OCEANTEAM SHIPPING ASA
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An Oslo Stock Exchange listed shipping company
Ticker: OTS
CEO: Haico Halbesma
CFO: Torbjørn Skulstad
Q1 2013 Presentation Oslo – 23 May 2013
Q1 PRESENTATION 2013 1
OCEANTEAM SHIPPING ASA
CAUTIONARY STATEMENT
This presentation contains forward looking information. Forward looking
information is based on management assumptions and analysis. Actual
experience may differ, and those differences may be material. Forward looking
information is subject to uncertainties and risks. This presentation must be read
in conjunction with the Company’s financial statement.
Q1 PRESENTATION 2013 2
OCEANTEAM SHIPPING ASA
AGENDA
Highlights
Financials
Market Outlook
Appendix
Q1 PRESENTATION 2013 3
OCEANTEAM SHIPPING ASA
HIGHLIGHTS Q1
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SHIPPING
REVENUE USD 10,0M
EBITDA USD 6,4M
EBITDA MARGIN 64%
ENGINEERING
REVENUE USD 6,1M
EBITDA SD 0,9M
EBITDA MARGIN 14%
Revenue from operations USD 16.5 million
EBITDA from operations is positive; USD 7.2 million
Operating profit of USD 3.8 million
Total number of shares tradable as from 24th January 2013 are 29.593.259
OCEANTEAM SHIPPING ASA
HIGHLIGHTS Q1 - ENGINEERING
Q1 PRESENTATION 2013 5
SHIPPING
REVENUE USD 10,0M
EBITDA USD 6,4M
EBITDA MARGIN 64%
ENGINEERING
REVENUE USD 6,1M
EBITDA SD 0,9M
EBITDA MARGIN 14%
Oceanteam is awarded a contract to supply LS Cable 4000t modular carousel system, 10t tensioner and accompanying equipment for two-year project
2000t modular carousel system is delivered in April at our yard in Velsen
Building of 4000t modular carousel system is in progress, planned delivery Q4 2013
Building of 10t tensioner is in progress, planned delivery June 2013
Velsen equipment base achieved certification to ISO 9001, 14001 and OHSAS 18001 standards for quality, environmental, and health & safety management
OCEANTEAM SHIPPING ASA
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Bond refinance
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OCEANTEAM SHIPPING ASA
BOND REFINANCE – NEW DEBT MATURITY PROFILE
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OCEANTEAM SHIPPING ASA
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Company Overview
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OCEANTEAM SHIPPING ASA
CHARTER STATUS
Robust backlog with solid clients
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OCEANTEAM SHIPPING ASA
ENGINEERING - SERVICES
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Hollandia – Strukton JV, 10120 Riffgat Offshore Sub Station Wintershall, Relocation of MPP P6-S to Q1-D
OCEANTEAM SHIPPING ASA
ENGINEERING - STORAGE OceanWind facilitates the submarine cable industry by
offering its clients a full and integrated range of services
comprising cable storage, cable handling, and cable
transport.
The cable facility is situated immediately behind the North
Sea locks of IJmuiden, in the direct proximity of
Amsterdam.
OceanWind provides long term onshore storage for (spare)
cables, cable transfers, international transport with WIND
cable transport vessels and handling services which
include now storage of cables in reels, baskets and
carousels.
OTS standardized equipment designed for both onshore
and offshore handling and storage of submarine cables.
OceanWind Cable Storage Solutions
Q1 PRESENTATION 2013 11
OCEANTEAM SHIPPING ASA
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Financials
Q1 PRESENTATION 2013 12
OCEANTEAM SHIPPING ASA
FINANCIAL SUMMARY
EBITDA cumulative Q1 2013 increased 17% compared to cumulative Q1 2012
Operating profit for the quarter is USD 3.8 million
Q1 PRESENTATION 2013 13
Figures in USD million Q1 2013 2013 2012 2011 2010
Revenue 16,5 16,5 66,5 61,2 47,0
Operating costs (5,5) (5,5) (23,4) (24,7) (21,8)
EBITDA 7,2 7,2 28,7 24,8 17,0
EBITDA percentage 44 % 44 % 43 % 40 % 36 %
OCEANTEAM SHIPPING ASA
EBITDA DEVELOPMENT YEARLY - HISTORICAL
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0
5
10
15
20
25
30
35
2010 2011 2012
KEY FINANCIAL FIGURES (USD MILLION)
OCEANTEAM SHIPPING ASA
EBITDA BY QUARTER
Stable EBITDA
Q1 PRESENTATION 2013 15
0
2
4
6
8
10
Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013
EBITDA mUSD
OCEANTEAM SHIPPING ASA
P&L REPORT END Q1 2013
Q1 PRESENTATION 2013 16
Figures in USD ‘000 Q1 2013 Q1 2012
Revenue 15 922 15 356
Total operating revenues 15 922 15 356
Net income of associates 575
Operating costs
General & administration
Deprecation
Write off assets
(5 463)
(3 824)
(3 363)
(6 174)
(3 034)
(3 420)
(8)
Total operating expenses (12 650) (12 636)
Operating profit (loss) 3 848 2 720
Net finance (3 932) (4 606)
Ordinary profit (loss) before taxes (84) (1 886)
Corporate income tax 316 (203)
Net result 233 (2 090)
Cum 2013 Cum 2012
15 922 64 269
15 922 64 269
575 2 268
(5 463)
(3 824)
(3 363)
(23 384)
(14 423)
(14 331)
(16)
(12 650) (52 154)
3 848 14 383
(3 932) (21 037)
(84) (6 654)
316 (4 763)
233 (11 417)
