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Quarterly Presentation Q4 2017
DOF Subsea Group
DOF Subsea Group at a glance
2
2005DOF Subsea
established
NOK 4.6bn1)
Revenues
2017
1 2142)
Subsea employees
worldwide Q4’17
NOK 16.1bnFirm backlog
Q4’17
273)
Subsea vessels714)
ROVs
ModernState-of-the-art
asset base
IntegratedSupplier of subsea
offshore services
DOF Subsea1) Note: According to management reporting
2) Note: Excluding marine crew
3) Note: Including newbuilds Skandi Olinda and Skandi Recife and chartered-in vessels Harvey Deep Sea, Skandi Chieftain and Skandi Darwin
4) Note: Including 2 AUVs
11 1113
1618
21
24 25 26 27
24
21
25
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Owned vessels Chartered-in vessels Total
337
553 563
8971014
1246
14921354
1667
1858
1566
1278 1214
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Focus on consolidation and streamlining of
business operations to improve efficiency and
competitiveness in weak market
DOF Subsea established following the
acquisition of Geoconsult. The Company was
listed second half 2005.
First Reserve acquires 49% of DOF Subsea,
which in the following is delisted from the Oslo
Stock Exchange
Expanding organisation on the back of several
large contract awards. Number of employees
and vessels peaking at 1 858 and 27,
respectively
Delivery of two newbuilds entering into
long-term contracts
Large and global organisation following multiple
acquisitions from 2005-2010
2010Century SubseaCovus Subsea
CSL
2005
More than a decade of structural growth and consolidation
DOF Subsea 3
2008
2014
2016
2017
Development in number of Subsea Employees1)
Development in number of vessels in operation2)
SEMAR
Awarded four PLSV long-term contracts in joint
venture with TechnipFMC
2013
SWG Offshore
1) Note: Marine crew not included
2) Note: Newbuilds not included
3) Note: Year-end numbers
Global footprint
4
ATLANTIC
NORTH AMERICA
BRAZILASIA PACIFIC
Macaé
Rio de Janeiro
Buenos
Aires
Houston
St John’s
Aberdeen
Bergen
Luanda
Singapore
Manila
Melbourne
Jakarta
BruneiKuala Lumpur
Darwin
Perth
2976
38610
2434
2885
DOF Subsea1) Note: Number of employees as at end of Q4’17, excluding marine crew
2) Note: Vessels in operation as at end of Q4’17, including 3 chartered-in vessels (excluding newbuilds under construction)
Several major and attractive contracts commenced in 2017
5
ENI Angola
Jan 2017
• IMR contract offshore Angola
• 16 months + 3x4 months
options
• Scope comprising project
management, engineering,
vessels and ROV services
• Long-term contract with Petrobras
• 18 months + 18 months options
• On contract with Petrobras since
2010
• Vessel owned in joint venture with
TechnipFMC
• First-pipe lay vessel built in Brazil
• Long-term contract with
Petrobras
• 8 years + 8 years options
• Vessel owned in joint venture
with TechnipFMC
• Built in Norway with 650t VLS
• Long-term IMR contract
offshore Eastern Canada
• 10 years + 10 years options
• IMR scope comprising project
management, engineering,
vessel and ROV services
• High strategic importance
through strengthened presence
in the Canadian market
• Long-term FLNG IMR contract
awarded in Australia with
Shell
• 5 years + 4 years options
• IMR scope comprising project
management, engineering,
logistics, vessel and ROV
services
Skandi Vitoria
Jan 2017
Skandi Buzios
Apr 2017Husky Energy
Jul 2017
Prelude FLNG
Nov 2017
DOF Subsea
6
Positioning DOF Subsea
• Improved competitive position for DOF
Subsea when market normalises
− multiple competitors have scaled down
operations or entered financial distress
• Favourable competitive dynamics in
tendering for mid-sized subsea IMR
projects
− Larger EPCI providers typically invited to
tender, however less capable and willing
to meet specific project requirements
due to relatively small project size
− Vessel suppliers are not invited to
tenders due to lack of engineering and
project execution capabilities
• DOF Subsea benefits from offering an
integrated engineering and vessel
