q3 financial presentation 2017 dof asa asa/ir/2017/dof_q3_2017.pdf · q3 2017. q3 2016 ytd q3 2017...

Q3 Financial Presentation 2017

DOF ASA

2DOF ASA – Q3 presentation 2017

Highlights Group

DOF ASA – Q3 presentation 2017 3

Average utilization fleet 73% in Q3 Low utilization in Subsea IRM Projects in APAC Skandi Vinland on-hire on a 10 years contract with Husky Energy Skandi Bergen on management from mid July Skandi Darwin completed conversion and arrived Australia for a contract with Shell Several contract awards securing utilization in Q4 2017 (74%)

All numbers based on management reporting

Operational EBITDA Q3 MNOK 607 (excl hedge accounting)

Highlights

DOF ASA – Q3 presentation 2017

Total of 4 077 employees• Subsea employees 1 287• Supply employees 2 790

Positioned globally Head office in Norway Operating from 6 continents 20 offices near key O&G markets 69 vessels globally

Our vessels and subsea equipment* Subsea 31 AHTS 21 PSV 17 Total fleet 69

ROV / AUV 71

DOF ASA, a global player

23 billion backlogApprox 4 000 employees69 vessels*

44

* Included one hired-in vessel


Positioned to deliver

Assets• 69 vessels

• Average age approx. 9.4 years, value adjusted fleet age of 6.3 years

• NOK 31.7 billion in fair market value owned vessels in operation* (100% basis)

• 71 ROVs• 1 subsea vessel chartered in from

external owner

Backlog• Firm contracts: NOK 23 bn• Options: NOK 33 bn

Total value backlog (firm & options) from 2020 and onwards is MNOK 42,789

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21

17

1Subsea

AHTS

PSV

Chartered SubseaVessels

55

(* As per 30.09.2017)

Group backlog at 30.09.2017

Backlog DOF Supply / DOF Subsea at 30.09.2017


DOF Supply – Highlights Q3

6

New contracts in the Atlantic region Skandi Foula (PSV) awarded 2 month contract + option in the Black Sea Skandi Caledonia (PSV) won a 300 days contract with Technip in Med, commencement in Q4 Skandi Olympia (RSV) extended with Fugro until September 2018 Skandi Gamma (PSV) extended with Wintershall until mid March 2018

New contract in the Asia Pacific Skandi Sotra (PSV) secured 75 days with Chevron in Australia

New contract in Brazil Skandi Commander (RSV) on-hire for Petrobras for 200 days

New Vessel added to the fleet Skandi Bergen (AHTS), on management from July


DOF Subsea – Highlights Q3

7

Raymond P. Semple appointed as Chief Operating Officer (COO)

New contracts 105-day contract for Skandi Constructor (CSV) at Galloper Offshore Wind Farm, North Sea

2-year extension for Skandi Carla (RSV) with Fugro from July 2017 in North Sea

Contract in the Mediterranean: 90 days Skandi Skansen (MSV) commenced Q4

Several IRM and subsea project contracts for Skandi Hercules (MSV) and Skandi Singapore (DSV) in Asia Pacific, and Skandi Neptune (CSV in the Atlantic securing utilization in 3rd and 4th quarter

A contract for the provision of survey, ROV and vessel services in the Gulf of Mexico, securing 135 days for the vessels Harvey Deep Sea (CSV) and Skandi Achiever (DSV)

6-month extension for Skandi Salvador (CSV) by Petrobras from August 2017

New vessels Skandi Vinland (CSV) on-hire with Husky Energy in July

Skandi Darwin (CSV) completed conversion for a contract with Shell in August, arrived Australia in October


FinancialsManagement Reporting

DOF ASA – Q3 presentation 2017 9

• Average utilization total fleet 73% in Q3• 79% PSV segment

• 69% AHTS segment

• 72% Subsea segment (project fleet 69%)

All numbers based on management reporting

Operational EBITDA Q3 MNOK 607 (excl hedge)

Main Financial Highlights

Comments to highlights

Performance

• DOF Subsea EBITDA: MNOK 337

• DOF Supply EBITDA: MNOK 270

Operations

• Avg. utilization of DOF Subsea fleet: 73%

• Avg. utilization of DOF Supply fleet: 72%

• Six vessels in lay-up end September

• Stable utilization PSV segment, variable utilization Subsea IRM projects, and AHTS fleet in the spot market

