3. Highlights Q2 2013
All time high EBITDA â MNOK 770
ď¤
ď¤
Good utilisation for the subsea project fleet in May & June
Low utilisation on the AHTS fleet due to breakdown two vessels, and
transit of two vessels
Good utilisation PSV fleet
ď¤
Delivery of Skandi Bergen in June
ď¤
Ordered 4 x PLSVâs from Vard Norway and Brazil
ď¤
DOF ASA
ď¤
ď¤
Fleet
Improved spot market in the North Sea
ď¤
Operational
The newbuild Skandi Bergen started on its first project (Banff) in June
Geobay sold
â Q2 Presentation 2013
3
4. Highlights Q2 2013
ď¤
ď¤
ď¤
Petrobras extended the charter for Skandi VitĂłria with two years, firm until September
2015. The extension was done in line with market terms
Subsea 7 extended the charters on Skandi Neptune and Skandi Seven with one year
ď¤
Total value of contracts listed is above USD 300 million. Skandi Vitoria and Skandi
Salvador extensions give an increased Ebitda contribution of approx. NOK 110 million
per year
ď¤
Petrobras awarded DOF Subsea/Technip JV contract for 4 x PLSVs (see separate
slides)
ď¤
DOF awarded two AHTS contracts for OMV at New Zealand
ď¤
One newbuild financed
ď¤
DOF ASA
Chevron extended the charter on Skandi Salvador, firm until year end 2014
ď¤
Finance
Several subsea contracts in the Asia Pacific region, increasing the utilisation of the
vessels Skandi Singapore, Skandi Hawk and Skandi Hercules
ď¤
Contract
awards
Several subsea contracts in the Atlantic region, including increased work scope on the
Banff project, increasing the utilisation of the vessels Geosund, Geoholm, Skandi
Skolten and Skandi Bergen
Two vessels refinanced in Brazil
â Q2 Presentation 2013
4
6. PLSV contracts
Mons S. Aase, DOF Subseaâs Chief Executive Officer, declared: âThe contracts confirm that our co-operation
with Technip on the Skandi VitĂłria and Skandi NiterĂłi have been successful, and reinforces our position as a
leading provider of offshore vessels to the Brazilian O&G industry. It comes as a result of our long-term focus on
the Brazilian market and is an acknowledgment of the expertise of our employees.â
FrĂŠdĂŠric Delormel, Technipâs Executive Vice President and Chief Operating Officer Subsea, added: âThis
strategic contract reinforces our subsea leadership in Brazil and our long-term relationship with Petrobras. We
are confident that these new state-of-the-art PLSVs, including two with the most important flexible pipelay
tension capacity in the world - 650 tons - will be key assets for our client to successfully achieve its projects
offshore Brazil.â
Roy Reite, VARDâs Chief Executive Officer and Executive Director commented: âI look forward to working with
Technip and DOF on these milestone projects. VARD yards both in Europe and Brazil being chosen to build
these vessels illustrates the value of having a global presence when working with international clients, and
bringing leading edge technology to new markets.â
DOF ASA
â Q2 Presentation 2013
6
6
7. PLSV key information
PLSV 1+2
PLSV 3+4
â˘
â˘
â˘
â˘
â˘
â˘
â˘
â˘
â˘
â˘
â˘
â˘
â˘
â˘
â˘
â˘
â˘
â˘
To be built in Brazil
Delivered Q4 2016 and Q2 2017
Design 316
Type Pipe Lay support
LOA 140 m
Breadth 28 m
VLS 340 t
2 ROVs
DWT 10 800 t
DOF ASA
â Q2 Presentation 2013
To be built in Norway, Søviknes
Delivered Q2 2016 and Q4 2016
Design 305
Type Pipe Lay support
LOA 150 m
Breadth 30 m
VLS 650 t
2 ROVs
DWT 13 200 t
7
7
8. PLSV financial information
â˘
â˘
â˘
â˘
DOF Subsea part of CAPEX approx. USD 625 million
Contract 8 + 8 years
Norskan will provide Marine Services
Approx. USD 110 million in annual EBITDA contribution for DOF Subsea when all
vessels are in operations
DOF ASA
â Q2 Presentation 2013
