Q4 2012 Financial Presentation DOF Subsea Group
Agenda Highlights Recent events Group overview Projects Contract coverage Financials Outlook Appendix
DOF Subsea Group – Highlights Fleet One of the largest subsea vessel owners in the world Owns and operates a fleet of 24 vessels, plus 2 newbuilds on order In addition 2 vessels on long-term charter The market value of owned vessels in operation is NOK16 625 million, with a value adjusted age of 4.3 years Operates 52 ROVs Global organization Head office in Bergen Regional offices in Australia, Singapore, Norway, UK, Angola, US, Canada and Brazil Total of 2 354 employees Subsea employees: 1 354 Of which offshore engineers and project staff: 1 040 Marine crew: 1 000 Norway Brazil Canada US UK Asia Pacific Angola 242 313 35 73 343 333 15 * As pr 31st December 2012 3 DOF Subsea
DOF Subsea Group – Highlights 40 % 1 400 35 % Key Figures 1 200 30 % NOK million Q4 2009 Q4 2010 Q4 2011 Q4 2012 19.5 % 1 000 Operating revenue 754 1 080 1 246 1 288 NOK million CAGR 25 % EBITDA 171 320 406 417 800 EBITDA margin 22.6% 29.7% 32.6% 32.4% 20 % 600 Total assets 13 603 17 545 19 228 18 624 15 % Equity 3 833 5 224 4 832 5 102 400 10 % 34.7 % * All numbers excluding gain on sale of assets. CAGR 200 5 % - 0 % Q4 2009 Q4 2010 Q4 2011 Q4 2012 Operating revenue EBITDA EBITDA margin Strong back-log and rising market values of vessels Back-log incl. options NOK 15 602 million Market value of fleet NOK 16 625 million Number of shares 119 733 714 Total Per share Book equity NOK 5 102 million NOK 42.61 Value adj. equity NOK 8 085 million NOK 67.53 Book equity ratio 27.4 % Value adj. equity ratio 37.4 % 4 DOF Subsea
Recent events Contracts Several subsea contracts in the Far East region Skandi Hercules, Skandi Hawk and Geobay ( Mediterranean ) Skandi Singapore - 4 month New Zealand campaign Several subsea contracts in the Atlantic region Geoholm, Geosund and the newbuild Skandi Bergen Statoil Mooring Installation Services on Skandi Skolten Several subsea contracts in the Gulf of Mexico Geoholm, Skandi Constructor Finance Completed new unsecured bond issue of NOK 1 300 million, maturity May 2018 After repurchase of outstanding bonds in connection with new bond issue, the company holds the following bonds on own book: NOK 232.5 million in DOFSUB04, maturing in April 2014 NOK 218 million in DOFSUB06, maturing in October 2015 NOK 82 million in DOFSUB05, maturing in April 2016 5 DOF Subsea
Recent events Vessels Chartered the Jones Act compliant CSV, the Harvey Deep-Sea, on a four year time charter agreement. Delivery from yard in June 2013. Only Jones Act compliant CSV newbuild available in the GOM-market until latter part of 2015. Ordered Subsea Vessel newbuild with STX OSV. 6 DOF Subsea
STX Newbuild State-of-the-art construction and pipe DP3 laying vessel Suitable for Arctic operations, DNV ICE- OSCV 12 design 1B & DEICE notation 2x Heavy duty work ROVs (Perry) Special product tanks for MEG/Methanol 2x Moonpool launched LARS Accommodation: 140 persons LOA: 160,9 m Helideck Beam: 32 m 900 t Crane + 150 t SWL crane 3500 t carousel Main deck area: 2 700m 2 150 t - 650 t Vertical Lay System All specifications are subject to changes without prior notice. Please contact us for details and verifications. 7 DOF Subsea
Group overview
Ownership structure FIRST RESERVE DOF ASA CORPORATION 51% 49% DOF SUBSEA HOLDING AS 100% Modern high-end fleet and equipment A workforce of 2 354 highly skilled employees DOF SUBSEA AS 24 owned subsea vessels in operation 2 vessels on order 2 vessels on charter 50 ROVs, 1 ROTV and 1 AUV in operation Leading subsea contractor 9 DOF Subsea
DOF Subsea Group structure DOF Subsea AS Ship/Asset Management DOF Subsea DOF Subsea DOF Subsea DOF Subsea Survey & Engineering Owning Companies Asia Pacific Atlantic North America Brazil Positioning Companies Companies DOF DOF Subsea Management Norway Singapore US UK CSL Rederi (34 %) Marin IT DOF Subsea Australia Canada US Semar (50%) UK Rederi II (35 %) DOF Installer Indonesia Angola (83.66 %) Arctic DOFTECH Malaysia (50 %) Russia Mashhor DOF TECHDOF Subsea (50%) (50 %) Brunei DOF Subsea divided into regions, engineering DOF Subsea ROV companies and ship-owning companies Regions, engineering companies and ship- owning companies are profit centers Head office in Bergen 10 DOF Subsea
