Bw Offshore Limited · OSL:BWO
Bw Offshore — Q1 2013 Earnings Presentation
21 slides from Bw Offshore's earnings presentation, May 22, 2013
Slide 1: BW Offshore Q1 2013 presentation
BW OFFSHORE Q1 2013 presentation CEO Carl K. Arnet CFO Knut R. Sæthre
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 Q1 2013
Highlights Q1 2013 EBITDA ■ EBITDA of USD 117.0 million USD million ■ Stable operations with an uptime of 98.2% 140.0 Reported Papa Terra adjusted ■ Short term extensions for FPSO Abo and 120.0 FPSO Sendje Berge ■ Successful placement of a NOK 500 million 100.0 senior unsecured bond 80.0 ■ Dividend
Slide 4: Operations
OPERATIONS
Slide 5: Operational highlights
Operational highlights ■ HSSEQ performance Uptime − Lost time injuries (LTI*) of 0.5 100% ■ Fleet uptime (owned fleet) − 98.2% in Q1 2013 95% − Five year average of 98.3% 90% ■ Life extension programs performing in line 85% with expectations 80% 75% 70% 65% 60% 55% 50% * Injuries per million man-hou
Slide 6: Fleet extensions
Fleet extensions ■ Extensions for FPSO Abo and FPSO Sendje Berge in place while new contracts are discussed − Contract for Sendje Berge to July 2013 − Contract for Abo to December 2013 ■ Commercial discussions with clients progressing as expected ■ Plans include significant activities to upgrade top
Slide 7: Fleet overview
Fleet overview U nit T yp e C o nt r act 2009 2 0 10 2 0 11 2 0 12 2 0 13 2 0 14 2 0 15 2 0 16 2 0 17 2 0 18 2 0 19 2020 2021 2022 2023 2024 2025 Sendje Berge FPSO Lease Addax/Sinopec, Nigeria: 2005-2013 Berge Helene FPSO Lease Petronas, M auritania: 2006-2015 (2021) Yùum K'ak'Náab FPSO Lease Pemex,
Slide 8: Papa Terra status
Papa Terra status ■ Construction is completed, ongoing work is clearance of minor punch points and commissioning ■ Preparations for offshore installation ■ Awaiting final departure date to be set by Petrobras 22 May 2013 8
Slide 9: Financials
FINANCIALS
Slide 10: Financials
Financials Net debt and equity ratio ■ EBITDA of USD 117 million USD million and percentage ■ Continued deleverage of balance sheet Net debt (USD mill, LHS) Equity ratio (RHS) 2 000 40% ■ Total equity of USD 1,138 million 1 800 35% 1 600 ■ Quarterly dividend of USD 0.02 per share 1 400 − Distributed
Slide 11: Income statement
Income statement USD million Q1 2013 Q4 2012 Q1 2012 Operating revenues 222.2 233.5 217.5 Operating expenses -105.5 -115.1 -146.3 Share of profit from associates 0.3 0.4 0.1 EBITDA 117.0 118.8 71.3 Depreciation -64.3 -63.2 -43.6 Amortisations -0.5 -0.7 -0.6 Gain (loss) from sale of assets / impairme
Slide 12: Statement of financial position
Statement of financial position USD million 31.03.2013 31.12.2012 31.03.2012 Total non-current assets 3,035.6 3,084.5 3,055.1 Total current assets 343.1 339.2 401.9 Total assets 3,378.7 3,423.7 3,457.0 Total equity 1,137.7 1,130.4 1,154.4 Total non-current liabilities 1,779.3 1,784.7 1,788.5 Total c
Slide 13: Debt and instalment profile
Debt and instalment profile ■ Gross debt of USD 1,776 million − Net debt of USD 1,674 million ■ Successfully completed NOK 500 million bond issue (USD 86 million) ■ Finalising USD 250 million financing for BW Joko Tole in June Gross debt Instalments USD million USD million 700 600 Bond BWO02 31.03.2
Slide 14: Orderbook
Orderbook ■ Orderbook of USD 8.0 billion as of 31 Clients March 2013 − Whereof USD 3.9 billion are firm contracts ■ High value cashflow and backlog from solid counterparties ■ Majority of lease and operate contracts 23% with solid EBITDA-margins 30% − 53% in Q1 2013 USD − 42% in 2012 (adj for Papa T
Slide 15: Outlook
OUTLOOK
Slide 16: Strengthened project and engineering teams
Strengthened project and engineering teams ■ High workload on fleet extensions ■ FEED-studies − Leviathan − Catcher ■ Tamar/King owner’s engineer ■ Recruitment of technical personnel in Singapore, Oslo and Rio ■ Increased capacity in procurement, planning, cost control and project management 22 May
Slide 17: Market
Market FPSO orders ■ Increasing number of Units prospects 30 Lease - actual Lease - estimate EPC/turnkey - actual EPC/turnkey - estimate ■ High FEED activity for Speculative traditional FPSOs 25 ■ Still low number of awards expected in 2H 2013 20 ■ High activity to develop 15 recent substantial gas
Slide 18: Summary
SUMMARY
Slide 19: Focus areas
Focus areas ■ Papa Terra (P-63) installation and start-up ■ Concluding extensions for Sendje Berge and Abo ■ Operational improvements in fleet ■ Selective approach to market opportunities 22 May 2013 19
Slide 20: Q&A
Q&A
Slide 21: Further information and IR contact
Further information: www.bwoffshore.com IR contact: Kristian Flaten, Vice President IR and Corporate Finance kristian.flaten@bwoffshore.com 22 May 2013 21