2. December 2014 - Private & Confidential
Business Summary
• Experienced management team
– Led by Denis Welch with more than 30-years of industry experience at CEO level (Formerly CEO of
IHC and Mermaid).
• Focusing on the medium-size PSV segment
– Strong underling demand growth
– Increased sailing distances in in several regions
• Targeting the Mexican, Venezuela, West African and AsiaPac markets
– Through tie-ups with specialist local firms.
– Demand in these areas is robust.
• Prudent fleet growth strategy
– Targeting fleet of 10-20 PSVs in the medium size segment through second hand transactions / long
term charters / newbuilding orders.
• Attractively priced newbuilding order negotiated
– Advanced negotiation with reputable yard for a 8+8 high specification newbuild order
– LOI for financing in place.
– Hull numbers H3031 and H 3032 for delivery 1Q15 and 2Q15.
Basic&Offshore&Pte.&Ltd.& 2&
3. December 2014 - Private & Confidential
Focusing on the medium-size PSV segment
• High-spec, newbuilt medium-
sized PSVs very attractive to
large core markets and alleys
for growth
• Attractive prices for newly
built units provides
competitive advantages to
both vs. large & medium
sized PSVs, in deepwater
and shallow-water
• Strong earnings outlook as
market balance is forecasted
to tighten
• Potential for asset
appreciation
Semi-subs, drillships,
accomodation & pipelaying unit
FPSOs, TLPs & SPARs
Core markets
Contract
upon
availability
of vessels
Alleys for growth
Jack-up rigs, shallow-water
platform & renewables
•
•
High demand locations
The ability to manufacture charters through
shared ownership.
Highly focused approach to
chartering.
• Need for larger cargo deck and liquid
cargo capacities
PSVs offer less fuel costs than AHTs
Less need for AHTs mooring support as
more floaters have DP
•
•
Demand shift towards PSVs
•
•
•
Basic&Offshore&Pte.&Ltd.& 3&
Medium size PSV utilisation very good
Only 10% gross fleet growth in orderbook
Large PSV leading the utilisation game
followed closely by the medium size PSVs
Tigtening utilisation to trigger improved
rate environment
Improved rates to trigger asset
appriciation
•
•
Medium PSV segment set to tighten
4. December 2014 - Private & Confidential
Increase activity and cargo run distances
400
350
300
250
200
150
100
50
0
0 50 100 150 200 250 300
Installed Floating Production Systems (units)
350
Activemedium-sizedPSVS(units)
400
350
300
250
200
150
100
50
0
0 50 100 150 200 250 300
Active semi-submersible rigs & drillships (units)
Activemedium-sizedPSVs
(units)
40
35
30
25
20
15
10
5
0
2011 2012 2013 2014 2015
Deepwaterfloatingproduction
installations(units)
North America
North Sea / Artic
Asia Pacific / Middle-East
Basic&Offshore&Pte.&Ltd.& 4&
Source:&QuestOffshore:&“Floatng&produc6on&database”,&June&2011&
Source:&R.S.&Platou,&August&2011&2011&
Source:&Cheylat&Energies,&October&2011&
5. December 2014 - Private & Confidential
Prudent fleet growth strategy
Strategic Goal
• Target an optimized North Sea specifications fleet
1. “large medium size” PSVs (DWT: 4,200/Deck Area: 820m2) for the cost of “medium size” PSVs (DWT: 3,500/
Deck Area: 750m2)
2. The preferred spec would allow the Company to compete in both the “large medium size” and the “medium
size” PSVs segments.
Fleet Growth Strategy
• Secure a fleet of 4 PSVs for immediate deployment & cash-flow generation
1. Charter in vessels
2. Buy vessels in the second hand market
• Nurture strategic partnership with a top quality yard:
1. order 8 PSVs, “large medium size” - Havyard 832 L SE
2. options for additional units to be included securing future expansion of fleet.