44 %

56 %

EBITDA ex hedge Q3 2017

DOF Supply

DOF Subsea

42 %

58 %

EBITDA ex hedge Q3 2016

DOF Supply

DOF Subsea


Profit & Loss Q3 2017

Main events in Q3

Operational performance:

PSV:• Stable utilization spot fleet in the North Sea• Two vessels in lay-up end Q3

AHTS:• Steady earnings from the fleet in Brazil• Variable utilization spot fleet in North Sea• Low utilization in APAC• Four vessels in lay-up end Q3

Subsea:• Variable utilization Subsea IRM fleet

• Low utilization in APAC,• improved and decent utilization in

the other regions

• A 5% drop in FMVs, of the fleet on aggregated level represented in the impairment

1010

All figures in NOK million Q3 2017 Q3 2016 YTD Q3 2017 YTD Q3 2016

Operating income 1 846 2 076 5 512 6 821 Operating expenses -1 231 -1 291 -3 698 -4 426 Net profit/loss from TS and JV -8 -17 -5 -14 Net gain on sale of vessel - - -1 73 EBITDA before hedge 607 767 1 808 2 454 Hedge operating income -45 -40 -132 -164 Operating profit - EBITDA 562 727 1 676 2 290

Depreciation -291 -294 -860 -839 Impairment -395 -928 -981 -1 519 Operating profit- EBIT -124 -495 -165 -68

Financial income 3 1 048 41 1 087 Financial costs -257 -255 -797 -853 Net currency gain/loss 4 -57 -168 -283 Net profit/loss before unrealized gain/loss -374 241 -1 089 -117

Net unrealized currency gain long term debt 297 170 514 780 Net unrealized gain on market instr. 61 155 113 365 Profit/loss before tax -16 565 -462 1 028

Tax -10 12 -40 -113 Net profit/loss -26 577 -502 915 According to management reporting


Segment reporting Q3 2017

PSV AHTS Subsea TotalAmounts in NOK million Q3 2017 Q3 2016 Q3 2017 Q3 2016 Q3 2017 Q3 2016 Q3 2017 Q3 2016

Operating income 211 242 353 422 1 236 1 369 1 801 2 033

Gain on sale of tangible assets - - - - - 3 - 3

Operating result before depreciation and impairment (EBITDA) 40 91 164 173 358 462 562 727

Depreciation 35 40 66 75 190 179 291 294

Impairment 151 442 36 270 207 216 395 928

Operating result (EBIT) -146 -391 61 -172 -40 67 -124 -495

EBITDA margin 19 % 38 % 46 % 41 % 29 % 34 % 31 % 36 %EBIT margin -69 % -162 % 17 % -41 % -3 % 5 % -7 % -24 %

According to management reporting

11

7 %29 %

64 %

EBITDA Q3 2017

PSV AHTS Subsea

12 %

24 %64 %

EBITDA Q3 2016

PSV AHTS Subsea


Balance as of 30.09.2017Main events balance sheet YTD

Non current assets:• One vessel sold, two newbuilds delivered YTD• No major events in Q3

Current assets:• Operating cash flow MNOK 669 • Investments MNOK -1,133• Financing activity MNOK 232

Equity:• Convertible bond loan MNOK 336 by end Q3

Non current liabilities:• Two new loans drawn upon delivery newbuild• New bond loan USD 175 million drawn in

February• No major changes in Q3

Current liabilities:• Short term IBD:

Amortisation MNOK 1,967 ( next 12 months)Bond loan MNOK 508 (May 2018) Credit facilities and accrued interests

• No balloons on secured debt before 2019

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Amounts in NOK million 30.09.2017 31.12.2016 30.09.2016ASSETSTangible assets 26 099 27 469 27 918Goodwill 320 330 338Deferred taxes 898 1 023 1 014Investment in associated and joint ventures 75 70 89Other non-current receivables 587 619 547Non-current assets 27 979 29 511 29 906

Receivables 2 233 2 243 2 392Cash and cash equivalents 2 137 2 370 2 260Current assets 4 370 4 614 4 651Total assets 32 348 34 125 34 557

EQUITY AND LIABILITIESSubscripted equity 2 832 2 675 2 829Retained equity 1 307 1 950 2 236Non-controlling equity 3 549 3 521 3 665Equity 7 688 8 146 8 730

Non-current interest bearing debt 20 186 21 901 21 688Other non-current liabilities 131 222 247Non-current liabilities 20 317 22 123 21 935

Current part of interest bearing debt 2 926 2 081 2 402Other current liabilities 1 417 1 775 1 491Current liabilities 4 343 3 856 3 893Total equity and liabilities 32 348 34 125 34 557According to management reporting


