Post on 22-Jan-2021
Quarterly Presentation Q3 2017
DOF Subsea Group
DOF Subsea highlights
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Attractive long-term market fundamentals supporting continued demand for subsea offshore solutions
A true global subsea IMR operator with strong project and execution capabilities
Unique strategic position providing integrated life-of-field subsea services
State-of-the-art subsea vessels, the world’s 4th largest ROV fleet and 1 287 subsea employees
Strong order intake through the down cycle securing tangible near-term growth and highly attractive financial profile
Resilient backlog as backbone for stable operating model – PLSV contracts in Brazil cementing strategic position
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DOF Subsea
DOF Subsea Group at a glance
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2005DOF Subsea
established
NOK 3.3bn1)
Revenues
YTD’17
1 2872)
Subsea employees
worldwide Q3’17
NOK 16.3bnFirm backlog
Q3’17
263)
Subsea vessels714)
ROVs
ModernState-of-the-art
asset base
IntegratedSupplier of subsea
offshore services
1) Note: According to management reporting
2) Note: Excluding marine crew
3) Note: Including newbuilds Skandi Olinda and Skandi Recife and chartered-in vessels Harvey Deep Sea and Skandi Chieftain
4) Note: Including 2 AUVs
DOF Subsea
11 1113
1618
21
24 25 26 27
24
21
24
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q3 2017
Owned vessels Chartered-in vessels Total
337
553 563
8971014
1246
14921354
1667
1858
1566
1278 1287
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q3 2017
Focus on consolidation and streamlining of
business operations to improve efficiency and
competitiveness in weak market
DOF Subsea established following the
acquisition of Geoconsult. The Company was
listed second half 2005.
First Reserve acquires 49% of DOF Subsea,
which in the following is delisted from the Oslo
Stock Exchange
Expanding organisation on the back of several
large contract awards. Number of employees
and vessels peaking at 1 858 and 27,
respectively
Delivery of two newbuilds entering into
long-term contracts
Large and global organisation following multiple
acquisitions from 2005-2010
2010Century SubseaCovus Subsea
CSL
2005
More than a decade of structural growth and consolidation
DOF Subsea 4
2008
2014
2016
2017
Development in number of Subsea Employees1)
Development in number of vessels in operation2)
SEMAR
Awarded four PLSV long-term contracts in joint
venture with TechnipFMC
2013
SWG Offshore
1) Note: Marine crew not included
2) Note: Newbuilds not included
3) Note: Year-end numbers
Global footprint
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ATLANTIC
NORTH AMERICA
BRAZILASIA PACIFIC
Macaé
Rio de Janeiro
Buenos
Aires
Houston
St John’s
Aberdeen
Bergen
Luanda
Singapore
Manila
Melbourne
Jakarta
BruneiKuala Lumpur
Darwin
Perth
3127
4189
2454
3124
DOF Subsea1) Note: Number of employees as at end of Q3’17, excluding marine crew
2) Note: Vessels in operation as at end of Q3’17, including 2 chartered-in vessels (not including newbuilds)
Several major and attractive contracts commencing in 2017
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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 7
DOF Subsea Group
Long-term Chartering1)
Revenues YTD2)
NOK 1 025 million
EBITDA YTD3)
NOK 784 million
~77% margin
Firm backlog4)
NOK 12.4bn
1) Note: Long-term chartering comprises 5 PLSVs in operation, 2 PLSVs under construction, Skandi
Acergy and Skandi Patagonia
2) Note: According to management reporting
3) Note: According to management reporting
4) Note: Firm backlog as at end of Q3’17
5) Note: Including 2 chartered-in vessels
2 newbuilds
Q3’17
7 vessels in
operation Q3’17
Long-term
charters
Vessel
capabilitiesCapex
spending
Subsea IMR Projects
Revenues YTD2)
NOK 2 250 million
EBITDA YTD3)
NOK 221 million
~10% margin
Firm backlog4)
NOK 3.9bn
1 287 Employees
Q3’17
17 vessels in
operation5) Q3’17
Engineering
capabilities
Framework
agreements
Opex
spending
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Numerous projects completed worldwide
Built a leading subsea projects division for over a decade
• Subsea project activity established with a global footprint in all key offshore regions
• High quality asset base leveraging unrivaled subsea and vessel operating competence