A Global Subsea Player Bergen (242) Moscow Aberdeen (343) St. Johns (35) Houston (73) Cairo Manila Malaysia Brunei Singapore (115) Angola Jakarta (5) (15) Macaé Perth Rio de Janeiro (213) (313) Buenos Aires GEOGRAPHICAL FOCUS AREAS 11 DOF Subsea
DOF Subsea – Company history Incorporated on 24 th of May 2005 after DOF ASA acquired DOF Subsea fleet evolution GEO Group AS and its subsidiary Geoconsult AS 28 18 000 DOF Subsea was established by DOF ASA in order to create a MV of fleet 16 000 24 more effective organization with the aim of establishing a MV fleet in NOK million 14 000 Number of vessels leading subsea services company 20 12 000 DOF ASA transferred its multipurpose/ROV vessels to 16 10 000 DOF Subsea, constituting four vessels and one 8 000 12 newbuild 6 000 8 4 000 DOF Subsea is headquartered in Bergen, Norway 4 2 000 0 - 2005 2006 2007 2008 2009 2010 2011 2012 2013 2005 2006 2007 2008 2009 2010 2011 2012 2013 Fleet: 11 vessels Fleet: 11 vessels Fleet: 13 vessels Fleet: 16 vessels Fleet: 21 vessels Fleet: 18 vessels Fleet: 24 vessels Fleet: 25 vessels Fleet: 26 vessels May : DOF acquired Feb : Acquisition of Jan : Acquired 50% Feb : Delivery of Feb : Delivery of Jan : Delivery of Feb: Delivery of Mar: Sale of Feb: Signed Geoconsult and Covus Corp of SEMAR Geograph Skandi Aker Skandi Salvador Skandi Niteroi OSCV newbuild. OSCV newbuild established GEO contract (now DOF Subsea) May : Set up of Jan : Acquired 100% Jul : Delivery of Feb: Sale of Geo Mar: Delivery of May: Sale of Mar : Signed Geo do Brazil of DOFCON Skandi Acergy Challenger Skandi Arctic Geosounder OSCV newbuild Feb: Chartered May : Private contract Harvey Deep-Sea placement of Aug : Established Mar : Establishment Nov : Delivery of Jun: Acquisition of Dec: Delivery of Jun : Acqusition shares of NOK 715 50/50 JV in Brunei of Aker Oilfield Skandi Seven and SWG Skandi Santos Skandi Constructor mill Services sale of Geofjord Jul: Delivery of Jul : Delivery of Nov : Listed on Mar : Name change Dec: DOF Subsea Skandi Vitoria and Skandi Skansen Oslo Stock to DOF Subsea acquired by DOF Skandi Skolten Exchange ASA and First Sep: Delivery of Apr : Acquisition of Reserve Dec: Delivery of Skandi Singapore Nov : Acquisition of CSL Skandi Hercules Century Subsea JV with Technip Aug : Merger of Mgmt JV with Technip company with DOF Management AS 12 DOF Subsea
Level of industry barriers to entry DSV Increased engineering requirement Complexity and size of operations Increased system requirement Level of barriers to entry OSCV Complex subsea operations ROV Marine transport/ AHTS services PSV DOF Subsea’s main presence is in segments with medium to high barriers to entry and high complexity of operations Higher margins and earnings beyond the time charter rates DOF Subsea is gradually building engineering capabilities 13 DOF Subsea
New, high-end fleet Delivery of vessels 8.00 7.00 Before 2000 Newbuild 8 % 6.00 8 % 5.00 2000 - 2006 4.00 23 % 3.00 2007 - 2012 61 % 2.00 1.00 - Average fleet age Value adjusted Majority of the fleet delivered after 2007 Industry leading value adjusted average fleet age of 4.3 years High-end vessels capable of a wide scope of operation, world wide * All numbers are based on broker estimates as per 31st December 2012 14 DOF Subsea
Business management Global business management system accredited by DNV to: Business Management System ISO 9001: 2008 Health and Safety System OHSAS 18001:2007 Environmental Management System ISO 14001:2004 2009 15 DOF Subsea
HSEQ LTI frequencies for 2011 was 0.9 and for 2012 it has been 0.3 12.00 10.00 DOF Subsea - LTI frequency 8.00 IMCA - LTI frequency 6.00 DOF Subsea - recordable Incident 4.00 frequency IMCA - Recordable ferquency 2.00 0.00 2005 2006 2007 2008 2009 2010 2011 2012 Safety Observations 2012 2500 High reporting of safety 2000 operations shows commitment to HSEQ 1500 1000 500 0 Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec 16 DOF Subsea
Projects DOF Subsea
DOF Subsea – Market Base Source: Infield Systems Limited 18 DOF Subsea
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