SBI Presentation - 1 March 2012 presentation Finalsbioffshore.com/wp-content/uploads/2018/05/01Mar2012-SBI... · •Fingerboard •Cabins HPU •1-5 subm. pump •3-7 ext. pumps Drillfloor

SBI OffshoreSBI Offshore

Full Year 2011 Results Presentation

1 March 2012

DisclaimerDisclaimer

This document contains information that is commercially sensitive, subject to professional privilege and is proprietary and confidential in nature. Any professional privilege is not waived or lost by reason of mistaken delivery or transmission. If you receive a copy of this document but are not an authorized recipient, you must not use, distribute, copy, disclose or take any action in reliance on this document or its contents.

The information contained in this document has not been independently verified. No representation or warranty express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. The information contained in this document should be considered in the context of the circumstances prevailing at the time and has not been, and will not be, updated to reflect material developments which may occur after the date of the presentation. Neither Company nor any of its respective affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document.

The document contains statements that reflect the Company’s beliefs and expectations about the future. These forward-looking statements are based on a number of assumptions about the Company’s operations and factors beyond the Company’s control, and accordingly, actual results may differ materially from these forward-looking statements. The Company does not undertake to revise forward-looking statements to reflect future events or circumstances.

FY2011 FINANCIAL HIGHLIGHTSFY2011 FINANCIAL HIGHLIGHTS

• Order book raised to US$41M from US$6.1M a year ago after significant new contracts since start of FY2012

• Net profit up 72.9% to US$0.26M on revenue of US$7.1M (FY2010: US$9.3M)

• Gross profit up 10% to US$3.8M in FY2011

• Gross profit margin 52.9% (FY2010: 36.7%)

• EPS 0.22 US cent (FY2010: 0.12 US cent)

• NAV 7.85 US cent (FY2010: 7.6 US cent)

• Proposed dividend: 0.2 Singapore cent

• Expects ‘substantially higher’ sales for FY2012

PROFIT & LOSS HIGHLIGHTSPROFIT & LOSS HIGHLIGHTS

Description FY2011(US$ 000s)

FY2010(US$ 000s)

% change

Sales 7,121 9,339 (23.7)

Gross Profit 3,766 3,424 10.0

Gross Profit Margin (%) 52.9 36.7 16.2

G&A expenses (3,770) (3,540) 6.4

Profit before Tax 464 202 130

Profit after Tax 257 148 72.9

EPS (in US cent) *0.22 **0.12 83.3

• *based on weighted average number of shares in issue of 121,680,100 • ** based on weighted average number of shares in issue of 116,888,319

BALANCE SHEET HIGHLIGHTSBALANCE SHEET HIGHLIGHTS

Description FY2011(US$000s)

FY2010(US$000s)

Total Assets 13,062 14,639

Non-Current Assets 9,435 9,303

Net Current Assets/(liabilities) 119 (10)

Total Liabilities 3,508 5,346

Net Assets 9,549 9,289

Cash and Cash Equivalents 1,330 1,607

Net Asset Value per share (in US cents) *

7.85 7.63

* NAV calculated based on total number of issued shares of 121,680,100

Our FocusOur Focus

• Wide marketing and distribution network in Asia, Middle East, USA, Brazil and Europe

• Deep experience with Offshore equipment, which makes up 60-70% of the total cost of a rig

• Ability to provide cost-competitive drilling equipment packages

• We have helped our principals to sell more than US$2 billion of equipment since 2003.

Our Competitive StrengthsOur Competitive Strengths

• Focus on tender rigs and liftboats in Asia and Middle East

• Neglected by large equipment OEMs as these packages are typically below US$50 million

• Initial US$30 million order followed by several enquiries for similar turnkey equipment solutions

• Ability to deliver at competitive cost and shorter delivery leadtime

Turnkey Equipment SolutionsTurnkey Equipment Solutions

Tender Rig for Shallow Water OpsTender Rig for Shallow Water Ops

Turnkey Equipment Solutions package includes:

Derrick Set

Mud processing equipment

Cement system

Lifting equipment

Power system

BOP

Instrumentation

Drillstring handling

Substructures

Liftboat with Workover EquipmentLiftboat with Workover Equipment

Turnkey Equipment Solutions package includes:

Jacking system

Workover equipment

Legs

Crane

Mooring system

Lifeboats/davits

Project management

Sea Reef – Product RangeSea Reef – Product Range

Deck Machinery

Offshore Cranes

Offshore Load Handling Systems

SBI - Product RangeSBI - Product Range

Lifeboats

Davits

API Pipes, Fittings, Manifolds

SBI – Product RepresentationAker MH Drilling Equipment Package

SBI – Product RepresentationAker MH Drilling Equipment Package

Derrick Pipehandling•Bridge crane•LGA•IRA•URA•CSB•Monkey tail•Fingerboard•Cabins

HPU•1-5 subm. pump•3-7 ext. pumps

Drillfloor•Roughneck •TorqueMaster™•Cathead•Rotary table•Mud bucket•Deadline anchor•Manipulator arms

Horizontal pipehandling•Pipedeck cranes•Eagle light•Catwalk•Riser handling

Rig Systems•Conv. Rigs•RamRigs•Modules•Mud systems

Compens. & Tens.•DSC•AHC•RTS•GPLT

Mud Equipment•Bulk systems•Mud recond. syst.•Mud mixing syst.

