GC Rieber Shipping ASA - Third Quarter 2018 Bergen 7 November 2018 GC RIEBER SHIPPING
Agenda • Highlights Q3 2018 • Operational Review Financial Review • • Outlook and Summary
Highlights Q3 2018 • Fleet utilisation of 99% in a quarter with continued 1 challenging market conditions 2 Contract backlog of NOK 463 million as of 6 November • • Net loss of NOK 53.2 million – Including loss from joint ventures of NOK 25 million • Shearwater GeoServices to acquire the marine seismic acquisition assets and operations of WesternGeco, the geophysical services product line of Schlumberger, forming a market leading geophysical company 1 Excluding marine seismic 2 Excluding charterers’ extension options and marine seismic as of 1 October 2018
Contract updates after the end of the period • Two time charter agreements for the CSV vessel «Polar Queen», performing walk-to-work duties and accommodation services for two different clients – First contract holds two firm periods; one of 45 days plus options from October 2018, and the other 50 days starting February 2019 – Second contract holds a firm period of 4 months from May 2019 plus options • Shearwater awarded two 3D surveys in the Mediterranean and South East Asia – Adding 7 vessel-months to backlog – Both surveys scheduled to start in the first half of Q4 2018
Highlights Q3 2018 - Key financial figures REVENUES EBITDA* NET PROFIT NOK million NOK million NOK million 80 90 64 36 81 40 80 60 70 20 70 40 61 0 60 20 9 50 50 -20 -9 0 40 -40 31 -7 -20 30 -22 -60 -40 -53 20 -59 -80 -60 10 -81 -66 0 -80 -100 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 *Includes profit and losses from Joint Ventures
Operational Review Q3 2018
Contract backlog of NOK 463 million* as of 6 November 2018 CONTRACT COVERAGE* CONTRACT BACKLOG* Utilisation rate NOK million 100% 300 92% 248 79% 80% 200 176 60% 40% 34% 100 20% 39 0% 0 From 6 Nov. 2018 2019 2020 From 6 Nov. 2018 2019 2020-2021 *Excluding marine seismic Excluding charterers’ extension options
Subsea Segment Fleet utilisation of 97% in Q3 2018, compared with • 86% in Q3 2017 • SURF vessel, built KEY FIGURES « Polar Onyx » 2014 NOK million • LOA: 130m • «Polar Onyx» on charter for the entire period • Crane: 250mt • VLS-tower: 275mt • «Polar King» on charter for the entire period • Accommodation: 130 100 86 % «Polar Queen» on charter for almost three • 97 % 77 full months in the period • CSV vessel, built 2011 86 % « Polar King » 65 • LOA: 111m 58 % • Outlook 56 • Crane: 150 mt 60 • Accommodation: 112 46 48 % • «Polar Onyx» on a fixed charter with DeepOcean until Q1 2021, with options for 27 25 two more years 14 14 20 • «Polar King» continues on a fixed charter « Polar Queen » • CSV vessel, built 2011 with Nexans until the end of August 2019 • LOA: 111m • Crane: 150 mt Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 • Accommodation: 119 «Polar Queen» employed until September • -20 -13 • Undisclosed client -19 2019 Operating income EBITDA Fleet utilisation (%)
Ice/Support Segment • Polar research and • Fleet utilisation of 100% in Q3 2018, KEY FIGURES «Ernest Shackleton» subsea support compared with 100% in Q3 2017 NOK million vessel • LOA: 80m 8 • 50 berths, large decks • «Ernest Shackleton» on bareboat & cranes allows for multiple tasks charter to British Antarctic Survey • Used as an Antarctic until September 2019 research vessel 6 100 % 100 % 100 % 100 % 100 % 4 4 4 4 4 4 4 4 4 4 4 2 0 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Operating income EBITDA Fleet utilisation (%)