8
8
10. DOF ASA in brief
Fleet
ď¤
ď¤
ď¤
ď¤
ď¤
ď¤
70 vessels in operation (PSV: 23, AHTS: 17, Subsea: 30)
8 Newbuildings (AHTS: 3 Subsea: 5)
Operates 52 ROVs
Market value total fleet at NOK 46 bn
Average age of 7 years
Value adjusted fleet age of 4 years
Back log
ď¤
Total NOK 53 bn
ď¤
ď¤
Firm contract : NOK 24.5 bn
Options: NOK 28.5 bn
Global organization
ď¤
ď¤
Head office in Norway
Regional offices in Australia, Singapore, UK, Angola, US,
Canada, Angola, Argentina and Brazil
Total of 4,700 employees
ď¤
ď¤
Subsea employees:
Marine personnel:
1.640
3.060
Share price
ď¤
ď¤
DOF ASA
NOK 24.50 (30.06.2013)
NAV per share NOK 76
â Q2 Presentation 2013
10
16. Result Q2 2013
All figures in NOK million
ALL FIGURES IN NOK MILLION
Operating income
Q2 2013
Q2 2012
YTD Q2 2013
YTD Q2 2012
2 493
2 119
4 487
3 987
-1 728
-1 376
-3 123
-2 637
5
203
5
945
1 370
1 553
Depreciation
-303
-261
-605
-508
Write downs
-
-
-
-
Operating profit- EBIT
466
684
764
All time high revenue ( high project
activity)
203
770
Comments
Operating expenses
Net gain on sale of vessel
Operating profit before depreciation- EBITDA
Net profit/loss from associated companies
Financial income
Financial costs
Net realized currency gain/loss
Net profit/loss before unrealised gain/loss long term debt
Net unrealized currency gain/loss
Net unrealized gain/loss on market instruments
1 044
3
1
9
1
14
14
31
34
-354
-324
-725
-667
32
-43
38
-22
162
333
117
391
-566
-611
-577
-324
Tax
Net profit/loss
47
-97
19
-30
-357
-374
-440
37
90
Profit/loss before tax
98
90
-276
-350
74
Supply:
⢠98% utilisation rate PSV fleet
⢠One PSV in transit in June
⢠83% utilisation rate AHTS fleet
⢠Off-hire 90 days two AHTS due to
break-downs
⢠Two AHTS in transit in June
⢠Improved spot rates in the North Sea
in May & June
Subsea:
⢠85% utilisation rate project fleet
⢠High activity on subsea projects in
May and June
⢠95% utilisation rate TC vessels
⢠Two vessels in transit in the period
37
-267
All time high Ebitda (excl gain sale of
assets)
Finance:
⢠High currency fluctuations USD & BRL
Profit attributable to
Non-controlling interest
Controlling interest
DOF ASA
â Q2 Presentation 2013
-9
16
-39
122
-258
-292
-311
-48
16
17. P&L Q2 2013 Supply and Subsea
ALL FIGURES IN NOK
Amounts in NOK millMILLION
PSV
AHTS
Subsea
Total
Q2 2013
Q2 2012
Q2 2013
Q2 2012
Q2 2013
Q2 2012
Q2 2013
Q2 2012
Operating income
283
243
338
307
1 872
1 569
2 493
2 119
Operating result befor depreciation (EBITDA)
112
92
142
155
516
698
770
945
74
63
85
99
307
522
466
684
EBITDA margin
40 %
38 %
42 %
50 %
28 %
44 %
31 %
45 %
EBIT margin
26 %
26 %
25 %
32 %
16 %
33 %
19 %
32 %
Operating result (EBIT)
EBITDA Q2 2012
EBITDA Q2 2013
10 %
15 %
16 %
18 %
67 %
PSV
PSV
AHTS
Subsea
74 %
AHTS
CSV
â˘Ebitda and Ebit 2012 include gain from sale of assets MNOK 203
DOF ASA
â Q2 Presentation 2013
17
18. Financial result Q2 2013
ALL FIGURES IN NOK MILLION
Financial items
Share of loss profit from associated
Interest reveneue
Interest costs
Realized currency gain/loss long debt
Q2 2013
Q2 2012
YTD Q2 2013
YTD Q2 2012
3
1
9
1
13
13
28
35
-346
-300
-690
Comments
-625
11
0
10
26
Realized currency gain/loss on derivatives
1
-21
4
Realized operational currency gain/loss (-)
21
-73
24
â˘
Net realized financial items MNOK 100
lower in Q2 2013 compared to previous
year
â˘
High currency fluctuations with a
strenghtened USD towards BRL and
NOK, reflects market to market on long
term debt. No cash impact
â˘
Derivatives represent interest swaps in
NOK & USD, 53% of the Groupâs long
term debt is secured. Long term nibor
and libor have increased in Q2
-31
-68
Other financial expenses
-6
-23
-33