OCEANTEAM SHIPPING ASA
BALANCE SHEET Q1 2013
Book value of equity is 37 %
Q1 PRESENTATION 2013 17
Figures in USD ‘000 31.03.2013 31.12.2012
Assets
Intangible assets 18 903 18 506
Tangible assets 231 361 233 081
Total non current assets 250 264 251 587
Receivables
Cash and cash equivalents
15 263
30 050
14 979
34 846
Total current assets 45 313 49 825
Total assets 295 577 301 412
Figures in USD ‘000 31.03.2013 31.12.2012
Equity and liabilities
Total equity 109 546 112 068
Total non current liabilities 169 036 171 894
First year instalments
Other current liabilities
11 427
5 568
11 427
6 023
Total current liabilities 16 995 17 450
Total liabilities 186 031 189 344
Total equity and liabilities 295 577 301 412
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Q1 PRESENTATION 2013
Tax, Bonds, Loans
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OCEANTEAM SHIPPING ASA
LARGE TAX DEDUCTIBLE LOSSES
• Norway
• OTS has confirmed tax loss to carry forward of USD 160 M (NOK 917 M)
• The CSV vessels comply with the Norwegian Tonnage Tax regime with approx. 0% tax
• CSV 101, Southern Ocean and LV 105 are under the NTT regime
• CSV 102 will be using the deferred tax loss
• Exercise of 14.5 million of warrants in q4 2012, 29.6 million shares tradable as from 24th of January 2013
• The Netherlands
• The Dutch entities have an estimated tax loss to carry forward of EUR 45 M
• A restructuring has been finalised to further utilize tax losses
Negligible payable tax costs going forward
Q1 PRESENTATION 2013 19
OCEANTEAM SHIPPING ASA
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Market Outlook
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OCEANTEAM SHIPPING ASA
Strongest market growth takes place in harsh &
deepwater areas
Average p.a. growth of 16% for harsh & deepwater pipelines in period 2012-17
Average p.a. growth of 10% for shallow & benign pipelines in period 2012-17
Q1 PRESENTATION 2013 21
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Km
Year installed
Global offshore pipeline installation forecast
S&B pipelines
H&D infield lines
H&D trunklines
OCEANTEAM SHIPPING ASA
HARSH & DEEPWATER VESSELS SCARCITY EXPECTED FROM 2014
12 new H&D pipelay vessels are needed in 2017,
and another 7 vessels to meet attrition of 35+ years
vessels
Base case has demand growth 2012-17 of
14% p.a. and fleet capacity growth of 8 % p.a.
based on no further new building contracts,
cancellations nor scrapping
Q1 PRESENTATION 2013 22
0%
20%
40%
60%
80%
100%
120%
140%
-150
-100
-50
-
50
100
150
200
250
300
350
400
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Uti
lis
ati
on
(3
00
/36
5 b
as
is)
Ve
ss
el y
ea
rs (
30
0 d
ay
s b
as
is)
H&D pipelay & support market forecast
Idle Other demand
Opex Capex
Utilisation
-
10
20
30
40
50
60
70
80
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Ve
ss
el y
ea
rs (
30
0 d
ay
s b
as
is)
H&D Pipelay vessel demand & supply balance
Demand
Fleet
Age max 35 years
Age max 30 years
OCEANTEAM SHIPPING ASA
Demand for H&D support vessels expected to grow 13% p.a up to
2017, and about 70 vessels lacking in 2017
Q1 PRESENTATION 2013 23
0%
20%
40%
60%
80%
100%
120%
140%
160%
-100
-50
-
50
100
150
200
250
300
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Uti
lis
ati
on
(3
00
/36
5 d
ay
s b
as
is)
Ve
ss
el y
ea
rs (
30
0 d
ay
s b
as
is)
Global H&D support vessel forecast
Idle
Other
Opex
Capex
Utilisation
OCEANTEAM SHIPPING ASA
NW Europe is still the major market for H&D subsea support vessels,
but Asia-Pacific is growing fastest
Q1 PRESENTATION 2013 24
-
50
100
150
200
250
300
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Ve
ss
el y
ea
rs (
30
0 d
ay
s b
as
is)
H&D Subsea support vessel demand per region
Transit
Caspian
Asia-Pacific
Med. & Middle East
West Africa
Latin America
North America
NW Europe
OCEANTEAM SHIPPING ASA
Brazil is the dominating market for H&D Reel-Lay
Vessels
Brazil is main market followed by NW Europe and West
Africa
Growth in all major regions
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-
5
10
15
20
25
30
35
40
45
50
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
No
. of
ve
ss
el y
ea
rs (
30
0 d
ay
s b
as
is)
H&D reel vessel demand per region
Transit
Asia Pacific
Med. & MIE
West Africa
Latin America
North America
NW Europe
40%
60%
80%
100%
120%
140%
160%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Uti
lis
ati
on
(3
00
/36
5 d
ay
s b
as
is)
Utilisation forecast for pipelay & support vessels
H&D pipelay S&B pipelay H&D support vessels S&B DP2+ support vessels
OCEANTEAM SHIPPING ASA
Global offshore wind farm cable demand
Most of activity increase until 2015 in Southern North Sea
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0
500
1,000
1,500
2,000
2,500
Inte
r arr
ay c
able
leng
th (
km)
Inter-array cable demand by year
Probability inter-array forecast
Mid-range inter-array forecast
Statistical inter-array forecast
Protected by Copyright (c) 1986-2011 ODS-Petrodata Ltd.