Joint Ventures – Ice/Support • Ice/Support • Ice breaking tug with KEY FIGURES* «Polar Pevek» towing anchor • Fleet utilisation of 100% in Q3 NOK million handling capacity 2018, compared with 100% in Q3 • LOA: 74m 15 • Oil spill drip tray and 14 2017 oil containment system installed 12 12 • «Polar Pevek» on charter to Exxon Neftegas (ENL) until 2021 • Crew supply vessel 10 «Polar Baikal» • LOA: 29m • «Polar Baikal» and «Polar Piltun» • Used for crew transport between on charter to Sakhalin Energy shore and Investment Corporation until end installation in North Eastern Russia 5 of 2019 5 • Pax: 70 3 • Share of profit in Q3 2018 of NOK • Crew supply vessel 14 million «Polar Piltun» • LOA: 35m • Used for crew 0 transport between Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 shore and installation in North Share of profit * «Polar Baikal» and «Polar Piltun» only Eastern Russia • Pax: 70 operate for half the year, the vessels are cold stacked in the winter season
Joint Ventures – Marine Seismic (Shearwater) • Marine Seismic (Shearwater) • Advanced 22 «Polar Empress» KEY FIGURES streamer 3D seismic survey vessel • Shearwater achieved a fleet utilisation of NOK million • Built: 2015 83% in the period for its three active • LOA: 113m 40 • Accommodation: 70 vessels • ICE class 1A* 23 20 • High speed 14 «Polar Duchess» • Continued competitive rate pressure in streamer 3D seismic Q3, and also challenging projects and survey vessel 0 • Built: 2011 intercontinental transits in the quarter • LOA: 107m Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 • Accommodation: 70 -10 • GC Rieber Shipping’s share of profit was -20 -14 • 14 (+ 2) streamer 3D «Polar Marquis» negative NOK 39 million in Q3 seismic survey vessel • Built: 2000 -40 -39 (upgraded in 2014) • Outlook • LOA: 118.5m • Accommodation: 70 -60 • Two of the active vessels are currently booked for Q4 • High speed 14 -69 «Polar Duke» -80 streamer 3D seismic survey vessel • Shearwater to acquire the marine seismic • Built: 2010 Share of profit • LOA: 107m acquisition assets and operations of • Accommodation: 70 WesternGeco, forming a market leading geophysical company
Financial Review Q3 2018
Income statement NOK mill Q3 2018 Q3 2017 YTD 2018 YTD 2017 31.12.2017 Operating income 69.6 80.9 161.7 213.6 264.1 EBITDA -6.5 63.7 -18.8 86.7 21.0 EBIT -35.6 37.2 -78.7 -22.8 -90.0 Profit before tax -49.4 35.9 -117.5 -48.6 -130.6 Net profit -53.2 35.9 -121.3 -48.7 -130.1 Normalised profit before tax (1) -49.1 28.3 -143.0 -32.5 -142.1 Earnings per share -1.22 -0.82 -2.78 -1.12 -2.98 Number of shares (million) 57.1 43.7 57.1 43.7 43.7 (1) Profit bef. tax adjusted for unrealised currency gains/losses, profit from disposals and impairment of fixed assets.
Balance sheet 30.09.2018 NOK million 2 500 • Total balance NOK 2,307 million • Equity ratio 48.2 percent 2 000 • Cash position NOK 114 million, up 1111 from NOK 108 million as per Q2 2018 Equity 1 500 • Other current assets include 2071 Fixed assets restricted cash of NOK 61 million 1 000 Long-term • Net debt NOK 1 039 million liabilities 1138 500 Other current assets 122 Current 114 Cash & liquid liabilities 58 0 assets Assets Equity & Liabilities
Outlook and Summary Q3 2018
Outlook • Market view short term The oil price has fluctuated between USD 70 and 80 per barrel during the summer season and • has steadily increased since then. By the end of September, Brent spot exceeded the USD 80 per barrel mark for the first time since late 2014, and remained at this level until mid- October. The overall offshore market sentiment has partially become more positive, but this improved sentiment has yet to turn into tangible projects yielding appropriate returns Expected market trends • • Subsea/renewables: continued uptick in activity, but the rate levels remain as per earlier in 2018, with limited uptick in recent fixtures • Marine seismic: Improvement in activity levels and transactions • Ice/support: Stable and unchanged activities and rates in a gradually improving market
Summary • High utilisation in all segments • Solid contract coverage for the remaining of 2018 • Continued challenging market conditions with unsustainable rates • Shearwater to acquire the marine seismic acquisition assets and operations of WesternGeco, forming a market leading geophysical company
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