-43
-304
-402
-647
-705
-566
-559
-577
-272
47
-97
19
-30
Total unrealized profit/loss on currencies and derivative
-519
-656
-558
-303
Total financial items
-824
-1 058
-1 205
-1 008
Total financial items
Unrealized profit/loss on currencies and derivatives
Unrealized currency gain/loss
Unrealized gain/loss on derivatives
DOF ASA
â Q2 Presentation 2013
18
20. Balance Q2 2013
Amounts in NOK million MILLION
ALL FIGURES IN NOK
ASSETS
Intangible assets
Vessel and other tangible assets
Newbuildings
Financial assets
Non-currents assets
30.06.2013
30.06.2012
31.12.2012
784
26 839
362
363
28 347
564
24 877
1 153
347
26 942
704
26 179
423
387
27 693
2 584
2 142
4 727
2 392
2 002
4 393
1 915
2 145
4 060
33 074
31 336
31 754
1 452
2 040
2 916
6 408
1 452
2 299
2 703
6 454
1 452
2 318
2 950
6 720
511
21 718
22 228
557
20 145
20 702
574
21 027
21 601
2 705
1 732
4 438
1 997
2 182
4 179
2 000
1 433
3 433
33 074
31 336
31 754
Comments
Total assets
EQUITY AND LIABILITIES
Subscribted equity
Retained equity
Non-controlling equity
Equity
Provisions for commitments
Other non-current liabilities
Non-current liabilities
Current part of interest bearing debt
Other current liabilities
Current liabilities
Total equity and liabllities
DOF ASA
â Q2 Presentation 2013
One vessel delivered in Q2 2013
Newbuildings represent instalments
paid on 4 vessels under construction
for delivery in 2013-2015
â˘
High receivables and current liabilities
due to high subsea project activity in
Q2
â˘
Receivables
Cash and cash equivalents
Current assets
â˘
â˘
Long term debt net increase in Q2
includes financing one new-build and
refinancing two vessels
â˘
Current portion long term debt
represent mainly MNOK 650 in bonds,
MNOK 2 055 as balloons and
amortization long term debt
20
21. Net interest bearing debt
30.06.2013
Non-current interest bearing liabilities
Bond loan
Debt to credit institutions
Total non-current interest bearing liabilites
30.06.2012 31.12.2012
4 411
17 096
21 507
3 520
16 379
19 899
4 164
16 592
20 756
650
2 031
24
2 705
168
1 523
306
1 997
141
1 784
75
2 000
Total interest bearing liabilities
24 212
21 896
22 756
Net interest bearing liabilities
Cash and cash equivalents
Net derivatives
Non-current receivables
Total net interest bearing liabilities
2 142
-403
83
22 391
2 002
-243
20 138
2 145
-365
98
20 878
Current interest bearing liabilities
Bond loan
Debt to credit institutions
Overdraft facilities
Total current interest bearing liabilities
DOF ASA
â Q2 Presentation 2013
21
22. Key figures Q2 2013
Q2 2013
FINANCIAL RESULT
EBITDA margin ex net gain on sale of vessel
EBITDA margin
EBIT margin
Cashflow per share 1)
Profit per share ex. non-controlling interest 2)
Profit per share ex. unrealized loss/gain and taxes 3)
Q2 2013
YTD Q2 2013
YTD Q2 2012
2012
31 %
31 %
19 %
4,19
-2,32
1,46
35 %
45 %
32 %
5,35
-2,63
3,00
30 %
31 %
17 %
6,51
-2,80
1,06
34 %
39 %
26 %
8,09
-0,43
3,52
34 %
37 %
23 %
15,04
1,02
5,04
-5 %
19 %
37 %
76
1 234
22 391
22 029
1%
21 %
40 %
79
1 646
20 138
18 985
5%
21 %
39 %
81
3 047
20 878
20 454
111 051 348
111 051 348
111 051 348
111 051 348
111 051 348
111 051 348
BALANCE
Return on net capital
Equity ratio
Value adjusted equity
Value adjusted equity per share
Capex
Net interest bearing debt (MNOK)
Net interest bearing debt ex. unemployed capital (MNOK)
No of shares
Outstanding number of shares
*) Diluted number of share is the same as number of shares
111 051 348
111 051 348
111 051 348
111 051 348
1) Pre-tax result + depreciation and w rite dow ns +/- unrealized gain/loss on currencies +/- net changes in fair value of financial instruments/average no of shares.
