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Fred. Olsen Energy 9/4/2002
Fred. Olsen Energy ASA 2002
COMPANY PRESENTATION
4th September 2002
Fred. Olsen Energy 9/4/2002
Fred. Olsen Energy ASA 2002
INTEGRATED OFFSHORE PROVIDER
Drilling, WellServices &
Subsea Services
FloatingProduction
Engineeringand
Fabrication
Fred. Olsen Energy ASA
FRED. OLSEN PRODUCTION
DOLPHIN AS
DOLPHIN DRILLING LTD.
HARLAND & WOLFF (92.2%)
TITANIC QUARTER
TITANIC PROPERTIES
Fred. Olsen Energy 9/4/2002
Fred. Olsen Energy ASA 2002
OWNERSHIP STRUCTURE
dfdsfdsBonheur ASA
Ganger Rolf ASAAS Borgå
60 %
Fred. Olsen Energy ASA
FOE5 % Institutional &
private investors
35 %
• Enterprise Value: NOK 5,2 bn• Market cap. of equity: NOK 1,0 bn• 3,900 shareholders
Fred. Olsen Energy 9/4/2002
Fred. Olsen Energy ASA 2002
REVENUES & EBITDA 1H 20021324
164
489562
9212
0
200
400
600
800
1000
1200
1400
Offshore drilling Floating production Eng. & Fabr.
Revenues EBITDA
Fred. Olsen Energy 9/4/2002
Fred. Olsen Energy ASA 2002
Fred. Olsen Energy ASA EBITDA & EBIT
(excludes exceptional items)
-50
50
150
250
350
450
EBITDA 194 168 183 201 167 214 227 278 137 144 248 198 344 347 356 389 278
EBIT 112 90 103 109 58 79 94 112 -30 -22 63 -2 119 106 121 156 47
2Q 98 3Q 98 4Q 98 1Q 99 2Q 99 3Q 99 4Q 99 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 2Q 01 3Q 01 4Q 01 1Q 02 2Q 02
Fred. Olsen Energy 9/4/2002
Fred. Olsen Energy ASA 2002
DEBT PROFILE
• Interest bearing debt:NOK 5.4 bn (USD 720 mill)
• 7 year repayment profile• Average maturity 4 years• Net debt: USD 560 mill
0
100
200
300
400
500
600
700
800
2002 2003 2004 2005 2006 2007 2008
USD mill
Fred. Olsen Energy 9/4/2002
Fred. Olsen Energy ASA 2002
CURRENT STATUS
• 2 rigs + floating production secures underlying cashflow
• Significant spot market exposure
• Incentives needed for North Sea market, few triggers for 2003
• Focus on drilling tenders outside North Sea
• Compact Yard strategy at H&W
BidefordBideford
BorgilaBorgila
ByfordByford
BorglandBorgland
BorgnyBorgny
BorgstenBorgsten
BredfordBredford
StatoilStatoil
StatoilStatoil Undefined Undefined OptionOption
AHAH
NorskNorsk HydroHydro
NorskNorsk HydroHydro
20012001 20022002 20032003 20042004 20052005 20062006 20072007
BelfordBelford PetrobrasPetrobras
BulfordBulford = upgrading period
= option
= firm
K. McGeeK. McGee
SPSSPS
SPSSPS
Frame Agreement (1 year notice)Frame Agreement (1 year notice)
KMGKMG
TOWTOW
Rig Contracts Rig Contracts (04.09.02)(04.09.02)
KMGKMG
EnCanaEnCana
Nim.Nim.//CopCop..
BorgholmBorgholm Purchased Purchased Oct. 01Oct. 01
KMGKMG
BPBP
Fred. Olsen Energy 9/4/2002
Fred. Olsen Energy ASA 2002
SPOT MARKET EXPOSURE
• 1 drillship
• 5 drilling semis
• 2 accomodation/ tender semis
• 1 jack-up
Fred. Olsen Energy 9/4/2002
Fred. Olsen Energy ASA 2002
Belford
• Completed contract for KerrMcGee in Brazil
• Being marketed in i.a. GoM, Brazil, Canada, Faroes
Fred. Olsen Energy 9/4/2002
Fred. Olsen Energy ASA 2002
Byford, Borgsten, Borgny, Bulford
• In lay-up in Invergordon, Belfast
• Being marketed for contracts in i.a. Mexico, UK, Mediterrenean
Fred. Olsen Energy 9/4/2002
Fred. Olsen Energy ASA 2002
Bredford
• Completed work for Nimirin Tunisia
• Being marketed for contracts primarily in Mediterranean area
Fred. Olsen Energy 9/4/2002
Fred. Olsen Energy ASA 2002
Borgholm
• Upgrading completed in Ølen, Norway
• Accomodation market in GoM
• Capacity: 600 beds
Fred. Olsen Energy 9/4/2002
Fred. Olsen Energy ASA 2002
Borgila
• Frame agreement withHydro 2008, subject to requirement
• Present drilling programmecompleted Oct 2002
• Borgila (or substitute) has priority for well maintenance
• Alternative: GoM/accommodation market
Fred. Olsen Energy 9/4/2002
Fred. Olsen Energy ASA 2002
SPOT MARKET CHALLENGES
• Secure continuing employment
• Selective cold-stacking of rigs
• Focus on marketing & costs
• Alliances/integrated services
• Market driven consolidation opportunities
Fred. Olsen Energy 9/4/2002
Fred. Olsen Energy ASA 2002
FLOATING PRODUCTION
Fred. Olsen Energy 9/4/2002
Fred. Olsen Energy ASA 2002
PETRÒLEO NAUTIPA
• 5-year contract, 2 year firm
• Start-up Gabon earlySeptember
• T/C dayrate ca. USD 40,000; tariff element
Customer: Vaalco Energy Inc
Fred. Olsen Energy 9/4/2002
Fred. Olsen Energy ASA 2002
KNOCK TAGGART DOUBLED CAPACITY
Production start Jun 02
Risør construction siteDec 01–Apr 02
Fred. Olsen Energy 9/4/2002
Fred. Olsen Energy ASA 2002
FPSO KNOCK TAGGART• Production capacity increased to 60,000• FPSO kept on location; less than a week
production down-time• Dayrate increased to USD 65,000
Fred. Olsen Energy 9/4/2002
Fred. Olsen Energy ASA 2002
HARLAND & WOLFF RESTRUCTURING
Compact Yard• Close down main steel fabrication activities• Focus on:
• Engineering, ship repair, outfitting and conversions• Current employement = approx 500• Completion of RoRo’s Q4 2002 and Q1 2003• Significant challenge to ensure adequate work under
Compact Yard Strategy
Fred. Olsen Energy 9/4/2002
Fred. Olsen Energy ASA 2002
PROPERTY DEVELOPMENT
Titanic Quarter
• 180 acres (800 mål) - 50% • shared with Belfast Harbour Commision
• 60 Acres (light industrial development) withlocal business employing 550 people
Fred. Olsen Energy 9/4/2002
Fred. Olsen Energy ASA 2002
TITANIC QUARTERS
Fred. Olsen Energy 9/4/2002
Fred. Olsen Energy ASA 2002
SUMMARY
Underlying cash flow secured by Bideford, Borgland and floating production
Significant spot market exposure
Focus on marketing and costs
Market driven consolidation opportunities