S.d. Standard Etc Plc · OSL:SDSD
S.d. Standard Etc — S.D. Standard Drilling — Q4 2020 Earnings Presentation
34 slides from S.d. Standard Etc's earnings presentation, Feb 18, 2021
Slide 1: S.D. Standard Drilling Plc. 4Q 2020 Presentation
S.D. Standard Drilling Plc. 4Q 2020 Presentation 18 February 2021
Slide 2: Important Information
Important Information This presentation may contain statements about future events and expectations that are forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as “believes”, “expects”, “anticipates”, “intends”, “es
Slide 3: Agenda
Agenda I. Highlights II. Company III. PSV Fleet update IV. VLCC update V. Financial information 3
Slide 4: Highlights Q4 2020
Highlights Q4 2020 • Loss after tax of USD 6.6m (USD (1.6)m) due to unrealized loss on Operation of vessels – EBITDA adj financial assets at fair value of USD 6.8m Northern Supply Standard vessels vessels, pro-rata (100% owned) 4Q19 (25.5%vs 4Q20 owned) Total 1 500 • Total cash balance of USD 32.9m
Slide 5: Highlights cont.
Highlights cont. • The situation related to the Covid 19 and the general reduced activity led to a decreased demand for PSV vessels • The Joint Venture (“JV”) VLCC ”Gustavia S”- Company has 33.3% ownership – Completed her fourth voyage beginning of Feb 21 – In total USD 19.67 million, of the initial
Slide 6: Subsequent events
Subsequent events • The Covid-19 is still heavily impacting the offshore market • Northern Supply AS, where SDSD has an ownership of 28.1%, has sold FS Carrick and FS Aberdour for enbloc USD 6.6 million • SDSD has as of 17 of February purchased additional 6.46 million own shares after the year end.
Slide 7: Agenda
Agenda I. Highlights II. Company III. PSV Fleet update IV. VLCC investment update V. Financial information 7
Slide 8: Asset Play - following the strategy
Asset Play - following the strategy Timing and executing Low break-even transactions Access to opportunities Modern assets Solid cash position No debt 8
Slide 9: Competitive advantages
Competitive advantages 1 No debt (1) 2 Low overhead costs 3 Modern fleet of vessels 4 Independent position Low-cost and flexible Modern fleet and attractive No interest cost Good cash position structure tech. spec Outsourced operational Efficient and lean No amortization High vessel utilization mana
Slide 10: Agenda
Agenda I. Highlights II. Company III. PSV Fleet update IV. VLCC investment update V. Financial information 10
Slide 11: Impact of Covid-19 and reduced oil price - large size vessels in lay up
Impact of Covid-19 and reduced oil price - Increasing number of large size vessels in lay up Breakdown of laid up North Sea PSV fleet (3Q20) Breakdown of laid up North Sea PSV fleet (currently) A total of 32 North Sea spec vessels laid A total of 29 North up – however, 24 of Sea spec vessels laid th
Slide 12: Large size vessel dayrates
Large size vessel dayrates Large-size PSV term rates (900m2) Large-size PSV spot rates (900m2) 55 55 Term rates still ~30% above Mar-17 levels 50 50 45 45 40 40 35 +30% 35 USD ('000) USD ('000) 30 30 25 25 20 Last 10yr avg. ~USD 17.5k/d 20 Current market rate USD ~8.1k/d 15 15 Last 5yr avg. ~USD 10.
