29 slides from S.d. Standard Etc's earnings presentation, August 2017
Slide 1: S.D. Standard Drilling Plc. 2Q 2017 Presentation
S.D. Standard Drilling Plc. 2Q 2017 Presentation
Slide 2: Agenda
Agenda I. Highlights II. Financial information III. Fleet IV. Company overview V. Market overview 2
Slide 3: SDSD – 2Q17 Highlights
SDSD – 2Q17 Highlights Ownership in 16 PSV vessels, all 100% equity financed 100% ownership in 3x large-size PSVs (“PSV Standard Vessels”, “PSV SV”) ~25.5% ownership in 7x mid-size PSVs (“ PSV Opportunity III DIS “, “PSVO III”) (1) ~26.2% ownership in 6x mid-size PSVs (“New World Supply Ltd.
Slide 4: Agenda
Agenda I. Highlights II. Financial information III. Fleet IV. Company overview V. Market overview 4
Slide 5: Financial information (1/4)
SDSD – Financial information (1/4) Financial highlights for 2Q 2017: Total net loss of USD 487 thousands for the quarter for 2017 Total net income of USD 1,367 thousands for the first half of 2017 Loss for the period after tax of USD 708 thousands for the quarter for 2017 Profit for the pe
Slide 6: Financial information (2/4)
SDSD – Financial information (2/4) Income Statement for 2Q 2017 Three Months Ended Six Months Ended 2017 2016 2017 2016 (Amounts in USD 000) Q2 Q2 Q2 Q2 Unaudited Unaudited Unaudited Unaudited Income Changes in fair value on financial assets and financial liabilities at fair value through profit or
Slide 7: Financial information (3/4)
SDSD – Financial information (3/4) Balance Sheet Statement for 2Q 2017 (Amounts in USD 000) 30.06.2017 31.12.2016 ASSETS Unaudited Audited Intangible assets 2 - Equipment and machinery 1 1 Financial asset at fair value through profit or loss 66 030 5 300 Total non-current assets 66 033 5 301 Trade a
Slide 8: Financial information (4/4)
SDSD – Financial information (4/4) Cash Flow Statement for 2Q 2017 Six Months Ended 2017 2016 (Amounts in USD 000) Q2 Q2 Unaudited Unaudited CASH FLOWS FROM OPERATING ACTIVITIES Profit/(Loss) for the period before income tax 983 (228) Unrealised exchange gain (200) - Other gains and losses (420) - P
Slide 9: Total cash & cash equivalents
SDSD – Total cash & cash equivalents(1) 100% ownership in SDSD 100% ownership in Standard Vessels/Wanax Cash & cash equivalents (unaudited) on a 100% basis as per 2Q17 Cash & cash equivalents (unaudited) on a 100% basis as per 2Q17 14 12,2 14 12 12 10 10 USDm USDm 8 8 6 6 4 4 2 2 1,0 0 0 Cash & cash
Slide 10: Cash spending overview
SDSD – Cash spending overview Cash changes in SDSD (USD’000) Q1 Q2 Accumulated Cash start of period 1 798 15 991 1 798 Net change running operations and FX 709 (110) 599 Payments to investments 100 % (vessel and working capital for operating vessels (*) See below breakdown (42 713) (3 612) (46 325)
Slide 11: Agenda
Agenda I. Highlights II. Financial information III. Fleet IV. Company overview V. Market overview 11
Slide 12: Fleet overview
SDSD – Fleet overview • Avg. price: ~USD 13.3m(1) • Ownership: 100% Standard • Deck-space: 1,060m2 (3x PSVs) • Design: ST-216 L CD • Yard: Aker Brattvaag Standard Viking (2007) Standard Supplier (2007) Standard Princess (2008) • Manager: Fletcher • Avg. price: USD 2.5m(1) • Ownership: ~25.5% PSVOI •
Slide 13: Contract overview
SDSD – Contract overview Contract overview as of Aug-17 2017 2018 Vessel Built Client Country 3Q 4Q 1Q 2Q 3Q 4Q FS Arendal 2006 Repsol UK 18 month firm Standard Viking 2007 Peterson UK 12 month firm + 2x1 year options FS Aberdour 2009 Centrica UK 9 month firm FS Balmoral 2008 Ineos UK 2 wells + 1 re
Slide 14: Utilization overview
SDSD – Utilization overview Historical utilization of working vessels Period (2017): FS Kristiansand FS Arendal FS Aberdour S. Princess S.Viking FS Balmoral S. Supplier Jan, days 31 31 18 Feb, days 28 28 0 3 Mar, days 31 31 8 31 1Q17, % 100 % 100 % 29 % 72 % Apr, days 30 21 4 30 10 May, days 31 0 15
Slide 15: Agenda
Agenda I. Highlights II. Financial information III. Fleet IV. Company overview V. Market overview 15
Slide 16: Strategy (1/2)
SDSD – Strategy (1/2) All-time low Low break-even Entry into the offshore market through All equity financed structure ensures no distressed situations debt costs and industry low break-even Access to opportunities Significant upside Sponsors and management with unique Recent PSV investments at ~65%
