Quarterly Presentation Q3 2019 DOF Subsea Group
Q3 2019 highlights • The operating revenue for the quarter was NOK 1 458 million 1) , EBITDA was NOK 545 million 1) and overall vessel utilisation was 78% During the 3 rd quarter, the Group recognised an impairment of tangible assets of NOK 363 million, goodwill of • NOK 162 million and deferred tax asset of NOK 162 million, due to continued challenging market for vessel services and uncertainty regarding the long-term financial solution • Strong operational performance within the Subsea/IMR Project segment during the quarter, with all vessels within the segment in operation by end of September • The Group secured several short-term contracts in the Subsea/IMR Project segment • The Group is making progress with its stakeholders, including a constructive dialogue with banks and bondholders in order to find a long-term financial solution 1) Note: Figures according to management reporting DOF Subsea 2
DOF Subsea Group at a glance NOK 1.5bn 1) 1 319 2) 2005 NOK 13.7bn DOF Subsea Revenues Firm backlog Subsea employees Q3’19 Q3’19 worldwide Q3’19 established Integrated Modern 27 3) 74 Supplier of subsea State-of-the-art Subsea vessels ROVs offshore services asset base 1) Note: According to management reporting DOF Subsea 3 2) Note: Excluding marine crew 3) Note: Including chartered-in vessels Harvey Deep-Sea, Harvey Subsea and Skandi Darwin
Global footprint Bergen 311 5 Aberdeen NORTH AMERICA St John’s 8 332 ATLANTIC Houston Manila Brunei Kuala Lumpur Singapore Jakarta Luanda Darwin Macaé Rio de Janeiro 289 5 BRAZIL Perth ASIA PACIFIC Buenos Melbourne Aires 387 9 Local operating model ensuring on-the- ground responsiveness towards clients’ needs Note: Number of employees as at end of Q3’19 (excluding marine crew). 1) DOF Subsea 4 Note: Vessels in operation as at end of Q3’19, including 3 chartered -in vessels. 2)
More than a decade of structural growth and consolidation DOF Subsea established following the acquisition Development in number of DOF Subsea Employees 1) of Geoconsult. The Company was listed on the 1858 Oslo Stock Exchange second half 2005. 2005 1667 1566 First Reserve acquires 49% of DOF Subsea, which 1492 in the following is delisted from the Oslo Stock 1354 1319 1311 1278 1246 Exchange 1214 2008 1014 Large and global organisation following multiple 897 acquisitions from 2005-2010 Covus Subsea Century Subsea 2010 553 563 SWG Offshore CSL SEMAR 337 Awarded four PLSV long-term contracts in joint venture with TechnipFMC 2013 Expanding organisation on the back of several 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019 large contract awards. Number of employees and 2014 vessels peaking at 1 858 and 27, respectively Development in number of vessels in operation 2) 27 27 27 Focus on consolidation and streamlining of 26 25 25 business operations to improve efficiency and 24 24 2016 competitiveness in weak market 21 21 18 Delivery of two newbuilds entering into long-term 16 contracts and commencement of two long-term IMR contracts 2017 13 11 11 Delivery of one JV newbuild entering into long-term contract and award of several long-term contracts within both business segments 2018 Delivery of the last JV newbuild entering into a long- term contract and award of several contracts within 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 both business segments 2019 2019 Owned vessels Chartered-in vessels Total 1) Note: Marine crew not included DOF Subsea 5 2) Note: Newbuild not included 3) Note: Period-end numbers
Key financials 1) Revenue EBITDA 2) Firm backlog NOK million EBITDA margin NOK million NOK billion 8 000 25 2 500 40% 7 000 35% 20 6 000 2 000 30% 5 000 15 25% 1 500 4 000 20% 10 3 000 1 000 15% 2 000 10% 5 500 1 000 5% - - - 0% 2012 2013 2014 2015 2016 2017 2018 Q3 2012 2013 2014 2015 2016 2017 2018 LTM 2019 2012 2013 2014 2015 2016 2017 2018 LTM 1) Note: Figures according to management reporting DOF Subsea 6 2) Note: EBITDA excl. profit from sale of non-current assets LTM = Last Twelve Months
Segment highlights
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 Q3’19 2) EBITDA Q3’19 3) Revenues Q3’19 2) EBITDA Q3’19 3) Firm backlog 4) Firm backlog 4) NOK 489 million NOK 364 million NOK 969 million NOK 181 million NOK 3.4bn NOK 10.3bn ~74% margin ~19% margin 1 319 Employees 18 vessels in 9 vessels in Q3’19 operation 5) Q3’19 operation Q3’19 1) Note: Long-term Chartering comprises 7 PLSVs in operation, plus Skandi Acergy and Skandi Patagonia 4) Note: Firm backlog as at end of Q3’19 DOF Subsea 8 2) Note: According to management reporting 5) Note: Including 3 chartered-in vessels 3) Note: According to management reporting
Subsea/IMR Projects Numerous projects completed and ongoing 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 unrivalled 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 ✓ 3 Petrobras ROV Contracts (2019-2021) ✓ Helang FPSO Mooring and Hook-up (2019) ✓ ConocoPhillips ROV Services (2019-2024) ✓ Ehra FPSO Mooring Replacement (2019) ✓ Petrobras DSV Contract (2018-2021) ✓ Egina FPSO Hook-up (2018) ✓ Petrobras RSV Contract (2018-2020) ✓ Lam Son Mooring Replacement (2017) ✓ ENI Angola IMR Contract (2017-2019) ✓ Bergading FPSO Pre-Tensioning (2017) ✓ Husky Energy IMR Contract (2017-2027) ✓ Yinson OCTP FPSO Field Dev. (2016-2017) ✓ Shell Prelude IMR Contract (2017-2022) ✓ Bongkot Mooring Replacement PTTEP (2017) ✓ Chevron Gorgon IMR Contract (2015-2020) ✓ Raroa Mooring OMV (2016-2017) ✓ Shell Malampaya IMR Contract (2014-2021) ✓ Gina Krog TMRS Teekay (2016) ✓ Catcher Mooring Installation BWO (2016) DOF Subsea 9
Long-term Chartering DOF Subsea provides state-of-the-art vessels to leading players Skandi Acergy Skandi Acu Skandi Africa 9 No NOK 10.3bn vessels in contracted firm backlog per Q3’19 operation newbuild 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 Contracts Strong long-term contract coverage 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
Selected long-term contracts Feb 2019 • Long-term contract with Petrobras Sep 2018 • • 8 years + 8 years options Long-term FLNG IMR contract • Vessel owned in joint venture awarded in Australia with with TechnipFMC Shell • • Built in Brazil with 300t VLS 5 years + 4 years options Skandi Olinda • IMR scope comprising project management, engineering, Aug 2018 logistics, vessel and ROV services Skandi Achiever • Utilising Skandi Darwin Jun 2018 • Long-term contract with Petrobras Skandi Salvador • 8 years + 8 years options • Vessel owned in joint venture with TechnipFMC Nov 2017 • Built in Brazil with 300t VLS Skandi Recife • Long-term DSV contract with Petrobras • 3 years + 2 years options • ROV and diving services Prelude FLNG • Long-term contract with Petrobras in Brazil • Vessel and ROV services DOF Subsea 11
3 rd quarter 2019
Recommend
More recommend
