Prosafe Se · OSL:PRS
Prosafe — Investor Presentation (October 2015)
26 slides from Prosafe's investor presentation, October 2015
Slide 1: Company Presentation
October 2015 Company Presentation
Slide 2: Disclaimer
Disclaimer All statements in this presentation other than statements of historical fact are forward-looking statements, which are subject to a number of risks, uncertainties, and assumptions that are difficult to predict and are based upon assumptions as to future events that may not prove accurate.
Slide 3: Prosafe SE at a glance
Prosafe SE at a glance The world’s leading owner and operator of semi-submersible accommodation vessels in harsh environments Formed in 1998 as a result of a merger between Procon Offshore and Safe Offshore Fleet of 15 accommodation vessels, including 3 new builds Combination of dynamically position
Slide 4: Agenda
Agenda Recent developments Projects & fleet Financials Outlook & summary 4
Slide 5: Recent developments
Recent developments Contract inflow of approx. USD 260 million in Q3 Contract secured for all four Prosafe new builds New build Safe Boreas successfully commenced operations in Norway Safe Zephyrus nearing completion 5
Slide 6: Agenda
Agenda Recent developments Projects & fleet Financials Outlook & summary 6
Slide 7: Fleet renewal: Safe Boreas and Safe Zephyrus
Fleet renewal: Safe Boreas and Safe Zephyrus Safe Boreas has successfully commenced operations for Lundin at the Edvard Grieg field in Norway Safe Zephyrus nearing completion Contracts in place Covering initial short period for Safe Notos in the UK in Q2 16 Contract for Det Norske at Ivar Aasen sche
Slide 8: Fleet renewal: Safe Notos and Safe Eurus
Fleet renewal: Safe Notos and Safe Eurus Projects developing as planned Strong capabilities The most advanced and flexible vessels for worldwide operations excluding Norway First contract in place for Safe Eurus Three year contract in Brazil, expected start-up Q1 17 First contract in place for Safe
Slide 9: Conversion: Safe Scandinavia TSV project
Conversion: Safe Scandinavia TSV project 3 years firm (+4 years of options) contract with Statoil as a Tender Support Vessel (TSV) at Oseberg Øst in Norway Arrived at Westcon yard in Norway for TSV conversion in March Project completion delayed – operations expected to commence in Q4 2015 9
Slide 10: Fleet overview
Fleet overview Caledonia Bristolia Regalia Scandinavia Regency Notos Zephyrus Boreas Lancia Hibernia Astoria Britannia Jasminia Concordia Eurus 10
Slide 11: Prosafe's relative competitive position improving
Prosafe’s relative competitive position improving Prosafe is the 2016E: Semi owners globally 2016E: Semi owners North Sea* leading owner and Single- asset Single- operator of asset owners; OOS; 2 owners; 2 Axis accommodation 4 Offshore; POSH; 2 2 semis Prosafe; 15 Prosafe; Axis Off.; 8 High quality
Slide 12: Agenda
Agenda Recent developments Projects & fleet Financials Outlook & summary 12
Slide 13: Dividend
Dividend At the board meeting on 5 November 2014 it was decided that for the period until the end of 2016 the Board will be targeting quarterly dividend payments corresponding to an annual payout ratio in the range of 25 to 35 per cent of the preceding year’s net profit (reduced from previous 75 per
Slide 14: Capex coming down after completion of projects
Capex coming down after completion of projects USD 50-60 million expected across the fleet in 2017 Executed and planned capex projects Regalia Boreas Caledonia Scandinavia Scandinavia Boreas Notos Larger projects: Zephyrus Notos Zephyrus Eurus Life-extensions, conversion Eurus Scand. TSV and new bui
Slide 15: Contract backlog
Contract backlog Added considerable backlog (“OB”) in August after 5 Qtr’s of “OB consumption” Gross value of charter contracts Status end Q2 15 2 500 Firm contracts USD 1,024m + Options (1) USD 604m = Total USD 1,628m 2 000 Options Letter of Intent Firm contracts USD million 1 500 1 000 500 0 Q2 08
Slide 16: Debt maturity profile
Debt maturity profile Note: As the new USD 1,300 million facility includes a revolving tranche, the scheduled instalments do not necessarily imply a reduction of cash (or gross interest-bearing debt) 16
Slide 17: Cost efficiency measures
Cost efficiency measures Review of cost reduction potential has been initiated in light of the weaker market outlook The whole cost structure, both onshore and offshore, will be evaluated Some measures already implemented, others to follow in the coming months 17
Slide 18: Agenda
Agenda Recent developments Projects & fleet Financials Outlook & summary 18
Slide 19: North Sea – near term improved for Prosafe
North Sea – near term improved for Prosafe Near term improved for Prosafe Recent contract awards Three year demand index drop confirming previously expected deferrals and descoping Medium term remains uncertain Pressure on clients to cut spending resulting in reduced work scopes Client project sanct
Slide 20: Mexico
Mexico Pemex continues to focus on cost- reduction programs as a result of lower oil price A number of drilling programmes have been terminated Reduction of offshore workforce supporting operations and maintenance Uncertainty remains in short-/medium term Safe Hibernia continues to be deployed on th
Slide 21: Brazil – three year contract for Safe Eurus
Brazil – three year contract for Safe Eurus Three year contract signed with Petrobras for Safe Eurus Number of accommodation vessels in Brazil Long term outlook remains positive for high end vessels 9 9 7 5 Demand for lower-end equipment 3 3 diminishing 0 2010 2011 2012 2013 2014 2015 2016/17E Many
Slide 22: Rest of the world - in brief
Rest of the world - in brief Australia Prospects related to hook-up and commissioning As fields are getting older, there should be potential for more maintenance and modification related work South East Asia Prospects in mid and deep waters, mostly related to hook-up and commissioning US GoM A numbe
Slide 23: Prosafe is the leading north sea semi operator
Prosafe is the leading north sea semi operator New awards since 2012 45 40 35 Months lead time 30 25 20 15 10 5 0 Operator Scandi- Caledo- Scandi- Enduar- Scandi- Unit Regalia Victory Regalia Boreas Bristolia Borgholm Borgholm Bristolia Bristolia Regalia Zephyrus Superior Boreas Caledonia Superior B
Slide 24: Offshore accommodation «Back to normal»
Offshore accommodation «Back to normal» Accommodation vessel need Hook-up/ Explo- Develop- Decomm- commis- Production ration ment issioning sioning «Back to normal»: Majority of prospects currently being «traditional demand» like maintenance and modification work In general lead times are shorter fo
Slide 25: Improved visibility
Improved visibility Safe Zephyrus [ ] | || Safe Boreas [ | mz | Safe Scandinavia = _ aa | | 7 | | | ff Regalia | eee —_— — | || Safe Notos pa |i Safe Eurus a eee Safe Caledonia i ee ee Safe Bristolia | a mE Oe elm Safe Astoria = | | Safe Concordia i mo ————— ee | Safe Hibernia La | Safe Britannia Sa
Slide 26: Summary
Summary Several contract awards in Q3 All Prosafe new builds contracted Robust order backlog of USD 1.6bn General industry uncertainty remains in the short and medium term Long term demand drivers intact Some industry restructuring likely through the downcycle Prosafe’s relative competitive position