Swedbank First Securities' 2014 Nordic Energy Summit Presentation - March 20th CFO Torstein L. Stavseng
Investing into offshore support vessels The first supply vessel, a AHTS, was delivered The latest AHTS is to be delivered April 2014. to the Farstad-group in 1975. Far tbn Sirius: Stad Sea: UT 731 CD, loa:87,4m, breadth 21,0m, 24.400t bhp, 260t BP UT 704, loa 64,5 m, breadth 13,8 m, 7040 bhp, 88t BP Management of Shell in Aberdeen: 2 ”This type of vessel is the Mercedes of the North Sea”
Investing into SUBSEA vessels Far tbn Sleipner loa:142,6 m, breadth 25,0 m 3 Delivery will take place in March and July 2015.
Investing into offshore support vessels; based upon our customer’s requirments and our focus on Safety, Quality, Environment, Health Innovation is not made without competence. • Progress is not made without innovation. • Innovation is necessary to achieve sustainable development. • 4
Farstad Shipping – Focus on Safety LTIF - (No of incidents per mill. work hours ) 14 Imroved: Vessels, Equipment, Procedures, Regulations, Safety Concious 12 10 Farstad Fleet - Lost Time Incidents 8 6 4 2 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 5
Farstad Shipping - International competitive position backed by the Norwegian maritime cluster Values Business Focus To be a leading provider of • Safety Conscious quality Support Vessel Services to the international Offshore Oil and Gas Industry • Value Productive To focus globally on the • Reliable larger and most advanced vessels in the: - Platform supply-, • Inclusive - Anchor Handling- , and - Sub-Sea segments. • Visible and Transparent To maintain a long-term chartering profile. 6 6
Farstad Shipping – Brief summary • No of vessels in operation: 59 (31 AHTS, 25 PSV, 3 Subsea) No of newbuilds: 5 (1 AHTS, 2 PSV, 2 Subsea) • No of employees offshore: 1.965 • No of employees onshore: 235 • Market value fleet (excl. newbuilds) : Bln. NOK 17,7 • Newbuilds: Bln. NOK 3,0 • Share price: NOK 133 • Market capitalization: Bln. NOK 5,2 • Book equity ratio (31.12.13) : 39,2 % • Value adjusted equity ratio (31.12.13) : 49,9 % 7
Farstad Shipping – Contract Summary Fleet total *) February 2014 Options Term contracts 100% 65,9% **) 42,9% **) 19,9% **) 29,3% **) 24,4% **) 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% **) AHTS => 60,0% 36,2% 25,9% 20,8% 14,7% **) PSV => 70,0% 46,4% 27,6% 22,1% 18,8% **) SUBSEA => 91,8% 70,5% 60,0% 60,0% 60,0% 8 *) Actual no of days term contracts divided by no. of available days **) incl. options
Farstad Shipping – fleet distribution March 2014 - 59 vessels Northwest Indian Other Eurpoe Pacific Markets 20,3 % 47,5 % 2,6 % • Ålesund 10 PSV • Aberdeen 4 AHTS Operating income- sorted by segment Brasil 29,6 % • Singapore 5 AHTS 1 PSV • Macae • Rio • Perth 4 PSV 11 AHTS • Melbourne 3 SUBSEA 10 PSV 11 AHTS
EBIT margin development by segment (4Q preliminary) EBIT in % of income sorted by vessel type EBIT in % of income sorted by regoin 50% 50% AHTS PSV SUBSEA Northwest Europe Brazil Indian Pacific 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% -10% -10% -20% -20% -30% -30% -40% -40% 10
Result 31.12. 2013 (preliminary) 4 500 60% 4 000 50% 3 500 3 000 40% 2 500 30% 2 000 1 500 20% 1 000 10% 500 0 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 Operating Income EBITDA EBIT EBITDA-Margin EBIT-Margin 11 Source: RS Platou
Balance Sheet 31.12.13 (preliminary) •Sale of Lady Cynthia in January ASSETS 31.12.2013 31.12.2012 31.12.2011 •Sale of Lady Kari Ann in May •Delivery of Far Spica in January Goodwill 96,8 100,0 112,1 •Delivery of Far Sitella in February Vessels etc. 13 871,2 12 120,7 11 524,0 •Delivery of Far Senator in March Deferred maintenance 307,8 273,3 235,8 •Delivery of Far Starling in May Contracts newbuilds 333,6 528,0 358,9 •Delivery of Far Statesman in June Other long-term receivables 87,2 105,3 134,1 •Ordering of 2 IMR new buildings in February and August Total fixed assets 14 696,7 13 127,4 12 365,0 •New Bond in May •Investments in fixed assets/new builds: NOK 2.278,9 mill. Account receivables, freight income 616,9 624,1 555,7 •New long term debt: NOK 2.715,3 mill. Other short-term receivables 343,8 286,7 222,6 •Repayment of long term mortgage debt: NOK 1.087,9 mill. Cash and cash