2. - Q4 Presentation 2013DOF ASA
Agenda
Highlights
Overview Group
Financials
DOF Subsea update
Outlook
3. DOF ASA 3– Q4 Presentation 2013 3
Highlights Q4 2013
Record high subsea project activity in 4th quarter
Stable utilisation PSV fleet and volatile AHTS fleet in the North
Sea spot market
MNOK 35 loss on Skandi Møgster OGX contract
Operational
Fleet
Sale of Skandi Bergen in January 2014
Demobilization of Skandi Fjord and rebuild from CSV to PSV
Delivery of AHTS vessel Skandi Iceman in October 2013
DOF Subsea hired the external vessel Normand Reach for a period of
2+2 yrs
DOF ASA issued a new bond MNOK 700 in January 2014
All time high Q4 EBITDA – MNOK 830
Finance
4. DOF ASA 4– Q4 Presentation 2013 4
Highlights Q4 2013
Several subsea contracts in the Asia Pacific region
Skandi Paraty and Skandi Copacabana two 4 yrs contracts with Petrobras
Statoil call-off in 2014 and 2015 for DOF Subsea
Skandi Waveney and Skandi Marstein two long term contracts in the Atlantic region
Skandi Fluminense and Skandi Rio two 4 yrs contracts with Petrobras
Skandi Møgster and Skandi Saigon two 1+1 yrs contracts with Total Austral S.A in
Argentina
Skandi Olympia 3+2 yrs with Fugro Subsea Services Ltd
DOF Subsea awarded 4 ROV contracts + ROV on Skandi Ipanema with Petrobras
Skandi Ipanema 4+4 yrs contract with Petrobras
Skandi Botafogo 2 yrs Petrobras
DOF Subsea’s newbuild hull 800, 5 yrs contract with Technip
Contract
awards
6. DOF ASA 6– Q4 Presentation 2013 6
DOF ASA in brief
Fleet
69 vessels in operation (PSV: 24, AHTS: 17, Subsea: 28)
8 Newbuildings (AHTS: 3 Subsea: 5)
Operates 59 ROVs
Market value total fleet in operation at NOK 34.5 bn
Average age of 8 years
Value adjusted fleet age of 5 years
Back log
Total NOK 62 bn
Firm contract : NOK 29,4 bn
Options: NOK 32,6 bn
Global organization
Head office in Norway
Regional offices in Australia, Singapore, UK, USA, Canada,
Angola, Argentina and Brazil
Total of 4 900 employees
Subsea employees: 1 670
Marine personnel: 3 230
Share price
NOK 31.70 (31.12.2013)
NAV per share NOK 77
7. DOF ASA 7– Q4 Presentation 2013 7
Company overview
10. DOF ASA 10– Q4 Presentation 2013
Angola
Perth
Rio de Janeiro
Buenos Aires
Singapore
Houston
St. Johns
Aberdeen
Austevoll
Brunei
Macae
Jakarta
Manila
Moscow
Bergen
Focus regions
Melbourne
Darwin
Global player
9
25
28
4
3
Norway Brazil US/Canada UK Asia
Pacific
Angola Marine
Crews
Total
DOF employees 452 517 142 446 433 17 2 906 4 913
16. DOF ASA 16– Q4 Presentation 2013 16
Amounts in NOK million 31.12.2013 31.12.2012
ASSETS
Intangible assets 836 704
Vessel and other tangible assets 26 244 26 179
Newbuildings 646 423
Financial assets 258 387
Non-current assets 27 983 27 693
Receivables 2 503 1 915
Cash and cash equivalents 2 314 2 145
Current assets 4 817 4 060
Total assets 32 800 31 754
EQUITY AND LIABILITIES
Subscribted equity 1 452 1 452
Retained equity 1 923 2 318
Non-controlling equity 2 966 2 950
Equity 6 341 6 720
Provisions for commitments 581 574
Other non-current liabilities 21 056 21 027
Non-current liabilities 21 637 21 601
Current part of interest bearing debt 3 012 2 000
Other current liabilities 1 810 1 433
Current liabilities 4 822 3 433
Total equity and liabilities 32 800 31 754
ALL FIGURES IN NOK MILLION
Balance Q4 2013
Comments
• Three vessels delivered during 2013,
one vessel, Skandi Iceman, delivered in
Q4 (DOF 20% share)
• Newbuildings represent instalments
paid on 8 vessels under construction
for delivery from 2014-2017 ( 50%
share in 4 vessels)
• High receivables due to high subsea
project activity in Q4
• No new loans drawn in Q4
• Sale of own bonds
• Current portion long term debt
represent mainly MNOK 454 in bonds,
MNOK 2 190 which are one balloon
and amortization long term debt
17. DOF ASA 17– Q4 Presentation 2013 17
31.12.2013 31.12.2012
Non-current interest bearing liabilities
Bond loan 4 722 4 164
Debt to credit institutions 16 265 16 592
Total non-current interest bearing liabilities 20 988 20 756
Current interest bearing liabilities
Bond loan 454 141
Debt to credit institutions 2 190 1 784
Utilized credit facilities 368 75
Total current interest bearing liabilities 3 012 2 000
