Seacor Marine Holdings Inc. · NYSE:SMHI
Seacor Marine — ESG Presentation (September 2020)
53 slides from Seacor Marine's sustainability presentation, Sep 17, 2020
Slide 1: Environmental, Social and Governance Investor Presentation
Exhibit 99.1 Environmental, Social and Governance Investor Presentation September 2020Exhibit 99.1 Environmental, Social and Governance Investor Presentation September 2020
Slide 2: Forward-Looking Statement
Forward-Looking Statement Certain statements discussed in this release as well as in other reports, materials and oral statements that the Company releases from time to time to the public constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 19
Slide 3: About this Document
About this Document The environmental, social, and governance (“ESG”) content in this document is relevant to the information requested in leading ESG reporting frameworks including the Sustainability Accounting Standards Board (SASB) and the Global Reporting Initiative (GRI). In addition, some of t
Slide 4: Table of Contents
Table of Contents Introduction to SEACOR Marine……………….…………………………………………………...………....5 Situation Analysis: Macro Landscape………………………………………………………………………..16 Industry-Leading ESG: Our Company Efforts……………………………………………………………....22 Environment……………………………………………………………...........................................
Slide 5: Introduction to SEACOR Marine
Introduction to SEACOR MarineIntroduction to SEACOR Marine
Slide 6: Our Purpose
Our Purpose To provide safe, reliable, and diverse transportation services to offshore energy and wind farm facilities globally through an energy-efficient fleet focusing on environmentally sustainable practices Pictured: SEACOR Marine lift boat operations at Block Island Wind Farm seacormarine.com
Slide 7: Who We Are
Who We Are Around the world, companies rely on SEACOR Marine for a diverse range of industry-leading offshore transport solutions – from crew transportation to maintenance support Owner and operator of offshore Global presence across Financial highlights* Superior fleet* support vessels 5 Continents
Slide 8: Our Sustainable Edge
Our Sustainable Edge We are uniquely positioned to benefit from the increasing focus on ESG and the transition to a lower carbon economy We are proud to have: • An unwavering focus on safety – whether offshore or onshore – everywhere, every day • A complete suite of transport services to meet the fu
Slide 9: SEACOR Marine: Awards and Recognition
SEACOR Marine: Awards and Recognition We are proud of our hard work. Some examples of awards we have won in recent years include: • 2019 Seatrade Maritime Awards: Green Shipping & Technical Innovation Awards Winner • Environmental Award at the 2019 Offshore Support Journal Conference • OSJ's 2019 Sh
Slide 10: Our Fleet Mix Meets Our Diverse Customer Needs
Our Fleet Mix Meets Our Diverse Customer Needs Our customers’ needs include services across the full lifecycle of offshore development Mooring Infrastructure Infrastructure Shallow Water Offshore Wind Crew Transport Customer Deployment & Maintenance, Plug Maintenance, Field Support, & Fast Cargo Far
Slide 11: We Have a Global Presence and a Focus on Fleet Optimization
We Have a Global Presence and a Focus on Fleet Optimization 149 Total Vessels NUMBER OF VESSELS IN THE COUNTRIES WHERE WE OPERATE* UK, Netherlands, Belgium, Germany, 43 Egypt, Saudi Ireland, Spain 25 United States Arabia, UAE, 26 Qatar Malaysia, 1 Singapore 18 Mexico We have the most diverse custome
Slide 12: Both Our Dayrates and Fleet Utilization Rates Are Improving
Both Our Dayrates and Fleet Utilization Rates Are Improving Improved average dayrates YoY reflect the improvement in overall fleet mix since Q2 2019 12,000 70% 11,157 11,071 11,018 10,946 10,387 10,186 60% 9,852 9,796 9,742 10,000 9,071 8,583 8,565 8,431 50% 8,272 8,000 7,447 7,163 7,323 7,324 7,260
Slide 13: Weathering Market Volatility and the COVID-19 Storm
Weathering Market Volatility and the COVID-19 Storm In Q2 2020, the YoY increase in DVP was driven by the change in fleet mix in the period 1 Direct Vessel Profit (DVP ) $28.8 (in millions) $27.5 $23.1 $21.7 $18.0 $17.4 $17.1 $14.7 $13.4 $11.7 $9.7 $9.4 $4.5 527% 16% 5% 67% 10% 48% 33% 66% 79% 58% 2
Slide 14: Our Senior Management Team is Focused on ESG
