dof asadof.no/files/pdf/dof asa/ir/archive/2008_q3_dof_asa_pres.pdfcontract coverage 95 % 70,5 %...

DOF ASA Q3 2008 Presentation - 1

DOF ASA Q3 2008 PresentationCEO – Mons Aase CFO – Hilde Drønen


Agenda

• Status DOFSUB

• Highlights

• Overview

• Q3 Financial


The FRC “deal”

• DOFSUB NOK 36/share• Offer period 29.10 to 19.11.2008• DOF Installer NOK 125/share• 3 vessels under construction at Tebma Yard in India,

NOK 288 mill• Pre-money valuation of Norskan NOK 1.590 mill

FRC contribute NOK 300 mill and will own 15,9%

The FRC “deal”


3,3433,3433,2493,2493,0353,035EBITDAEBITDA45%45%45%45%46%46%MarginMargin

7,4067,4067,1457,1456,6456,645RevenueRevenue201320132012201220112011NOK millionNOK million

• Financial projections with asset base according to the deal structure with FRC

Current DOF Subsea fleet and organization, including Current DOF Subsea fleet and organization, including newbuildingnewbuildingprogramprogramTEBMA vessels includedTEBMA vessels includedInstaller fleet included (ex hull 706)Installer fleet included (ex hull 706)

• Figures reflect operation after all newbuilds have been delivered, i.e. no investments contemplated in addition to the FRC deal structure

The FRC “deal”


Highlights Q3

• Final agreement reached with FRC• Skandi Chieftain – 3 year firm contract with Petrobras• Skandi TBN Hull 25 – 3 year LOI with OGX• Skandi Rio, Skandi Botafogo and Skandi Fluminence – 6 years

contract extension with Petrobras• USD 670 million financing approved in Brazil


Financing

DOFSUB• only the two JV vessels with Technip have not finalized loan

agreements• Hull 23 in Brazil; Financing approved by BNDES. Vessel

has a 4 + 4 year contract with Petrobras• Hull 702 in Norway. Vessel has a 8 year contract with

Technip UK. Eksportfinans funding in placeDOF

• Secured financing of 3 PSV’s and a NOK 660 million facility in Holdco during October

• Secured BNDES financing of Hull 25, 26 and 27 in Brazil

• Comment in more detail when we look at the fleet list


Modern fleet • 17 AHTS’s• 25 PSV’s• 1 CSV

4 state of the art installation AHTS vessels

DOF Overview

Modern fleet & Equipment• 23 CSV/ROV vessels• 35 ROV’s + 1 AUV• Leading Subsea Contractor

DOF ASADOF ASA

DOF Subsea ASA DOF Subsea ASA

57.5%57.5%DOF Supply DOF Supply

100%100%DOF InstallerDOF Installer

50.5%50.5%


Modern fleet 10 AHTS’s19 PSV’s1 CSV

3 state of the art installation AHTS vessels

New Company Overview

DOF InstallerDOF Installer50 50 --100%100%

Modern fleet & Equipment23 CSV/ROV vessels35 ROV’s + 1 AUVLeading Subsea Contractor

Ship owning company Ship owning company 100%100%

DOF SubseaDOF Subsea100%100%

Modern fleet 8 AHTS’s3 PSV’s

Modern fleet 3 ROV/CSV vessels

Norskan Norskan 75%75%

DOF Subsea DOF Subsea HoldingHolding

51%51%

Ship owningShip owningcompanycompany

100%100%

DOF ASADOF ASA


The fleet market segments

PSV AHTS ROV/OCSV/DSV/ Total fleetNo. of vessels SEISMIC VESSELSDOF ASA 22 4 1 27

NORSKAN OFFSHORE 2 7 0 9

DOF SUBSEA ASA 0 0 23 23

DOF INSTALLER ASA 0 4 0 4

AKER DOF SUPPLY 1 6 0 7

Total fleet 25 21 24 70

Contract coverage 09* 96% 91% 75% 87%Contract coverage 10* 75% 66% 61% 68%* no options included


GEOGRAPHICAL FOCUS AREAS

PerthRio de Janeiro

Buenos Aires

Singapore

Houston

St. Johns

Aberdeen

Bergen

Cairo

GLOBAL PLAYER

Brunei

Macae

Jakarta

Manila

Angola

St. Petersburg


DOF contract coverage

FIRM CONTRACTS UNDER CONSTRUCTIONOPTIONAL PERIOD

PSV Area of Operation ChartererJ F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D