equivalents 1 879,7 1 567,1 1 448,9 •Payment of dividends: NOK 117,0 mill. Total current assets 2 840,4 2 477,8 2 227,2 • EQ%: 39.2 % (4Q-12: 43.4%) Total assets 17 537,1 15 605,2 14 592,2 •Value adjusted EQ% (*) : 49.9 % (4Q-12: 55.1%) (*) Based upon values as per 31.12.13 EQUITY AND LIABILITIES 31.12.2013 31.12.2012 31.12.2011 USD Total equity capital 6 878,0 6 775,8 6 820,2 8,3 % Other long-term liabilities 146,1 167,3 115,0 GBP 7,6 % Tax liabilities 41,8 43,6 48,1 Interest-bearing debt and lease 8 702,7 6 595,6 5 855,7 AUD Total long-term liabilities 8 890,6 6 806,5 6 018,8 3,9 % Accounts payables 281,6 224,2 234,2 Other short-term liabilities 541,1 502,8 506,8 Short-term interest bearing debt 945,8 1 295,9 1 012,1 Total short-term liabilities 1 768,5 2 022,8 1 753,1 NOK 80,2 % Total liabilities 10 659,1 8 829,4 7 771,9 12 Total equity and liabilities 17 537,1 15 605,2 14 592,2 Currency - Interest bearing mortgage debt 31.12.13
Market values vessels -free of charter and available in the market Mill. NOK Mill. NOK Average decrease in values of 575 575 550 550 Farstad fleet in 2008: 2,5% 525 525 (Values peaked summer 2008) 500 500 475 475 450 450 Average decrease in values of 425 425 Farstad fleet in 2009: 15,4%. 400 400 375 375 350 350 Average decrease in values of 325 325 Farstad fleet in 2010: 0,8%. 300 300 275 275 250 250 Average decrease in values of 225 225 Farstad fleet in 2011: 0,8%. 200 200 175 175 150 150 Average decrease in values of 125 125 Farstad fleet in 2012: 1,0%. 100 100 75 75 50 50 Average decrease in values of 25 25 Farstad fleet in 2013: 3,9%. 0 0 Far Scandia(PSV,1991) Far Service(PSV,1995) Far Star (PSV,1999) Far Senior (AHTS,1998) Far Sovereign (AHTS,1999) Far Sword (AHTS, 2006) *) average values, based upon estimates from 3 shipbrokers per 31.12/30.06. 13 **) vessel’s first value is building cost
Farstad Shipping - Values NOK dividend/ share Values NOK/ share 6,00 300 5,00 250 4,00 200 3,00 150 2,00 100 1,00 50 0,00 0 2005 2006 2007 2008 2009 2010 2011 2012 2013*) Dividend 3,00 3,00 4,00 5,00 3,00 4,00 5,00 3,00 3,00 Book value 79,13 90,61 87,95 113,85 160,31 168,78 174,88 173,74 176,36 Share price 97,00 135,50 148,00 67,50 128,50 175,00 151,00 134,50 133,00 Value adjusted Equity 115,28 170,87 218,06 248,06 249,45 262,98 273,34 277,94 271,99 *) Proposed Dividend for 2013 by the Board of Directors 14 Value Adjusted Equity is based upon average market values of the fleet from 3 shipbrokers per 31.12/30.06.
Farstad Shipping ASA Listed since 1988 Largest shareholders (24 February 14)
Farstad Shipping - Summary • FS – strong financial position • FS – strong position in our core markets. • FS – experienced staff onshore/offshore. • FS – strong focus on human resources/HSEQ. 16
Fleet Structure – Supply Vessels Worldwide PSV>2.000 dwt AHTS>10.000 bhp 895 vessels + 331 newbuilds (37%) 503 vessels + 48 newbuilds (9,5%) DWT BHP Approx. 45% Approx. 3.100 vessels worldwide 17 23.01.06 Torstein L. Stavseng Source: IHS/Platou/ Farstad – January-14
AHTS> 10.000 BHP and PSV> 2.000 DWT Worldwide and the Northwest Europe *) No of vessels 1600 Other markets Number of players 2004: 59 Northwest Europe Number of players 2014: 207 1400 Number of vessels 2004: 473+ 83 Number of vessels 2014: 1398+379 1200 1000 1084 800 946 883 849 600 732 612 508 464 400 408 372 330 200 314 290 266 258 244 222 227 209 180 156 143 0 18 Source: IHS/Platou/ Farstad – January-14 *) Excl newbuilds
AHTS> 10.000 BHP Worldwide – sorted by regions Jan.-04 Jan.- 12 Jan.-13 Jan.-14 No of vessels 200 185 Number of players 2004: 40 Number of players 2014: 105 180 165 158 160 Number of vessels 2004: 214+32 Number of vessels 2014: 503+48 140 116 120 104 95 100 80 70 69 67 64 64 56 60 50 46 44 43 43 41 40 25 23 21 20 19 19 17 15 15 13 20 0 19 Source: IHS/Platou/ Farstad – January-14
PSV> 2.000 DWT Worldwide – sorted by regions No of vessels 300 Number of players 2004: 45 Jan.-04 Jan.-12 Jan.-13 Jan.-14 Number of players 2014: 158 245 250 226 Number of vessels 2004: 259+51 202 Number of vessels 2014: 895+331 190 200 169 152 152 149 150 120 115 114 97 93 90 88 100 78 73 52 45 46 50 30 25 24 10 4 4 4 4 0 20 Source: IHS/Platou/ Farstad – January-14
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