The Market Leader in Heavy Marine Transport and Installation
Oslo, 19 November 2012
Important notice
■ This document contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words “believes”, “expects”, “predicts”, “intends”, “projects”, “plans”, “estimates”, “aims”, “foresees”, “anticipates”, “targets”, and similar expressions. The forward-looking statements, contained in this document, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are uncertain and subject to risks. A multitude of factors can cause actual events to differ significantly from any anticipated development. Neither the Company nor any of its subsidiary undertakings nor any of its officers or employees guarantees that the assumptions underlying such forward-looking statements are free from errors nor does any of the foregoing accept any responsibility for the future accuracy of the opinions expressed in this document or the actual occurrence of the forecasted developments.
■ No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, neither the Company nor any of its subsidiary undertakings nor any such person’s officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.
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Active in fundamentally attractive markets
Sales 2011
Oil & gas
P&MI/military
Yacht transport
3
Main drivers:
•Energy prices
•Energy CAPEX
Capital Multi-Year E&P Spending Forecast
(Source: Barclays Capital, 5 December 2011)
4
High drilling activity
Global fleet of 700 rigs
Higher global rig utilization spread
Higher complexity wells
Continued development drilling
Deepwater activity increases
Downstream Upstream
Deepwater platforms
Increase in size, weight, complexity
Greater global activity
Increase in float over installations
Increase tenders for topside and
jacket installations
Increasing investments:
LNG/LPG/Refineries
Mining/Power plants
More remote construction sites
Environmentally sensitive locations
Greater use of modular concepts
Heavy Marine
Transport
Offshore Transport and
Installations
Logistical Management
Solutions
Exploration &
Development
Production Processing
time
Dockwise strategy to match O&G industry cycle
0
2
4
6
8
10
12
14
16
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2007 2008 2009 2010 2011 2012 2013 2014
New build jack ups entering the market
High Spec (IC, >=350 ft)
Low Spec
# of rigs
0
40
80
20
05
20
07
20
09
20
11
20
13
20
15
20
17
20
19
Fixed Structures >= 4000 m tonnes
Floating production structures (TLP/SEMI/SPAR)
FPSO
0
25
50
20
03
20
05
20
07
20
09
20
11
20
13
20
15
20
17
20
19
20
21
Possible
Firm
Operational
*Source: ODS Petro data and Infield Systems
The industry’s largest rejuvenated versatile fleet
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Built
Vanguard 2012
New build >2016
Blue Marlin 2000
Mighty Servant 1 1983
White Marlin 2014
Black Marlin 1999
Transshelf 1987
Mighty Servant 3 1981
Forte 2012
Finesse 2013
HYSY 278 2012
Transporter 1990
Target 1990
Talisman 1993
Treasure 1990
Triumph 1992
Trustee 1991
Swan 1982
Swift 1983
Fjord 2000
Fjell 2000
Teal 1984
Tern 1982
Launch barge
vessel availability
2012 2013 2014 2015 2016-2020
Dockwise strategy based on three pilars
T&I: expand service scope
Secure access to barge for
jacket launch and crane
vessel for jacket installation.
Offer topside float-over
installation as from 4,000 mton.
Build an engineering and
project management
organization.
HMT: focus on high end
Invest in Type 0, I and II
vessels.
Increase long term backlog
targeting O&G projects.
Remain competitive for spot
market cargo.
LM: build position
Target LNG, refineries, mining
and power plant projects.
Offer LM services under lump
sum contract.
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Post quarter: topside SHWE loaded for
transport & installation on COOEC barge
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Backlog at end Q3 2012 and development
8
58
186
245
215 217
141 150 171
209
287
323
60
31 44
103 102
58
84
119
203 200
512 531
587
810
766
0
450
900
0
300
600
Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12
Backlog analysis (USD million)
2011 2012 2013 2014 2015+ Total
79
113
54
159
Heavy Marine Transport
2012 2013 2014 2015
62
210
47
43
Offshore and onshore
2012 2013 2014 2015
USD
405
million
USD
362
million
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Attachment 1 CAPEX Forecast 2012
The full year 2012 Dockwise CAPEX decreased with USD 41 million, which is mainly caused by the
final installment of USD 46 million which is now due upon delivery of the vessel in Q1 2013.
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Q2 2012 Q3 2012
Dockwise CAPEX Forecast full year 2012 (excluding Fairstar) 210 169
Fairstar CAPEX Forecast second half year 20121
50 41
Subtotal 260 210
White Marlin - 30
TOTAL CAPEX Forecast full year 2012 260 240
1 Excludes CAPEX White Marlin
(x USD 1000,000 unaudited)
Attachment 2 Debt repayment
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USD millions Q4 2012 H1 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 H2 2014 Q1 2015 Q2 2015 H2 2015 Q1 2016 Q2 2016
Facility A 28 28
Facility B 204 204
Facility C 195 195
Facility D 66 66
Revolving credit facility 22 22
Total SFA 515 28 - - - 22 - - 204 - - 195 66
ING syndicate loan facility 198 198
Preference shares 50 50
Bond loan 11 11
Total interest-bearing borrowings 774 746 746 746 735 515 465 465 261 261 261 66 -
REPAYMENT SCHEDULE
Outstanding
Q3 2012
Attachment 3 Bank covenant ratios
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DEFINITIONS
Consolidated total net debt
Consolidated EBITDA
Consolidated EBITDA
Net debt service
Free cashflow
Net debt serviceFY '12 Q1 '13 Q2 '13 Q3'13
As from
Q4 '13
Cash flow cover >= 1.00 1.00 1.00 1.00 1.00
Interest cover >= 2.25 2.25 2.25 2.25 2.25
Leverage ratio <= 4.25 3.75 3.50 3.25 3.00
BANK COVENANT RATIOS
Attachment 4 Current trading and outlook
■ Full year outlook is unchanged and organic operational outturn ahead of 2011 ;
■ As a consequence of recent developments regarding the financial stability of the
final customer and sponsor of a major E&P project where Dockwise is involved,
Dockwise may in a worst case scenario have to
Reverse maximum USD 15 million margin in Q4 2012;
Derecognize approximately USD 35 million backlog in both 2013 and 2014.
■ Cautious outlook for 2013 ahead of clarity on pricing, as well as confidence on
start dates for complex offshore projects;
■ Full year CAPEX is expected to be some USD 240 million of which the largest part
relates to the new build vessels, Dockwise Vanguard, Finesse and White Marlin.
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