2) Net profit excl. non controlling interest/average no of shares
3) Net profit excl.unrealized currency gain/loss on debt and market instruments and taxes/average no of shares
DOF ASA
â Q2 Presentation 2013
22
23. Cash flow Q2 2013
Amounts in NOK million
ALL FIGURES IN NOK MILLION
Net cash from operating activities
YTD Q2 2013 YTD Q2 2012
2012
Comments
â˘
Cash from operation is effected
by increased working capital of
MNOK 370 in 1st half year. The
increased working capital is due
to high project activities in the
subsea segment
â˘
Cash used on investments 1st
half are deliveries of two
vessels, instalments newbuilds
and dockings- /conversions
â˘
Proceeds from borrowings 1st
half are issue of bond loan
MNOK 1 300 and new loan
facilities of MNOK 986 reflecting
delivery of vessels and
refinancing exisiting fleet
â˘
Repayments are repayment on
bond loan, amortization and
repayment long term debt
219
761
1 182
Payment received on sale of tangible assets
Purchase of tangible assets
Other changes in investing activities
Net cash from investing activities
82
-1 234
34
-1 118
762
-1 646
-24
-908
819
-3 047
-5
-2 233
Proceeds from borrowings
Prepayment of borrowings
Payment from/to non-controlling interests
Net cash from financing activities
2 286
-1 404
-1
882
2 349
-2 228
121
5 115
-3 945
1 170
-17
-25
119
2 145
14
2 142
2 040
-13
2 002
2 040
-14
2 145
Net changes in cash and cash equivaltents
Cash and cash equivalents at the start of the period
Exchange gain/loss on cash and cash equivalents
Cash and cash equivalents at the end of the period
DOF ASA
â Q2 Presentation 2013
23
24. Debt maturity profile
4 000
Bond Loan
Bank Debt
Balloons
3 538
3 500
3 000
DOF 07*
- NOK 950 million
- Maturity July 2013
- Net NOK 132 million
2 000
1 500
1 074
794
1 000
350
132 156
914
600670
483
700
429515
700
DOF 08
- NOK 600 million
- Maturity Mar 2015
DOF 09
- NOK 700 million
- Maturity Feb 2017
2 500
500
DOF Supply
DOF 10*
- NOK 700 million
- Maturity Sep 2019
207
-
-
-
2013E
2014E
2015E
2016E
2017E
After
4000
Bond Loan
Bank Debt
3 627
Balloons
3500
DOF Subsea
DOFSUB 04
- NOK 750 million
- Maturity April 2014
- Net NOK 518 million
3000
2500
2000
1 362
1500
1 073
898
1000
537
1 300
1 005
668 690
518
661
DOFSUB 05
- NOK 750 million
- Maturity April 2016
- Net NOK 668 million
DOFSUB 06
- NOK 700 million
- Maturity Oct 2015
- Net NOK 482 million
DOFSUB 07
- NOK 1300 million
- Maturity May 2018
482
308
500
⢠The figures reflects amortization and balloon payments on debt drawn as pr 30 June
0
2013E
2014E
2015E
2016E
2017E
After
2013. In addition, bond transactions after balance date are included.
⢠Debt maturity profile excludes approx NOK 0.6 billion in payments to Eksportfinans
which is serviced by corresponding amount of restricted cash.
DOF ASA
â Q2 Presentation 2013
24
25. DOF ASA â Asset coverage
ď¤
Combined market value DOF Group fleet including newbuild is NOK 39.4 bn (total
value 100% NOK 46 bn)
ď¤
New-building program to be completed in 2017 (including 50% in 4 PLSVâs)
ď¤
Asset-level gearing on the existing fleet is 54%, decreasing to 31% in 2017
ď¤
Significant gearing reduction forecasted upon completion of the current newbuild program
Gearing forecast â summary
Total Fleet
Equity
100%
80%
46%
50%
60%
65%
69%
Vessels & newbuilds
MNOK 39 400
Equipment (subsea)
Debt
Market value
MNOK 1 200
Total Fleet
MNOK 40 600
60%
Note: Vessel values as of August 2013
40%
54%
50%
20%
40%
35%
31%
0%
2013
2014
2015
2016
2017
* The figures reflects amortization and balloon payments on secured
debt drawn as per 30 Jun 2013 and onwards
DOF ASA
â Q2 Presentation 2013
25
32. DOF Subsea Group â In brief
Fleet
ď¤
One of the largest subsea vessel owners in the world
ď¤
ď¤
In addition 2 vessels on long-term charter
ď¤
ď¤
Owns and operates a fleet of 24 vessels, plus 5 newbuilds on order
The market value of owned vessels in operation is NOK 17 167 million, with a value adjusted
age of 4.5 years
Operates 52 ROVs
Global organization
ď¤
ď¤
Head office in Bergen
Regional offices in Australia, Singapore, Norway, UK, Angola, US, Canada and Brazil
Total of 2 642 employees
ď¤
ď¤
ď¤
Subsea employees:
Of which offshore engineers and project staff:
Marine crew:
1 642
1 260
1 000
Norway
Canada
US
UK
Asia Pacific
Angola
365
DOF ASA
Brazil
325
48
88
468
330
18
â Q2 Presentation 2013
32
33. DOF Subsea Group â In brief
Quarterly figures
1 800
40%
1 600
35%
1 400
30%
NOK million
1 200
21.2 %
CAGR
25%
1 000
20%
800
15%
600
Key figures
10%
400
Back-log incl. options
NOK 29 971 million
NOK 17 167 million
5%
200
Market value of fleet
-
0%
Q2 2010
Number of shares
119 733 714
15.5 %
CAGR
Q2 2011
Operating revenue
Total
NOK 4 996 million
NOK 8 057 million
NOK 67.30
Book equity ratio
25.4 %
Value adj. equity ratio
EBITDA margin
NOK 41.73
Value adj. equity
EBITDA
Q2 2013
Per share
Book equity
Q2 2012
35.5 %
DOF ASA
â Q2 Presentation 2013
33
34. Markets
Brazil
The Brazilian OSV market is picking up after a slow 2012 with several contract awards.