Our Senior Management Team is Focused on ESG Our Future Is Bright – and Even More Sustainable than Today From 2019 Annual Report: “For years, our Company has been committed to providing safe, reliable and diverse transportation services to energy facilities globally through an energy-efficient fleet
Slide 15: SEACOR Marine: ESG Highlights in 2020
SEACOR Marine: ESG Highlights in 2020 Elevating responsibility for ESG to the Board’s Nominating and Governance Committee Forming a Sustainability Council reporting to the Board and including managers, executives, operations, HR Incorporating changes across our organization to abide by the IMO 2020
Slide 16: Situation Analysis: Macro Landscape
Situation Analysis: Macro LandscapeSituation Analysis: Macro Landscape
Slide 17: Operating Sustainably is no longer a choice – it's a requirement
Operating Sustainably is no longer a choice – it’s a requirement Our Customers are continuing to adapt to a lower carbon economy, and so is SEACOR Marine Pictured: Liftboat, L/B Jill seacormarine.com 17Operating Sustainably is no longer a choice – it’s a requirement Our Customers are continuing to a
Slide 18: The Dual Challenge for Companies in the Energy Sector
The Dual Challenge for Companies in the Energy Sector Like other companies in the energy sector, we have a dual challenge: the need to reduce emissions, but also fulfill the global demand for energy Importantly, We Are Investing in Renewable Energy and Hybrid We Are Focused on Reducing Emissions Tec
Slide 19: Energy Landscape: Shifting Significantly to Focus on Emissions Reduction
Energy Landscape: Shifting Significantly to Focus on Emissions Reduction CO emissions reductions by measure in the Sustainable Development Scenario 2 relative to the Stated Policies Scenario, 2010-2050 Efficiency Renewables Fuel switching CCUs Other “Energy efficiency is at the heart of any strategy
Slide 20: Offshore Wind Projects Estimated to Attract $1 Trillion of Investment by 2040
Offshore Wind Projects Estimated to Attract $1 Trillion of Investment by 2040 The chart below from the International Energy Agency (IEA) shows renewables’ share in capacity additions by region in the Stated Policies and Sustainable Development scenarios, 2019-2040 Renewables account for ~80% of capa
Slide 21: Environmental Sustainability Efforts Are a Competitive Advantage
Environmental Sustainability Efforts Are a Competitive Advantage Our Customers’ Words – Lower Carbon Emissions “We recognize the significance of climate change, along with the role “Increased energy efficiency and a shift to lower carbon energy plays in helping people achieve and maintain a good qua
Slide 22: Industry-Leading ESG: Our Company Efforts
Industry-Leading ESG: Our Company EffortsIndustry-Leading ESG: Our Company Efforts
Slide 23: Environment
Environment Our focus on environmental sustainability is a top priority and impacts the way we do business – from start to finish seacormarine.com 23Environment Our focus on environmental sustainability is a top priority and impacts the way we do business – from start to finish seacormarine.com 23
Slide 24: We are Striving for Environmental Excellence across Our Business
We are Striving for Environmental Excellence across Our Business We are minimizing our environmental impacts and have committed to impact reduction goals for 2020 We are expanding our hybrid fleet to improve efficiency and sustainability of offshore energy projects We are developing the next generat
Slide 25: We Are a Leading Operator of CTVs in Europe's Offshore Wind Markets
We Are a Leading Operator of CTVs in Europe’s Offshore Wind Markets* 9 years 39 5 vessels 2011 We first invested in Windcat Workboats, a UK-based vessels average age owned operator of offshore wind farm crew transfer vessels, 100% by Joint of vessels² taking a majority stake of 75% owned¹ Venture¹ 2
Slide 26: We Are a Market Leader in New Hybrid Power PSVs
We Are a Market Leader in New Hybrid Power PSVs SEACOR Marine is the only owner of large hybrid PSVs operating in the offshore theater outside the North Sea & GoM We Pioneered Hybrid PowerSolutions in Our Industry • Energy Storage System provides significant advantages over regular Diesel Electric P
Slide 27: Environmental Highlights
