Prosafe Se · OSL:PRS
Prosafe — Q2 2013 Earnings Presentation
32 slides from Prosafe's earnings presentation, Aug 22, 2013
Slide 1: Q2 2013 results
22 August 2013 Q2 2013 results
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: Agenda
Agenda Introduction Financial results North Sea fleet Record high order book Outlook Attachments 3
Slide 4: Recent Prosafe developments
Recent Prosafe developments Vessel utilisation rate of 84 per cent in Q2 Interim dividend of USD 0.15 resolved for Q2 Strong contract inflow, record high order backlog and high contract visibility Robust outlook 4
Slide 5: Agenda
Agenda Introduction Financial results North Sea fleet Record high order book Outlook Attachments 5
Slide 6: Income statement
Income statement (Unaudited figures in USD million) Q2 13 Q1 13 Q2 12 YTD 2013 YTD 2012 2012 Operating revenues 143.5 85.8 129.3 229.3 255.0 510.4 Operating expenses (60.3) (52.4) (65.2) (112.7) (116.3) (230.3) EBITDA 83.2 33.4 64.1 116.6 138.7 280.1 Depreciation (14.5) (14.4) (14.3) (28.9) (28.3) (
Slide 7: Operating revenues
Operating revenues (USD million) Q2 13 Q1 13 Q2 12 YTD 2013 YTD 2012 Charter income 127.5 75.3 103.1 202.8 218.2 Mob/demob income 3.7 1.7 2.0 5.4 2.0 Other income 12.3 8.8 24.2 21.1 34.8 Total 143.5 85.8 129.3 229.3 255.0 7
Slide 8: Balance sheet
Balance sheet (Unaudited figures in USD million) 30.06.13 31.03.13 31.12.12 30.06.12 Goodwill 226.7 226.7 226.7 226.7 Rigs 926.6 926.3 896.3 909.3 New builds 148.6 142.0 135.6 64.1 Other non-current assets 18.3 20.3 21.9 5.0 Total non-current assets 1 320.2 1 315.3 1 280.5 1 205.1 Cash and deposits
Slide 9: Key figures
Key figures KEY FIGURES Q2 13 Q1 13 Q2 12 YTD 2013 YTD 2012 2012 Operating margin 47.9 % 22.1 % 38.5 % 38.2 % 43.3 % 43.6 % Equity ratio 44.0 % 42.0 % 34.7 % 44.0 % 34.7 % 34.7 % Return on equity 34.5 % -0.5 % 30.4 % 18.4 % 35.3 % 48.4 % Net interest bearing debt (USD million) 651.3 608.1 674.0 651.
Slide 10: Steady growth in dividend
Steady growth in dividend Dividend payments 0,6 An interim dividend 0,5 +11% equivalent to USD 0.15 per Q4 +13% share declared 0,4 Q4 Q3 USD per share +70% The shares will trade ex- Q3 +13% dividend on 28 August 0,3 +22% The dividend will be paid in Q4 Q3 Q2 0,2 the form of NOK 0.89 per Q2 Q4 share
Slide 11: Agenda
Agenda Introduction Financial results North Sea fleet Record high order book Outlook Attachments 11
Slide 12: Safe Boreas progress
Safe Boreas progress Semi-submersible to be built as NCS compliant/ harsh environment DP3 and 12-point mooring Scheduled delivery from yard summer 2014 First contract (six-month plus options) with Lundin for Financial status Q2 13 USDm hook-up of Edvard Grieg in Book value o.b. 79 Norway in Q2 2015
Slide 13: Safe Zephyrus progress
Safe Zephyrus progress Semi-submersible to be built as NCS compliant/ harsh environment DP3 and 12-point mooring Ready for operations in the North Sea in the summer season of 2015 Contract in 2016 with Statoil Financial status Q2 13 USDm for Mariner in the UK and Book value o.b. 63 options until ear
Slide 14: Safe Scandinavia SPS and life extension
Safe Scandinavia SPS and life extension Some scope added to aim for 20 years life extension Take advantage of rare three-month yard period Fatigue life enhancement New cranes, 2 x Liebherr Upgrade mooring system New and stronger Partly refurbish accommodation Estimated project capex (H2 2013/H1 2014
Slide 15: High quality North Sea fleet
High quality North Sea fleet Safe Boreas – new build currently under construction Safe Zephyrus – new build currently under construction Safe Scandinavia - full life extension 2014 (20 years) Safe Caledonia – full life extension 2013 (20 years) Regalia – full life extension 2009 (20 years) Safe Bris
Slide 16: Capital expenditure 2013
Capital expenditure 2013 USD 130 -150 million of which about USD 70 million capitalised in H1 2013 Major items Safe Caledonia completion Safe Scandinavia SPS, mooring winches and life extension Regalia SPS and cranes/thrusters Safe Boreas new build project Safe Zephyrus new build project 16
Slide 17: Agenda
Agenda Introduction Financial results North Sea fleet Record high order book Outlook Attachments 17
Slide 18: Strong contract inflow recently