We expect the demand for all types of vessels to increase.
North Sea
AHTS
We expect the spot market the remaining Q3 to be balanced, and more volatile in Q4.
Based on expected increased rig activity in the North Sea we expect the demand for large
AHTS to increase longer term.
PSV
We expect the spot market to continue to be stable the next months, with a seasonal
weakening towards the end of the year and the term activity to remain strong, but still
question the long term market balance due to the large newbuild order book.
DOF ASA
â Q2 Presentation 2013
34
35. Outlook â Subsea
Healthy fundamentals for offshore activity
Supply
Demand
ď¤
High oil price
ď¤
ď¤
Expected 6-8% growth in E&P
spending in 2013 and 2014
Increasing number of high-end
newbuilds
ď¤
Limited growth in supply of engineering
capabilities
ď¤
Increased deep water spending
ď¤
Increased infrastructure spending
ď¤
High tendering activity
ď¤
Strong growth expected in Brazil,
North Sea, Gulf of Mexico and Asia
Pacific
ď¤
Increased focus on newer, larger
and more technologically advanced
vessels and engineering capabilities
ď¤
Mixed
market
conditions
DOF Subsea owns the worldâs most
sophisticated fleet and has a global
project organization
ď¤
DOF ASA
â Q2 Presentation 2013
Increasing
supply
Increasing
demand
Qualified personnel will be the bottleneck
for supply growth
35
36. Outlook for 2013
Ebitda guidance:
Q3:
We expect better numbers in Q3 compared to Q2
2013:
We repeat the guidance given in February 2013; i.e.
MNOK 3 000 â 3 400 full year Ebitda
DOF ASA
â Q2 Presentation 2013
36
38. DISCLAIMER
This presentation by DOF ASA designed to provide a high level overview of aspects of the operations of the DOF
ASA Group.
The material set out in the presentation is current as at 22 August 2013.
This presentation contains forward-looking statements relating to operations of the DOF ASA Group that are based
on managementâs own current expectations, estimates and projections about matters relevant to DOF ASAâs future
financial performance. Words such as âlikelyâ, âaimsâ, âlooking forwardâ, âpotentialâ, âanticipatesâ, âexpectsâ,
âpredictsâ, âplansâ, âtargetsâ, âbelievesâ and âestimatesâ and similar expressions are intended to identify forwardlooking statements.
References in the presentation to assumptions, estimates and outcomes and forward-looking statements about
assumptions, estimates and outcomes, which are based on internal business data and external sources, are
uncertain given the nature of the industry, business risks, and other factors. Also, they may be affected by internal
and external factors that may have a material effect on future business performance and results.
No assurance or guarantee is, or should be taken to be, given in relation to the future business performance or
results of the DOF ASA Group or the likelihood that the assumptions, estimates or outcomes will be achieved.
While management has taken every effort to ensure the accuracy of the material in the presentation, the
presentation is provided for information only. DOF ASA , its officers and management exclude and disclaim any
liability in respect of anything done in reliance on the presentation.
All forward-looking statements made in this presentation are based on information presently available to
management and DOF ASA assumes no obligation to update any forward looking- statements. Nothing in this
presentation constitutes investment advice and this presentation shall not constitute an offer to sell or the solicitation
of any offer to buy any securities or otherwise engage in any investment activity.
You should make your own enquiries and take your own advice (including financial and legal advice) before making
an investment in the company's shares or in making a decision to hold or sell your shares.
DOF ASA
â Q2 Presentation 2013
38
