Solstad Offshore Asa · OSL:SOFF
Solstad Offshore Asa — Q3 2017 Earnings Presentation
13 slides from Solstad Offshore Asa's earnings presentation, Nov 10, 2017
Slide 1: Presentation of 3Q Results
Presentation of 3Q Results 10 November 2017 CEO Lars Peder Solstad CFO Anders Hall Jomaas
Slide 2: On track to deliver cost reductions without compromising quality of operations
On track to deliver cost reductions without compromising quality of operations • 3Q 2017 was the first quarter as one company following the merger between Solstad Offshore, Farstad Shipping and Deep Sea Supply • Several cost cutting initiatives implemented; • Onshore staff reduced by 80 persons and
Slide 3: Positive revenue and EBITDA development
Positive revenue and EBITDA development • Positive revenue development from REVENUE PER QUARTER (1) – NOKm Q2 to Q3 driven by stronger spot market in the North Sea 1 517 1 481 • Strong increase in EBITDA mainly 1 198 driven by reduced operational and administration expenses Q1 Q2 Q3 Q4 • Expecting r
Slide 4: Income Statement Q3 2017
Income Statement Q3 2017 • Total operating income as presented in the income statement is net of • Excess values from freight contracts (ref. note 3 in 3Q Financial report) • income from Joint Ventures. 4
Slide 5: Balance sheet Q3 2017
Balance sheet Q3 2017 soustan FARSTAD (NOK million) 30.09.2017 30.06.2017 31.12.2016 Total fixed assets 32 649 34 093 19317 Current assets excl. Cash 4985" 2310 1024 Cash and cash equivalents 2114 2 420 1750 Assets held for sale 196 574 194 Total Assets 36 944 39 396 22 285 Total equity 6 083 6591 3
Slide 6: Cash flow statement Q3 2017
Cash flow statement Q3 2017 soustan FARSTAD (NOK million) YTD 3Q 17 3017 YTD 2Q 17 2016 Net cash flow from operations 465 184 280 1209 Vessel investments -116 -26 -91 -3 022 Other investments 511 497 14 2882 Cash from merger 935 - 935 773 Net cash flow from investments 1330 472 858 633 Equity transa
Slide 7: Interest bearing debt & vessel values
Interest bearing debt & vessel values NET INTEREST BEARING DEBT COMMENTS (NOK million) • Net interest bearing debt reduced by NOK million 1,540 from end 2Q to end 3Q Q2’17 28.4 • Installments paid • Sale of vessels • Reclassification to operational leases • Currency effects Q3’17 26.9 • Estimated NA
Slide 8: Fleet status
Segments in details SUBSEA AHTS & PSV AHTS & PSV CONSTRUCTION & DESS AQUACULTURE STRATEGIC REGIONS INTERNATIONAL RENEWABLE ENERGY TOTAL # 34 19 1 0 VESSELS 31 32 31 0 24 1 1 0 FLEET STATUS IN OPERATION 22 18 26 0 10 18 0 0 IN LAY-UP 9 13 6 0 0 0 0 4 NEWBUILDS 0 0 0 1 • Subsea: Increased • Increased
Slide 9: Robust backlog
Robust backlog BACKLOG COMMENTS NOK million. Aquaculture AHTS & PSV international • Total contract backlog of NOK Subsea AHTS & PSV strategic regions million ~9,700 as per November 2017 (incl 50% of JV backlog) 3 159 • NOK million ~3,200 in firm 57 contract backlog in 2018 • NOK million ~1,000 in fi
Slide 10: Other Commercial Highlights
Other Commercial Highlights • Approx. 45 new term charter agreements (from 100 days to 5 years duration signed year to date 2017 Main new contract signed last period: • 1 year contract with Petrobras for AHTS BOS Turquesa • 2 year contract with Queiroz Galvao for AHTS BOS Turmalina • 1 year contract
Slide 11: Market outlook
Market outlook • OSV market continues to be negatively affected by low demand and too many available vessels • Tendering activity is steadily increasing, but the rates achieved are still on a low level • The company expects the market to remain weak in the short run, but thereafter to gradually impr
Slide 12: Strategy remains to be the world's leading OSV company
Strategy remains to be the world’s leading OSV company Strategy Description Largest high-end OSV company globally SUBSEA & RENEWABLE ENERGY AHTS/PSV AQUACULTURE • Maintain operational edge • Maintain strong position in NCS, • Transfer industrialized build-own- • Protect position with key AUS and Bra
Slide 13: Key Investor Highlights
Key Investor Highlights World’s largest high end OSV company with global operations Lean operating model exploiting high operational leverage Restructuring secures runway and financial flexibility Creating shareholder value through size and share liquidity Strong commitment from main shareholders He