acorn-ps.com
Slide 21: Market outlook - Mexico
21 Market outlook - Mexico Declining production Pemex maintain E&P spending in order to keep up production Activities mainly related to upgrade and maintenance of existing installations Currently seven rigs operating for Pemex Safe Lancia
Slide 22: Deepwater regions/emerging markets
22 Deepwater regions/emerging markets Southeast Asia and Australia West Africa Brazil Potential growth regions
Slide 23: North Sea dayrates (time charter)
North Sea dayrates (time charter) 400,00 350,00 300,00 250,00 USD k 200,00 150,00 100,00 50,00 0,00 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 MSV Regalia Safe Caledonia Safe Scandinavia (NMD3) (DP2/TAMS) (Moored)
Slide 24: Gulf of Mexico dayrates (bareboat)
Gulf of Mexico dayrates (bareboat) 100,00 90,00 80,00 70,00 60,00 USD k 50,00 40,00 30,00 20,00 10,00 0,00 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Safe Britannia Safe Regency Safe Lancia Safe Concordia Safe Hibernia Jasminia Safe Bristolia (DP2/TAMS) (DP2/TAMS) (DP2) (D
Slide 25: Summary
25 Highlights Q1 2009 Financial results Operations Outlook Summary Attachments
Slide 26: Main short-term objectives
26 Main short-term objectives Secure contract for: Safe Scandinavia in Q4 2009 and Q1 2010 Safe Concordia in 2010 Safe and cost-efficient operations
Slide 27: Summary
27 Summary Good market outlook Leading market position Unique, versatile rig fleet Sound track record Robust financial position Solid order backlog Strong position in a stable accommodation market
Slide 28: Attachments
28 Highlights Q1 2009 Financial results Operations Outlook Summary Attachments
Slide 29: Competitor situation
29 Competitor situation Dynamically positioned semi rigs Anchored semi rigs Advanced units with high operational Primary strengths: versatility: Shallow to medium waterdepths All water depths Fixed installations Any seabed infrastructure Some floaters, e.g. TLPs Against fixed installations and most
Slide 30: Debt
30 Debt Credit facility Credit facility was initially drawn in May 2008 at USD 1.1 billion Maturity of seven years The applicable margin on the credit facility will vary in the range from 0.65% to 0.95% per annum depending on the leverage ratio. Currently credit margin 0.85% above LIBOR. The availab
Slide 31: Debt as of end Q1 2009
31 Debt as of end Q1 2009 Long-term debt USD 920 mill.: Drawn on credit facility: USD 870 mill. (undrawn facilities as of end Q1 2009: USD 160 mill.) USD 50 mill. bond loan Current portion of long-term debt USD 61.5 mill NOK 411 mill bond loan – USD 61.5 mill
Slide 32: Financial covenants
32 Financial covenants Financial covenants on the credit facility: minimum cash of USD 65 million in the group maximum leverage ratio of 5 (4.5 starting in May 2010) minimum value adjusted equity ratio of 35% market value vessels/total commitments above 150% working capital (incl. unutilized credit
Slide 33: Fleet overview
33 Fleet overview Name MSV Regalia Safe Scandinavia Safe Caledonia Geographical area Harsh environment, NCS Harsh environment, NCS Harsh environment Mooring system - 12 point chain winches 10 point wire winches Station keeping NMD3 Moored DP2 / TAMS No of beds 300 583 516 Deck area 3,250 m2 400 m2 9
Slide 34: Fleet overview
34 Fleet overview Name Safe Astoria Safe Bristolia Safe Esbjerg Geographical area Moderately harsh env. Moderately harsh env. Harsh environment Mooring system 8 point wire winches 8 point wire winches 4 point wire winches Station keeping Moored Moored Jack-up No of beds 245 612 139 Deck area 620 m2
Slide 35: Fleet overview
35 Fleet overview Name Safe Britannia Safe Lancia Safe Hibernia Geographical area Harsh env. Moderately harsh env. Harsh environment Mooring system 9 point wire winches 8 point chain winches 12 point wire winches Station keeping DP2 / TAMS DP2 Moored No of beds 812 600 500 Deck area 1,300 m2 1,100 m
Slide 36: Fleet overview
36 Fleet overview Name Safe Regency Safe Concordia Jasminia Geographical area Harsh environment Benign environment Benign environment Mooring system 8 point wire winches 4 point wire winches 8 point wire winches Station keeping DP2 DP2 Moored No of beds 771 390 535 Deck area 800 m2 1,300 m2 690 m2 P
Slide 37: Financial calendar and IR contacts
37 Financial calendar and IR contacts Financial calendar IR contacts 27 August 2009 Karl Ronny Klungtvedt Publication, presentation and web cast Exec. VP & CFO of Q2 2009 result karl.ronny.klungtvedt@prosafe.com Phone: +357 2462 1982 5 November 2009 Cell phone: +357 996 88 169 Publication, presentat