Total interest bearing liabilities 24 000 22 756
Net interest bearing liabilities
Cash and cash equivalents 2 314 2 145
Net derivatives -356 -365
Non-current receivables 58 98
Total net interest bearing liabilities 21 984 20 878
Newbuilds 646 423
Net interest bearing liabilities, excluding unemployed capital 21 338 20 454
Net interest bearing debt
ALL FIGURES IN NOK MILLION
18. DOF ASA 18– Q4 Presentation 2013 18
Key figures & Financial Compliance in Q4 2013
Q4 2013 Q4 2012 2013 2012
FINANCIAL RESULT
EBITDA margin ex net gain on sale of vessel 31 % 33 % 32 % 34 %
EBITDA margin 32 % 34 % 32 % 37 %
EBIT margin 20 % 16 % 20 % 23 %
Cashflow per share 4,48 3,05 16,03 15,04
BALANCE
Return on net capital -1 % 5 %
Equity ratio 19 % 21 %
Value adjusted equity 36 % 39 %
Value adjusted equity per share 77 81
Capex 1 616 3 047
DOF ASA in compliance with financial covenants per December:
Main financial covenants:
Required equity ratio 30% or 20% if above 70% contract coverage
Equity ratio= 36%, Contract Coverage 79%
Required consolidated free cash: NOK 500 mill
Actual free cash: NOK 1 579 mill
19. DOF ASA 19– Q4 Presentation 2013 19
Cash Flow Q4 2013
Amounts in NOK million 2013 2012
Cash from operating activities 2 849 2 411
Net interest paid -1 382 -1 186
Taxes paid -48 -43
Net cash from operating activities 1 419 1 182
Payment received on sale of tangible assets 87 819
Purchase of tangible assets -1 616 -3 047
Other changes in investing activities 11 4
Net cash from investing activities -1 518 -2 224
Proceeds from borrowings 3 186 5 115
Prepayment of borrowings -2 844 -3 945
Payment from/to non-controlling interests -99 -
Net cash from financing activities 242 1 170
Net changes in cash and cash equivalents 144 128
Cash and cash equivalents at the start of the period 2 145 2 040
Exchange gain/loss on cash and cash equivalents 25 -14
Cash and cash equivalents at the end of the period 2 314 2 154
ALL FIGURES IN NOK MILLION
Net Increased cash from operations
MNOK 235
Net change cash from Investments
MNOK 700
Net change cash from finance
activities MNOK 930
20. DOF ASA 20– Q4 Presentation 2013 20
Debt maturity profileDOFDOFSubsea
-
500
1 000
1 500
2 000
2 500
3 000
3 500
2014 2015 2016 2017 2018 After
Bank Debt Bond Balloons
-
500
1 000
1 500
2 000
2 500
3 000
2014E 2015E 2016E 2017E 2018E After
Bank Debt Bond Balloons
23%
19%58%
Counterparty exposure Q4 2013
Bond Eca Bank
21. DOF ASA 21– Q4 Presentation 2013 21
Gearing forecast – summary Total Fleet Market value
Vessels & newbuilds MNOK 39 700
Equipment (subsea) MNOK 1 200
Total Fleet MNOK 40 900
Note: Vessel values as of 31 December 2013
* The figures reflects amortization and balloon payments on secured
debt drawn as per 31 December 2013 and onwards
Combined market value DOF Group fleet including newbuild is NOK 39.7 bn (total
value 100% NOK 46.9 bn)
New-building program to be completed in 2017 (including 50% in 4 PLSV’s)
Asset-level gearing on the existing fleet is 50%, decreasing to 29% in 2017
Significant gearing reduction forecasted upon completion of the current newbuild program
DOF ASA – Asset coverage
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
80 %
90 %
100 %
2014 2015 2016 2017 2018
50%
42% 36% 33% 29%
50%
58% 64% 67% 71%
Debt Equity
28. DOF ASA 28– Q4 Presentation 2013
DOF Subsea Group – In brief
Fleet
One of the largest subsea vessel owners in the world
Owns and operates a fleet of 24 vessels, plus 5 newbuilds on order
In addition 2 vessels on long-term charter
The market value of owned vessels in operation is NOK17 billion, with a value adjusted age of
5 years
Operates 52 ROVs and 7 ROVs on order
Global organization
Head office in Bergen
Regional offices in Australia, Singapore, Norway, UK, Angola, US, Canada and Brazil
Total of 2 667 employees
Subsea employees: 1 667
Of which offshore engineers and project staff: 1 160
Marine crew: 1 000
Norway Brazil Canada US UK Asia Pacific Angola
316 349 48 94 430 413 17
29. DOF ASA 29– Q4 Presentation 2013
DOF Subsea Group – In brief
Key figures
Back-log incl. options NOK 34 billion
Market value of fleet NOK 17 billion
Number of shares 119 733 714