0
1,000
2,000
3,000
4,000
5,000
6,000
Cab
le le
ngth
(km
)
Export cable demand by year
Probability export forecast
Mid-range export forecast
Statistical export forecast
Protected by Copyright (c) 1986-2011 ODS-Petrodata Ltd.
OCEANTEAM SHIPPING ASA
FOCUS GOING FORWARD • Focus
Enhance equity instrument with continued focus on high quality assets and balance sheet
New investment in high quality assets utilizing the clean capital structure
• Target markets
Large harsh- and deep-water Construction Support Vessels (CSV)
Market CSVs combined with in-house engineering know-how
Build contract back log and expand OceanWind Cable Storage Solutions
Additional earnings from low-risk engineering jobs and new equipment
• Grow fleet and continue reduced-risk expansion through JVs
Q1 PRESENTATION 2013 27
OCEANTEAM SHIPPING ASA
Oceanteam Shipping ASA
Corporate headquarters
Tveitaråsveien 12 T +47 55 10 82 40
PO Box 463, Nesttun F +47 55 10 82 49
5853 Bergen E [email protected]
Norway
WWW.OCEANTEAM.NO
THANK YOU!
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Appendix 1: Company overview
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OCEANTEAM SHIPPING ASA
SHIPPING
• North Ocean Series
• High-end deep-water offshore construction & pipe
lay tonnage series
• Proven quality in the most demanding and
advanced deep-water operations
• Vessel type orders to date: 7
• Building and operational economics
• Configuration flexibility with in-house engineering
team that provides complex and complete
solutions
• New enhanced design completed
Our Fleet:
• CSV Bourbon Oceanteam 101
• CSV North Ocean 102
• CSV Southern Ocean
• LV North Ocean 105
• FSV Mantarraya
• FSV Tiburon
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OCEANTEAM SHIPPING ASA
ENGINEERING - SERVICES
• KCI is an experienced engineering company focusing on the
oil and gas industry, complex structures and the renewable
energy industry:
• Design and build complete oil & gas and renewable energy
concepts
• Develop complex and special structures for both industries
• Create contemporary solutions for complex environmental
challenges
• Employs approximately 172 engineers, increased from 90
since 2009
Engineering services
Oil & Gas
Renewables
Complex Structures
Strong client base
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OCEANTEAM SHIPPING ASA
ENGINEERING - EQUIPMENT
POOL
Oceanteam has an equipment rental division with a deep-
water base in Velsen, The Netherlands
Oceanteam provides various equipment for installation and
burial of pipelines, umbilicals and high voltage submarine
power cable installations
The equipment pool includes trenchers, ploughs,
tensioners, carousels and additional equipment such as
chutes, static tanks, etc.
The equipment can be rented stand alone or in
combination with Oceanteam’s fleet
Clients include: Visser & Smit Marine Contracting, Reef
Subsea Power & Umbilical, Bohlen & Doyen, and Van
Oord
Selected assets
OTS 10T tensioner
SMD MD3 plough
1250T carousel
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Appendix 2: Bond loan
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OCEANTEAM SHIPPING ASA
NOK BOND LOAN – redemption date 23rd November
2012
• In 2009 the OTS bond loan was restructured to NOK 400 million. Furthermore, it was added to an incentive
structure that would compensate bondholders for the reduction in par value, consisting of a growing call premium,
rising interest rates and issuing warrants in two stages.
• First, 14.898.607 warrants were issued to bondholders (Warrants I) which is activated when the company calls the
bond loan. Each warrant gives the right to subscribe for one share for NOK 1,0.
• In addition, the company has paid a premium to the bond loan's par value. This premium is adjusted each year in
June until the loan is repaid. In June 2012 another premium was added, and the company has paid NOK 498
million when calling.
• The Warrants I has created NOK 14.514 million in new equity, with half going into the share capital and half into the
share premium account. As of today, OTS has 29.593.259 shares. The exercise of Warrants I has resulted in an
almost doubling of the number of shares in the company.
• The repayment of the NOK 400 million bond loan 23rd November 2012 has killed the 29.599.667 Warrants II.
Q1 PRESENTATION 2013 34