Slide 13: Mid-size vessel dayrates
Mid-size vessel dayrates Mid-size PSV term rates (500-749m2) Mid-size PSV spot rates (500-899m2) 40 Term rates still ~23% above Mar-17 40 35 35 30 30 +23% 25 25 USD ('000) USD ('000) 20 20 15 Last 10yr avg. USD ~12.8k/d Current market 15 rate. USD ~9.1k/d 10 Last 5yr avg. USD ~7.4k/d 10 Current mark
Slide 14: Large-size PSV vessels – 100% owned
Large-size PSV vessels – 100% owned Standard Standard vessels vessels (4x) (4x) Standard Viking Standard Supplier Standard Princess Standard Olympus (2008) (2007) (2008) (2014) Purchase price: Purchase price: Purchase price: Purchase price: ~USD 13.3m(1) ~USD 13.3m(1) ~USD 13.3m(1) ~USD 8.1m(1) Owne
Slide 15: Mid-size PSV vessels – Partly owned
Mid-size PSV vessels – Partly owned Northern Supply vessels (6x) – 28.1% owned 2x vessels 2x vessels 2x vessels 2x vessels Purchase price: Purchase price: Purchase price: Purchase price: ~USD 2.5m(1) ~USD 2.5m(1) ~USD 5.4m(1) ~USD 5.9m(1) Ownership: 25.5% Ownership: 25.5% Ownership: 25.5% Ownership:
Slide 16: Large-size PSV vessels – Simplified contract overview
Large-size PSV vessels – Simplified contract overview Standard vessels (100% owned) 2021 Vessel Built Client Country Q1 Q2 Q3 Q4 Large-size Vessels Standard Viking 2007 Shell UK UK Standard Princess 2008 Spot UK Standard Supplier 2007 Spot (Currently with Equinor) UK Standard Olympus 2014 PSE Kinsal
Slide 17: Mid-size PSV vessels – Simplified contract overview
Mid-size PSV vessels – Simplified contract overview Northern Supply vessels (28.1% owned) 2021 Vessel Built Client Country Q1 Q2 Q3 Q4 Mid-size Vessels FS Balmoral 2008 Serica Energy (UK) Limited UK FS Kristiansand 2005 Inhouse UK FS Braemar 2007 Inhouse UK FS Bergen 2006 Lay-up UK FS Abergeldie 200
Slide 18: Large-size PSV vessels – Utilization overview
Large-size PSV vessels – Utilization overview Historical utilization of operating vessels (%) Weighted Utilization S.Viking S. Princess S. Supplier S.Provider (1) S. Supporter (1) S. Olympus average 1Q19 100 % 100 % 88 % 79 % 78 % n.a. 89 % 2Q19 100 % 99 % 100 % 98 % 86 % 63 % 93 % 3Q19 99 % 100 % 1
Slide 19: Mid-size PSV vessels – Utilization overview
Mid-size PSV vessels – Utilization overview Historical utilization of operating vessels (%) FS FS FS FS FS FS FS FS Weighted Utilization Aberdour Arendal Balmoral Kr. Sand Braemar Carrick Crathes Aberg. average 1Q19 - 100 % 53 % 81 % 90 % 94 % - 65 % 80 % 2Q19 89 % 100 % 89 % 100 % 92 % 82 % - 79 %
Slide 20: Combined fleet – Utilization overview
Combined fleet – Utilization overview large-and medium size PSV’s Combined fleet utilization 1Q17 to Jan-21 100% 90% 80% 70% 60% Utilization (%) 50% 40% 30% 20% 10% 0% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q21 Jan-21 Large-size Mid-size Standard vessels Northern
Slide 21: Large-size PSV vessels – EBITDA overview
Large-size PSV vessels – EBITDA overview 4x Standard vessels (100% owned) (1) Three months Three months Standard vessels (USD) ended, 4Q20 ended, 4Q19 2020 2019 Net hire (net of commission) 1 521 725 4 037 510 6 392 401 20 889 109 - - - - Admin expenses (41 064) (62 544) 123 087 (267 813) Technical
Slide 22: Mid-size PSV vessels – EBITDA overview
Mid-size PSV vessels – EBITDA overview 8x Northern Supply vessels (28.1% owned) (1), pro-rata overview Three months Three months Northern Supply vessels (USD) ended, 4Q20 ended, 4Q19 2020 2019 Net hire (net of commission) 743 726 1 056 695 3 330 101 4 978 926 - - - - Admin expenses (33 377) (28 368)
