S.d. Standard Etc Plc · OSL:SDSD
S.d. Standard Etc — S.D. Standard Drilling — Pareto Securities Energy Conference (September 2021)
20 slides from S.d. Standard Etc's conference presentation, September 2021
Slide 1: Company presentation
Company presentation September 2021 1
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation (the "Presentation") has been produced by S.D. Standard Drilling Plc. (the "Company", and together with its subsidiaries the "Group") solely for information purposes. The Company does not intend, and does not assume any obligation, to update or correct an
Slide 3: Company Overview
Company Overview Portfolio overview (USDm) (2) • Founded in 2010, HQ in Cyprus • Listed on Oslo Stock Exchange (ticker SDSD) • Market cap of c. USD 80m • Highly experienced management team Current portfolio • Assets: 3x large sized PSVs (100%), 6x medium sized PSVs (28%) and 1x ECO VLCC (33.3%) • Bo
Slide 4: Recent highlights
Recent highlights Financials • Adj. EBITDA of USD 0.9m (USD -1.5m), whereof USD 0.8m from the large-sized PSVs (1) • 2q21 profits of USD 8m incl. unrealized gains from the investment portfolio and financial assets Commercial/ Investment update • Commercial: 100% utilization in 2q for large PSVs - VL
Slide 5: Long history of cyclical asset plays
Long history of cyclical asset plays 2010 – Entered the jack-up segment • 2010 – 2011: Ordered 7x JU’s at Keppel for USD 1,307m • 2011 – 2013: Sold 7x JU’s for USD 1,528m Realized c. USD 220m in profits 2016 – Entered the PSV segment • 2017 – 2019: Purchased 6x large-sized PSVs (100%) for USD 70.3m
Slide 6: Strategy update
Strategy update Investment theme • Previously: Playing the cycles through physical assets and levered cases Liquid investments • Future: Liquid investments within energy, shipping and commodities Focus areas Timing and • Building leading investment company within energy, Solid cash position executin
Slide 7: Investment universe
Investment universe Liquid investments in shipping, energy and renewables Shipping/ Energy/ Renewables Liquid investments in cyclical commodities 300+ companies / USD 3,000bn+ cap Commodities USD 20,000bn+ Source: Bloomberg 7
Slide 8: Playing the different cycles
Playing the different cycles Example – Shipping Single hull’s phase out China/ commodity boom High fleet growth US Shale Covid-19 70 000 60 000 50 000 40 000 30 000 20 000 10 000 0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 ClarkSea Index Clarksons Average Tanker Earnings Clar
Slide 9: Summary
Summary Ambitions • Build leading investment company within energy, shipping and commodities • Generate consistent strong returns in boom- and bust cycles • Liquid investments • Take part in energy transition 9
Slide 10: Case example – Weatherford (WFRD US)
Case example – Weatherford (WFRD US) 10
Slide 11: Weatherford International Plc
Weatherford International Plc Standard Drilling (SDSD) owns 750,000 shares in WFRD with cost of USD 14 • One of the Big 4 OFS players. In 2014 market cap was USD 14bn (EV 21bn) and EBITDA USD 2.5bn • After chapter 11 WFRD relisted on Nasdaq in June’21. Today EV is USD 2bn and EBITDA USD 0.5bn • Broa
Slide 12: WFRD - EV 1/4th of '16-18 levels despite similar earnings capacity
WFRD - EV 1/4th of ’16-18 levels despite similar earnings capacity Historical capital structure and revenues/ EBITDA 25 (USDm) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021E 2022E 2023E Sales 15 215 15 263 14 911 9 433 5 749 5 699 5 744 4 954 3 685 3 600 4 000 5 000 20 EBITDA 2 445 2 054 2 514 8
Slide 13: Appendix
Appendix Gd) stanvaro DRILLING
Slide 14: PSVs – Contract overview
PSVs – Contract overview 2021 Vessel Built Client Country Q1 Q2 Q3 Q4 Large-size Vessels Standard Viking 2007 Shell UK UK Standard Princess 2008 CNR UK Standard Supplier 2007 ASCO UK Standard Olympus 2014 SOLD UK 2021 Vessel Built Client Country Q1 Q2 Q3 Q4 Mid-size Vessels FS Balmoral 2008 Serica E
Slide 15: PSVs – Commercial update large-size PSVs
PSVs – Commercial update large-size PSVs Large-size PSV term rates (900m2) Large-size PSV spot rates (900m2) 55 55 Term rates still ~47% above Mar-17 levels 50 50 45 45 40 40 +47% Current market rate ~USD 11.0k/d 35 35 USD ('000) USD ('000) 30 30 25 25 20 20 Current market Last 10yr avg. ~USD 16.6k/
Slide 16: PSVs – Fleet utilization
PSVs – Fleet utilization Combined fleet utilization 1Q17 to July-21 100% 90% 80% Utilization (%) 70% 60% 50% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q21 1Q21 2Q21 Jul-21 Large-size Mid-size Note: Standard vessels Northern Supply - Vessels unavailable due to dry do
Slide 17: VLCCs – Limited orderbook
VLCCs – Limited orderbook VLCC fleet by year of build and orderbook VLCC orderbook % of fleet 60% 80 Scrubber Fitted Scrubber Pending Non-scrubber 70 68 66 50% 3 61 60 53 40% 51 51 50 47 Number of VLCCs 37 34 39 39 30% 40 37 36 31 27 25 33 34 22 3 32 32 31 30 65 28 29 17 30 1 20% 24 12 12 31 1 1 4 1
Slide 18: VLCCs – Asset values
VLCCs – Asset values VLCC NB parity VLCC values last 5 years VLCC dayrates 120 0% 110 250 -10 % 100 97,0 100 200 -20 % 90 -30 % 80 80 -40 % 150 72,0 USDm 60 -50 % 70 -60 % 100 50,0 60 40 -70 % 36,0 50 25 -80 % 50 27,0 20 40 -90 % -5% -17% -30% -36% -34% 0 Aug-21 0 -100 % 30 Jan Feb Mar Apr May Jun J
Slide 19: 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 20: Gd) stanvaro DRILLING
Gd) stanvaro DRILLING
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