Environmental Highlights Technology allows us to leverage real-time We are a pioneer in the use of hybrid power We now have a well stimulation vessel that is We use biodegradable, environmentally monitoring and tracking to manage fuel technology, with solutions that reduce fuel the only Hybrid well
Slide 28: Managing Risks: Our Risk Assessment Matrix for Environmental Impacts
Managing Risks: Our Risk Assessment Matrix for Environmental Impacts We always strive to preserve a clean and healthy environment, and we recognize the importance of fulfilling our promise to operate in an environmentally sound manner Risk Assessment Matrix for Environmental We monitor potential ris
Slide 29: Transition to the Future: What's Ahead
Transition to the Future: What’s Ahead • Hydrogen combined with diesel in existing marine engines • Hydrocat pilot project with CMB – mid 2021 delivery • CO reductions of 50–80% from conventional diesel, depending on power 2 Incremental output required • Similar reductions in NOx as well innovation
Slide 30: Social
Social Our focus on the well-being and safety of our employees and the communities we serve is critical to our success seacormarine.com 30Social Our focus on the well-being and safety of our employees and the communities we serve is critical to our success seacormarine.com 30
Slide 31: We are Proud of Our Track Record of Safety, Responsibility and Giving
We are Proud of Our Track Record of Safety, Responsibility and Giving When it comes to safety metrics, we consistently outperform our industry Our track record of safety excellence applies to both our fleet and our people We go beyond what’s required to exceed regulatory and compliance standards We
Slide 32: We Have a Track Record of Industry-Leading Safety
We Have a Track Record of Industry-Leading Safety We are dedicated to promoting a culture of safety, and we aspire for GOAL ZERO* We are also aiming to set absolute targets, but we believe aspiring for Zero incidents is the right mindset for our culture Our Safety Culture is Based Upon Four Pillars
Slide 33: Material Safety Metrics: Focused on Safety around the World, Every Day
Material Safety Metrics: Focused on Safety around the World, Every Day According to SASB, the safety metrics below are defined as material for SEACOR Marine. Some of the metrics are also requested for disclosure by GRI’s standards. MATERIAL SAFETY METRICS 2019 DATA (1) Total recordable incident rate
Slide 34: COVID-19 Pandemic: Ensuring the Safety of Our People
COVID-19 Pandemic: Ensuring the Safety of Our People Personal Protective Equipment (PPE) Additional Actions to Support Employees PPE COVID-19 Care Packs provided to SEACOR Marine Vessels In addition to providing PPE, we are taking the following steps included the following: to ensure workers’ safety
Slide 35: Social Highlights
Social Highlights Our employees are dedicated to We take safety seriously We are proud of our retention We are supporting under- giving back We launch ZIZA (Zero Injury Zero rates served communities Accident) campaigns globally. The Over the years, we have supported At our Long Service Awards In the
Slide 36: Governance
Governance Our leadership team knows that good governance promotes transparency and ethical behavior, as well as a company’s longevity, financial viability and overall success seacormarine.com 36Governance Our leadership team knows that good governance promotes transparency and ethical behavior, as
Slide 37: Governance Overview: Structure and Responsibilities
Governance Overview: Structure and Responsibilities Board of Directors • Oversees the long-term strategy and performance of SEACOR Marine • Receives quarterly updates on environmental, social, and health & safety matters* • Comprised of 7 directors, a majority of which are independent and includes 1
Slide 38: Policies and Statements
Policies and Statements SEACOR Marine is committed to promoting ethical business practices, to operating responsibly, and to acting with integrity in all we do We currently have the following policies in place: We drafted and published the following statements in 2020 • Corporate Governance Guidelin
Slide 39: Business Ethics, Compliance Training and Risk Management
Business Ethics, Compliance Training and Risk Management We have mandatory annual online compliance training on: • Ethics and Conduct • Conflicts of Interest • Anti-Bribery and Corruption* • Anti-Trust and Competition • Discrimination & Harassment Prevention • Insider Trading • Cyber Security Traini
