` ` PACC Offshore Services Holdings Ltd. Results Presentation Q3 FY16 Results 4 November 2016 1
Agenda Page 1. Industry Outlook and Key Highlights 3 2. Financial Highlights 5 3. Business Strategy 16 4. Appendices 17 2
Industry outlook In the oil market, market rebalancing continues as an OPEC supply cut is being anticipated US tight oil supply expected to decline this year along with the decline in oil prices In the short term, challenging market conditions to continue with overcapacity of vessels 3
Key Highlights • Q3 FY2016 revenue at US$41.6 million; a decrease of 48% amid continued challenging industry conditions • Net cash generated from operations of US$8.5 million and positive EBITDA of US$9.0 million in Q3 FY16, a decrease of 72% from US$31.8 million recorded in Q3 FY15 • Loss in Q3 and 9M FY16 due to lower utilisation and charter rates • Maintain strong financial position with Net Debt/Equity of 0.6x • Continue new build programme for our Middle East contracts next year 4
FINANCIAL HIGHLIGHTS
Group Financial Highlights SUMMARY US$’M Q3 FY16 Q3 FY15 Change 9M FY16 9M FY15 Change (%) (%) Revenue 41.6 80.4 -48 146.4 209.0 -30 Gross Profit (1.4) 18.4 NM 14.4 40.8 -65 Other (0.4) 3.6 NM 2.6 8.9 -71 Expense/Income Share of JV Results (0.06) 0.9 NM 1.7 2.9 -41 Net (Loss)/Profit after (12.9) 12.6 NM (26.0) 18.7 NM Tax attributable to shareholders EBITDA 9.0 31.8 -72 36.0 71.7 -50 6
Group Financial Highlights – Q3 FY16 (NLAT)/NPAT 1 (US$’M) Gross Revenue (US$’M) Gross Profit (US$’M) EBITDA (US$’M) YoY -$38.8M (-48%) YoY -$19.8M (NM) YoY -$25.5M (NM) YoY -$22.8M (-72%) 80.4 15.0 35.0 12.6 31.8 24.0 80 30.0 70 10.0 18.4 19.0 60 25.0 5.0 50 20.0 14.0 (12.9) 41.6 - 40 15.0 30 9.0 (5.0) 9.0 10.0 20 (10.0) 4.0 5.0 10 (1.4) 0 (15.0) 0.0 (1.0) Q3 FY16 Q3 FY15 Q3 FY16 Q3 FY15 Q3 FY16 Q3 FY15 Q3 FY16 Q3 FY15 • Revenue decreased due to lower utilisation and charter rates across the major business segments. • Decrease in Gross Profit was partly offset by lower operating cost. • Net Loss was due to lower operating profit, lower contribution from JVs, higher finance cost and loss on vessel disposals instead of gains Note 1: Net (Loss)/Profit After Tax attributable to shareholders 7
Group Financial Highlights – 9M FY16 (NLAT)/NPAT 1 (US$’M) Gross Revenue (US$’M) Gross Profit (US$’M) EBITDA (US$’M) YoY -$62.6M (-30%) YoY -$26.4M (-65%) YoY -$44.7M (NM) YoY -$35.7M (-50%) 209.0 18.7 44.0 20.0 80.0 40.8 71.7 200 15.0 39.0 70.0 10.0 34.0 60.0 146.4 5.0 150 29.0 50.0 - 24.0 36.0 (5.0) 40.0 100 19.0 (10.0) 30.0 14.4 14.0 (15.0) 20.0 50 9.0 (20.0) 10.0 (25.0) 4.0 (26.0) 0 (30.0) 0.0 -1.0 9M FY16 9M FY15 9M FY16 9M FY15 9M FY16 9M FY15 9M FY16 9M FY15 • Revenue decreased mainly due to lower charter rates and utilisation across business segments • Net Loss instead of Net Profit due to lower operating profit, additional allowance for doubtful debt, higher finance cost and lower contribution from other income and JVs Note 1: Net (Loss)/Profit After Tax attributable to shareholders 8
Financial Highlights - OSV Revenue Gross (Loss)/Profit US$’M YoY: -56% YoY: -44% YoY: NM YoY: NM US$’M 120 102.3 10 8.5 80 5.3 57.6 5 38.0 40 16.9 0 0 Q3 FY16 Q3 FY15 9M FY16 9M FY15 -5 (4.4) Gross (Loss)/Profit Margin % (7.6) 20 -10 14 Q3 FY16 Q3 FY15 9M FY16 9M FY15 8 10 Revenue decreased due to lower charter rates and 0 utilisation levels Lower rates arose from discounts on rates -10 previously contracted and reduced rates of new (13) contracts -20 Utilisation rate was 59% in Q3 FY16 compared to 74% in Q3 FY15 (26) -30 Q3 FY16 Q3 FY15 9M FY16 9M FY15 9
Financial Highlights - OA Revenue Gross Profit US$’M US$’M YoY: -44% YoY: -9% YoY: -83% YoY: -34% 80 30 66.4 25.6 60.2 60 20 16.8 40 10.9 26.9 10 15.2 20 1.8 0 0 Q3 FY16 Q3 FY15 9M FY16 9M FY15 Q3 FY16 Q3 FY15 9M FY16 9M FY15 Gross Profit Margin % Revenue decreased due to lower charter hire 50 for POSH Xanadu on contract extension, 41 39 lower utilisation and the early termination of 40 two contracts as a result of non-payment of 28 charter 30 Gross profit was impacted by higher 20 depreciation charges in Q3 FY16 12 Utilisation rate was 36% in Q3 FY16 10 compared to 74% in Q3 FY15 0 Q3 FY16 Q3 FY15 9M FY16 9M FY15 10