DOF Subsea

DOF Subsea Group at a glance

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2005DOF Subseaestablished

NOK 3.3bn1)

RevenuesYTD’17

1 2872)

Subsea employeesworldwide Q3’17

NOK 16.3bnFirm backlog

Q3’17

263)

Subsea vessels714)

ROVs

ModernState-of-the-art

asset base

IntegratedSupplier of subsea offshore services

DOF Subsea

All numbers according to managment reporting

Several major and attractive contracts commencing in 2017

15

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

Two business segments

DOF Subsea 16

DOF Subsea Group

Long-term Chartering1)

Revenues YTD NOK 1 025 million

EBITDA YTDNOK 784 million

~77% margin

Firm backlogNOK 12.4bn

1) Note: Long-term chartering comprises 5 PLSVs in operation, 2 PLSVs under construction, SkandiAcergy and Skandi Patagonia

2) Note: Including 2 chartered-in vessels

2 newbuilds Q3’17

7 vessels in operation Q3’17

Long-term charters

Vessel capabilities

Capexspending

Subsea IMR Projects

Revenues YTDNOK 2 250 million

EBITDA YTDNOK 221 million

~10% margin

Firm backlogNOK 3.9bn

1 287 Employees Q3’17

17 vessels in operation2) Q3’17

Engineering capabilities

Framework agreements

Opexspending

Subsea IMR Projects performance

Weak project performance and low vessel utilization for Harvey Deep Sea, Skandi Achiever and Skandi Chieftain in the North America region YTD 2017

Backlog and contract coverage for the rest of 2017 indicate improved performance for the rest of the year: • Charter extension at renegotiated rate and >70% contract coverage

through Q1 2018 for chartered-in JAC vessel Harvey Deep Sea• Start-up of 10-year IMR contract with Husky Energy off the East Coast

of Canada• Contract award for the provision of survey, ROV and vessel services in

the Gulf of Mexico, securing utilization for Harvey Deep Sea and Skandi Achiever in Q4 2017 and Q1 2018

Weak project performance and low vessel utilization for Skandi Hercules, Skandi Singapore and Geoholm in the APAC region during Q3 2017

Contract awards and project start-ups indicate improved performance for the rest of the year: • Award of several call-offs and work under existing frame agreements,

securing utilization for Skandi Singapore and Skandi Hercules in Q4 2017

• Higher utilization for Geoholm in Q4 2017• Skandi Darwin on contract mid-October and commences Shell Prelude

IMR contract ultimo November

DOF Subsea 17

APAC regionNorth America region

Harvey Deep Sea Skandi Achiever Skandi Chieftain Skandi Singapore GeoholmSkandi Hercules

DOF Subsea provides state-of-the-art vessels to leading players

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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






Dive support vessel


7 vessels inoperation

2contractednewbuilds

NOK 12.4bnfirm backlog

per Q3’17

Long-term Chartering

DOF Subsea


No change in guidance for 2017 (MNOK 2 400 – MNOK 2 800)

Good backlog for 4th quarter 2017 (74%)

The two remaining newbuild to be delivered in 2018 and 2019 are committed on firm contracts

Markets expected to continue to be challenging

Outlook

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Thank youPresented by Mons Aase - CEOHilde Drønen - CFO


DISCLAIMER

This 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 15 November 2017.This presentation contains forward-looking statements relating to operations of the DOF ASA Group that are based on management’s owncurrent 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 similarexpressions are intended to identify forward-looking statements.References in the presentation to assumptions, estimates and outcomes and forward-looking statements about assumptions, estimatesand outcomes, which are based on internal business data and external sources, are uncertain given the nature of the industry, businessrisks, and other factors. Also, they may be affected by internal and external factors that may have a material effect on future businessperformance 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 ASAGroup 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 forinformation only. DOF ASA , its officers and management exclude and disclaim any liability in respect of anything done in reliance on thepresentation.All forward-looking statements made in this presentation are based on information presently available to management and DOF ASAassumes no obligation to update any forward looking- statements. Nothing in this presentation constitutes investment advice and thispresentation shall not constitute an offer to sell or the solicitation of any offer to buy any securities or otherwise engage in any investmentactivity.You should make your own enquiries and take your own advice (including financial and legal advice) before making an investment in thecompany's shares or in making a decision to hold or sell your shares.

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q3 financial presentation 2017 dof asa asa/ir/2017/dof_q3_2017.pdf · q3 2017. q3 2016 ytd q3 2017...

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