Total Per share
Book equity NOK 5.2 billion NOK 43.56
Value adj. equity NOK 8.5 billion NOK 71.05
Book equity ratio 26.8 %
Value adj. equity ratio 37.4 %
19.7 %
CAGR
20.1 %
CAGR
Quarterly figures
27%
28%
29%
30%
31%
32%
33%
-
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2 000
Q4 2010 Q4 2011 Q4 2012 Q4 2013
NOKmillion Operating revenue EBITDA EBITDA margin
30. DOF ASA 30– Q4 Presentation 2013
Level of industry barriers to entry
DOF Subsea’s main presence is in segments with medium to high
barriers to entry and high complexity of operations
Higher margins and earnings beyond the time charter rates
Levelofbarrierstoentry
Increasedengineeringrequirement
Complex
subsea operations
Marine transport/
services
Complexityandsizeofoperations
Increasedsystemrequirement
DSV
OSCV
ROV
AHTS
PSV
31. DOF ASA 31– Q4 Presentation 2013
DOF Subsea – Projects
OMV Emergency FPSO
Mooring System Repair
• Skandi Singapore Q1 ‘12 &’13, Skandi
Hercules, Skandi Skansen, Skandi
Atlantic, Skandi Emerald Q3 & Q4 ‘13
• Initially routine IRM scope including
saturation diving in NZ. Emergency
FPSO Mooring System Repair,
stabilising vessel, Engineering, Project
Management and replacement vessel
for Galoc EPIC project
• Innovation for diverless solution to
handle significant loads involved.
Developed and built the equipment in
time Hercules arrived in New Zealand
32. DOF ASA 32– Q4 Presentation 2013
DOF Subsea – Projects
Teekay – Knarr FPSO Mooring Installation
• Skandi Skolten and two third party AHTS from Q3 2013 to
Q3/Q4 2014
• Phase 1 - Q3 2013: Installation and pre-tensioning of 12
anchors c/w 500m of 120mm chain
• Phase 2 - Q2 2014: Pre-installation of spiral strand wires and
remaining chain.
• Phase 3 - Q3/Q4 2014: Tow out and hook-up of Knarr FPSO
BW Offshore – Replacement of Mooring Lines on
Berge Helene FPSO
• Skandi Skansen - Q1 2014 in the Chinguetti Field offshore
Mauritania
• Replacement of mooring lines on Berge Helene FPSO
• Subsea intervention work (replacement of control modules,
jumpers etc.)
• Underwater survey of FPSO hull and moorings and survey of
subsea facilities (pipelines, risers, structures and trees)
33. DOF ASA 33– Q4 Presentation 2013
Brazil:
We expect increased demand for our vessels and services. We expect a substantial
increase in day rates compared to old contracts.
North Sea:
We expect a good, but volatile AHTS market in 2014.
We are surprised over the strong start for PSV´s in the spot market and expect this to
continue in 2014.
DOF Subsea has taken a step-change in customer base and complexity of work done,
and we expect a growing market share in this sector going forward.
Asia Pacific:
We expect a steady demand for all our vessels and services. DOF Subsea has an
excellent position with a new fleet and an established, strong project organization.
Outlook
34. DOF ASA 34– Q4 Presentation 2013 34
We expect Revenue and Ebitda to increase in 2014 compared to 2013:
- A solid subsea project organization and increased earning on several CSV´s
- Increased earnings AHTS & PSV segment going forward
- Recent contract awards and expected strong markets
0
50
100
150
200
250
Average
dayrate 2013
Sk. Waveney Sk. Marstein Sk. Saigon Sk. Møgster Sk. Ipanema Average day
rate new
contracts
(TNOK)
Change in average day rate - new contracts (a few examples illustrated below)
Guidance 2014:
The graph reflects average day rates on recently awarded
Contracts compared to average earnings in 2013
Ebitda guidance 2014 MNOK 3 400 – 3 700
36. DOF ASA 36– Q4 Presentation 2013 36
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 27 February 2014.
This presentation contains forward-looking statements relating to operations of the DOF ASA Group that are based
on management’s own current expectations, estimates and projections about matters relevant to DOF ASA‘s future
financial performance. Words such as “likely”, “aims”, “looking forward”, “potential”, “anticipates”, “expects”,
“predicts”, “plans”, “targets”, “believes” and “estimates” and similar expressions are intended to identify forward-
looking 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.