solution
Lo
cal
Mu
lti-
reg
ion
al
Glo
ba
l
Dayrate / Support services Small to medium EPCI contracts Larger EPCI contracts
Source: ABGSC
= Chapter 11 /
financial distress
Geographies
Capabilities
Illustrative
DOF Subsea holds a leading position in the subsea IMR market through its
global presence and integrated solutions offering
DOF Subsea
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2012 2013 2014 2015 2016 2017
-
500
1,000
1,500
2,000
2,500
2012 2013 2014 2015 2016 2017
-
5
10
15
20
25
2012 2013 2014 2015 2016 2017
Key financials1)
7
Revenue EBITDA2) Firm backlog
NOK million NOK million NOK billion
1) Note: Figures according to management reporting
2) Note: EBITDA excl. profit from sale of non-current assetsDOF Subsea
Segment highlights
Two business segments
DOF Subsea 9
DOF Subsea Group
Long-term Chartering1)
Revenues 20172)
NOK 1 423 million
EBITDA 20173)
NOK 1 084 million
~76% margin
Firm backlog4)
NOK 12.4bn
1) Note: Long-term chartering comprises 5 PLSVs in operation and 2 PLSVs under construction, plus
Skandi Acergy and Skandi Patagonia
2) Note: According to management reporting
3) Note: According to management reporting
4) Note: Firm backlog as at end of Q4’17
5) Note: Including 3 chartered-in vessels
2 newbuilds Q4’177 vessels in
operation Q4’17
Long-term
charters
Vessel
capabilitiesCapex
spending
Subsea IMR Projects
Revenues 20172)
NOK 3 127 million
EBITDA 20173)
NOK 323 million
~10% margin*
Firm backlog4)
NOK 3.7bn
1 214 Employees
Q4’17
18 vessels in
operation5) Q4’17
Engineering
capabilities
Framework
agreements
Opex
spending
* Reduced EBITDA margin due to one-off events in North America and APAC
10
Numerous projects completed worldwide
Built a leading subsea projects division for over a decade
• Subsea project activity established with a global footprint in all key offshore regions
• High quality asset base leveraging unrivaled subsea and vessel operating competence
A clear action plan to pursue further opportunities
• Continue to increase the scope and complexity of operations
− Strengthen presence in selected geographies
− Further build project backlog with core focus on IMR projects
Subsea IMR Projects
Selected Mooring projects – Last 5 yearsSelected IMR projects – Last 5 years
✓ ENI Angola IMR Contract (2017-2018)
✓ Goliat Field Support ENI (2016)
✓ Saipem CRX/Nene (2014)
✓ Call-off for Light Construction Services and Seabed
Survey Services Statoil (2012-2015)
✓ Technip Frame Agreement (2012-2015)
✓ ConocoPhillips ROV Services (2012 and onwards)
✓ Freeport McMoran IMR Support (2013-2016)
✓ Saipem JSM Export Line Support (2014-2015)
✓ ROV Support Vessel Petrobras (2011 and onwards)
✓ Lam Son Mooring Replacement (2017)
✓ Yinson OCTP FPSO Field Dev. (2016-2017)
✓ Bongkot Mooring Replacement PTTEP (2017)
✓ Raroa Mooring OMV (2016-2017)
✓ Gina Krog TMRS Teekay (2016)
✓ Catcher Mooring Installation BWO (2016)
✓ Goliat FPSO Marine Installation ENI (2011-2015)
✓ Lam Son Mooring Installation PTSC (2014)
✓ Knarr Mooring Project Teekay (2013-2014)
✓ Banff Re-instatement Project Teekay (2013-2014)
DOF Subsea
Selected contracts included in backlog
11
Location Client Scope Commencement Duration
Angola ENI Angola IMR 2017 16 months + 12 months
Eastern Canada Husky Energy IMR 2017 10 years + 10 years
Prelude Australia Shell Australia IMR 2017 5 years + 4 years
Brazil Petrobras Inspection 2016 1 year + 1 year
Gorgon, Janz and Wheatstone Chevron Australia IMR 2015 3 years + 2 years
Malampaya Shell Philippines IMR 2014 7 years + 3 years
North Sea Conoco PhillipsIMR
2011 8 years + 13 years
Subsea IMR Projects
North America
Gradually built up the
region, becoming a top
three supplier of IMR
services in the GoM
Brazil
Strong position being one
of the major suppliers of
IMR services
North Sea / Atlantic
Leading supplier of
mooring services in the
North Sea and West
Africa
Asia Pacific
Leading supplier of IMR
services in the region
DOF Subsea
DOF Subsea provides state-of-the-art vessels to leading players