Slide 40: Alignment with Industry Standards and Best Practices
Alignment with Industry Standards and Best Practices Some examples of organizations and industry-specific regulation, compliance, and standards that guide our activities include the following seacormarine.com 40Alignment with Industry Standards and Best Practices Some examples of organizations and i
Slide 41: MARPOL: Commitment to Pollution Prevention
MARPOL: Commitment to Pollution Prevention* SEACOR Marine adheres to MARPOL’s Annexes on the prevention of pollution from: I. Oil IV. Sewage from Ships II. Noxious Liquid Substances in V. Garbage from Ships Bulk VI. Air Pollution from Ships III. Harmful Substances Carried in Sea in Packaged Form Als
Slide 42: How We Operate: Going Beyond What Is Required
How We Operate: Going Beyond What Is Required In addition to being subject to the jurisdiction of various regions and following required compliance, we also have gone above and beyond what’s required to make SEACOR Marine the best it can be This year, we received certification for ISO’s environmenta
Slide 43: Looking Ahead: ESG Program Next Steps and Long-Term Targets
Looking Ahead: ESG Program Next Steps and Long-Term TargetsLooking Ahead: ESG Program Next Steps and Long-Term Targets
Slide 44: What's Next at SEACOR Marine
What’s Next at SEACOR Marine Publication of inaugural sustainability report Establishment of absolute ESG targets Disclosure of ESG information formally under leading reporting frameworks Continued evaluation of supply chain sustainability and overall ESG risk management seacormarine.com 44What’s Ne
Slide 45: Case Studies
Case StudiesCase Studies
Slide 46: Case Study I: Offshore Wind Crew Transfer Vessels
CASE STUDY I: Offshore Wind Crew Transfer Vessels We Are a Leading Operator of CTVs in Europe’s Offshore Wind Markets* A Leader in the Field • To help scale and increase access to renewable sources of energy • To participate in the growing offshore wind market GOALS • To position our company to capi
Slide 47: Case Study 2: Liftboats
CASE STUDY 2: Liftboats Our Liftboats Are Poised to Support Current Industry Needs • Mission flexibility in shelf locations: well intervention and workover; construction; platform maintenance and repair; subsea operations; accommodations; and plug and abandonment/ platform decommissioning GOALS • To
Slide 48: Case Study 3: Hybrid Vessels
CASE STUDY 3: Hybrid Vessels We Are Using Hybrid Technology to Meet the Carbon Challenge • To support the transition to a lower carbon economy • To use hybrid technology to reduce our environmental impacts GOALS • To improve vessel efficiency, decrease fuel consumption, and reduce emissions • We use
Slide 49: Case Study 3: Hybrid Vessels (Cont'd)
CASE STUDY 3: Hybrid Vessels (Cont’d) Note: Image is property of Kongsberg Investing in Modern, Technologically Advanced Offshore Solutions Why Stored Energy Solutions? Benefits of Hybrid Power • Reduced fuel consumption by up to 20% (spinning reserve and peak shaving) • Reduced emissions due to red
Slide 50: Case Study 3: Hybrid Vessels (Cont'd)
CASE STUDY 3: Hybrid Vessels (Cont’d) Fuel Consumption Comparisons – UT771 WPPSV Fuel Consumption Savings: SEACOR Azteca seacormarine.com 50CASE STUDY 3: Hybrid Vessels (Cont’d) Fuel Consumption Comparisons – UT771 WPPSV Fuel Consumption Savings: SEACOR Azteca seacormarine.com 50
Slide 51: Case Study 3: Hybrid Vessels (Cont'd) Hybrid Installations
CASE STUDY 3: Hybrid Vessels (Cont’d) Hybrid Installations: Vessels and Timing 5200 DWT, DP2, PSV, MMC887CLASS ABS ESS-LiBattery notation Ø SEACOR Ma ya Completed Ma y 2018 Completed J u l y 2019 Ø SEACOR Azteca Ø SEACORWarrior Completed Sept 2020 Upgrade 2021 Ø SEACOR Viking 4600 DWT, DP2, PSV, UT7
Slide 52: Reconciliation of Consolidated Direct Vessel Profit (DVP) to Operating Income (Loss)
Reconciliation of Consolidated Direct Vessel Profit (DVP) to Operating Income (Loss) 2014 2015 2016 2017 2018 2019¹ Q2 2020 YTD Time Charter Statistics: Average Rates Per day $ 12,011 $ 10,079 $ 7,114 $ 5,972 $ 7,282 $ 7,038 $ 6,895 Fleet Utilization 81% 69% 54% 54% 62% 67% 66% Fleet Available Days
Slide 53: The Future Is Now
The Future Is NowThe Future Is Now
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