A clear action plan to pursue further opportunities
• Continue to increase the scope and complexity of operations
− Strengthen presence in selected geographies
− Further build project backlog with core focus on IMR projects
Subsea IMR Projects
Selected Mooring projects – Last 5 yearsSelected IMR projects – Last 5 years
✓ Goliat Field support ENI (2016)
✓ Saipem CRX/Nene (2014)
✓ Call-off for Light Construction Services and Seabed
Survey Services Statoil (2012-2015)
✓ Technip Frame agreement (2012-2015)
✓ ConocoPhillips ROV Services (2012 and onwards)
✓ Freeport McMoran IMR support (2013-2016)
✓ Saipem JSM Export Line support (2014-2015)
✓ ROV Support vessel Petrobras (2011 and onwards)
✓ Yinson OCTP FPSO Field Dev. (2016-2017)
✓ Bongkot Mooring Replacement PTTEP (2017)
✓ Raroa Mooring OMV (2016-2017)
✓ Gina Krog TMRS Teekay (2016)
✓ Catcher Mooring Installation BWO (2016)
✓ Goliat FPSO Marine Installation ENI (2011-2015)
✓ Lam Son Mooring Installation PTSC (2014)
✓ Knarr Mooring Project Teekay (2013-2014)
✓ Banff Re-instatement Project Teekay (2013-2014)
DOF Subsea
Selected contracts included in backlog
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Location Client Scope Commencement Duration
Angola ENI Angola IMR 2017 16 months + 12 months
Eastern Canada Husky Energy IMR 2017 10 years + 10 years
Prelude Australia Shell Australia IMR 2017 5 years + 4 years
Brazil Petrobras Inspection 2016 1 year + 1 year
Gorgon, Janz and Wheatstone Chevron Australia IMR 2015 3 years + 2 years
Malampaya Shell Philippines IMR 2014 7 years + 3 years
Brazil Petrobras IMR 2011 6.5 years + 4 years
North Sea Conoco PhillipsIMR
2011 8 years + 13 years
Subsea IMR Projects
North America
Gradually built up the
region, becoming a top
three supplier of IMR
services in the GoM
Brazil
Strong position being one
of the major suppliers of
IMR services
North Sea / Atlantic
Leading supplier of
mooring services in the
North Sea and West
Africa
Asia Pacific
Leading supplier of IMR
services in the region
DOF Subsea
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
Construction & pipe
laying vessel
Construction & pipe
laying vessel
Construction & pipe
laying vessel
Construction & pipe
laying vessel
Construction & pipe
laying vessel
Dive support
vessel
Construction & pipe
laying vessel
7
vessels in
operation
2
contracted
newbuilds
NOK 12.4bn
firm backlog
per Q3’17
Long-term Chartering
DOF Subsea
15,516
17
21,5
18,9
2012 2013 2014 2015 2016
Key financials1)
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Revenue EBITDA2) Backlog (excl. options)
5 249
6 579
7 4227 251
5 426
2012 2013 2014 2015 2016
1 799
1 949
2 0972 041
1 733
2012 2013 2014 2015 2016
NOK million NOK million NOK billion
1) Note: Figures according to management reporting
2) Note: EBITDA excl. profit from sale of non-current assetsDOF Subsea
3rd Quarter 2017
Highlights Q3 2017
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• Raymond P. Semple was appointed as Chief Operating Officer (COO) in October 2017
• The Atlantic region was awarded a contract on an offshore wind farm, securing 60 days of utilisation for Skandi Neptune in Q4
• The North America region was awarded a contract for the provision of survey, ROV and vessel services in the Gulf of Mexico, securing 135 days
of vessel utilisation in Q4 2017 and Q1 2018 for Harvey Deep Sea and Skandi Achiever
• Skandi Darwin commenced its charter contract with the Asia Pacific region, and she will commence the Shell Prelude IMR contract ultimo
November
• In July, Skandi Vinland commenced the 10-year IMR contract with Husky Energy off the East Coast of Canada
• Skandi Constructor was awarded a contract by Siemens on the Galloper Offshore Wind Farm Project in the North Sea. The contract secures
utilisation for the vessel until the end of the year
• Fugro extended the time charter contract for Skandi Carla until end of October 2019
• Petrobras extended the contract for Skandi Salvador by 6 months from August 2017
• The Asia Pacific region and the Atlantic region were awarded several contracts and work under existing frame agreements, securing utilisation for
the vessels Skandi Singapore, Skandi Hercules and Skandi Neptune in Q3 and into Q4 2017
• Skandi Skansen was awarded a 90-day contract in the Mediterranean with commencement in Q4 2017