BOP Handling•BOP skid•BOP transporter•BOP cranes•BOP guide system

Top drives•Derrick Drilling Mach.•Portable top drives•Travelling block•Crown blocks

DrillView•Integrated CCTV•Remote diagnostics•Intelligent operator chair

Drilling Control Rooms & Cabins

Subcontracting from Aker MH

Derrick Pipehandling•Bridge crane•Monkey tail•Fingerboard•Cabins

HPU•1-5 subm. pump•3-7 ext. pumps

Horizontal pipehandling•Pipedeck cranes•Eagle light•Catwalk•Riser handling

DrillstringCompensator

Mud Equipment•Bulk systems•Mud recond. syst.•Mud mixing syst.

BOP Handling•BOP skid•BOP transporter•BOP cranes•BOP guide system

Drilling Control Rooms & Cabins

Derrick

Riser handling crane

USA – Sales, ENG, MFG, MRO

Brazil – Sales, MFG, MRO

Norway – Sales

China – Sales, MFG, MRO

SIN – Sales, ENG, MFG, MRO

Our International OperationsOur International Operations

Strong Network of CustomersStrong Network of Customers

Drilling Companies / Contractors

Seadrill Transocean Maersk Egyptian Drilling Noble Drilling

GlobalSantaFe Baker Hughes Atwood Oceanics Diamond Offshore

Larsen Oil & Gas

Pride International

Petrobras COSL Japan Drilling SeaDragonOffshore

Smedvig Vantage Drilling Sinopec PetroJack ASA CNOOC

EMAS Saudi Aramco Ezra Tanker Pacific PetroMena

Sevan Marine Aban Offshore Songa Offshore Hallin Marine Kencana Marine

Shipyards

Jurong Shipyard PPL Shipyard SembawangShipyard

Cosco Nantong Cosco Dalian

Yantai Raffles DSIC DSOC Shanghai Waigaoqiao

PV Shipyard

KeppelFELs Kencana HL

INDUSTRY OUTLOOKINDUSTRY OUTLOOK

• Brazil to lead in new orders for drillships and semi-submersibles in 2012

• Increased offshore developments in Norway to leadto more rig and platform orders for Asian yards

• More older rigs expected to upgrade in 2012

• Increased safety demands for ancillary equipment, and equipment such as lifeboats and davits

• Tender rigs and lifeboats is proving to be lucrative compare to expensive jackup drilling rig

GROUP OUTLOOK

• Strong team built up in last two years with design and fabrication capabilities (including Honghua); to perform better in year 2012

• Portfolio of OEM product lines (lifeboats and davits, high-pressure pipes, fittings, manifolds, deck machinery, load handling systems) positions Group well to achieve higher sales

• Pre-qualified by four major Korean yards; received several purchase enquiries

• Can offer turnkey solutions for niche areas – liftboatsand tender rigs ignored by majors

• Expects ‘substantially higher’ orders for FY2012

First steps into Korean marketFirst steps into Korean market

• Korean yards building 36 drillships and 5 semi’s worth > US$25b.

• Breakthrough with RBV JV.

• Qualified as vendor to 4 major yards.

• Some lifeboat quotes > US$6 million per rigset.

Sea Reef to perform better in 2012Sea Reef to perform better in 2012

• Rig upgrades on rise due to higher safety concerns.

• Maiden US$1.3 million order for BOP handling equipment for 1 rig upgrade.

• Sufficient in house design/engineering work to cover monthly fixed overheads of US$70k.

Jiangyin SBI to perform betterJiangyin SBI to perform better

• More fabrication work from in house orders.

• Monthly fixed overheads kept at US$40k.

• Aker subcontract work likely after further audit.

CORPORATE DATACORPORATE DATA

• Listed on 11 Nov 2009

• Share price at listing: S$0.270

• IPO Placement Shares : 20.0 Million

Major Shareholders % of shares held

Tan Woo Thian David 37.72

Hui Choon Ho Jonathan 36.28

Basic Share Data (as at 28 February11)

Share Price (as at 28 Feb) S$0.215

Latest Daily Volume (on 28 Feb

12)

16,750

No. of Issued shares excluding

Treasury Shares

121,680,000

Estimated Free Float 27.68%

Market Capitalisation (Million) S$25.6

SBI OffshoreSBI Offshore

• SBI Offshore Limited (the “Company”) was listed on Catalist of the Singapore Exchange Securities Trading Limited (the “SGX-ST”) on 11 November 2009. The initial public offering of the Company was sponsored by PrimePartnersCorporate Finance Pte. Ltd. (the “Sponsor”).

• This announcement has been prepared by the Company and its contents have been reviewed by the Sponsor for compliance with the relevant rules of the SGX-ST. The Sponsor has not independently verified the contents of this announcement.

• This announcement has not been examined or approved by the SGX-ST and the SGX-ST assumes no responsibility for the contents of this announcement, including the correctness of any of the statements or opinions made or reports contained in this announcement.

• The contact person for the Sponsor is Mr Mark Liew, Managing Director, Corporate Finance, at 20 Cecil Street, #21-02 Equity Plaza, Singapore 049705, telephone (65) 6229 8088.