Solstad Offshore Asa · OSL:SOFF
Solstad Offshore Asa — Q1 2018 Earnings Presentation
12 slides from Solstad Offshore Asa's earnings presentation, May 9, 2018
Slide 1: Presentation of Q1 2018 results
Presentation of Q1 2018 results 9 May 2018
Slide 2: Quarter highlights
Quarter highlights 2017 2018 • Challenging Q1 with seasonally low REVENUES PER QUARTER – NOKm2 activity, reduced revenues and 1 444 1 516 pressure on certain financial covenants 1 158 1 167 1 931 • Total freight income was MNOK 931 in Q1 2018, where operating income amounted to MNOK 875 (MNOK 568) •
Slide 3: Update on Solship Invest 3 situation, and financial covenant situation in Farstad Shipping
Update on Solship Invest 3 situation, and financial covenant situation in Farstad Shipping SOLSHIP INVEST 3 FARSTAD SHIPPING • Ongoing discussions with the • As described in Annual Report Financial Creditors of Solship for 2017, Farstad Shipping Invest 3 (“SI3”) would likely be unable to fulfill • E
Slide 4: Q1'18 in numbers – Income Statement
Q1’18 in numbers – Income Statement (NOK million) Q1'18 Q1'17 Q4'17 KEY OBSERVATIONS: • Operating income in Q1’18 was Total Operating Income 875 568 1 096 MNOK 875 compared to MNOK 1,096 in Q4’17. Revenues Vessel Operating Expenses -812 -377 -811 dropped as several vessels G&A expenses -128 -63 -140
Slide 5: Q1'18 in numbers – Balance Sheet
Q1’18 in numbers – Balance Sheet (NOK million) Q1'18 Q1'17 Q4'17 KEY OBSERVATIONS: • Company’s overall cash Total fixed assets 31 508 18 989 32 295 position reduced over the Current assets excl. Cash 1 675 1 158 1 752 quarter by MNOK -406 to Cash and cash equivalents 1 469 1 403 1 875 MNOK 1,469 fro
Slide 6: Q1'18 in numbers – Cash Flow
Q1’18 in numbers – Cash Flow CASH FLOW Q4’17-Q1’18 COMMENTS NOKm • Company’s overall cash Cash, end Q4’17 1 875 position was reduced with MNOK 406 to MNOK 1,469 from MNOK 1,875 CF Ops. 135 • Net cash flow from operations positive CF Inv. 235 MNOK 135 • Net cash flow from Net installments 124 investm
Slide 7: Update on synergies: Target increased to NOKm 700-800 annualized YE2018
Update on synergies: Target increased to NOKm 700-800 annualized YE2018 • Detailed synergy assessment run in parallel with integration process • Revised top down view of potential of NOKm 700-800 • Plan for synergy realization currently being implemented POTENTIAL SPLIT IN THREE BROAD MAIN PART OF S
Slide 8: Solid backlog position
Solid backlog position BACKLOG COMMENTS NOKbln. • Total contract backlog of Aquaculture AHTS & PSV International NOKbln. ~9.1 as per May Subsea AHTS & PSV Strategic regions 2018 (incl. 50% of JV backlog) 2 491 34 • NOKbln. ~2.5 in firm contract 2 212 backlog May to Dec 2018 96 • Aquaculture has tota
Slide 9: Contract highlights in Q1'18
Contract highlights in Q1’18 KEY CONTRACTS IN THE SUBSEA CONSTRUCTION SEGMENT • Normand Flower awarded 6 months firm contract in North European waters • Normand Clipper awarded 120 days firm in 2018 + 150 days firm in 2019 + 180 days in 2020 on NCS • Extension of Contract with TechnipFMC: Frame Agre
Slide 10: AHTS, PSV: Signs of improvement in strategically important North Sea
AHTS, PSV: Signs of improvement in strategically important North Sea MARKET RATES CONTEXT NOK/day AHTS: AVERAGE AHTS SPOT MARKET RATES 400 000 • More rigs on contract has 300 000 meant more rig moves; Average AHTS rates in April 200 000 significantly improved Y/Y 100 000 0 PSV September October Nove
Slide 11: Subsea: Increasing CSV activity, more vessels commence charters
Subsea: Increasing CSV activity, more vessels commence charters SOLSTAD FARSTAD SUBSEA CONSTRUCTION FLEET, UTILIZATION % 80 30 Q1’18 Q2’18 70 25 60 # vessels on contract 20 50 Utilization, % 40 15 30 10 20 5 10 0 0 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 week vessels on contract utilization SOURCE
Slide 12: Fleet status summary
Summary AHTS PSV CSV Wellboats Harvest vessels Service vessel SUBSEA AHTS & PSV AHTS & PSV CONSTRUCTION & DESS AQUACULTURE STRATEGIC REGIONS INTERNATIONAL RENEWABLE ENERGY TOTAL # 31 15 2 0 0 VESSELS 33 30 32 0 FLEET STATUS IN 22 2 2 0 0 OPERATION 24 18 25 0 9 13 0 0 IN LAY-UP 0 8 12 7 0 0 0 0 6 1 N