Basic&Offshore&Pte.&Ltd.& 5&
6. December 2014 - Private & Confidential
–
–
–
–
–
–
–
–
–
–
–
VS&470&MK&II&
&
&
Ulstein&
P106&
PX&121&
Assembling a fleet that meets Mexican, West African and Asian demand
Target specifications:
Dwt
Deck Space
3,200 – 4,500
700 – 900 sqm
Propulsion
Environment
DP
Fire Fighting
Comfort Class
Methanol
Oil Recovery
Clean Design
Accommodation
Diesel Electric
Harsh & Tropical
DP2
FiFi 1
V(3)c(2)
LFL
Oil Rec.
Yes
Around 50 pax
MMC&887&
&
UT&755&LN&
MT&6009&MK&II&
Havyard&832&CD&(alt.&L&or&L&SE)&
Medium&size&High&spec&
Attractive vessel designs:
Basic&Offshore&Pte.&Ltd.& 6&
7. December 2014 - Private & Confidential
Technical specs of Basic’s Havyard 832LSE vessels
• Clean Norwegian Design
• Provision for Moon Pool (Bulk Heads in place)
• Crane Base for up to 70 MTAHC.
• DP2 (Kongsberg package)
• Standby Rescue.
• MTU Diesel Electric engines
• Oil Rec. (incl. Boiler)
• Methanol (LFL)
• FiFi 1
• Extra Accommodation Capacity up to 53 Persons.
Basic&Offshore&Pte.&Ltd.& 7&
8. December 2014 - Private & Confidential
Established yard with strong track record
• CSSC Guangzhou Huangpu Shipbuilding Co. Ltd has been selected by Basic :
– Credible track record of quality high specification offshore vessels & timely delivery & classed by the western classification
societies.
– Recommendation by Bureau Veritas Classification, Singapore
– Financial strength & competitive pricing
– Credible schedule
– Favorable design (detailed design development with Havyard Design, Norway)
– Offers assistance and provides access finance with major Chinese banks
• In November 2011, Basic signed an order for the construction of 8 units:
– Competitive priced while specified in order to comply with demands of areas such as the North Sea.
– LOI for post delivery financing signed with China Construction Bank
• 70% debt financing.
– CSSC issued contract to Havyard 10 April 2012 for the design of the first two vessels.
– CSSC commenced building of hull H3031 & H3032 November 2012 upon receipt of 1st payment from BO.
– End of January 2013 all major equipment orders have been placed with vendors in Norway, Germany and other West European
countries.
– Cutting steel planned for May 2013 and delivery end 2Q14.
Basic&Offshore&Pte.&Ltd.& 8&
9. December 2014 - Private & Confidential
Delivery schedule
Basic&Offshore&Pte.&Ltd.& 9&
YEAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
MONTH 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 →48& 49-60
STATUS UNIT
Order PSV 05
PSV 06
PSV 07
PSV 08
PSV 09
PSV 10
PSV 11
PSV 12
1
2
3
4
5
6
7
8
Option PSV 13
&
PSV 14
9
10
LEGEND
Purchase & Construction start
Delivery from yard
Initial availability for charter
Operational
X
12. Basic Offshore’s Director of Quality
Denis Welch is Basic Offshore’s Director of Quality
Denis joined Basic as Executive Director in 2014 and his role is to
use his industry knowledge, experience and management
strength to ensure top-level build quality for Basic’s vessels
through his personal oversight of Thome Marine Consultants
Pte Ltd, the vessel construction supervision arm of Thome Ship
Management, and Basic’s supervisors at the yard. Denis splits his
time between Singapore and the CSSC Guangzhou yard.
In the ten years prior to joining Basic, Denis was CEO of Dry
Docks World, Mermaid Marine and IHC Asia.
13. December 2014 - Private & Confidential
Basic&Offshore&Pte.&Ltd.& 13&
Newbuilds can be upgraded for light construction
Potential to add crane on Havyard 832 L SE newbuilds:
– 70 MTAHC crane
Current design already includes:
– Moonpool bulkheads
– SPS code allowing additional passengers on board
– Foundation for crane and A-Frame installation
– Foundation for helideck.
&
&
The modest modifications should enhance the
obtained rate significantly, while budgeted opex
would remain unchanged.
&
&
Forecasted payback time of less than 12 months
Increased marketability of the vessel
BASIC will actively market the units for it’s Subsea
support capabilities and decide on the incremental
investment based on contract opportunities