12
Skandi Acergy Skandi Acu Skandi Africa
Skandi Niteroi Skandi Patagonia Skandi Vitoria
Skandi Buzios Skandi Recife Skandi Olinda
Day-rate basedRemuneration
Strong long-term contract coverageContracts
High-end vessels operating advanced subsea projects for third party EPCI contractors
Operations
Selected clients
Construction
support vessel
Construction & pipe
laying vessel
Construction & pipe
laying vessel
Construction & pipe
laying vessel
Construction & pipe
laying vessel
Construction & pipe
laying vessel
Construction & pipe
laying vessel
Dive support
vessel
Construction & pipe
laying vessel
7
vessels in
operation
2
contracted
newbuilds
NOK 12.4bn
firm backlog
per Q4’17
Long-term Chartering
DOF Subsea
13
DOFCON Brazil AS(established 2009)
50% 50%
State-of-the art PLSV fleet co-owned through JV with TechnipFMC, the #1 global provider of flexible pipes
✓Skandi Vitoria and Skandi Niteroi first ever pipe-lay
vessels built in Brazil ✓
Skandi Açu and Skandi Buzios built in Norway and
delivered on-hire to Petrobras in August 2016 and April
2017, respectively
✓
Skandi Recife and Skandi Olinda currently under
construction, with construction of both vessels
progressing according to plan✓
Skandi Açu, Skandi Buzios, Skandi Refice and Skandi
Olinda all awarded 8 + 8 year contracts with Petrobras
6 vessels – USD 2 billion invested
Exposure to larger projects✓
Attractive financing terms
State-of-the-art vessels
Reduced redeployment risk ✓
✓
✓
Successful strategic alliance with TechnipFMC in BrazilLong-term Chartering
DOF Subsea
4th Quarter 2017
Q4 2017 highlights
• The operating revenue for the quarter was NOK 1 275 million1) with an EBITDA of NOK 402 million1)
and an overall vessel utilisation of 78%
• Several short-term contracts awarded within the Subsea IMR Projects segment, increasing the
utilisation of both assets and personnel compared to previous quarters
• The IMR contract on the Prelude field with Shell in Australia commenced in November
• Skandi Niteroi awarded short-term contract in Brazil
• In December, DOF Subsea completed a private placement towards DOF ASA to raise NOK 500 million
in equity. In connection with the private placement, the maturity of bond DOFSUB07 was extended from
May 2018 to October 2019 for NOK 100 million and May 2020 for the remaining NOK 408 million
• Firm backlog as at 31 December 2017 was NOK 16.1 billion
DOF Subsea 151) Note: Figures according to management reporting
Quarterly performance1)
DOF Subsea 161) Note: Figures according to management reporting, and excluding profit from sale of non-current assets
0%
5%
10%
15%
20%
25%
30%
35%
40%
-
500
1,000
1,500
2,000
2,500
Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017
EBIT
DA
mar
gin
NO
K m
illio
n
Operating income EBITDA EBITDA margin
NOK million Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017
Operating income 1 871 1 530 1 963 1 904 2 025 1 656 1 962 1 991 1 642 1 406 1 660 1 232 1 128 982 1 199 1 093 1 275
EBITDA 550 502 543 552 502 458 515 553 516 456 510 447 320 279 400 332 402
EBITDA margin 29,4% 32,8% 27,7% 29,0% 24,8% 27,7% 26,2% 27,8% 31,4% 32,4% 30,7% 36,3% 28,4% 28,4% 33,4% 30,4% 31,5%
Current assets 3 470 3 247 3 252 2 998 4 223 3 414 3 414 3 674 3 752 2 900 3 010 2 742 2 483 2 808 2 595 2 501 2 607
Non-current assets 16 340 16 012 16 151 16 215 15 796 16 726 16 578 16 447 16 818 17 652 18 206 18 514 18 043 18 087 18 428 17 926 17 829
Total assets 19 810 19 258 19 403 19 213 20 019 20 140 19 992 20 121 20 570 20 552 21 216 21 256 20 526 20 896 21 023 20 427 20 436
Current liabilities 3 167 3 470 3 741 3 607 4 505 4 139 4 577 4 492 3 650 2 991 3 022 2 645 2 478 2 444 3 010 3 051 2 440
Non-current liabilities 11 427 10 126 9 701 9 668 9 402 9 924 9 009 9 988 11 228 11 482 11 864 12 174 11 993 12 503 11 942 11 221 11 648
Equity 5 216 5 662 5 962 5 938 6 112 6 077 6 405 5 641 5 692 6 078 6 330 6 437 6 055 5 948 6 071 6 156 6 348
