Back on Track Back on Track DeepOcean An integrated provider of - PowerPoint PPT Presentation

DeepOcean Presentation Pareto Conference - Oslo 4 September 2013 Back on Track

Back on Track DeepOcean An integrated provider of comprehensive � subsea engineering solutions and a leading subsea contractor Market leader in subsea IMR in the Greater � North Sea and global leader of trenching services Demonstrated track record of highly- � engineered, complex subsea construction projects for the oil & gas, offshore wind and telecommunication industries Corporate office in Amsterdam. Main � execution centers in Haugesund Norway and Darlington UK. Global presence with offices in Trondheim Norway, Aberdeen UK, Macae Brazil, Ciudad del Carmen Mexico, Singapore and Den Helder the Netherlands www.deepoceangroup.com 1

Back on Track HSEQS Leading Indicators Through 31 July 2013 www.deepoceangroup.com 2

Back on Track HSEQS Lagging Indicators Through 31 July 2013 Lagging Indicator www.deepoceangroup.com 3

Back on Track A Decade of Transformation Acquired by DeepOcean completes Delivers strong restructuring process IPO at OSE Trico for EBITDA growth in and appoints new Board ~NOK3.5 billion 2H2012 - 1H2013 2013 2012 2005 2006 2008 2010 2011 2007 2009 Trico files for Acquires Appoints new CEO Acquires bankruptcy CTC Marine and CFO Oceanteam AS protection in US Projects Ltd Despite turbulence in 2009- ������������������������������������������������������ www.deepoceangroup.com 4

Back on Track Recent Events in 2013 � Awarded a 5-year firm IMR contract from Statoil for the Rem Ocean valued between ~$265 and ~$350 million depending on options and additional services � Awarded a contract by Statoil for the procurement, installation and burial of the 140 km. Aasta Hansteen Fiber Optics Cable � Closed new � 125 million Credit Facility with 5 banks � Secured extensions of Atlantic Challenger and Arbol Grande vessel charters through 2014 � Acquired a 50% interest in ADUS DEEPOCEAN � Chartered new vessels for 2014 and beyond, namely Havilia Phoenix, Rem Ocean and Deep Helder � Opened Engineering Office in Trondheim and staffed up � Reported a record and high quality backlog of $814 (1) million effective 31 March ��� � Achieved one continuous year on hire of the Edda Fauna without any off hire breakdown � Awarded Most Innovative Subsea Technology Provider at the Deepwater Excellence Awards ceremony at the 7th Annual Deepwater China Convention in May 2013 � Recruited 158 (>10% increase) new employees and experienced turnover of less than 3% YTD www.deepoceangroup.com 5 1) Unaudited

Back on Track Leadership Team Ottar Mæland Pierre Boyde Bart Heijermans Mads Bårdsen Tony Inglis Dennis de Vreede Ops. Director MD Com. Director CEO CFO President DeepOcean UK DeepOcean AS DeepOcean UK DeepOcean AS 30+ years of 13+ years of 15+ years of 20+ years of global 20+ years of 20+ years of global oil & gas oil & gas industry oil & gas industry oil & gas industry oil & gas industry financial, industry experience experience experience experience accounting experience experience Clough - SaiClo Norsk Hydro EMC Shell E&P, Enterprise Stolt Offshore CFO Redevco Products LP USA EVP & COO Helix 2005 -2011 www.deepoceangroup.com 6

Back on Track Company snapshot Trenchers & Ploughs Vessels ROVs � 28 ROVs � Owned vessels: 7 � 7 ploughs � Long Term Charters: 8 (+3 in � 5 ROVs to be delivered in 2H2013 � 6 jet trenchers (+1 in 2014) 2014) � 33 ROVs at 2013 year-end � 4 mechanical cutters � Spot charters: 2 � > 4 ROVs to be delivered in 2014 � Ultimate trenching spread with T3200 and T1000 to be introduced in 2014 Talent 2012 Financials (Audited) 1H2013 Financials (un-audited) � ~1200 employees � Revenue: $513m � Revenue: $294m � Adj. EBITDA: $54m (10%) � ~250 agency personnel � Adj. EBITDA: $51m (17%) � ROCE: 7% � ROCE: 19% � Net Debt < $0 � Net Debt: $2m � CAPEX: $72m � CAPEX: $29m www.deepoceangroup.com 7

