Transcript Deep Sea Supply Plc Presentation 29 Feb 2012

4Q|11
Deep Sea Supply Plc
Presentation
29 Feb 2012
HIGHLIGHTS
• Improved financials
• Reduced cost due to inhouse technical & crew management
• 7 new long term charter contracts and more to come
• Growth in Brazil
3
4Q|11
7 LONG TERM CHARTER CONTRACTS AWARDED
New contracts
Vessels
Charterer
Term
Commencement
Sea Cheetah
Petrobras
4Y + 4Y option
29th Feb 2012
Sea Jaguar
Petrobras
4Y + 4Y option
1st Mar 2012
Sea Brasil
BP
3Y + 1+1+1Y
July 2012
Sea Fox
Petrobras
4Y + 4Y option
June 2012
Sea Jackal
Petrobras
4Y + 4Y option
June 2012
Sea Vixen
Petrobras
4Y + 4Y option
June 2012
Sea Stoat
Petrobras
4Y + 4Y option
June 2012
Contract backlog Deep Sea Supply fleet
Vessel type
Vessels on long term contracts
Value
AHTS
7 of 14 vessels
USD 237 M
PSV
7 of 9 vessels
USD 154 M
Total
14 of 23 vessels
USD 391 M
4
4Q|11
GROWTH IN BRAZIL
• Recent contract awards for 7 vessels with Petrobras and BP
• By end of 2Q 2012, the company will have 15 vessels operating in
Brazil, at least 12 on long term contracts
• Increased and stable revenues for Deep Sea Supply
• Continued good cost control gives foundation for healthy return
• Strategic moves to further strenghten the company´s position being
explored
5
4Q|11
FLEET LIST & CHARTER STATUS AS PER FEBRUARY 2011
Vessel
Type
Bhp/Dwt
Year Built
Trading Area
Sea Lynx
KMAR 404
15000 BHP
1999
Sea Bear
KMAR 404
15000 BHP
1999
North Sea (Mob)
Sea Tiger
KMAR 404
15000 BHP
1999
W. Africa
Sea Panther
KMAR 404
15000 BHP
1999
Brazil
Statoil
Sea Leopard
KMAR 404
15000 BHP
1998
Brazil
Brazil
Sea Cheetah
Khiam Chuan
15000 BHP
2007
Brazil
Petrobras
Sea Jaguar
Khiam Chuan
15000 BHP
2007
Brazil
Petrobras
Sea Ocelot
Khiam Chuan
10800 BHP
2007
Asia
Sea Eagle I
Khiam Chuan
12000 BHP
2009
Asia
Murphy Oil
Sea Weasel
Seatech P-729
6500 BHP
2009
Malaysia
Petronas Malaysia
Sea Fox
Seatech P-729
6800 BHP
2011
Brazil (Mob)
Sea Jackal
Seatech P-729
6800 BHP
2011
Brazil (Mob)
Sea Badger
Seatech P-729
6800 BHP
2011
Asia
Sea Vixen
Seatech P-729
6800 BHP
2011
Brazil (Mob)
Petrobras
Sea Stoat
Seatech P-729
6800 BHP
2011
Brazil (Mob)
Petrobras
Sea Trout
VS 470MK II
3300 DWT
2007
North Sea
EnQuest
Sea Angler
PSV UT 755 L
3250 DWT
2007
W.Africa
ENI Congo
Sea Halibut
PSV UT 755 L
3250 DWT
2007
Brazil
Petrobras
Sea Pike
PSV UT 755 L
3250 DWT
2007
Brazil
Petrobras
Sea Bass
PSV UT 755 L
3250 DWT
2008
Brazil
Petrobras
Sea Pollock
PSV UT 755 L
3250 DWT
2008
Brazil
Petrobras
Sea Turbot
PSV UT 755 L
3250 DWT
2008
Brazil
Petrobras
Sea Witch
PSV UT 755 L
3250 DWT
2008
Asia
Sea Brasil
STX 09CD
3250 DWT
2012
Brazil
AHTS Vessels
2012
Q1
North Sea
Q2
2013
Q3
Q4
North Sea Spot
North Sea Spot
BP
Petrobras
Petrobras
Bluewater
PSV’s
6
BP
Firm
Option
Spot
2014
SHARE PRICE DEVELOPMENT AND SHARE TURNOVER
Share price and total return since listing
Total Return
4,5%
80
35
4,0%
70
30
3,5%
Traded shares per month / Average shares outstanding
40
NOK per share
25
20
15
10
5
0
60
3,0%
50
2,5%
40
2,0%
30
1,5%
20
1,0%
10
0,5%
0,0%
Sep-05 Jan-06 May-06 Sep-06 Jan-07 May-07 Sep-07 Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12
7
0
Deep Sea
Supply PLC
DOF ASA
Havila
Siem Offshore
Shipping ASA
Inc.
