Quarterly Presentation Q3 2017 DOF Subsea Group
DOF Subsea highlights 1 Attractive long-term market fundamentals supporting continued demand for subsea offshore solutions 2 A true global subsea IMR operator with strong project and execution capabilities 3 Unique strategic position providing integrated life-of-field subsea services 4 State-of-the- art subsea vessels, the world’s 4 th largest ROV fleet and 1 287 subsea employees 5 Strong order intake through the down cycle securing tangible near-term growth and highly attractive financial profile 6 Resilient backlog as backbone for stable operating model – PLSV contracts in Brazil cementing strategic position DOF Subsea 2
DOF Subsea Group at a glance 2005 NOK 3.3bn 1) NOK 16.3bn 1 287 2) DOF Subsea Revenues Firm backlog Subsea employees YTD’17 Q3’17 worldwide Q3’17 established Integrated Modern 26 3) 71 4) Supplier of subsea State-of-the-art Subsea vessels ROVs offshore services asset base 1) Note: According to management reporting 4) Note: Including 2 AUVs DOF Subsea 3 2) Note: Excluding marine crew 3) Note: Including newbuilds Skandi Olinda and Skandi Recife and chartered-in vessels Harvey Deep Sea and Skandi Chieftain
More than a decade of structural growth and consolidation DOF Subsea established following the Development in number of Subsea Employees 1) acquisition of Geoconsult. The Company was 2005 listed second half 2005. 1858 1667 1566 1492 First Reserve acquires 49% of DOF Subsea, 1354 1278 1287 1246 which in the following is delisted from the Oslo Stock Exchange 1014 2008 897 553 563 Large and global organisation following multiple acquisitions from 2005-2010 337 Covus Subsea Century Subsea SEMAR 2010 SWG Offshore CSL 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q3 2017 Awarded four PLSV long-term contracts in joint venture with TechnipFMC 2013 Development in number of vessels in operation 2) 27 Expanding organisation on the back of several 26 25 24 24 24 large contract awards. Number of employees 21 21 and vessels peaking at 1 858 and 27, 2014 18 respectively 16 13 11 11 Focus on consolidation and streamlining of business operations to improve efficiency and competitiveness in weak market 2016 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q3 2017 Delivery of two newbuilds entering into long-term contracts Owned vessels Chartered-in vessels Total 2017 1) Note: Marine crew not included DOF Subsea 4 2) Note: Newbuilds not included 3) Note: Year-end numbers
Global footprint Bergen Aberdeen St John’s 9 418 Houston 4 245 ATLANTIC Manila NORTH AMERICA Brunei Kuala Lumpur Singapore Luanda Jakarta Darwin Macaé Rio de Janeiro 4 312 BRAZIL Perth ASIA PACIFIC Buenos Aires Melbourne 7 312 Note: Number of employees as at end of Q3’17, excluding marine crew 1) DOF Subsea Note: Vessels in operation as at end of Q3’17, including 2 chartered -in vessels (not including newbuilds) 5 2)
Several major and attractive contracts commencing in 2017 • Long-term contract with Petrobras Nov 2017 • 18 months + 18 months options • On contract with Petrobras since 2010 • Vessel owned in joint venture with • IMR contract offshore Angola Jul 2017 TechnipFMC • 16 months + 3x4 months • First-pipe lay vessel built in Brazil options Prelude FLNG • Scope comprising project management, engineering, vessels and ROV services Apr 2017 Husky Energy Jan 2017 • Long-term FLNG IMR contract awarded in Australia with Shell Skandi Buzios • Jan 2017 5 years + 4 years options • • Long-term IMR contract IMR scope comprising project offshore Eastern Canada management, engineering, Skandi Vitoria • logistics, vessel and ROV 10 years + 10 years options • IMR scope comprising project services management, engineering, • Long-term contract with vessel and ROV services Petrobras • ENI Angola High strategic importance • 8 years + 8 years options through strengthened presence • Vessel owned in joint venture in the Canadian market with TechnipFMC • Built in Norway with 650t VLS DOF Subsea 6
