Q4 Financial Presentation 2013 DOF ASA
Q4 Financial Presentation 2013
DOF ASA
- Q4 Presentation 2013 DOF ASA
Agenda
Highlights
Overview Group
Financials
DOF Subsea update
Outlook
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
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
- Q4 Presentation 2013 DOF ASA
Overview Group
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
DOF ASA 7 – Q4 Presentation 2013 7
Company overview
DOF ASA 8 – Q4 Presentation 2013 8
PSV AHTS Subsea Total fleet
No. of vessels
DOF ASA/DOF REDERI AS 19 3 3 25
NORSKAN OFFSHORE 5 12 2 19
DOF SUBSEA AS 0 0 25 25
DOF INSTALLER ASA 0 0 3 3
AKER DOF DEEPWATER AS 0 5 0 5
Total fleet 24 20 33 77
Contract coverage 2014* 78 % 85 % 76 % 79 %
Contract coverage 2015* 55 % 57 % 45 % 52 %
The fleet market segment
*Not including options
DOF ASA 9 – Q4 Presentation 2013 9
PSV AHTS Subsea Total fleet
No. of vessels*
DOF Group Fleet 23 20 35 78
Fair Market value (MNOK) 5 528 10 894 30 573 46 995
Ebitda Q4 2013 by segment (MNOK) 99 166 565 830
DOF ASA fleet market segment
*Incl. newbuild
12 %
23 %
65 %
Share of Fair Market Value DOF Fleet
PSV AHTS Subsea
12 %
20 %
68 %
EBITA Q4 2013
PSV AHTS Subsea
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
DOF ASA 11 – Q4 Presentation 2013 11
Vessel Yard Delivery Type Contract Financing
Skandi Urca Vard Brazil March 2014 AHTS 8 yrs Petrobras Funding secured
Skandi Angra Vard Brazil Q3/Q4 2014 AHTS 8 yrs Petrobras Funding secured
Skandi Paraty Vard Brazil Q1 2015 AHTS 4 yrs Petrobras Funding secured
Skandi TBN 800 Vard Norway Summer 2015 CSV 5 yrs Technip Funding secured
Skandi TBN Vard 823 Vard Norway Q2 2016 PLSV 8 yrs Petrobras
Skandi TBN Vard 824 Vard Norway Q3 2016 PLSV 8 yrs Petrobras
Skandi TBN PLSV1 Vard Brazil Q4 2016 PLSV 8 yrs Petrobras
Skandi TBN PLSV2 Vard Brazil Q2 2017 PLSV 8 yrs Petrobras
Remaining newbuilding program
- Q4 Presentation 2013 DOF ASA
Financials
DOF ASA 13 – Q4 Presentation 2013 13
All figures in NOK million Q4 2013 Q4 2012 2013 2012
Operating income 2 633 2 062 9 754 8 136
Operating expenses -1 806 -1 377 -6 651 -5 346
Net gain on sale of vessel 3 7 8 210
Operating profit before depreciation- EBITDA 830 692 3 111 3 000
Depreciation -296 -372 -1 193 -1 110
Impairment loss - - - -
Operating profit- EBIT 534 320 1 917 1 890
Net profit/loss from associated companies -6 4 1 5
Financial income 17 21 62 71
Financial costs -361 -336 -1 434 -1 325
Net realized currency gain/loss 17 -43 39 -81
Net profit/loss before unrealised gain/loss long term debt 202 -34 586 560
Net unrealized currency gain/loss -11 45 -606 -206
Net unrealized gain/loss on market instruments -38 2 -5 -89
Profit/loss before tax 152 13 -25 265
Tax -25 73 -34 85
Net profit/loss 127 86 -59 350
Profit attributable to
Non-controlling interest 97 38 139 237
Controlling interest 30 48 -198 113
ALL FIGURES IN NOK MILLION
Result Q4 2013
Comments PSV: • 89% utilisation rate PSV fleet • 3 vessels in the spot market • One vessel reinstated from CSV to
PSV AHTS: • 93% utilisation rate AHTS fleet • Two vessels idle between contracts
in Brazil • Loss on OGX (Skandi Møgster
contract) • None vessels in the North Sea spot
market Subsea/CSV: • 91% utilisation rate Subsea fleet • 87% utilisation project fleet which is
record high in forth quarter • 96% utilisation TC vessels • Vessels in transit on new contracts Finance: • Hedge accounting implemented
from Q4
DOF ASA 14 – Q4 Presentation 2013 14
Amounts in NOK mill
Q4 2013 Q4 2012 Q4 2013 Q4 2012 Q4 2013 Q4 2012 Q4 2013 Q4 2012
Operating income 270 246 333 352 2 030 1 464 2 633 2 062
Operating result befor depreciation (EBITDA) 99 103 166 155 565 434 830 692
Operating result (EBIT) 62 68 112 67 360 185 534 320
EBITDA margin 37 % 42 % 50 % 44 % 28 % 30 % 32 % 34 %
EBIT margin 23 % 28 % 34 % 19 % 18 % 13 % 20 % 16 %
PSV AHTS Subsea TotalALL FIGURES IN NOK MILLION
P&L Q4 2013 Segments
12 %
20 %
68 %
EBITA Q4 2013
PSV AHTS Subsea
15 %
22 % 63 %
EBITA Q4 2012
PSV AHTS Subsea