Financial Highlights – T&I Revenue Gross Profit US$’M US$’M YoY: -46% YoY: -41% YoY: -98% YoY: -70% 5 30 4.1 4 21.3 20 3 12.5 2 10 1.2 7.2 0.8 1 3.9 0.0 0 0 Q3 FY16 Q3 FY15 9M FY16 9M FY15 Q3 FY16 Q3 FY15 9M FY16 9M FY15 Gross Profit Margin % 19 20 Revenue decreased due to lower charter rates and utilisation arising from reduced capital expenditure 15 and the cancellation of projects by oil companies 12 Utilisation rate was 38% in Q3 FY16 compared to 10 60% in Q3 FY15 10 5 0 0 Q3 FY16 Q3 FY15 9M FY16 9M FY15 11
Financial Highlights – HSER Revenue Gross Profit US$’M US$’M YoY: -31% YoY: -15% YoY: -15% YoY: 47% 19.0 20 5 16.1 3.9 4 15 2.7 3 10 8.2 2 5.7 1.3 1.1 5 1 0 0 Q3 FY16 Q3 FY15 9M FY16 9M FY15 Q3 FY16 Q3 FY15 9M FY16 9M FY15 Gross Profit Margin % 30 24 The lower revenue was due to the absence of salvage jobs 19 20 Increase in gross profit was mainly due to reduction 16 in expenses 14 10 0 Q3 FY16 Q3 FY15 9M FY16 9M FY15 12
Segments results 1 & Assets deployed 2 Gross Revenue Gross Profit Assets deployed (US$14.4M 3 ) (US$146.4M) (US$1,192.3M) HSER HSER HSER OSV US$16.1M US$21.4M US$3.9M T&I OSV T&I US$57.6M 11% 3% 18% US$539.7M US$89.3M US$1.2M T&I 39% 7% 45% 5% US$12.5M 9% OA OA OA US$60.2M US$16.8M US$541.9M 41% 77% 45% Note 1: For period 9M FY16 Note 2: As at 30 September 2016 Note 3: OSV made a gross loss of US$7.6M in 9M FY16 13
Capital Structure US$‘ 000 30 Sep 2016 31 Dec 2015 Net Debt 613,640 545,951 Equity 1,026,283 1,061,043 Net Debt /Equity 60% 51% The Group has a net current liability of US$133.6M mainly due to bank borrowings due within a year POSH has available undrawn bank lines of approximately US$365.8M as of 30 September 2016 14
CAPEX Plan Under Construction/Order Wholly JVs Owned Number of vessels 1 74 40 19 Net book value 2 $1,192.3M - - $134.9M $151.6M CAPEX commitment - - Paid 2 Outstanding As at 30 September 2016, the Group has 19 vessels under construction/order with expected delivery by 2017, of which 11 are for the Middle East with firm 5 years plus extensions contract. The Group is taking delivery of 7 vessels 2 in Q4 FY16 with remaining payments approximating $27.0M Note 1: See Appendix for details Note 2: As of 30 Sep 2016 15
Business Strategy – staying focused Commitment to operational excellence – training and vessel maintenance to • improve competitive position Asset reprofiling and talent retention – reprofiling our vessels and talent • retention for the long term Seek growth in new markets to capitalise on opportunities – new growth • markets in the Middle East and South Asia Maintain a strong balance sheet – stay prudent in capital and cash • management. This is important as oil majors are disqualifying companies with weak financials 16
Appendix 17
Overview of Business Segments Harbour Services and Offshore Supply Offshore Transportation and Emergency Response Vessels (OSV) Accommodation (OA) Installation (T&I) (HSER) AHTS and PSV: Mid to Offshore accommodation, AHT: Ocean towage of Harbour Services: Support deepwater oilfield operations workshop and storage FPSOs and large offshore harbour towage operators and in exploration, development, facilities: Offshore structures; shallow-water provide heavy lift services to construction and production construction and maintenance pipelay and construction shipyards Description phases operations works Emergency Response: Barge: Transportation, Salvage, wreck removal, floatovers and launching of rescue and oil-spill response platform jackets operations globally Operates 9 vessels (JV: 1) Operates 42 vessels (JV: 13) Operates 29 vessels (JV: 4) Operates 34 vessels (JV: 22) with total capacity of 3,100 including: including: including: persons • 8,000 – 16,000 BHP AHTS • 12,000 – 16,300 BHP AHTs • 3,200 – 4,000 BHP Azimuth • 2,346 – 4,100 DWT PSVs • 4,000 – 8,000 BHP AHTs Average vessel age of 7.7 Stern Drive (ASD) harbour years • Barges, including Youngest deepwater and tugs Fleet • Heavy lift crane barges midwater AHTS/PSV fleets submersible barges and • Average vessel age of 8.2 globally launch barge • Average vessel age of 8.0 years Average vessel age of 4.9 years years Mix of short and long-term Long-term contracts Short-term charters or lump- MPA license to provide port Typical sum project contracts towage services in Singapore charters and spot contracts Contract Retainer agreements for Type emergency response services 18
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