Subsea IMR Projects
Events after balance date
DOF Subsea
Subsea IMR Projects performance
Weak project performance and low vessel utilisation 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 utilisation for Harvey Deep Sea and
Skandi Achiever in Q4 2017 and Q1 2018
Weak project performance and low vessel utilisation 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 utilisation for Skandi Singapore and Skandi Hercules in Q4
2017
• Higher utilisation for Geoholm in Q4 2017
• Skandi Darwin on contract mid-October and will commence Shell
Prelude IMR contract ultimo November
DOF Subsea 14
APAC regionNorth America region
Harvey Deep Sea Skandi Achiever Skandi Chieftain Skandi Singapore GeoholmSkandi Hercules
Condensed Profit & Loss1)
DOF Subsea 151) Note: Financial statement according to IFRS. Condensed financial statement according to management reporting is included in the DOF Subsea Quarterly Financial Report
Condensed Balance Sheet1)
DOF Subsea 161) Note: Financial statement according to IFRS. Condensed financial statement according to management reporting is included in the DOF Subsea Quarterly Financial Report
Quarterly performance1)
DOF Subsea 171) Note: Figures according to management reporting, and excluding profit from sale of non-current assets
0%
5%
10%
15%
20%
25%
30%
35%
40%
-
500
1 000
1 500
2 000
2 500
Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017
EBIT
DA
mar
gin
NO
K m
illio
n
Operating income EBITDA EBITDA margin
NOK million Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017
Operating income 1 804 1 871 1 530 1 963 1 904 2 025 1 656 1 962 1 991 1 642 1 406 1 660 1 232 1 128 982 1 199 1 093
EBITDA 595 550 502 543 552 502 458 515 553 516 456 510 447 320 279 400 332
EBITDA margin 33,0% 29,4% 32,8% 27,7% 29,0% 24,8% 27,7% 26,2% 27,8% 31,4% 32,4% 30,7% 36,3% 28,4% 28,4% 33,4% 30,4%
Current assets 3 119 3 470 3 247 3 252 2 998 4 223 3 414 3 414 3 674 3 752 2 900 3 010 2 742 2 483 2 808 2 595 2 501
Non-current assets 16 330 16 340 16 012 16 151 16 215 15 796 16 726 16 578 16 447 16 818 17 652 18 206 18 514 18 043 18 087 18 428 17 926
Total assets 19 450 19 810 19 258 19 403 19 213 20 019 20 140 19 992 20 121 20 570 20 552 21 216 21 256 20 526 20 896 21 023 20 427
Current liabilities 2 808 3 167 3 470 3 741 3 607 4 505 4 139 4 577 4 492 3 650 2 991 3 022 2 645 2 478 2 444 3 010 3 051
Non-current liabilities 11 474 11 427 10 126 9 701 9 668 9 402 9 924 9 009 9 988 11 228 11 482 11 864 12 174 11 993 12 503 11 942 11 221
Equity 5 167 5 216 5 662 5 962 5 938 6 112 6 077 6 405 5 641 5 692 6 078 6 330 6 437 6 055 5 948 6 071 6 156
Total equity and liablilites 19 449 19 810 19 258 19 404 19 213 20 019 20 140 19 991 20 121 20 570 20 551 21 216 21 256 20 526 20 896 21 023 20 427
Debt maturity profile1)
DOF Subsea 18
Debt maturity profile, 2017E – 2021E
The figures reflect amortisation and balloon payments on outstanding debt
-
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
2017E 2018E 2019E 2020E 2021E Thereafter
NO
K m
illio
n
Bond Loan Bank Debt Balloons
1) Note: Figures according to management reporting and based on exchange rates as at end of Q3’17
Backlog1)
DOF Subsea 19
As at 30 September 2017, the Group’s firm contract backlog was NOK 16.3 billion
1) Note: Figures based on remaining backlog as at end of Q3’17 and exchange rates as at end of Q3’17
2) Note: Contract backlog excludes master service agreements (MSAs) within the Subsea IMR Projects segment – only confirmed POs are included in the backlog
2017 2018 2019 2020 2021 Thereafter
Options 0,1 0,7 0,8 0,5 0,8 15,2
Firm 1,0 2,5 2,5 2,2 1,9 6,2
0,0
5,0
10,0
15,0
20,0
NO
K b
illi
on
Modern high-end fleet
• Majority of the fleet delivered from 2007 and onwards
• Modern fleet with a value adjusted average fleet age of 6.2 years
• High-end vessels, capable of a wide scope of worldwide operations
DOF Subsea 20
Skandi Africa, Ship of the Year 2015
Skandi Acu, PLSV built 2016
Skandi Buzios, PLSV built 2017
1) Note: Excluding newbuilds under construction and chartered-in vessels
2) Note: Figures as at end of Q3’17
Newbuilds8 %
2007-201567 %
2000-200625 %
Year of delivery DOF Subsea fleet
-
1,0
2,0
3,0
4,0
5,0
6,0
7,0
8,0
9,0
Years
Fleet age1)
Average fleet ageValue adjusted average fleet age
Thank you!