DOF ASA 15 – Q4 Presentation 2013 15
Historical EBITDA excl asset sales
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
-
500
1 000
1 500
2 000
2 500
3 000
Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013
Operating revenue EBITDA EBITDA margin
MN
OK
Q4 2010 Q4 2011 Q4 2012 Q4 2013
Operating revenue 1 574 1 862 2 069 2 633
EBITDA 453 581 685 830
EBITDA margin 29 % 31 % 33 % 32 %
Non-current assets 22 423 26 641 27 630 27 983
Current assets 4 629 4 187 4 136 4 817
Total Assets 27 052 30 828 31 766 32 800
Equity 6 728 6 669 6 735 6 341
Non-current debt 16 931 20 012 21 563 21 637
Current debt 3 393 4 147 3 468 4 822
Total Equity and Debts 27 052 30 828 31 766 32 800
DOF ASA 16 – Q4 Presentation 2013 16
Amounts in NOK mill ion 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 l iabilities 21 056 21 027
Non-current liabilities 21 637 21 601
Current part of interest bearing debt 3 012 2 000
Other current l iabilities 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
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
Util ized credit facil ities 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
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
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
DOF ASA 20 – Q4 Presentation 2013 20
Debt maturity profile
DO
F
DO
F S
ub
se
a
-
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
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
- Q4 Presentation 2013 DOF ASA
Contract Coverage
DOF ASA 23 – Q4 Presentation 2013 23
PSV – Contract coverage
FIRM CONTRACTS
UNDER CONSTRUCTION
OPTIONAL PERIOD
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D
Skandi Falcon 1 1 1 1
Skandi Marstein 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2
Skandi Foula 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Skandi Rona 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Skandi Buchan 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2
Skandi Sotra 1 1 2
Skandi Caledonia 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Skandi Barra 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Skandi Texel 1 1 2 2 2
Skandi Mongstad 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Skandi Flora 1 1
Skandi Gamma 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Skandi Waveney 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Skandi Feistein 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Skandi Kvitsøy 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Skandi Nova 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Skandi Marøy 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Skandi Hugen 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Skandi Captain
Skandi Fjord 0 1 1 1 2 2
Skandi Leblon 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Skandi Flamengo 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Skandi Yare 1 1 1 1 1 1 1 1 1 1 1
Skandi Stolmen 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
NS
OS
UP
PY
PSV 2017 20182014 2015 2016
SPOT
DOF ASA 24 – Q4 Presentation 2013 24
AHTS – Contract coverage
FIRM CONTRACTS
UNDER CONSTRUCTION
OPTIONAL PERIOD
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D
Skandi Stord 1
Skandi Admiral 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Skandi Vega 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Skandi Copacabana 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2
Skandi Botafogo 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Skandi Rio 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Skandi Fluminense 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Skandi Giant 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Skandi Møgster 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2
Skandi Ipanema 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2