Strong contract inflow recently Rig Client Country Contract year Duration Dayrate (USD) Safe Zephyrus Statoil UK 2016 240 days* 300,000 Safe Caledonia Nexen UK 2014 330 days** 235,000** Safe Regency Cotemar Group Mexico 2013 230 days 75,000*** Safe Scandinavia Det norske Norway 2016 182 days 343,000
Slide 19: Record high order backlog
Record high order backlog Order backlog Firm contracts USD 1 020m 1 600 + Options USD 405m = Total contract backlog USD 1 425m 1 400 1 200 2013 1 000 2017-19 16 % USD million 20 % 800 2016 13 % 600 2014 28 % 400 2015 23 % 200 Options Firm contracts 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 20: High contract visibility
High contract visibility Safe Zephyrus Safe Boreas Safe Scandinavia Regalia Safe Caledonia Safe Bristolia Safe Astoria Safe Concordia Safe Hibernia Safe Britannia Safe Regency Safe Lancia Jasminia 2006 20072007 2008 20082009 20092010 2006 2010 2011 20112012 2012 20132013 2014 20142015 2015 2016 2016
Slide 21: Agenda
Agenda Introduction Financial results North Sea fleet Record high order book Outlook Attachments 21
Slide 22: Clear market leader in the high-end segment
Clear market leader in the high-end segment No. of accommodation semis by owner* No. of accommodation semis by regional capabilites* 30 30 28 Axis Off. 28 26 Jasper 26 24 24 22 CIMC 22 20 20 ETESCO Rest of World 18 18 16 FOE 16 UK 14 14 COSL 12 12 Norway 10 Pemex 10 8 8 Cotemar 6 6 4 Floatel Int. 4
Slide 23: North Sea – demand is robust
North Sea – demand is robust The market for offshore accommodation in the North Sea has been growing the last years and the demand outlook remains robust Maintenance and modification projects and new developments Tendering activity was at a high level in the first half of the year and is anticipated
Slide 24: North Sea demand index shows robust demand
North Sea demand index shows robust demand Robust demand North Sea accommodation rig demand index 110 106 101 100 103 99 100 100 Fewer prospects than six 90 91 90 87 90 months ago, but several 80 81 79 76 78 contract awards in the 70 67 64 70 period resulted in an 60 increase in the demand 50 index
Slide 25: Mexico and Brazil – a number of opportunities
Mexico and Brazil – a number of opportunities A number of opportunities and tenders for long-term requirements, mainly driven by maintenance and IOR projects However, particularly in Brazil, the number of potential suppliers has increased and competition is strong 25
Slide 26: Gulf of Mexico dayrates (bareboat)
Gulf of Mexico dayrates (bareboat) 100 : | USD k 3 20 10 0 T T T 7 T T 7 T T 7 T T 7 1 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 qm §5fe Britannia qm Safe Regency em Sefe Lancia qm Safe Concordia mms Safe Bristolia qm Safe Hibernia ewe a
Slide 27: Rest of World dayrates (time charter)
Rest of World dayrates (time charter) 300 250 200 USD k 150 100 50 0 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Regalia Safe Caledonia Safe Concordia Safe Scandinavia Safe Bristolia Safe Astoria (DP3) (10-point mooring & DP2) (4-point moo
Slide 28: Summary
Summary Record high order book High contract visibility Robust outlook Prosafe is well positioned Clear market leader High-quality, diversified fleet Strong cash flow Robust financial position High dividend combined with fleet growth 28
Slide 29: Agenda
Agenda Introduction Financial results North Sea fleet Record high order book Outlook Attachments 29
Slide 30: Credit facility
Credit facility Total commitments end of Q2 2013: USD 859 million Maturity: August 2017 The current applicable credit margin on the credit facility is 1.875% The availability under the credit facility is reduced semi-annually with USD 68 million. Balloon of USD 247 million. Financial covenants: Maxi
Slide 31: Current bond loan portfolio
Current bond loan portfolio Bond loans Outstanding Maturity Margin NOK 500 million bond (2009-13) NOK 204.5 million Q4 2013 400 bps NOK 500 million bond (2011-16) NOK 500 million Q1 2016 350 bps NOK 500 million bond (2012-17) NOK 500 million Q1 2017 375 bps NOK 500 million bond (2013-20) NOK 500 mil
Slide 32: Shareholders
Shareholders SHAREHOLDERS AS AT 16.08.2013 No. of shares Ownership State Street Bank & Trust (nom) 32 795 851 13.9 % Folketrygdfondet 17 838 211 7.6 % State Street Bank & Trust (nom) 16 113 241 6.8 % Pareto 8 852 861 3.8 % Clearstream Banking (nom) 8 534 427 3.6 % FLPS 7 900 000 3.3 % JP Morgan Chas