Seacor Marine Holdings Inc. · NYSE:SMHI
Seacor Marine — Investor Presentation (September 2019)
51 slides from Seacor Marine's investor presentation, Sep 27, 2019
Slide 1: Investor Presentation September 2019
Exhibit 99.1 Investor Presentation September 2019Exhibit 99.1 Investor Presentation September 2019
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 SEACOR Marine Holdings Inc. (“SEACOR Marine” or the “Company”) releases from time to time to the public constitute “forward-looking statements” within the meaning of
Slide 3: Who We Are
Who We Are Owner and operator of Global presence across Financial highlights Superior fleet offshore support vessels 177 vessels $81.1 million 5 Most diverse customer base of 1 Cash any operator in offshore sector: Continents 9.3 years • Supermajors $399.7 million average age for fleet, excluding ER
Slide 4: Ideally Positioned
Ideally Positioned Consistent Diverse Methodical Value-add Prudent Growth Assets, customer base Investment / Divestment Partnerships Balance Sheet and footprint 1 • Direct vessel profit (DVP ) • Leverage economies of • Continuous fleet up-grading • Access geographic markets • Disciplined capital has
Slide 5: Positioned to Capitalize on Offshore Revival
Positioned to Capitalize on Offshore RevivalPositioned to Capitalize on Offshore Revival
Slide 6: Improving Dayrates and Fleet Utilization
Improving Dayrates and Fleet Utilization 12,000 70% 10,807 10,186 9,913 9,742 60% 10,000 9,451 9,071 8,583 8,565 8,431 8,272 50% 7,925 8,000 7,371 7,323 7,324 7,122 7,001 40% 6,435 6,006 5,726 6,000 5,649 30% 4,000 20% 2,000 10% 0 0% Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1
Slide 7: Continuing Growth Direct Vessel Profit (DVP)
Continuing Growth 1 Direct Vessel Profit (DVP) (in millions) $28.8 $21.7 $20.8 $14.7 $13.4 $12.0 $11.7 $9.4 $4.5 67% 527% 24% 15% 10% 48% 33% 58% 73% $1.5 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 As of June 30, 2019 1 DVP is a non-GAAP financial measure. See sl
Slide 8: Strong Revenue Backlog Supporting Growth
Strong Revenue Backlog Supporting Growth Contract Revenue (in millions) $70 JV SMHI $23.6 $23.7 $22.7 $70.3 $84.0 $89.2 $251.3 2019 2020 2021+ Total As of June 30, 2019 Contract revenue backlog is our expectation of revenues to be generated from existing and uncompleted contracts assuming that such
Slide 9: Diversified Assets, Customer Base and Global Presence
Diversified Assets, Customer Base and Global Presence Diversified Assets, Customer Base and Global Presence
Slide 10: Fleet Mix – Core Focus Areas
Fleet Mix – Core Focus Areas Positioned to meet needs of diverse customer base across life cycle of offshore development Shallow Water Infrastructure Windfarm Crew Field Support, Maintenance, Crew Transfer, Customer Transport & Fast Deepwater, Plug & Maintenance Cargo Demands Fuel Efficient Abandonm
Slide 11: Key areas of fleet investments: Market Leader in New Hybrid Power PSVs
Key areas of fleet investments: Market Leader in New Hybrid Power PSVs 6% rd SEACOR Marine Ranks 3 for Publicly Traded Owners with Active 13% Diesel Electric PSVs of 15 years of age and younger. 6% st SEACOR Marine Ranks 1 in Hybrid 6% Power PSV’s 64% 5% SEACOR Marine continues to grow through acqui
Slide 12: Key areas of fleet investments: Hybrid
Key areas of fleet investments: Hybrid Hybrid power technology • Energy Storage System produces significant advantages over regular Diesel Electric PSVs • New lithium battery power technology and integration • Improves vessel efficiency • Lowers cost through reducing fuel consumption • Reduces emiss
Slide 13: Key areas of fleet investments: CTV's
Key areas of fleet investments: CTV’s CTVs WindGrip Access system • Improves safety of offshore transfers and increases accessibility of wind turbines • Increases grip on the boat landing in rough waters and higher wave conditions • Currently installed on 29 vessels (26 owned and 3 joint-ventured) F
Slide 14: SEACOR Marine's Demand Drivers
SEACOR Marine’s Demand Drivers Our diversified fleet is positioned to meet current demand and capitalize on early and later stages of market recovery in oil & gas as well as windfarm developments. Oil & Gas Offshore Crew Plug & Development Exploration SMHI Vessel type Decommissioning Maintenance Pro
Slide 15: Flexibility and Stability Through Diversification
Flexibility and Stability Through Diversification Enhance growth opportunity: Offshore Oil & Gas + Wind Percentage of Revenue by Region Percentage of Revenue by Vessel Class 19% U.S. (primarily Gulf of Mexico) 5% AHTS 18% West Africa 29% FSV 7% Supply 22% Middle East & Asia 19% ERRV 8% Brazil, Mexic
Slide 16: Global Presence with Optimal Fleet Mix
Global Presence with Optimal Fleet Mix 177 Total Vessels United States 29 Middle East 28 Europe 64 Asia Pacific 1 Mexico 19 West Africa South America 20 16 (including 12 in Brazil) As of June 30, 2019 seacormarine.com 16Global Presence with Optimal Fleet Mix 177 Total Vessels United States 29 Middle
Slide 17: Methodical Investment / Divestment
Methodical Investment / DivestmentMethodical Investment / Divestment
Slide 18: Steady Growth through Cycle
Steady Growth through Cycle Property, Plant and Equipment & Joint Venture Investments (in millions) JV 3% AHTS PPE $119.67 $110.29 42% FSV $765.49 $770.37 $90.21 5% Supply $689.83 $137.04 3% ERRV $541.94 32% Liftboats 4% CTV 2% Other 9% CIP 2019 2016 2017 2018 As of June 30, 2019 seacormarine.com 18
Slide 19: Aggregating Transactions Through the Cycle
Aggregating Transactions Through the Cycle Fleet Renewal and Expansion at Compelling Values 2016 2017 2018 Graham Gulf fleet: 11 FSVs, U.S. flag Cypress Leasing: 1 PSV in West Africa Hellespont: 4 PSVs in West Africa (10 years average age), in class • Distressed sale • Rollover debt transaction and
Slide 20: Aggregating Transactions Through the Cycle
Aggregating Transactions Through the Cycle Fleet Renewal and Expansion at Compelling Values 2018 2019 2018 SEACOSCO: JV with COSCO Acquisition of Mr. • 8 modern and high spec PSVs: deepwater capable, hybrid, built-in ability to delay deliveries Stevens: FSV • Limited cash outlay with efficient non-r
Slide 21: Vessel Sales
Vessel Sales 51 vessels sold since 2016 • Net gains of $13.9 million • Estimated cold-stack savings of approximately $9.8 million throughout the cycle (in millions) $78.1 Net Gains Estimated Cold‐Stack Savings NBV Net Proceeds $64 $9.8 $39.5 $36.8 $5.2 $3.9 $2.7 $15.9 $13.6 $2.1 $12.4 $10.3 $7.2 $6.
Slide 22: Adding Value Through Strong Partnerships
Adding Value Through Strong Partnerships 22Adding Value Through Strong Partnerships 22
Slide 23: Strategic Partnerships
Strategic Partnerships Strategic use of joint ventures and partnerships to: Improve risk adjusted return 1. Share project finance risk: limited partnerships in U.S., 2. Norway and China Enhance market coverage: Angola, Saudi Arabia, Mexico and Brazil 3. seacormarine.com 23Strategic Partnerships Stra
Slide 24: MexMar JV – Value & Meaningful Asset Base
MexMar JV – Value & Meaningful Asset Base • Critical contractor to Pemex – main provider of deepwater PSVs • Substantial asset base: 18 owned and operated vessels • Growing customer base and opportunities: Mexican energy reform and international oil companies • Fully compliant with local content / c
Slide 25: Balance Sheet
Balance SheetBalance Sheet
Slide 26: Balance Sheet Highlights
Balance Sheet Highlights (in millions) Jun-19 Cash + Construction Reserve Funds 78.9 Restricted Cash 2.2 Available Liquidity 81.1 Net PP&E 765.5 Construction in Progress 68.2 Investment, at Equity, and Advances to Joint Ventures 112.4 1 Outstanding Debt (Current and Long-Term) 399.7 SMHI Stockholder
Slide 27: Manageable Debt Maturity Schedule
Manageable Debt Maturity Schedule No major debt maturities until 2023 (in millions) Non‐Recourse Recourse $81.7 $227.4 $25.2 $25.5 $24.6 $8.7 $26.5 2019 2020 2021 2022 Years subsequent to 2022 seacormarine.com 27Manageable Debt Maturity Schedule No major debt maturities until 2023 (in millions) Non‐
Slide 28: Capital Expenditures Focused on Core Areas
Capital Expenditures Focused on Core Areas Trend of Historical CAPEX Spending and CAPEX Commitments (dollars in millions) $100.9 $69.0 $23.6 $52.0 $35.3 $41.2 2016 2017 2018 2019* 2020 CAPEX Spending CAPEX Commitments *As of June 30, 2019 Remaining CAPEX commitments: 3 FSV’s, 5 PSV’s and 2 CTV’s sea
Slide 29: Thank You / Q&A
Thank You / Q&AThank You / Q&A
Slide 30: Appendix
Appendix 30Appendix 30
Slide 31: Committed to Safety
Committed to Safety YoY Total Reportable Incident Record vs Industry Stats 4 3.5 3 2.5 2 1.5 1 0.5 0 0.15 2014 2015 2016 2017 2018 5-year average OMSA ISOA IMCA IADC IOGP SEACOR Marine Source: Offshore Marine Service Association (OMSA), International Support Vessel Owners Association (ISOA), Interna
Slide 32: Global Presence with Optimal Fleet Mix
Global Presence with Optimal Fleet Mix w AHTS FSV Supply ERRV Specialty Liftboat CTV Mexico 513 1 United States 382 1 15 South America* 310 3 Europe 318 1 42 West Africa 4106 Middle East 2137 2 2 2 Asia Pacific 1 As of June 30, 2019 *12 in Brazil seacormarine.com 32Global Presence with Optimal Fleet
Slide 33: Market Leader in Fast Support Vessels (FSVs)
Market Leader in Fast Support Vessels (FSVs) Favorable supply dynamics, unique assets/service, cost savings for customers • 40 Operated Vessels: 35 owned, 1 leased-in, 4 joint-ventured • New U.S. capacity is constrained by Clean Air Act emissions requirements • Evolving designs and operating protoco
Slide 34: Leading Position in DP-2 FSVs
Leading Position in DP-2 FSVs SEACOR Marine owns 38% 38% of active DP-2/DP-3 Class 55% FSVs of 15 years of age and younger worldwide. 7% SEACOR Marine Top Publicly Traded Owners Others Key Advantages of Next-Gen FSVs • Cost and time savings of 50% to 70% on passenger transfers compared to helicopter
Slide 35: Liftboats: Full Well Cycle Services, Growing Demand
Liftboats: Full Well Cycle Services, Growing Demand U.S. focus, increasing activity, developing U.S. offshore wind farm market • Self-propelled, self-elevating stable work platforms. Operations in: • U.S. GOM (15 vessels) • Middle East (2 vessels) • Europe (1 vessel) • Mexico (1 vessel) • Mission fl
Slide 36: Well Positioned in Growing Offshore Wind Market
Well Positioned in Growing Offshore Wind Market Windcat: leading operator of CTVs with active presence in all relevant offshore 39 8 years 5 vessels vessels average wind energy markets in Europe owned 100% age of • Optimally positioned to benefit from the expected growth by JV owned vessel in the of
Slide 37: Crew Transfer: Positioned for Offshore Wind Market
Crew Transfer: Positioned for Offshore Wind Market Stable, recurring business in a non-traditional offshore market • Augmenting Core Competence in Passenger Transport • 44 Operated CTVs: 39 Owned & 5 Joint-Ventured • Aluminum hull catamarans, critical for maintaining offshore wind turbines 1 • Capac
Slide 38: Emergency Response and Rescue (ERRV) – Steady Demand
Emergency Response and Rescue (ERRV) – Steady Demand Opportunity to capitalize on cycle: consolidation and vessel conversions from offshore vessels acquired at deeply discounted prices • 18 Operated Vessels: 17 Owned & 1 Joint-Ventured • Regulatory mandated emergency rescue service • Complex Logisti
Slide 39: Anchor Handling Towing Supply (AHTS)
Anchor Handling Towing Supply (AHTS) AHTS – High Optionality in U.S. & Operating Leverage Current book value approx. 20% of estimated replacement cost • 9 Operated Vessels: 5 Owned & 4 Leased-In • Angola is SEACOR Marine’s primary AHTS market – 4 vessels • Two operators in U.S. • No deliveries since
Slide 40: "Handy" Size PSVs – Overlooked with Relatively Few Newbuildings
“Handy” Size PSVs – Overlooked with Relatively Few Newbuildings Ideal for shelf operations: access to shallow water ports, jackup support and delivery to small platforms • 8 Operated Vessels Built since 2013 : 7 Joint-Ventured & 1 Owned • “Handy” is < 2,500 tons deadweight, and length < 230 feet • P
Slide 41: Limited Near-Term Contractual Maturities
Limited Near-Term Contractual Maturities (in millions) Outstanding Debt Maturities Debt Debt Issue: Jun-19 2019 2020 2021 2022 2023 Thereafter Convertible Senior Notes 125.0–– –– 125.0 – SEACOR Marine Foreign Holdings Syndicated Credit Facility 120.2 6.5 13.0 13.0 13.0 74.9 – Falcon Global USA Term
Slide 42: Reconciliation of Consolidated DVP to Operating Income (Loss)
Reconciliation of Consolidated Direct Vessel Profit (DVP) to Operating Income (Loss) 2014 2015 2016 2017 2018 Q2 2019 YTD Time Charter Statistics: Average Rates Per day $ 12,011 $ 10,079 $ 7,114 $ 5,972 $ 7,282 $ 7,237 Fleet Utilization 81% 69% 54% 54% 62% 66% Fleet Available Days 51,047 47,661 48,1
Slide 43: OSV Day Rate Index per Quarter
OSV Day Rate Index per Quarter 200 20% 150 increase 100 50 0 AHTS Dayrates Index PSV/FSV Dayrates Index Source: Clarksons’ World Offshore Register seacormarine.com 43OSV Day Rate Index per Quarter 200 20% 150 increase 100 50 0 AHTS Dayrates Index PSV/FSV Dayrates Index Source: Clarksons’ World Offsh
Slide 44: Global Rate Indicators: YoY Day Rate Comparison
Global Rate Indicators: YoY Day Rate Comparison (in US $) AHTS Average Day Rates PSV/FSV Average Day Rates $44,240 $25,959 $17,510 $28,195 $24,408 $11,857 $19,469 $11,602 $11,237 $16,826 $15,720 $9,186 2014 2015 2016 2017 2018 Q2 2019 2014 2015 2016 2017 2018 Q2 2019 Source: Clarksons’ World Offshor
Slide 45: Utilization – PSVs & FSVs
Utilization – PSVs & FSVs 100 71% increase (SEACOR Marine utilization percentage between Q2 2017 and Q2 2019) 75 50 25 0 Global Total Utilization (PSV & FSV) SEACOR Marine Utilization (PSV & FSV) Source: Clarksons’ World Offshore Register Note: Percentage of utilization includes all vessels of same
Slide 46: Utilization – Liftboats
Utilization – Liftboats 100 194% increase (SEACOR Marine utilization percentage between Q2 2017 and Q2 2019) 75 50 25 0 Global Total Utilization (Liftboats) Total Utilization in GoM (Liftboats) SEACOR Marine Utilization (Liftboats) Source: Clarksons’ World Offshore Register Note: Percentage of utili
Slide 47: Global Supply of OSVs continue to reduce
Global Supply of OSVs continue to reduce Number of Stacked Vessels (Global per Quarter) Stacked OSVs per Publicly Traded Owners 2,000 (As of June 30, 2019) 12 17 1,500 48 27 1,000 33 SEACOR Marine Publicly Traded Owners 500 0 Total Stacked OSVs Stacked OSVs Above 15 Years of Age Stacked OSVs for 3 Y
Slide 48: Active Offshore Rigs
Active Offshore Rigs 457 in Total Mediterranean 40 North America NW Europe 58 58 Asia Pacific 90 MidEast/ISC 158 Central & West Africa 28 25 South America Source: Clarksons’ World Offshore Register as of July 31, 2019 seacormarine.com 48Active Offshore Rigs 457 in Total Mediterranean 40 North Americ
Slide 49: Brent Oil Price vs Total Working Drilling Units
Brent Oil Price vs Total Working Drilling Units Global Statistics 3000 90 80 2500 70 2000 60 50 1500 40 1000 30 20 500 10 0 0 Working Rig Count Brent Crude Source: Clarksons’ World Offshore Register seacormarine.com 49 No of Drilling Units Axis TitBrent Oil Price (US$)Brent Oil Price vs Total Workin
Slide 50: Management Team
Management Team • John Gellert – President, Chief Executive Officer, and Director Mr. Gellert has been President and Chief Executive Officer since our formation and a member of our board of directors since June 1, 2017. In his previous appointment, Mr. Gellert was Co-Chief Operating Officer of SEACO
Slide 51: Management Team
Management Team • Andrew H. Everett II – Senior Vice President, General Counsel and Secretary Mr. Everett has been our Senior Vice President, General Counsel and Secretary since January 22, 2018. Prior to his appointment, Mr. Everett was an associate in the Global Corporate Group of Milbank, Tweed,
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