Slide 23: Summary – Adj. EBITDA excluding dry docking and non-recurring costs
Summary – Adj. EBITDA excluding dry docking and non-recurring costs (1) Standard vessels (100% owned) and Northern Supply vessels (28.1% owned), pro-rata 4Q19 vs. 4Q20 2019 vs. 2020 Northern Supply Northern Supply Standard vessels vessels, pro-rata Standard vessels vessels, pro-rata (100% owned) (25
Slide 24: Explanation of the fair value accounting loss in 4Q20
Explanation of the fair value accounting loss in 4Q20 • SDSD is classified as an investment entity in accordance with IFRS 10 – Investments, including subsidiaries, are not consolidated but measured at fair value through profit and loss every quarter based on estimates made by reputable independent
Slide 25: Agenda
Agenda I. Highlights II. Company III. PSV Fleet update IV. VLCC investment update V. Financial information 25
Slide 26: VLCC «Gustavia S»- Commercial
VLCC «Gustavia S»- Commercial – Purchase price of USD 106m – The Joint Venture owning company (“JV”) of “Gustavia S”, secured in 2020 a senior secured loan facility of up to USD 60 million, resulting to a distribution to SDSD received of total USD 19.67 million. The accumulated investment in the JV
Slide 27: VLCC «Gustavia S»- Technical
VLCC «Gustavia S»- Technical • Builder : Daewoo Shipbuilding & Marine Engineering • Built : January 2020 • Ship Type: Oil Tanker • Classification Society: DNVGL • Class Notations : +1A Tanker for oil, BIS, BWM (T), Clean, CMON, COAT-PSPC(B,C), CSR, E0, ESP, LCS, NAUT (NAV), Recycable, SPM, TMON (oil
Slide 28: VLCC supply
VLCC supply VLCC fleet by year of build and orderbook VLCC orderbook % of fleet 80 Scrubber Fitted Scrubber Pending Non-scrubber 60% 70 68 65 4 50% 59 4 60 52 49 50 40% 50 47 Number of VLCCs 37 39 32 39 40 37 30% 36 35 35 34 31 25 26 23 5 30 29 30 30 28 28 19 60 24 16 20% 5 19 31 3 20 19 18 6 5 20 1
Slide 29: VLCC demand
VLCC demand VLCC NB parity VLCC values last 5 years VLCC dayrates -0,6% 100 0% 110 250 88,0 90 -10 % 100 80 -20 % 200 90 70 -30 % 80 60 65,0 -40 % 150 USDm 50 -50 % 70 40 46,0 -60 % 100 60 30 -70 % 32,5 50 20 50 22,0 19-80 % 40 10 -90 % -12,9% -24,2% -30,6% -33,1% 0 -100 % 30 0 -2 0 2 4 6 8 10 12 14
Slide 30: Agenda
Agenda I. Highlights II. Company III. PSV Fleet update IV. VLCC investment update V. Financial information 30
Slide 31: Income statement
Income statement S.D. Standard Drilling – Income statement for 4Q20 Three Months Ended Twelve Months Ended 2020 2019 2020 2019 (Amounts in USD 000) Q4 Q4 Q4 Q4 Unaudited Unaudited Income Changes in fair value on financial assets at fair value through profit or loss (6 815) (1 852) (29 778) 6 801 Cha
Slide 32: Balance sheet
Balance sheet S.D. Standard Drilling – Balance sheet for 4Q20 (Amounts in USD 000) Note 31.12.2020 31.12.2019 ASSETS Unaudited Audited Equipment and machinery 1 1 Financial assets at fair value through profit or loss 4 58 862 76 751 Total non-current assets 58 863 76 752 Trade and other receivables
Slide 33: Cash flow statement
Cash flow statement S.D. Standard Drilling – Cash flow statement for 4Q20 Twelve Months Ended 2020 2019 Q4 Q4 (Amounts in USD 000) Unaudited Audited CASH FLOWS FROM OPERATING ACTIVITIES (Loss)/Profit for the period before income tax (26 909) 6 542 Unrealised exchange (gain)/loss 72 117 Payments to a
Slide 34: Gd) stanvaro DRILLING
Gd) stanvaro DRILLING
S.D. Standard Drilling — Q4 2020 Earnings Presentation on 6ix