Subsea 7 S.a. · OSL:SUBC
Subsea 7 — DSND Subsea — Q2 2002 Earnings Presentation
12 slides from Subsea 7's earnings presentation, Aug 22, 2002
Slide 1: DSND Subsea ASA Presentation 2nd Quarter 2002
DSND Subsea ASA Presentation 2nd Quarter 2002 22 August 2002 DSND Subsea
Slide 2: 2Q - Profit & loss account
2 Q - Profit & loss account (Amounts in NOK 1 000) 2Q 2002 2Q 2001 YTD 30.06.02 YTD 30.06.01 Operating revenues 482 587 554 514 977 525 980 176 Operating expenses -420 554 -503 602 -841 944 -950 141 Ordenary depreciation -50 329 -68 394 -116 739 -130 080 Total operating expenses -470 883 -571 996 -9
Slide 3: Balance Sheet
Balance Sheet Balance Sheet (Amounts in NOK 1000) 30.06.02 30.06.01 31.12.01 Fixed assets 1,052,703 3,195,968 2,788,136 Current assets 715,909 1,073,641 985,360 Total assets 1,768,612 4,269,609 3,773,496 Shareholders equity 479,323 1,020,270 705,015 Liabilities Provisions for liabilities 17,982 120,
Slide 4: Comparing operating result
Comparing operating result (in NOK mill.) 2Q YTD Operating results 2002 11.704 18.842 Share of operating results Subsea 7 (5 weeks) 1) 8.970 8.970 Adjusted operating result 2002 20.674 27.812 Operating result 2001 <17.482> <100.045> Improvement 38.156 127.857 1) Excl. one-off costs DSND Subsea
Slide 5: Comments to improvement in operating result YTD
Comments to improvement in operating result YTD • Better utilisation of 3 DSV´s • Positive contribution on EPIC and related work • Improved performance for activities in Brazil • Positive effect of Subsea 7 DSND Subsea
Slide 6: Subsea 7 Transaction
Subsea 7 Transaction • Established 23 May 2002 • DSND and Halliburton contributed subsea businesses including assets, leases, on-going contracts and intellectual property • Owned 50/50 • DSND transferred USD 156 mill. of bank debt and USD 26 mill. of financial leases • Net profit in DSND of NOK 63 m
Slide 7: Subsea 7 proforma historical figures
Subsea 7 proforma historical figures (amounts in USD 1.000s) 1999 2000 2001 Revenue 993 925 839 977 742 320 Operating Expenses (excl.depreciation) 935 171 787 727 688 574 Operating Income (EBITDA) 58 754 52 250 53 746 EBITDA margin 6% 6% 7% Depreciation 35 654 39 701 38 768 EBIT 23 100 12 549 14 978
Slide 8: Subsea 7 opening Balance Sheet
Subsea 7 opening Balance Sheet (amounts in USD 1.000s) Assets Cash balance 43 500 Fixed assets 391 000 Goodwill 18 000 Total Assets 452 500 Liabilities Long term Debt 200 000 Finance leases due after 1 year 25 753 Deferred Tax 19 600 Total Liabilities 245 353 Equity Common Stock 207 147 Total equity
Slide 9: Results Subsea 7 (23 May – 30 June)
Results Subsea 7 (23 May – 30 June) (amounts in USD mill.) Operating revenue 61,2 EBITDA (excl.one time cost) 6,8 One-time costs (Incl. accrual of 6,6) <9,0> Depreciation <4,4> EBIT <6,6> Interests & Tax <1,0> Net loss <7,6> DSND Subsea
Slide 10: Subsea 7 Financing
Subsea 7 Financing • USD 200 mill. of new loan from DnB, ING and Nordea • Initially a Bridge Facility up to 6 months • Bridge Facility guaranteed 50/50 by DSND and Halliburton • To be replaced by long-term (5 years) facility after syndication. Long-term facility fully underwritten by DnB, ING and No
Slide 11: DSND Financing
DSND Financing Main remaining debt: • Bond loan of NOK 450 mill. (repayment date 19th Nov.2002) • USD 9,2 mill. of long-term loan from Brazilian development bank related to upgrading of Olympic Princess • Other short term debt of approx. USD 23 mill. Objective: • Refinance short-term debt with mediu
Slide 12: Relocation of holding company
Relocation of holding company •Board will propose relocation of holding company from Norway to Cayman Islands •Swap of shares 1:1 •Management agreement between DSND Subsea ASA and new holding company (to be named DSND Inc.) •Listing of ”new” company approved by the Oslo Stock Exchange Main reasons: