3. - Q1 Presentation 2014DOF ASA
Highlights Q1 2014
Lower subsea project activity in 1st quarter compared with previous quarter
Weak utilisation on 3 PSVs, 6 AHTS and 3 CSV due to:
Skandi Marstein – upgrade DP2 and mobilization new contract CNR Int.
Skandi Flora – class docking and prepare for spot market
Skandi Leblon – class docking
Skandi Møgster & Skandi Saigon – upgrade and transit Argentina, Total contract
Skandi Ipanema – mobilization Petrobras contract incl. Installation ROV
Skandi Fluminense – mobilization Petrobras contract
Skandi Peregrino – class docking Brazil
Skandi Giant- down time due to maintenance issues
Geoholm – transit to Brazil, Petrobras contract
Skandi Salvador – class docking
Skandi Skolten – maintenance issues
Operational
Fleet
Sale of Skandi Bergen in January, gain on sale MNOK 204
DOF Subsea hired external Jones Act-vessels Chloe Candies and
Ross Candies for a period of 1+1 yrs each
The newbulding Skandi Urca delivered in April 2014
Total Ebitda MNOK 960 and operational EBITDA MNOK 756 (MNOK 606)
4. - Q1 Presentation 2014DOF ASA
Highlights Q1 2014
Skandi Seven 2 yrs extention with Subsea 7 firm until March 2017
Project contracts Ross Candies and Chloe Candies in Gulf of Mexico
Several subsea contracts in the Asia Pacific and Atlantic region
Skandi Copacabana, 4 yrs with Petrobras from April
Skand Paraty, 4 yrs with Petrobras from delivery in 2015
Geosund, call-off 2014 and 2015 Statoil survey frame agreement
Skandi Waveney, 1+2x1yrs with Peterson den Helder
Skandi Marstein, 9+9 months contract with CNR International
DOF ASA issued a new bond MNOK 700 in January
Repayment of DOFSUB04 in April, with a total net cash effect of MNOK 454
Contract
awards
Finance
6. - Q1 Presentation 2014DOF ASA
DOF ASA in brief
Fleet
70 vessels in operation (PSV: 24, AHTS: 18, Subsea: 28)
7 newbuildings (AHTS: 2 Subsea: 5)
Operates 58 ROVs
Market value total fleet (100% basis) in
operation at NOK 33.5 bn
Average age of 8 years
Value adjusted fleet age of 5 years
Back log
Total NOK 61.18 bn
Firm contract : NOK 28.87 bn
Options: NOK 32.30 bn
Global organization
Head office in Norway
Regional offices in Australia, Singapore, UK, USA, Canada,
Angola, Argentina and Brazil
Total of 4 955 employees
Subsea employees: 1 575
Marine personnel: 3 380
Share price
NOK 27.20 (31.03.2014)
NAV per share NOK 77
12. - Q1 Presentation 2014DOF ASA
All figures in NOK million Q1 2014 Q1 2013 2013
Operating income 2 240 1 994 9 754
Operating expenses -1 486 -1 394 -6 651
Net profit/loss from associates and joint ventures 2 6 1
Net gain on sale of vessel 204 - 8
Operating profit before depreciation- EBITDA 960 606 3 112
Depreciation -232 -302 -1 193
Operating profit- EBIT 728 304 1 919
Financial income 25 17 62
Financial costs -370 -371 -1 434
Net realised currency gain/loss -29 6 39
Net profit/loss before unrealised gain/loss long term debt 353 -45 586
Net unrealised currency gain/loss 60 -11 -606
Net unrealied gain/loss on market instruments 23 -27 -5
Profit/loss before tax 435 -83 -25
Tax -30 - -27
Net profit/loss 405 -83 -52
Profit attributable to
Non-controlling interest 205 -30 139
Controlling interest 200 -53 -191
ALL FIGURES IN NOK MILLION
Result Q1 2014
Comments
PSV:
• 88% utilisation rate PSV fleet
• 1 vessel upgraded and mobilized for
new contract
• Class docking 3 vessels
• 7 vessels fully or partly in the spot
market
AHTS:
• 77% utilisation rate AHTS fleet
• 2 vessels upgraded and in transit new
contracts in Argentina
• 2 vessels mobilized for new
contracts in Brazil
• Class docking 3 vessels
