2017 Pareto Conference – Bart Heijermans CEO
Recent DeepOcean presentations at Pareto Conference 2014 2016 Navigating through crowded Weathering the prolonged oil water downturn “W e cannot solve our problems with the same thinking we used when we created them”. Albert Einstein DeepOcean is getting ready to thrive in the new normal but… light at the end of the tunnel is still dim… (except ‘Nordi c ‘ light that is a bit brighter..)
State of the Industries Oil & Gas Offshore Wind and Interconnectors Significant global growth caused by In absence of a global geopolitical event continued technology advancements, oil will likely trade in the ~$40-$60 range productivity gains and cost for years to come reductions soon resulting in a phase- Continued focus on cost deflation in out of the need for any subsidies order for offshore oil to become Focus on sustainable sources of competitive renewable energy to reduce CO2 Market structurally oversupplied with rigs emissions and improve quality of life – and vessels for many years Energy transition ongoing and likely Still enormous amounts of debt that to accelerate have to be written off because vessel day Adequate number of suppliers to rates are not going to return to 2014 levels drive down LCOE (not even close…) Long term prospect for interconnectors Contractors with relative lower fixed cost looks promising basis have advantage
Size of Number Number of Number of Number of fleet of ROVs trenchers Employees Engineers 14 50 15 ~1000 ~ 200 Lead Shareholder – Funds advised by Triton Life of field subsea services Partners
Financials Revenue ‘15 - ’17 revenue on par with ‘12 in NOK terms Renewables / interconnector 632 ‘17 renewable and interconnector revenue ~ 50% Oil & Gas 609 41 $’m 61 513 76 411 402 ~375-400 90 132 591 548 437 322 269 2012 2013 2014 2015 2016 2017 Utilization 87% 86% 83% 82% 80% 79% 2012 2013 2014 2015 2016 1H17 ~ of vessels 15 14 15 14 13 13 DeepOcean is a very effective platform for customers and ship-owners
Getting ready to thrive in new normal Find and secure new work Innovation to structurally reduce cost Several initiatives ongoing Unit cost leader Smooth execution Low and flexible cost basis (company and supply chain) High utilization Repetitive nature of work (learning curve) Personnel retention Diversification Oil & gas Renewables Interconnectors CAPEX & OPEX Agile & Nimble & Savvy
Fleet rebalancing
Not your typical IMR 2 contractor – differentiated IMR 2 services Subsea well scale squeeze Subsea laser data acquisition and High speed survey ROV operations using coiled tubing rig visualization Installing flexible risers using a VLS Installation of suction piles Installation of Subsea Trees Strong engineering capabilities and fast response
Examples of Innovation
Typical OCV Campaign in spot market Race Bank Array – Array cables Varg subsea decommissioning Troll B&C riser replacements and wear protection Foinaven riser replacement
Walney Extension Project Simultaneous installation and burial Installation of interlink cable of export cables 23 km 136 km # of complex 3.5km # of beach pulls across engineered Morecambe Bay groundings 2 10
Race Bank Project Installation and burial of 91 Array Cables Max. >3 cables per day Variable hard soils, strong currents and sand waves 11
Race Bank Project T3200 and T1000 trenchers both worked on this project Unmatched trenching performance Trenched ~130 km of export cables up T3200 is the to 3m depth of burial in challenging and industry variable soil conditions including standard Calcareous rock
2x 130 km subsea 1000 MW interconnector cables Belgium – UK Getting ready to thrive in new normal 7,000 te. split capacity duel concentric carousel Simultaneously loading 2 x 59km 400kv HVDC XPLE cables Complicated route engineering, preparation in English channel www.deepoceangroup.com 13
Renewable and transmission projects in 2017 Nobelwind Bligh Bank Array Cables Race Bank Export Cables Walney Array Cables Nemo Interconnector Real projects by committed contractor - not just W2W vessel utilization….
Searov acquisition Acquired French company Searov Offshore SAS effective 1 July 2017 Company owns 10 ROVS Operations in Congo, Cameroon, Gabon, Ivory Coast Clients Total, ENI, Perenco, Vaalco, etc. “Can do attitude” and great addition to our platform Part of DeepOcean’s strategy to become life of field subsea services contractor in key countries in Africa
Our focus Safety of all employees and other stakeholders Finding and contracting new work Operational excellence Continued focus on unit cost reductions (company and supply chain) Innovation to reduce cost Add SAT diving to our service offering Acquire companies and assets in line with our Deep 2020 Vision
Q&A Follow DeepOcean Group on Twitter @deepoceangroup Join the discussion on LinkedIn: www.linkedin.com/company/deepocean More than 37,000 followers http://www.youtube.com/deepoceanonline www.deepoceangroup.com
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