Skandi Falcon India Reliance

Skandi Marstein North Sea Shell UK

Skandi Stolmen Norw ay StatoilHydro

Skandi Foula North Sea Shell UK

Skandi Rona North Sea Shell UK

Skandi Waveney North Sea B/B IN Marathon

Skandi Buchan North Sea Total

Skandi Sotra North Sea StatoilHydro

Skandi Caledonia North Sea Total/MOG

Skandi Captain North Sea Shell

Skandi Barra North Sea Shell/Total

Skandi Chieftain North Sea/ Brazil Shell/Petrobras

Skandi Texel North Sea Peterson Sup/link

Skandi Commander North Sea Shell

Skandi Mongstad North Sea StatoilHydro

Skandi Flora (AYP 06CD) North Sea StatoilHydro

Skandi TBN (Aker PSV 06 LNG) North Sea StatoilHydro

Skandi TBN Tebma 1 (VS 470 mk II) Asia DOF SUB

Skandi TBN Tebma 2 (VS 470 mk II) Asia

Skandi TBN Tebma 3 (VS 485 MPSV) Asia

Skandi TBN Cochin Total UKContract Coverage 95 % 70,5 %

2008 2009 2010


DOF contract coverage


AHTS Area of Operation Period ChartererJ F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D

Skandi Møgster Worldw ide Spot/OGX

Skandi Stord North Sea StatoilHydro

Skandi Admiral North Sea StatoilHydro

Contract Coverage 81 % 67 %

2008 2009 2010

CSV Area of Operation Period ChartererJ F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D

Skandi Fjord World w ide Halliburton


2008 2009 2010


NORSKAN: The fleet

FIRM CONTRACTS UNDER CONSTRUCTION

PSV Area of Ops. Built ChartererJ F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D

Norskan Flamengo Brazil 2003 Petrobras

Norskan Leblon Brazil 2005 Petrobras/Shell

Skandi Yare Brazil 2001 Petrobras

Skandi Hav Brazil 1983 Petrobras

AHTS

Norskan Copacabana Brazil 2005 Petrobras

Norskan Botafogo Brazil 2006 Petrobras

Skandi Rio Brazil 2007 Petrobras

Skandi Fluminence Brazil 2007 Petrobras

Skandi Giant Brazil 2003 BG Brazil

Skandi Ipanema (AH05) Brazil 2010 OGX

Skandi Amazonas (AH12) Brazil 2011

Skandi Iginazu (AH12) Brazil 2011


2008 2009 2010 2011


DOF contract coveragevessels under construction


Vessel Name Type Ow ner Charterer DeliveryJ F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D

Skandi Vega AHTS DOF Installer StatoilHydro - DEC 2009

Skandi TBN (AH 04 CD) AHTS DOF Installer - 2010



Contract Coverage N/A 55 %

2008 2009 2010 2011

DOF Installer

Aker DOF SupplyVessel Name Type Ow ner Charterer Period Delivery

J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D

Skandi TBN Vietnam AHTS Aker DOF Supply 2010






Skandi TBN Vietnam PSV/RSV Aker DOF Supply 2010

Contract Coverage N/A 0 %

2008 2009 2010 2011


Financial Highlights Q3 2008

• High utilization subsea vessels

• Good spot market

• Two new vessels in operations

• High financial costs due to unrealized currency loss

• Exit UK - tax loans

• Renewal bond loan


Result Q3 2008ALL FIGURES IN NOK THOUSANDS

Q 3 2008 Q 3 2007 30.09.2008 30.09.2007

Operating income 1 077 010 848 516 2 926 748 2 413 620

- 81 141 974 87 634 Total operating income 1 077 010 848 597 3 068 722 2 501 254

Operating expenses vessels 702 900 522 574 1 989 126 1 615 180 - - - -

Total operating expenses 702 900 522 574 1 989 126 1 615 180

Operating profit before depreciation 374 110 326 023 1 079 596 886 074 Depreciation 127 945 131 713 350 371 365 442 Operating profit 246 165 194 310 729 225 520 632

Net profit from associated companies 2 759 149 140 124 42 078 Financial items -53 269 -91 744 -235 993 -234 800 Unrealized profit/loss on currencies -346 574 132 977 -310 485 269 950 Net financial costs -397 084 41 382 -406 354 77 228

Pre-tax profit -150 919 235 692 322 871 597 860 Taxes 59 325 -31 853 -8 496 -71 120 Result -91 594 203 839 314 375 526 740 Minority Interest 16 787 -42 884 -27 686 -134 766


Financial result Q3 2008

Currency effects on Q3 results

Financial itemsInterest revenues 26 517 Interest costs 184 632 Realized currency gain long debt 75 509 Realized currencey gain on forex instruments 6 115 Realized operational currency gain 8 070 Other financial income 15 152