Solstad
Offshore ASA
Farstad
Eidesvik
Shipping ASA Offshore ASA
REM Offshore
ASA
Average monthly volume in NOK million (red line)
Close Price
2011 average monthly volume and turnover velocity
4Q|11
INCOME STATEMENT 4Q 2011
(Unaudited figures in USD 1,000)
Operating revenue
Vessel operating expenses
Operating lease
Other gains
Gain on sale
Other operating expenses
Total operating costs
4Q 11
4Q 10
3Q 11
31 615
37 337
33 428
(16 123)
(18 807)
(16 739)
0
(1 104)
0
59
0
107
1 190
11 441
1 014
(3 147)
(2 881)
(2 493)
(18 022)
(11 352)
(18 113)
EBITDA
13 592
25 984
15 313
Depreciation
(8 260)
(9 447)
(7 049)
5 333
16 537
8 266
130
160
75
Financial expenses
(6 182)
(7 693)
(6 436)
Net currency items
255
(960)
(364)
Change in value of financial derivatives
106
631
11
(5 691)
(7 863)
(6 715)
(358)
8 675
1 551
(12)
(2 475)
(3)
(371)
6 200
1 549
126 997 194
(0,00)
(0,00)
0,06
126 863 860
0,05
0,05
0,15
126 997 194
0,01
0,01
0,07
EBIT
Financial income
Net financial items
Pre-tax result
Taxes
Total comprehensive income
Average number of shares
Earnings per share
Earnings per share diluted
Cash flow per share 1)
1) Profit before taxes+depreciation-unrealized gain on currencies
8
4Q|11
INCOME STATEMENT FY 2011
2011
2010
Operating revenue
115 402
132 346
Vessel operating expenses
(72 124)
(73 681)
(1 684)
(2 925)
(Unaudited figures in USD 1,000)
Operating lease
Other gains
370
0
Gain on sale
29 017
15 819
Other operating expenses
(10 785)
(8 710)
Total operating costs
(55 206)
(69 497)
EBITDA
Depreciation
EBIT
Financial income
60 196
62 849
(28 826)
(36 447)
31 370
26 402
392
337
Financial expenses
(25 838)
(29 065)
Net currency items
(4 299)
1 164
129
1 241
(29 617)
(26 323)
Change in value of financial derivatives
Net financial items
Pre-tax result
Taxes
Total comprehensive income
Average number of shares
Earnings per share
Earnings per share diluted
Cash flow per share 1)
1) Profit before taxes+depreciation-unrealized gain on currencies
9
1 753
79
(21)
(2 617)
1 732
(2 538)
126 997 194
0,01
0,01
0,27
126 863 860
(0,02)
(0,02)
0,27
AREA OF CURRENT OPERATION
10
Office
PSV
AHTS
4Q|11
CASH FLOW STATEMENT
31 Dec 2011
31 Dec 2010
Cash generated from operations
16 725
36 409
Net cash generated from operating activities
16 725
36 409
Acquisitions of vessels and construction contracts
(74 410)
(20 915)
Disposals of vessels and construction contracts
136 860
40 969
62 450
20 054
(26 559)
(27 138)
(Unaudited figures in USD 1,000)
Cash flows from operating activities
Cash flows from investing activities
Net cash used in investing activities
Cash flows from financing activities
Interest paid
Proceeds from borrowings
72 767
39 482
Repayments of borrowings
(126 996)
(58 491)
(80 788)
(46 147)
Total changes in liquidity in the period/year
(1 613)
10 316
Cash and cash equivalents at beginning of period/year
41 932
31 616
Cash and cash equivalents at end of the period/year
40 318
41 932
Net cash used in financing activities
11
2Q|11
BALANCE SHEET
(Unaudited figures in USD 1,000)
31.12.11
31.12.10
Non-current assets
(Unaudited figures in USD 1,000)
Borrowings
Vessels cost
Construction contract
Equipment
Total property, plant and equipment
557 222
603 322
16 435
24 736
643
659
574 300
628 717
403 511
456 497
37 790
43 647
Deferred gain
31 717
36 573
873
1 806
Long term tax liabilities
Other long term liabilities
Deferred income tax
308
234
Borrowings
Other long term receivables
648
455
CIRR loan
Investment in associates
594
0
Total non-current assets
37 796
43 693
613 646
673 098
Current assets
5 670
2 909
Other short term receivables