Skandi Amazonas 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Skandi Iguacu 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Skandi Urca 3 3 3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Skandi Angra 3 3 3 3 3 3 3 3 3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Skandi Paraty 3 3 3 3 3 3 3 3 3 3 3 3 3 3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Skandi Peregrino 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Skandi Emerald 1 1 1 1 1 1 1 1 2 2 2 2
Skandi Saigon 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2
Skandi Pacific 1 1 1 1 1 1 1 1 2 2 2 2
Skandi Atlantic 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
20182016 2017
AD
DN
SO
Su
pp
ly
AHTS 2014 2015
SPOT
DOF ASA 25 – Q4 Presentation 2013 25
CSV – Contract coverage
FIRM CONTRACTS
UNDER CONSTRUCTION
OPTIONAL PERIOD
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D
Skandi Olympia 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Skandi Commander 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Skandi Chieftain 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Skandi Hav 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
2018
Su
pp
lyN
SO
CSV 20162014 2015 2017
DOF ASA 26 – Q4 Presentation 2013 26
FIRM CONTRACTS
UNDER CONSTRUCTION
OPTIONAL PERIOD
Subsea – Contract coverage
* CHARTERED
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D
Skandi Acergy 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Skandi Achiever 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Skandi Aker 1 1 1 1 1 1 1 1 1 1 1 1 1
Skandi Arctic 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Skandi Carla 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Skandi Constructor 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Skandi Neptune 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Skandi Niteroi 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Skandi Patagonia 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Skandi Salvador 1 1 1 1 1 1 1 1 1 1 1 1
Skandi Santos 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Skandi Seven 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Skandi Vitoria 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Ocean Protector 1 1 1 1 1 1 1 1 1 1 1 1
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Geosea 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Skandi Hawk 1 1 1
Skandi Hercules 1 1 1 1 1
Skandi Inspector 1 1 1 1 1
Skandi Singapore 1 1 1
Skandi Skansen 1 1 1 1 1 2 2 2 2 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Skandi Skolten 1 1 1 1 1
Geosund 1 1 1 1 1 1 1 2 2 2 1 1 1 1 1 1 1 1 2 2 2 2
Harvey Deep-Sea* 1 1 2 1 1 1 1 1
Norman Reach* 3 3 3 3 3 3 1 1
Skandi TBN (NB800) 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Skandi PLSV1 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Skandi PLSV2 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Skandi PLSV3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Skandi PLSV4 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
DO
F S
ub
se
a
2017
Geograph
Subsea 2014 2015 2016 2018
Geoholm
- Q4 Presentation 2013 DOF ASA
DOF Subsea
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
DOF ASA 29 – Q4 Presentation 2013
DOF Subsea Group – In brief
DOF Subsea 29
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
NO
K m
illi
on
Operating revenue EBITDA EBITDA margin
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
Le
ve
l o
f b
arr
iers
to
en
try
Incre
ase
d e
ng
ine
ering
re
qu
ire
me
nt
Complex
subsea operations
Marine transport/
services
Com
ple
xity a
nd s
ize o
f opera
tions
Incre
ase
d s
yste
m r
eq
uire
me
nt
DSV
OSCV
ROV
AHTS
PSV
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
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)
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
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
Averagedayrate 2013
Sk. Waveney Sk. Marstein Sk. Saigon Sk. Møgster Sk. Ipanema Average dayrate newcontracts
(TN
OK
)
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
Thank you
Presented by
Mons Aase - CEO Hilde Drønen - CFO
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.