Two business segments DOF Subsea Group Long-term Chartering 1) Subsea IMR Projects Framework Engineering Opex Long-term Vessel Capex agreements capabilities spending charters capabilities spending Revenues YTD 2) EBITDA YTD 3) Firm backlog 4) Revenues YTD 2) EBITDA YTD 3) Firm backlog 4) NOK 2 250 million NOK 221 million NOK 3.9bn NOK 1 025 million NOK 784 million NOK 12.4bn ~10% margin ~77% margin 1 287 Employees 17 vessels in 7 vessels in 2 newbuilds operation 5) Q3’17 Q3’17 operation Q3’17 Q3’17 1) Note: Long-term chartering comprises 5 PLSVs in operation, 2 PLSVs under construction, Skandi 3) Note: According to management reporting DOF Subsea Note: Firm backlog as at end of Q3’17 7 Acergy and Skandi Patagonia 4) 2) Note: According to management reporting 5) Note: Including 2 chartered-in vessels
Subsea IMR Projects Numerous projects completed worldwide Built a leading subsea projects division for over a decade • Subsea project activity established with a global footprint in all key offshore regions • High quality asset base leveraging unrivaled subsea and vessel operating competence A clear action plan to pursue further opportunities • Continue to increase the scope and complexity of operations − Strengthen presence in selected geographies − Further build project backlog with core focus on IMR projects Selected IMR projects – Last 5 years Selected Mooring projects – Last 5 years ✓ Goliat Field support ENI (2016) ✓ Yinson OCTP FPSO Field Dev. (2016-2017) ✓ Saipem CRX/Nene (2014) ✓ Bongkot Mooring Replacement PTTEP (2017) ✓ Call-off for Light Construction Services and Seabed ✓ Raroa Mooring OMV (2016-2017) Survey Services Statoil (2012-2015) ✓ Gina Krog TMRS Teekay (2016) ✓ Technip Frame agreement (2012-2015) ✓ Catcher Mooring Installation BWO (2016) ✓ ConocoPhillips ROV Services (2012 and onwards) ✓ Freeport McMoran IMR support (2013-2016) ✓ Goliat FPSO Marine Installation ENI (2011-2015) ✓ Saipem JSM Export Line support (2014-2015) ✓ Lam Son Mooring Installation PTSC (2014) ✓ ROV Support vessel Petrobras (2011 and onwards) ✓ Knarr Mooring Project Teekay (2013-2014) ✓ Banff Re-instatement Project Teekay (2013-2014) DOF Subsea 8
Subsea IMR Projects Selected contracts included in backlog Location Client Scope Commencement Duration Angola ENI Angola IMR 2017 16 months + 12 months Eastern Canada Husky Energy IMR 2017 10 years + 10 years Prelude Australia Shell Australia IMR 2017 5 years + 4 years Brazil Petrobras Inspection 2016 1 year + 1 year Gorgon, Janz and Wheatstone Chevron Australia IMR 2015 3 years + 2 years Malampaya Shell Philippines IMR 2014 7 years + 3 years Brazil Petrobras IMR 2011 6.5 years + 4 years IMR North Sea Conoco Phillips 2011 8 years + 13 years Asia Pacific North Sea / Atlantic Brazil North America Leading supplier of IMR Leading supplier of Strong position being one Gradually built up the services in the region mooring services in the of the major suppliers of region, becoming a top North Sea and West IMR services three supplier of IMR Africa services in the GoM DOF Subsea 9
Long-term Chartering DOF Subsea provides state-of-the-art vessels to leading players Skandi Acergy Skandi Acu Skandi Africa 7 2 NOK 12.4bn vessels in contracted firm backlog per Q3’17 operation newbuilds Construction Construction & pipe Construction & pipe support vessel laying vessel laying vessel Skandi Niteroi Skandi Patagonia Skandi Vitoria High-end vessels operating advanced subsea projects for third party EPCI Operations contractors Strong long-term contract coverage Contracts Construction & pipe Dive support Construction & pipe laying vessel vessel laying vessel Skandi Buzios Skandi Recife Skandi Olinda Remuneration Day-rate based Selected clients Construction & pipe Construction & pipe Construction & pipe laying vessel laying vessel laying vessel DOF Subsea 10
Key financials 1) EBITDA 2) Revenue Backlog (excl. options) NOK million NOK million NOK billion 7 422 7 251 21,5 2 097 6 579 2 041 1 949 18,9 1 799 1 733 17 5 426 5 249 16 15,5 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 1) Note: Figures according to management reporting DOF Subsea 11 2) Note: EBITDA excl. profit from sale of non-current assets
3 rd Quarter 2017
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