• 1 vessel in the spot market
Subsea/CSV:
• 92% utilisation TC vessels
• 70% utilisation project fleet
• 1 vessels in transit new contract
• Class docking 3 vessels
18. - Q1 Presentation 2014DOF ASA
Cash Flow Q1 2014 (IFRS 11)
ALL FIGURES IN NOK MILLION
Net Increased cash from
operations MNOK 204
Net change cash from
investments MNOK 991
Net change cash from finance
activities MNOK - 1475
Q1 2014 Q1 2013 2013
Cash from operating activities 571 380 2 602
Net interest paid -346 -364 -1 288
Taxes paid -8 -3 -29
Net cash from operating activities 217 13 1 285
Payment received on sale of tangible assets 927 - 87
Purchase of tangible assets -538 -643 -1 455
Other changes in investing activities -37 3 7
Net cash from investing activities 352 -639 -1 361
Proceeds from borrowings 835 1 572 3 186
Prepayment of borrowings -1 551 -818 -2 754
Payment from/to non-controlling interests -3 1 -99
Net cash from financing activities -720 755 333
Net changes in cash and cash equivaletents -151 128 257
Cash and cash equivalents at the start of the period 2 219 1 940 1 940
Exchange gain/loss on cash and cash equivalents -6 -1 22
Cash and cash equivalents at the end of the period 2 062 2 067 2 219
Comments Q1
19. - Q1 Presentation 2014DOF ASA
Key figures & Financial Compliance in Q1 2014
DOF ASA in compliance with financial covenants per March:
Equity ratio = 37% (requirement 30% or 20% if contract coverage >70%
Contract coverage 82%
Actual free cash: NOK 1 445 mill (requirement NOK 500 mill)
Q1 2014 Q1 2013 YTD 2013
FINANCIAL RESULT
EBITDA margin 43 % 29 % 31 %
EBITDA margin excl. net gain of assets 33 % 29 % 31 %
EBIT margin 33 % 14 % 19 %
Cashflow per share 1) 5,02 1,98 14,60
Profit per share ex. non-controlling interest 2) 1,80 -0,48 -1,72
Profit per share ex. unrealised loss/gain and taxes 3) 3,18 -0,40 5,28
BALANCE 31.03.2014 31.03.2013 31.12.2013
ROE 4) 13 % 9 % 9 %
ROCE 5) 8 % 6 % 7 %
Equity ratio (IFRS 11) 23 % 22 % 21 %
Equity ratio (Proportional consolidation) 21 % 21 % 19 %
Value adjusted equity 37 % 38 % 36 %
Value adjusted equity per share 77 81 77
Net interest bearing debt (IFRS 11) 19 780 20 086 20 410
Net interest bearing debt (proportional consolidation) 21 573 21 684 21 985
No of shares* 111 051 348 111 051 348 111 051 348
*) Diluted number of share is the same as number of shares
1. Pre-tax result excl.depreciations and unrealised gain/loss currencies debt and derivatives/average no ofshares
2. Net profit excl. non controlling interest/average no ofshares
3. Net profit excl.unrealised currency gain/loss on debt, derivaties and taxes/average no ofshares
4. Net profit last 4 quarters (excl unrealised currency gain/loss and derivatives on debt)/equity
5. Ebit last 4 quarters/Capital employed
20. - Q1 Presentation 2014DOF ASA
Net interest bearing liabilities 31.03.2014
ALL FIGURES IN NOK MILLION Proportional
consolidation IFRS 11
Bond loan 5 157 5 157
Debt to credit institutions 14 634 13 000
Total non-current interest bearing liabilities 19 790 18 157
Bond loan 454 454
Debt to credit institutions 3 002 2 777
Utilized credit facilities 97 97
Total current interest bearing liabilities 3 553 3 328
Total interest bearing liabilities 23 343 21 486
Cash and cash equivalents 2 126 2 062
Net derivatives -358 -356
Non-current receivables - -
Total net interest bearing liabilities 21 575 19 780
Newbuilds 954 641
Net interest bearing liabilities, excluding unemployed capital 20 621 19 138
21. - Q1 Presentation 2014DOF ASA
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
3 500
2014E 2015E 2016E 2017E 2018E 2019E After