Slide 17: Strategy (2/2)
SDSD – Strategy (2/2) To own or control a large fleet of oil service assets purchased at low valuations Investment Recovery Monetizing Aim to acquire high quality oil Phase phase phase service tonnage at attractive asset prices Grown fleet to 16 wholly or Run assets for cash yield partly owned P
Slide 18: Timeline of events
SDSD – Timeline of events 2010: 2012-2013: 2016: Ordered and initiated the construction of one (1) KFELS Sold the remaining six (6) Keppel FELS 20% investment in PSV Opportunity I & II MOD V-B jack-up rig (B319) jack-up rigs (B324, B325, B337, B338, DIS, and received corresponding ownership
Slide 19: Capital markets activity
SDSD – Capital markets activity Prior capital markets activity and dividends The Company has since inception completed six (6) equity private placements, totaling ~USD 476m: Dec-10: USD 42m private placement issued at USD 1/share. Net proceeds used to order (1) jack-up newbuild at KFELS in Singa
Slide 20: Realized jack-up investments 2010-2013
SDSD – Realized jack-up investments 2010-2013 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14 4Q14 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 11 months 179 220 125% B319 15 months 180 214 67% B324 16 months 180 213.5 63% B325 21 months 192 222.5 38% B337 23 months 192 215 26% B338 20 months 192 220 37% B339 26
Slide 21: Legal structure
SDSD – Legal structure S.D. Standard Drilling Plc. (Cyprus) 100% 26.2% Wanax AS New World Supply Ltd. (Norway) (Cayman Island) 100% 100% 100% Investment in SPV Investment in SPV Investment in SPV Standard Princess World Diamond World Emerald (1x large PSV) (1x mid-size PSV) (1x mid-size PSV) 25.5% 1
Slide 22: Management and Board of Directors
Management and Board of Directors Evangelia Panagide- General Manager Martin Nes – Chairman of the Board Ms. Panagide was elected general manager in Sept-13 Mr. Nes has been involved in the company since its incorporation in 2010 and was Mr. Panagide is based in the Company's headquarter in Cy
Slide 23: Top 20 shareholders as per Aug-17
Top 20 shareholders as per Aug-17 No. Name of shareholder # of shares % of shares 1 SAGA TANKERS ASA 56 099 555 15.73 % 2 EUROCLEAR BANK S.A./N.V. 32 341 540 9.07 % 3 HOLBERG NORGE 16 666 667 4.67 % 4 ARCTIC FUNDS PLC 16 220 726 4.55 % 5 J.P. MORGAN SECURITIES LLC 13 122 527 3.68 % 6 JPMORGAN CHASE
Slide 24: Agenda
Agenda I. Highlights II. Financial information III. Fleet IV. Company overview V. Market overview 24
Slide 25: PSV Standard Vessels: purchased 47% below newbuild parity
PSV Standard Vessels Vessels purchased 47% below newbuild parity Large PSV newbuild parity (1,000m2) Large PSV values (1,000m2) 40 40,0 39m 25 Year Parity 30 Year Parity 35 35,0 PSV SV: USD 13.3m per vessel 30 47% below the 25-year NB parity of a 9 year old 30,0 vessel with an implied value of USD 2
Slide 26: PSV Standard Vessels: Depressed dayrate and asset value levels
PSV Standard Vessels Depressed dayrate and asset value levels Large PSV secondhand values (1,000m2) Large PSV term rates (900m2) 55 80 50 70 45 60 40 35 50 USD ('000) 30 USDm 40 Last 10yr avg. 25 ~USD 22.9k/d 30 20 Last 5yr avg. 15 ~USD 18.4k/d 20 Current market rate PSV SV: USD 13.3m, 9yr old vesse
Slide 27: PSV Opportunity III DIS and NWS Vessels
PSV Opportunity III DIS and NWS Vessels Vessels purchased at significant discounts to newbuild parity Mid-size PSV newbuild parity (500-750m2) Mid-size PSV values (500-750m2) 30 30 25 Year Parity 30 Year Parity NWS: USD 5.1m per vessel 25 73% below the 25-year NB parity of a 4 year old 25 vessel wit
Slide 28: PSV Opportunity III DIS and NWS Vessels: Depressed dayrate levels
PSV Opportunity III DIS and NWS Vessels Depressed dayrate and asset value levels Mid-size PSV secondhand value (500-750m2) Mid-size PSV term rates (500-750m2) 35 45 40 30 35 25 30 20 Last 10yr avg. USD ('000) 25 USD ~16.7k/d USDm 20 15 Last 5yr avg. 15 USD ~13.8k/d 10 PSVO IIIC: USD 5.9m, 9yr old ve
Slide 29: Gd) stanvaro DRILLING
Gd) stanvaro DRILLING