Total equity and liablilites 19 810 19 258 19 404 19 213 20 019 20 140 19 991 20 121 20 570 20 551 21 216 21 256 20 526 20 896 21 023 20 427 20 436
Condensed profit & loss1)
DOF Subsea 171) Note: Financial statement according to IFRS. Condensed financial statement according to management reporting is included in the DOF Subsea Quarterly Financial Report
Pofit & Loss (NOK million) 4Q 2017 4Q 2016 2017 2016
Operating income 1 068 1 001 3 849 5 099
Payroll expenses -368 -376 -1 420 -1 611Other operating expenses -462 -407 -1 593 -2 047Share of net income of associates and joint ventures 54 70 303 154Profit from sale of non-current assets - 96 -5 170
Operating profit before depreciation (EBITDA) 292 385 1 135 1 764
Depreciation and impairment -201 -375 -999 -1 318Operating profit (EBIT) 91 10 136 446
Financial income 13 20 55 59Financial expenses -132 -145 -521 -530Realised net gain / loss on derivative instruments and currency position 8 -98 -80 -181Unrealised net gain / loss on derivative instruments and currency position -194 -193 288 473Net financial income / loss -305 -417 -259 -179
Profit / loss before tax -215 -407 -123 266Income tax expense -161 -23 -150 -111
Profit / loss for the period -375 -430 -273 155
Condensed balance sheet1)
DOF Subsea 181) Note: Financial statement according to IFRS. Condensed financial statement according to management reporting is included in the DOF Subsea Quarterly Financial Report
Assets (NOK million) 31.12.2017 31.12.2016
Tangible assets 11 773 11 950
Goodwill 366 373
Deferred tax asset 243 269
Investment in associates and joint ventures 1 027 717
Non-current receivables 1 125 1 169
Non-current assets 14 534 14 479
Trade receivables 855 791
Other current receivables 252 317
Total current receivables 1 107 1 108
Restricted cash 311 305
Unrestricted cash and cash equivalents 786 757
Cash and cash equivalents 1 097 1 062
Current assets 2 204 2 170
Total assets 16 738 16 648
Equity and liabilities (NOK million) 31.12.2017 31.12.2016
Paid-in equity 4 344 3 844
Other equity 1 778 1 987
Non-controlling interests 226 224
Total equity 6 348 6 055
Bond loans 1 914 1 297
Debt to credit institutions 6 518 7 208
Financial non-current derivatives 24 98
Other non-current liabilities 24 29
Non-current liabilities 8 481 8 632
Current portion of debt 1 191 1 114
Trade payables 392 500
Other current liabilities 325 347
Current liabilities 1 909 1 961
Total liabilities 10 390 10 594
Total equity and liabilities 16 738 16 648
Debt maturity profile1)
DOF Subsea 19
Debt maturity profile, 2018E – 2022E
1) Note: Figures according to management reporting and based on exchange rates as at end of Q4’17
The figures reflect amortisation and balloon payments on outstanding debt
-
500
1,000
1,500
2,000
2,500
3,000
3,500
2018E 2019E 2020E 2021E 2022E Thereafter
NO
K m
illio
n
Bond Loan Bank Debt Balloons
Backlog1)
DOF Subsea 201) Note: Figures based on remaining backlog as at end of Q4’17 and exchange rates as at end of Q4’17
2) Note: Contract backlog excludes master service agreements (MSAs) within the Subsea IMR Projects segment – only confirmed POs are included in the backlog
2018 2019 2020 2021 2022 Thereafter
Options 1.1 0.6 0.5 0.5 0.3 15.1
Firm 2.8 2.5 2.3 2.0 1.8 4.7
0.0
5.0
10.0
15.0
20.0
NO
K b
illi
on
As at 31 December 2017, the Group’s firm contract backlog was NOK 16.1 billion
Modern high-end fleet
• Majority of the fleet is younger than 10 years
• Modern fleet with a value adjusted average fleet age of 6.4 years
• High-end vessels, capable of a wide scope of worldwide operations
DOF Subsea 21
Skandi Africa, Ship of the Year 2015
Skandi Acu, PLSV built 2016
Skandi Buzios, PLSV built 2017
1) Note: Excluding newbuilds under construction and chartered-in vessels
2) Note: Figures as at end of Q4’17
-
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
Years
Fleet age
Average fleet age
Value adjusted average fleet age
Newbuilds8%
2013-201717%
2007-201250%
2000-200625%
Year of delivery DOF Subsea fleet
Thank you!
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