22 slides from S.d. Standard Etc's conference presentation, Sep 25, 2012
Slide 1: S.D. Standard Drilling – Oslo Rig Event 2012
S.D. Standard Drilling Oslo Rig Event 2012 Martin Nes, CEO
Slide 2: Disclaimer
Disclaimer This Presentation has been produced by S.D. Standard Drilling Plc (the “Company” or “Standard Drilling”) solely for use at the presentation to investors and other stake holders and may not be reproduced or redistributed, in whole or in part, to any other person. This presentation is str
Slide 3: Standard Drilling Strengths
Standard Drilling Strengths Experienced Management Committed Sponsors/Board Team Positioned to Capitalize on the Strong Market Outlook Conservative Financial Profile Proven Rig Design Constructed with Strong Cash Balance at an Experienced Shipyard 3
Slide 4: Company Highlights
Company Highlights 2010 2011 2012 2013 2014 December: March: Q1/Q2: Q3/Q4: May : • Company founded • Listed on Oslo Axess • Building up • Three rigs to be • One rig to be • $42 million private management in delivered delivered placement April: Singapore – 11 • Standard orders first • $330 million pr
Slide 5: Proven Rig Design Constructed at an Experienced Shipyard
Proven Rig Design Constructed at an Experienced Shipyard Proven Rig Design Accepted Across the Industry The KFELS B-Class jackup rig is a first class rig design accepted by all major E&P companies. More than 30 Mod V B Class jackup units ordered at Keppel in Singapore. State-of-the-art equip
Slide 6: KFELS Mod V B-class
KFELS Mod V B-class Keppel FELS KFELS Class B 400 ft 30,000 ft (234 x 208 517 ft 70 ft 15 ft Load capacity at center / 70 ft 1,640 kips Load capacity at 15 ft transverse offset / 70 ft extension 670 kips BOP Stack 15,000 psi Well capabilities (HPHT) H2S trim / 350 degree C. Mud Pumps 3x 2,200 bhp Li
Slide 7: Delivery Schedule
Delivery Schedule First rig delivery in July 2013 Uniform rig design reduces project cost and creates efficiency in post delivery operations Timeline Q1 Q2 Q3 Q4 Q1 Q2 2013 2013 2013 2013 2014 2014 B337 July 56 % complete 2013 Standard Vision Nov 28 % complete (B338) 2013 Standard Trust Dec (B33
Slide 8: S.D. Standard Drilling Plc. Group – Legal Structure
S.D. Standard Drilling Plc. Group – Legal Structure Investors (More than 500 Shareholders from 20 different Countries) Oslo Axess S.D. Standard Drilling Plc. Cyprus 100 % Offshore Driller Offshore Driller Offshore Driller Offshore Driller Offshore Driller S.D. Standard 2 Ltd. 3 Ltd. 4 Ltd. Drilling
Slide 9: Committed Sponsors
Commited Sponsors Asian focused private equity firm with solid Norwegian investment firm with track record substantial experience in the offshore drilling sector Actively involved in portfolio companies, assisting companies in improving Invested in 27 offshore units, including in performance, capita
Slide 10: Board of Directors
Board of Directors GUNNAR HVAMMEN (Chairman) • Co-Founder of S.D. Standard Drilling • Founder of multiple offshore related companies including: • Songa Offshore • Offshore Heavy Transport ASA AMIT GUPTA • Partner and Co-Founder of Clearwater Capital Partners • Active board involvement in multiple po
Slide 11: Corporate Structure / Management in Place
Standard Drilling – Corporate Structure / Management in Place CEO Martin Nes Adm.mgr. Jocelyn Goh CFO COO Geir Johansen Mike Kelley Accounting Procurement Manager VP Engineering VP HSEQ Tatiana Dolobko Andy Smith Ron Cunningham Peter V. Bridle IT & Integration HR Operations Manager Supervision Team
Slide 12: Strong Market Outlook
Strong Market Outlook Oil supply gap getting bigger High E&P spend forecast Newbuilds being absorbed by the market Increasing rates and contract duration Few jackups being ordered since Q2 2011 Well-balanced supply and demand in all regional markets Operators putting limits on age of j
Slide 13: Age Development Global Jackup Fleet
Age Development Global Jackup Fleet 55% of the fleet is above 30 years old and close to the end of the useful life of the equipment Near 20 year period where few jackups were constructed Increasing pressure post the Macondo accident for new, premium equipment Demand for newbuilds expected to
Slide 14: Continued Removal of Jackups from the Market
Continued Removal of Jackups from the Market 14 jackups have so far been removed from the market in 2012 26 rigs have thus been removed in 2011-2012YTD, which is more than over the 15 preceding years… Source: Pareto Research 14
Slide 15: Strong Earnings Potential
Strong Earnings Potential Premium Jackup Dayrates Rates peaked at $225k/day in 2006 and stayed above $200k/day until the fall of 2008 Contract awards in 2009 were between $100-130k/day Several recent contract awards in the $150 - $170k/day range Pareto 2013 estimate of 17% increase vs today
Slide 16: Rig Sales – Strengthen the Balance Sheet
Rig Sales – Strengthen the Balance Sheet Conservative Financial Profile All our construction contracts have 20/80 payment terms Access to capital markets as a listed company Strong cash position Rig Sales Cash Projections under different LTV levels SDSD sold 2 rigs in Q3 and gave an option t
Slide 17: Equity Ratio vs Return on Equity in today's Debt Market Environment
Equity Ratio vs Return on Equity in today’s Debt Market Environment Source: Pareto and The Company 17
Slide 18: Why S.D. Standard Drilling
Why S.D. Standard Drilling Committed sponsors/board Conservative financial profile with strong cash balance Experienced management team Proven rig design constructed at an experienced shipyard Strategically positioned to capitalize on the strong market outlook and opportunities that may ar
Slide 19: Contacts: Q&A
Contacts: S.D. STANDARD DRILLING IS SETTING A NEW STANDARD IN THE DRILLING INDUSTRY CORPORATE HEADQUARTERS MANAGEMENT OFFICE SD. Standard Drilling Plc S.D. Standard Drilling (Singapore) Pte Ltd ° 213 Arch. Makarios Avenue, 10 Collyer Quay Saat Maximos Plaza Tower 3, Office 401, Ocean Financial Centr
Slide 20: Appendix
APPENDIX @) stanvaro oriitine
Slide 21: Management Team
Management Team MARTIN NES (CEO) Martin Nes has more than 15 years of experience within the maritime and offshore industry. He has a law degree from University of Oslo, Norway and also holds a Master of laws’ degree from University of Southampton, England. He started his career as a lawyer with the
Slide 22: Management Team – Technical / Operational
Management Team – Technical / Operational RON CUNNINGHAM Mr. Cunningham brings to the role deep engineering experience and has worked for 35 years in VP Engineering engineering management and technical roles worldwide. He has built and overseen technical teams while developing programs to ensure ass