Total financial items (53 269)

Unrealized profit/loss on currenciesUnrealaized currency loss on long debt 376 682 Unrealized currency gain on forex instruments 10 195 Unrealized operational currency gain 19 912

Total unrealized profit/loss on currencies (346 574)


P&L Q3 2008DOF Supply TOTAL

Q3 Q3Revenue 354 025 1 077 010

Total Revenue 354 025 1 077 010

Operational costs 187 100 702 900 -

Total operational costs 187 100 702 900

EBITDA 166 925 374 110 Depreciations 50 434 127 945 EBIT 116 491 246 165

Result from ass. comp. 2 759 2 759 Net financial income 164 994 199 552 Net financial costs -141 225 -252 821 Unrealized loss/profit from currency -250 574 -346 574 Net financial items -224 047 -397 084

Profit before taxes -107 556 -150 919 Taxes 55 699 59 325 Net profit -51 857 -91 594

ALL FIGURES IN NOK THOUSANDS


Balance Q3 2008

30.09.2008 31.12.2007

Intangible assets 518 777 538 305Fixed assets 13 000 558 11 880 609Financial assets 489 045 1 410 298Receivables 1 321 145 1 052 546Vessel held for sale 173 000 0Bank balance 1 427 228 1 859 974Total assets 16 929 753 16 741 731

Subscribed equity 619 989 619 989Retained earnings 2 512 247 2 448 410Minority Interest 1 458 431 1 486 387Provisions for commitment 414 696 635 838Other long-term liabilities 9 609 570 9 927 458Current liabilities 2 314 820 1 623 650Total liabilities and equity 16 929 753 16 741 731

ALL FIGURES IN NOK THOUSANDS


Key figures Q3 2008

Q3 2008 Q3 2007Profit per share -1,11 2,46Profit per share ex. minority interest -0,90 1,94Proft per share ex. Unrealized loss/gain 3,08 0,86Cash flow per share 3,91 2,83

Ebitda margin 35 % 38 %Ebit margin 23 % 23 %Return on net capital -2 % 4 %Equity ratio 27 % 34 %

Booked value per share 55 55NAV value per share 94 82

Net interest-bearing debt 9 532 093 6 911 040Net debt (ex capital unemployed) 7 297 255 4 871 309


Balance Sept 2008’000 mil NOK

16 93021 200

12 444

11 923

27%

44%

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

Book value Fair market value

Debt

Equity

Assets


Markets

• Very strong Subsea market

• Very strong North Sea spot market, and strong long term supply market worldwide


Concluding remarks

• Strong market outlook• A lot of opportunities• Well positioned in Brazil• World’s largest deepwater fleet• Aggressive global growth• DOF Subsea just started and fully financed• DOF strong cash position, extremely good

track record and high contract coverage• PREFERRED PARTNER FOR OIL COMPANIES AND BANKS


DISCLAIMERThis presentation by DOF ASA designed to provide a high level overview of aspects of the operations of the DOF ASA Group. The material set out in the presentation is current as at 03 November, 2008.This presentation contains forward-looking statements relating to operations of the DOF ASA Group that are based on management’s own current expectations, estimates and projections about matters relevant to DOF ASA‘s future financial performance. Words such as “likely”, “aims”, “looking forward”, “potential”, “anticipates”, “expects”, “predicts”, “plans”, “targets”, “believes” and “estimates” and similar expressions are intended to identify forward-looking statements.References in the presentation to assumptions, estimates and outcomes and forward-looking statements about assumptions, estimates and outcomes, which are based on internal business data and external sources, are uncertain given the nature of the industry, business risks, and other factors. Also, they may be affected by internal and external factors that may have a material effect on future business performance and results. No assurance or guarantee is, or should be taken to be, given in relation to the future business performance or results of the DOF ASA Group or the likelihood that the assumptions, estimates or outcomes will be achieved.While management has taken every effort to ensure the accuracy of the material in the presentation, the presentation is provided for information only. DOF ASA , its officers and management exclude and disclaim any liability in respect of anything done in reliance on the presentation.All forward-looking statements made in this presentation are based on information presently available to management and DOF ASA assumes no obligation to update any forward looking- statements. Nothing in this presentation constitutes investment advice and this presentation shall not constitute an offer to sell or the solicitation of any offer to buy any securities or otherwise engage in any investment activity. You should make your own enquiries and take your own advice (including financial and legal advice) before making an investment in the company's shares or in making a decision to hold or sell your shares.

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