Back on Track Service lines Inspection, Survey and Seabed Maintenance and Trenching Subsea Installation Decommissioning Mapping Repair (IMR) ROV based subsea DeepOcean is the Installation of Survey, inspect and Leading provider of decommissioning largest subsea IMR map terrain prior to subsea trenching and subsea structures service provider in the the installation of protection services Greater North Sea new subsea systems Lead contractor SURF � Largest subsea IMR More than 50 000 � � � Global leader � on subsea Contractor in km pipeline Power Cables � Largest portfolio of decommissioning � Greater North Sea surveyed and umbilicals seventeen projects More than 1200 Water depth to Structures � � � trenching assets vessel days per 2100 m Module � with wide range of year and 700 call- ROV and vessel replacement � capabilities offs per year based Life of Field � Long term service � Co-owner of ADUS Seismic cables � contracts DeepOcean www.deepoceangroup.com 8

Confidential � Not for Public Dissemination Back on Track Vessel and project activity Activity on 6 continents managed by regional offices through two execution centres Deep Vision Edda Flora Maersk Responder Rem Forza Edda Fauna Edda Fonn Volstad Surveyor Maersk Assister Northern Wave Northern Commander Northern Supporter Maersk Recorder T1 Volantis Arbol Grande Excludes : � Walker I CBO Isabella Deep Endeavour � Havila Phoenix (2014) � Rem Ocean (2014) � Deep Helder (2014) Office locations � TBD (2014) Atlantic Challenger www.deepoceangroup.com 9

Back on Track Selection of recent projects STATFJORD LOADING BUOY DECOMMSSIONING AND REMOVAL ADUS DEEPOCEAN Proprietary visualization Decommissioning of Statfjord Loading Buoy. Novel technology used software and data to disconnnect chains from buoy acquisition methodology IMR Installation of X-MAS tree with Flexible Riser End Replacement Clamp Installation on Glitne Edda Fauna IMR vessel www.deepoceangroup.com 10

Back on Track Selection of recent projects Snoree LOFS / PRM BARD Installation and burial of 80 array cables Installation and burial of ~535km of cables in German sector of North Sea and umbilicals on Snorre PRM project Macedon and Gorgon Ithaca Stella Trenching of pipelines by AMP500 plough Burial of umbilicals offshore Australia www.deepoceangroup.com 11

Back on Track Subsea trends � More subsea wells Increased demand for construction, IMR and decommissioning � � Bigger and more complex subsea structures Need for larger and more capable vessels � More pro-active and critical maintenance requirements � � Ageing Infrastructure Increased requirements for IMR and replacement scope � Focus on IOR (Increased Oil Recovery) � Installation, IMR and change-out of subsea production systems � Well intervention (downhole IMR) � Permanent Reservoir Monitoring (PMR) � Electrification projects � � Renewables Increase in number of Offshore wind farms � IMR market for remedial trenching � � West European Grid New interconnector power cables � www.deepoceangroup.com 12

Back on Track Trade Offs for DeepOcean to achieve predictable and sustainable growth � Oil & Gas vs. Renewables revenue � CAPEX vs. OPEX funded revenue � Day-rate vs. qualified lumpsum or qualified EPCI � Differentiated services vs. differentiated assets ������������������������������ - T3200 � Large number of relatively inexpensive assets vs. small number of expensive assets � Global vs. regional strategy www.deepoceangroup.com 13

Back on Track Our Focus � Zero incidents as the result of thorough preparations, training, development and ACT for Safety � Retain and attract talent through investment, development and empowerment and become an Employer of Choice, that is admired by its peers � Deliver high quality and reliable services to our Customers � Grow ROCE � Manage balance sheet to withstand and take advantage of opportunities during downturns � Credibility � Say what you do and do what you say www.deepoceangroup.com 14

High ambitions - Deep knowledge! www.deepoceangroup.com www.deepoceangroup.com 15