Bank Debt Bond Loan Balloons
* ECA mainly represent long term funding with
BNDES and GIEK
DOF GROUP COUNTERPARTY
EXPOSURE Q1 2014
26%
36%
38%
Bond
Eca
Bank
22. - Q1 Presentation 2014DOF ASA
Gearing forecast – summary
Total Fleet Market value
Vessels & newbuilds MNOK 37 950
Equipment (subsea) MNOK 1 300
Total Fleet MNOK 39 250
Note: Vessel values as of 31 March 2014
* The figures reflects amortization and balloon payments on secured
debt drawn as per 31 March 2014 and onwards
Combined market value DOF Group fleet including newbuild is NOK 37.95 bn
(total value 100% NOK 45.1 bn)
New-building program to be completed in 2017 (including 50% in 4 PLSV’s)
Asset-level gearing on the existing fleet is 51%, 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
51%
43%
37% 33% 29%
49%
57%
63% 67% 71%
Debt Equity
29. - Q1 Presentation 2014DOF ASA
DOF Subsea Group – In brief
29
Key figures
Back-log incl. options NOK 33 billion
Market value of fleet NOK 17 billion
Number of shares 119 733 714
Total Per share
Book equity NOK 5.7 billion NOK 47.29
Value adj. equity NOK 8.7 billion NOK 72.61
Book equity ratio 29.4 %
Value adj. equity ratio 39.0 %
27.7 %
CAGR
19.4 %
CAGR
Quarterly figures
0%
5%
10%
15%
20%
25%
30%
35%
40%
-
200
400
600
800
1 000
1 200
1 400
1 600
1 800
Q1 2011 Q1 2012 Q1 2013 Q1 2014
NOKmillion
Operating revenue EBITDA EBITDA margin
* According to internal Management reporting
* According to internal Management reporting
* According to internal Management reporting
31. - Q1 Presentation 2014DOF ASA
DOF Subsea – Projects
31
PTSC Lamson FPSO Mooring Installation
• Location 120km east of Vung Tau, Offshore Vietnam
• Skandi Hercules, Skandi Singapore, two third party AHTS
and a third party Tug & Barge from Q3 2013 to Q2 2014
• Project Management and Engineering: Engineering and
detailed design for all Temporary Equipment, Free Issued
Equipment and Installation Aids
• Phase 1 - Q3 2013: Installation and pre-tensioning of 9 x
1.83m diameter 30m long Anchor pile c/w 500m-750m of
117m/130mm R3 studless mooring chain (pre-tense load
of 150Te)
• Phase 2 - Q2 2014: Tow out and hook up of FPSO PTSC
Lamson including installation; Installation of two Mid
Water Arches and gravity base, 5 flexible risers, 2
umbilicals and associated saturation diver tie-ins, leak
testing and pre-commissioning
32. - Q1 Presentation 2014DOF ASA
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.
33. - Q1 Presentation 2014DOF ASA
DOF Subsea – Projects
o DOF Subsea has built a global
project organisation over the last 9
years
o DOF Subsea has developed the
project business gradually
o Increased project activity driving
growth
o Project business going forward
• Hire more engineers
• Gradually increase the
complexity of work done (Step
by Step)
• Build a larger project back-log
• Mix between owned and
chartered in vessels
33
2012 2013
Subsea projects 3776 4971
Chartering of vessels 1472 1609
Total 5248 6580
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
NOKmillion
Operating income by segment
Chartering of vessels Subsea projects Total
* According to internal Management reporting
34. - Q1 Presentation 2014DOF ASA
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 volatile AHTS market in 2014.
We expect high utilisation and good rates for PSVs during North Sea summer season
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.
We expect operational Ebitda in Q2 to be better than Q1
Outlook
36. - Q1 Presentation 2014DOF ASA
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 15 May 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.