5 968
9 374
11
11
473 902
538 534
38 143
35 768
4 839
4 959
Trade payables
13 245
11 519
Deferred gain
4 655
4 493
Tax payable
881
903
Other short term liabilities
400
529
62 164
58 171
536 066
596 706
Total short term liabilities
Inventories
CIRR deposit
31.12.10
CIRR loan
Total long term liabilities
CIRR deposit
31.12.11
Liabilities
Total liabilities
4 839
4 959
Freight income not received
29 282
26 017
Share capital, share premium and treasury shares
11 204
10 861
Cash and cash equivalents
40 318
41 932
Retained earnings and currency translation
152 453
150 723
Total current assets
86 077
85 191
Total shareholders equity
163 657
161 584
699 723
758 289
Total equity and liabilities
699 723
758 289
Total assets
12
Shareholders equity
4Q|11
SHAREHOLDERS
The largest shareholders as per 20th Feb 2012 registered in VPS
Citizen
No. of shares:
%
HEMEN HOLDING LIMITED
CYP
44 583 853
35,11%
SKAGEN KON-TIKI
NOR
12 229 431
9,63%
PERESTROIKA AS
NOR
6 350 000
5,00%
DNB NOR MARKETS
NOR
3 782 760
2,98%
ORKLA ASA
NOR
3 076 935
2,42%
SVENSKA HANDELSBANKEN
SWE
2 140 043
1,69%
UBS AG
GBR
1 630 878
1,28%
DNB NOR SMB
NOR
1 545 000
1,22%
UTHALDEN A/S
NOR
1 500 000
1,18%
PACTUM AS
NOR
1 325 000
1,04%
CENTRA INVEST AS
NOR
1 201 643
0,95%
KLAVENESS SHIP INVESTMENTS AS
NOR
1 191 859
0,94%
VERDIPAPIRFONDET HANDELSBANKEN
NOR
1 051 185
0,83%
NORDEA BANK NORGE ASA
NOR
824 113
0,65%
JPMORGAN CHASE BANK
DEU
754 200
0,59%
MP PENSJON PK
NOR
658 800
0,52%
TD AMERITRADE CLEARING INC
USA
598 851
0,47%
CITIBANK N.A.
USA
541 112
0,43%
VPF NORDEA SMB
NOR
534 000
0,42%
DANSKE INVEST NORGE VEKST
NOR
500 000
0,39%
Total 20 largest shareholders:
86 019 663
67,73%
Total other shareholders:
40 977 531
32,27%
126 997 194
100,00%
Total number of shares:
13
AGE DISTRIBUTION CURRENT FLEET AND ORDER BOOK
AHTS
PSV
Vessel > 20 years: 29% of total fleet
Vessel > 30 years: 11% of total fleet
Vessel > 20 years: 20% of total fleet
Vessel > 30 years: 8,8% of total fleet
300
250
150
100
50
Source: ODS Petrodata
14
20
14
20
15
12
13
20
20
10
20
11
20
08
09
20
20
06
07
20
20
04
05
20
20
02
03
20
00
01
20
20
98
99
20
19
19
96
97
19
19
94
95
19
19
92
93
19
19
90
91
19
19
88
89
19
19
86
87
19
19
84
85
19
19
82
83
19
19
80
81
19
19
78
79
19
19
76
77
19
19
74
75
19
19
72
73
19
19
70
71
19
19
19
68
69
0
19
No of units
200
4Q|11
THE RIG AND SUPPLY MARKET
Supply vessels
Total fleet
Existing fleet
2491
Orderbook
419
Average age
12,3
AHTS
PSV
1458
17%
149
270
12,8
11,7
Jackups
Rig market
Total fleet
Semis/drillships
Existing fleet
768
289
Orderbook
168
22%
1033
10%
89
26%
479
31%
79
16%
Source: ODS Petrodata
Some observations;
Fewer deliveries of newbuilding than expected;
• In February 2011, expected OSV deliveries in 2011 were 270 vessels
Actual deliveries were 185 vessels
The largest orderbooks in the OSV and Rig segments are linked to ultra deep water activities;
• Semis / drillships (31%) and PSVs (26%)
The number of OSVs per Rig is currently 3,24. If we include current orderbooks, the number is reduced to 3,11.
15
presis 360
COMPANY ADDRESSES
Cyprus
Deep Sea Supply Plc
John Kennedy Ave., Iris House, 7th Floor, Office no.740B
Limassol 3100
Cyprus
Deep Sea Supply Management (Cyprus) Ltd
P.O.Box 53340
CY-3302 Limassol
Cyprus
Norway
Deep Sea Supply Management AS
Tromøyveien 22
N-4841 Arendal
Norway
Singapore
Deep Sea Supply Management (Singapore) Pte.Ltd.
10 Hoe Chiang Rd
#19-03/04/05 Keppel Tower
Singapore 089315
Brazil
Deep Sea Supply Servicos Maritimos LTDA
Avenida Presidente Wilson
231, sala 1.403.
Cep:20030-021 Rio de Janeiro
RJ Brazil
www.deepseasupply.no